TO: | Honorable Steve Ogden, Chair, Senate Committee on Infrastructure Development and Security |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB978 by Wentworth (Relating to the automation of the compulsory motor vehicle inspection system.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Revenue Gain fromNew General Revenue Dedicated - AUTOMATED INSPECTION ACCOUNT | Probable Revenue (Loss) fromNew General Revenue Dedicated - AUTOMATED INSPECTION ACCOUNT |
---|---|---|
2004 | $18,725,273 | ($18,718,728) |
2005 | $19,193,405 | ($18,809,537) |
2006 | $19,673,240 | ($19,515,854) |
2007 | $20,165,071 | ($20,165,071) |
2008 | $12,401,519 | ($12,401,519) |
In fiscal year 2002, the Department of Public Safety sold 14,189,172 inspection certificates. Based upon a projected growth rate of three percent in fiscal year 2003 and 2.5 percent each year thereafter, the additional $1.25 per certificate authorized by the bill would generate $18,725,273 in fiscal year 2004, $19,193,405 in fiscal year 2005, $19,673,240 in fiscal year 2006, and $20,165,071 in fiscal year 2007. Beginning in fiscal year 2008, the bill would reduce the automation fee to $0.75 per certificate, resulting in generated revenue of $12,401,519.
DPS estimates that start-up costs including hardware, software, and programming will be $1,341,675 in fiscal year 2004 and a cost of $0.05 per record each year thereafter for database, hardware, and software maintenance. DPS anticipates contracting with a vendor to transmit and capture the data for the automated system at a cost of approximately $1.16 per certificate or $16,870,926 in fiscal year 2004. Vendor costs will escalate in subsequent years to approximately $1.20 per certificate, or $19,358,468, by fiscal year 2007. Beginning in fiscal year 2008, the bill would reduce the automation fee to $0.70 per certificate.
Source Agencies: | 304 Comptroller of Public Accounts, 405 Department of Public Safety
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LBB Staff: | JK, RR, VDS, AR
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