TO: | Honorable Warren Chisum, Chair, House Committee on Appropriations |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB1848 by Duncan (Relating to state fiscal matters.), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($80,512,000) |
2009 | ($84,652,000) |
2010 | ($88,847,000) |
2011 | ($93,294,000) |
2012 | ($97,946,000) |
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from STATE PARKS ACCT 64 |
Probable Savings/(Cost) from STATE PARKS ACCT 64 |
Probable Revenue Gain/(Loss) from LOCAL PARKS ACCOUNT 467 |
---|---|---|---|---|
2008 | ($80,512,000) | $62,763,347 | ($2,393,331) | $34,364,192 |
2009 | ($84,652,000) | $65,643,131 | ($2,393,331) | $947,932 |
2010 | ($88,847,000) | $68,691,173 | ($409,333) | $1,539,427 |
2011 | ($93,294,000) | $71,784,506 | ($289,158) | $2,166,454 |
2012 | ($97,946,000) | $75,020,438 | ($289,158) | $2,822,386 |
Fiscal Year | Probable Savings/(Cost) from LOCAL PARKS ACCOUNT 467 |
Probable Revenue Gain/(Loss) from PARKS/WILDLIFE CAP ACCT 5004 |
Probable Revenue Gain/(Loss) from Historic Site Account New GR-D Account |
Probable Revenue Gain/(Loss) from Large County and Municipality Recreation and Parks New GR-D Account |
---|---|---|---|---|
2008 | ($34,000,000) | $57,613 | $6,750,720 | $10,576,128 |
2009 | $0 | $96,529 | $6,999,120 | $10,965,288 |
2010 | $0 | $135,962 | $7,250,820 | $11,359,618 |
2011 | $0 | $177,764 | $7,517,640 | $11,777,636 |
2012 | $0 | $221,492 | $7,796,760 | $12,214,924 |
Fiscal Year | Probable Savings/(Cost) from Historic Site Account New General Revenue Dedicated Account |
Change in Number of State Employees from FY 2007 |
---|---|---|
2008 | ($2,968,000) | 28.7 |
2009 | ($4,452,000) | 43.0 |
2010 | ($4,452,000) | 49.3 |
2011 | ($4,452,000) | 49.3 |
2012 | ($4,452,000) | 49.3 |
The 2008-09 estimate of sporting goods sales tax revenue from the Comptroller's Office are as follows:
Fiscal Year 2008: $112,512,000
Fiscal Year 2009: $116,652,000
The loss to the General Revenue Fund was calculated by subtracting these estimated amounts from the current $32.0 million per year statutory allocation of SGST to TPWD. The same approach, the 2008-09 Comptroller estimate less $32.0 million, was used for fiscal years 2010 through 2012.
The 6 percent allocation of SGST proceeds for the Historic Site account is reflected in the fiscal impact table.
The combined effect of eliminating the Sporting Goods Sales Tax cap along with the new percentage allocations are reflected as revenue gains to the State Parks Account No. 64, the Texas Recreation and Local Parks Account No. 467, the new
As a base of reference, TPWD is estimated to expend $1,911,000 for site specific operating costs, and $637,000 in direct and indirect administrative costs, for a total of $2,548,000, to operate the 18 historic sites in fiscal year 2007. TPWD uses an estimated 57 full-time equivalent (FTE) positions to manage the sites. This includes 47 site-specific FTEs and 10 direct and indirect administrative FTEs.
The Texas Historical Commission has indicated that the total annual cost to administer the 18 historic sites would be approximately $7.0 million, and require 100 FTEs. Funding for the THC's historic site operations and administration would be paid out of the new Historic Site Account's 6 percent allocation from the Sporting Goods Sales Tax. However, the net cost to the state is $4,452,000 or $7.0 million less the $2.5 million per year currently spent by the TPWD for the 18 historic sites, and is reflected in the fiscal impact table. The net increase of 43 FTEs, i.e. the 100 FTEs projected by the THC less 57 FTEs currently employed by the TPWD are reflected in the fiscal impact table.
Because the transfer of the 18 historic sites would occur by January 1, 2008, the fiscal year 2008 amounts are pro-rated accordingly (i.e. two-thirds of the annual costs and FTEs for that year).
Also, the Commission has indicated that approximately $34.0 million would be necessary for one time costs, such repairs and restoration of the sites, associated with the transfer. The bill allows for unencumbered balances in the Texas Recreation and Local Parks Account Number 467 and the Texas Conservation and Capital Account Number 5004 to be used for these repairs. The balances in these two accounts as of August 31, 2007 total $39.9 million. The costs of the repairs ($34 million) is reflected in the fiscal impact table as a cost to the Texas Recreation and Local Parks Account Number 467.
The equipment and maintenance provider reviews, as well as the implementation of the State Auditors Office March 2007 audit of the TPWD, would result in additional costs to the agency. However, the agency is unable to quantify these amounts.
TPWD has indicated that the 2008-09 biennial cost to develop the 16 acres of donated land in Zavala is $4,786,661, with that amount split evenly between the two fiscal years. Ongoing operational costs for the site are estimated at $409,333 in fiscal year 2010 and $289,158 in each year thereafter. The fiscal impact table reflects these amounts as costs to State Parks Account Number 64. TPWD estimates a total of 6.33 FTEs would be required to manage the site.
Finally, TPWD projects that $130,000 per year would be generated from park entrance fees at this site starting in fiscal year 2010. This annual operating revenue has been added to the State Parks Account Number 64 revenue gain in the fiscal note table.
The bill would increase funding for local park grants overall by $11.0 million in fiscal year 2008, with increasing gains in future years.
Source Agencies: | 802 Parks and Wildlife Department, 347 Public Finance Authority, 808 Historical Commission
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LBB Staff: | JOB, SD, CT, WK, ZS, RN
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