LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 6, 2001 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB725 by Bivins (Relating to the transfer of certain state property from the Texas Department of Mental Health and Mental Retardation to Texas Panhandle Mental Health Authority.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB725, As Introduced: positive impact of $236,000 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. * ************************************************************************** This bill would convey state-owned land valued at $4,298,186 to a local community mental health center, with restrictions on use. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $118,000 * * 2003 118,000 * * 2004 118,000 * * 2005 118,000 * * 2006 118,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from Texas Capital Trust Fund * * 0001 Account/ GR-Dedicated * * 0543 * * 2002 $118,000 $(4,298,186) * * 2003 118,000 0 * * 2004 118,000 0 * * 2005 118,000 0 * * 2006 118,000 0 * *************************************************************************** Fiscal Analysis The bill would authorize the Texas Department of Mental Health and Mental Retardation to transfer certain real property to the Texas Panhandle Mental Health Authority. Methodology The savings to General Revenue are based on 3% of the year 2000 facility replacement value ($3.93 million) and represent the costs of major repair and renovations that the facility would require. The industry norm for these costs is 3-5%. It is assumed that the transfer of the real property would result in a loss of potential revenue to the Capital Trust Fund equal to the appraised value of the property ($4,298,186) . Local Government Impact No significant fiscal implication to units of local government is anticipated. The costs of facility repair and renovation to the local community center are offset by savings it realizes from not having to pay rent or debt service to acquire a facility in which to deliver services. Source Agencies: 655 TX Dept. of Mental Health & Mental Retardation, 304 Comptroller of Public Accounts, 305 General Land Office LBB Staff: JK, CL, KF, MB