LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

April 6, 2005

TO:	Honorable Anna Mowery, Chair, House Committee on Land & Resource Management
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB1740 by Seaman (Relating to authorizing the City of Aransas Pass to acquire certain state property.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1740, As Introduced: an impact of $0 through the biennium ending August 31, 2007.

General Revenue-Related Funds, Five-Year Impact:

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

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from PERMANENT SCHOOL FUND 44	Probable Revenue Gain from PERMANENT SCHOOL FUND 44
2006	($4,064,389)	$578,000
2007	$0	$0
2008	$0	$0
2009	$0	$0
2010	$0	$0

Fiscal Analysis

The bill proposes to exchange certain Permanent School Fund (PSF) land with City of Aransas Pass land. The PSF would still retain the mineral rights to the affected property. The net loss to the PSF due to this transaction would be approximately $3.5 million.

Methodology

The General Land Office (GLO) estimated the value of the PSF land to be exchanged to be approximately $4,064,389 and the value of the City of Aransas Pass land to be $578,000 in 2000.

Local Government Impact

The City of Aransas Pass would experience a positive fiscal impact that is equivalent to the value of the land it would receive from the state minus the value of the land the city would provide to the state in exchange.

Source Agencies:

305 General Land Office and Veterans' Land Board

LBB Staff:

JOB, WK, ZS, JF, DLBa