LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 7, 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
               and Mental Retardation.), Committee Report 1st House,
               Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB725, Committee Report 1st House, Substituted:  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 and Mental Retardation.
  
  
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