LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 7, 2001 TO: Honorable Clyde Alexander, Chair, House Committee on Transportation FROM: John Keel, Director, Legislative Budget Board IN RE: SJR16 by Shapiro (Proposing a constitutional amendment creating the Texas Mobility Fund and authorizing grants and loans of money and issuance of obligations for financing the construction, reconstruction, acquisition, operation, and expansion of state highways, turnpikes, toll roads, toll bridges, and other mobility projects.), Committee Report 2nd House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated, * * other than the cost of publication. * * * * The cost to the state for publication of the resolution is $80,000. * ************************************************************************** The resolution would amend the Texas Constitution to create the Texas Mobility Fund as a revolving fund in the State Treasury for specific purposes. The resolution would authorize the Legislature to dedicate specific sources, portions, or amounts of revenue, including taxes, and other money of the state to the fund that are not otherwise dedicated by the constitution. The resolution would prohibit the Legislature from dedicating money collected from motor vehicle registration fees and taxes on motor fuels and lubricants dedicated under Section 7-a, Article VIII, of the state constitution, but would allow the Legislature to dedicate money received from other sources that are allocated to the same costs as those dedicated taxes and fees. The resolution would authorize the Texas Department of Transportation (TxDOT) to administer the fund. The resolution would require the deposit of dedicated revenues into the fund upon receipt by the state and would appropriate the funds for use under law without further appropriation from the state. The resolution would also establish certain procedures and requirements for the reduction or repeal of dedicated funds pledged to the payment of outstanding obligations or related credit agreements. The resolution would allow the Legislature to enact law authorizing the Transportation Commission to guarantee the payment of any obligations and credit agreements issued and executed by the commission by pledging the full faith and credit of the state to that payment if dedicated revenue is insufficient for that purpose. The resolution would allow the TxDOT to spend grant or loan money from any available source for the acquisition, construction, maintenance, or operation of turnpikes, toll roads, and toll bridges and would remove the requirement that any expenditures from the State Highway Fund be repaid to the fund from tolls or other turnpike revenues. Costs related to the enactment of this resolution are provided in the cost estimate for the enabling legislation. The proposed constitutional amendment would take effect if approved by voters on November 6, 2001. Local Government Impact The proposed amendment 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: LBB Staff: JK, JO, MW