| TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB2425 by McCall (Relating to state and certain local fiscal matters; making an appropriation.), As Passed 2nd House |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $815,717,000 |
| 2005 | $49,667,000 |
| 2006 | $64,409,000 |
| 2007 | $76,005,000 |
| 2008 | $87,699,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from AVAILABLE SCHOOL FUND 2 |
Probable Revenue Gain/(Loss) from FOUNDATION SCHOOL FUND 193 |
|---|---|---|---|---|
| 2004 | $16,140,000 | $794,068,000 | $2,292,000 | $3,217,000 |
| 2005 | $56,971,000 | ($18,504,000) | $3,000,000 | $8,200,000 |
| 2006 | $73,705,000 | ($22,406,000) | $3,360,000 | $9,750,000 |
| 2007 | $87,538,000 | ($26,296,000) | $3,763,000 | $11,000,000 |
| 2008 | $101,373,000 | ($30,139,000) | $4,215,000 | $12,250,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) from STATE HIGHWAY FUND 6 |
Probable Savings/(Cost) from STATE HIGHWAY FUND 6 |
Probable Revenue Gain/(Loss) from Economic Stabilization Fund 599 |
Probable (Cost) from Other Funds |
|---|---|---|---|---|
| 2004 | $6,876,000 | ($249,000) | $0 | ($201,000) |
| 2005 | $9,000,000 | ($264,000) | $5,132,000 | ($214,000) |
| 2006 | $10,080,000 | ($279,000) | $18,647,000 | ($226,000) |
| 2007 | $11,289,000 | ($296,000) | $22,555,000 | ($240,000) |
| 2008 | $12,645,000 | ($314,000) | $26,333,000 | ($254,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from Counties and Special District |
Probable Revenue Gain/(Loss) from School Districts |
|---|---|---|---|---|
| 2004 | $1,075,000 | $387,000 | $134,000 | ($800,000,000) |
| 2005 | $1,816,000 | $654,000 | $227,000 | $0 |
| 2006 | $2,200,000 | $793,000 | $275,000 | $0 |
| 2007 | $2,215,000 | $798,000 | $277,000 | $0 |
| 2008 | $2,231,000 | $804,000 | $279,000 | $0 |
The bill would amend various provisions of current law relating to state fiscal matters.
Revenue gains and losses result from the following:
Gains from natural gas tax provisions related to high-cost gas, the treatment of cash sales and marketing costs;
Gains from motor fuels tax treatment of power take-off equipment;
Gains from tax refund changes;
Gains from streamlined sales tax project simplification;
Gains from other sales tax enforcement provisions; and
Gains from treatment of the insurance tax liability of unauthorized insurers.
Costs and savings result from the following:
Savings from a provision related to interest paid under the prompt payment law;
Savings from delaying the final payment to school districts each fiscal year;
Costs from a provision related to vacation carry-forward for state employees; and
Costs from an increase in the transfer to the Economic Stabilization Fund offsetting a portion of the revenue gain from provisions relating to natural gas tax.
In addition to the above, the bill would also do the following:
The bill would repeal the statutory cap on borrowing related to temporary cash flow shortages in the general revenue fund. Currently the limit is twenty-five percent of revenues credited to the general revenue fund for the fiscal year. The bill would allow the Cash Management Committee to set the limit.
The bill would authorize the Comptroller to borrow certain funds managed by or in the custody of the Comptroller, including funds held outside the state treasury. The borrowing would be done in order to prevent temporary cash flow deficiencies in the general revenue fund. The bill would appropriate to the Comptroller from the general revenue fund amounts necessary to return the transferred cash and maintain the equity of funds from which transfers are made.
The bill would allow the Prepaid Higher Education Tuition Board, on request of the Comptroller, to suspend new enrollment in the Prepaid Higher Education Tuition Program to ensure actuarial soundness of the program. The bill would require a university to accept as payment in full for tuition and required fees the lesser of the amount of tuition and required fees charged by the institution or an amount equal to the weighted average amount of tuition and required fees of all public senior colleges and universities.
The bill would exempt certain pharmaceutical biotechnology cleanroom equipment from the sales tax.
The bill would provide insurance tax credits for certified capital companies, resulting in an aggregate revenue loss of $200,000,000 in general revenue related funds over the period 2009-2012.
The estimates were provided by the Comptroller of Public Accounts.
The savings to general revenue from delaying the final payment to school districts each fiscal year is $800.0 million in fiscal 2004.
The Economic Stabilization Fund estimate includes interest gains.
| Source Agencies: | 304 Comptroller of Public Accounts, 212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 327 Employees Retirement System, 696 Department of Criminal Justice, 701 Central Education Agency, 781 Higher Education Coordinating Board
|
| LBB Staff: | JK, JO, SD, WP, RS
|