LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATURE 3rd CALLED SESSION - 2006
 
May 12, 2006

TO:
Honorable Steve Ogden, Chair, Senate Committee on Finance
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
SB23 by Williams (Relating to the costs of damages to Lamar University and its related institutions caused by Hurricane Rita; making an appropriation.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB23, As Introduced: a negative impact of ($33,500,000) through the biennium ending August 31, 2007.



Fiscal Year Appropriation out of
GENERAL REVENUE FUND
1
2006 $33,500,000
2007 $0



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($33,500,000)
2007 $0




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($33,500,000)
2007 $0
2008 $0
2009 $0
2010 $0




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
2006 ($33,500,000)
2007 $0
2008 $0
2009 $0
2010 $0

Fiscal Analysis

The bill would appropriate $33,500,000 to the Texas State System Office for the purpose of paying or reimbursing costs associated with damages caused by Hurricane Rita.

In January 2006, the State Auditor (SAO) published a review of the financial impact of Hurricane Rita on Lamar University and Two-Year Colleges. The SAO concluded that the total cost to the schools was approximately $43 million. Of this $43 million, $37 million was disaster costs and $6 million was revenue loss. The SAO estimated that the Federal Emergency Management Agency (FEMA) would reimburse the school $30.2 million for the disaster costs. FEMA would not reimburse the schools for revenue loss. To date, FEMA has reimbursed the impacted schools approximately $13 million.

The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect on 91st day after the last day of the legislative session.


Methodology

This analysis assumes the General Revenue appropriation of $33,500,000 to the Texas State System Office would occur in FY 2006.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
758 Board of Regents, Texas State University System Central Office
LBB Staff:
JOB, EB, SD, MS, GO