LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 13, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB342 by Shapiro (Relating to the participation of the
Texas Department of Transportation in the acquisition,
construction, maintenance, and operation of toll
facilities.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB342, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* State Highway Fund *
* 0006 *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 (7,250,000) *
* 2006 (8,750,000) *
*****************************************************
Fiscal Analysis
The bill would amend the Transportation Code to allow the Texas
Department of Transportation (TxDOT) to spend money from any available
source to participate in the cost of the acquisition, construction,
maintenance, or operation of a public or private toll facility on terms
and conditions established by the commission. The bill would retain the
obligation that funds spent by TxDOT for a private entity's toll facility
costs be repaid and credited to funds from which expenditures were made.
The bill would make repayment for funds spent by TxDOT on public toll
facilities permissible (currently repayment is required) and would also
allow TxDOT to transfer State Highway Fund No. 006 (Fund 6) funds to the
Texas Turnpike Authority Revolving Fund without a repayment obligation to
Fund 6. The bill would allow TxDOT to participate in the cost of the
acquisition, construction, maintenance, or operation of a toll facility
by the Texas Turnpike Authority (TTA) and would require the TTA to make
repayments from toll revenue or other sources on terms established by the
commission. The bill would also require that all repayments received be
credited to funds from which expenditures were made and that any bond or
other debt obligation issued by a public or private entity for financing
a toll facility in which TxDOT participates is an obligation of the
issuing entity and not of the State.
The bill would take effect on the date on which the constitutional
amendment proposed by H.J.R. 55, 77th Legislature, Regular Session,
2001, authorizing aid for turnpikes, toll roads, and toll bridges, takes
effect. If the amendment is not approved by the voters, the bill would
not take effect. The proposed amendment would be submitted to voters
during the election to be held November 6, 2001.
Methodology
It is assumed that all Fund 6 funds provided for toll projects would be
absolved of the repayment obligation required under current law. TxDOT
currently estimates that $790 million in Fund 6 funds would be utilized
to participate in toll projects. It is assumed that repayments for any
or all of these funds, in accordance with current law, would not occur
until after fiscal year 2006. It is also assumed that any current
outstanding loan made from Fund 6 funds for toll projects would also be
absolved of the repayment obligation required under current law. TxDOT
currently anticipates that $16 million in loan repayments would be
received from fiscal years 2005 through 2006 and that additional
payments would continue through fiscal year 2030.
Local Government Impact
The bill would allow TxDOT to provide funding that would significantly
offset local government costs with the State's participation in the
construction of toll facilities and the absence of a repayment
obligation. Funding provided through grants would have a significant
positive impact on local entities issuing bonds for construction,
whereas funding through loans would not.
Source Agencies: 454 Texas Department of Insurance, 601 Texas
Department of Transportation, 304 Comptroller of
Public Accounts
LBB Staff: JK, RB, JO, RT, MW