LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 14, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1002 by Zaffirini (Relating to the transfer of certain
state property from the Texas Department of Mental Health
and Mental Retardation to the Border Region MHMR
Community Center.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1002, As Introduced: positive impact of $200,000 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $100,000 *
* 2003 100,000 *
* 2004 100,000 *
* 2005 100,000 *
* 2006 100,000 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Texas Capital Trust Fund *
* 0001 Account/ GR-Dedicated *
* 0543 *
* 2002 $100,000 $(5,028,337) *
* 2003 100,000 0 *
* 2004 100,000 0 *
* 2005 100,000 0 *
* 2006 100,000 0 *
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Fiscal Analysis
The bill would authorize the Department of Mental Health and Mental
Retardation (MHMR) to convey the land, buildings, and site improvements
of the former Laredo State Center to the Border Region MHMR Community
Center in Webb County. The conveyance would be made with restrictions
and a reversionary clause such that the facilities would continue to be
used to provide mental health and mental retardation services. Several
of the buildings on the site were included in a donation to MHMR by the
U.S. Department of Health and Human Services in 1981. The donation was
made subject to deed restrictions and reversionary clauses that require
it to be used to provide health services. An October 2000 appraisal by
the General Land Office showed the site and improvements to be valued at
$5,028,337.
The conveyance of this property could create a savings to General Revenue
of $100,000 per year, due to the state not having to provide funds for
major repair and renovation. The bill could also cause a loss of
potential General Revenue, due to the fact that if the property were
sold (within the guidelines of the federal deed restrictions, namely, to
an entity providing health services) rather than conveyed, the state
would earn the value of the property and improvements totaling
$5,028,337.
Methodology
The savings to General Revenue are estimated at $100,000 per year. This
cost is 3% of the Year 2000 facility replacement value ($3.4 million).
The potential cost to General Revenue is the appraisal value of the
property and improvements, totaling $5,028,337.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 655 TX Dept. of Mental Health & Mental Retardation,
305 General Land Office, 304 Comptroller of
Public Accounts
LBB Staff: JK, HD, MB