LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 11, 2001
  
  
          TO:  Honorable Bob Hunter, Chair, House Committee on State,
               Federal & International Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB911  by Madla (Relating to the purposes and duties of
               defense base development authorities.), As Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would expand the duties of a defense base development authority
to include carrying out a base efficiency project.  A base efficiency
project is defined as a joint project between a local municipality and
the United States Department of Defense with the intended purpose of
helping bases operate more efficiently at a lower cost through the use of
improved capital asset management, and a greater reliance upon the
public or private sector for less costly base support services.
Authorities which are created to carry out base efficiency projects may
not operate a defense base that has been closed or realigned under the
Defense Base Closure and Realignment Act of 1990. The bill would take
effect September 1, 2001.
 
The Comptroller of Public Accounts contacted a representative from the
City of San Antonio who stated that the bill would have a neutral fiscal
impact upon the city.  With the Brooks City - Base Efficiency Project,
the entire Brooks Air Force Base real property would be conveyed to the
City of San Antonio.  The land and required facilities would then be
leased back by the base.  The city would be responsible for providing
sanitation, road maintenance, parks and recreation support, fire
protection, and building maintenance.  This would allow the base to take
advantage of the economies of scale achieved by the city, and would
reduce the duplication of assets and efforts.  By reducing the overall
cost of the mission to the federal government, the City of San Antonio
would have a better chance of retaining the base in operation.  The
increased load on city services would probably cause the city to incur
some up-front capital costs but it is expected these would be offset
over time with the increased customer base.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, JO, RB, DB