TO: | Honorable Mark Homer, Chair, House Committee on Culture, Recreation & Tourism |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2242 by Leibowitz (Relating to the abolition of the Texas cultural endowment fund.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Savings/(Cost) from Arts Operating Account 334 |
Probable Revenue Gain from Arts Operating Account 334 |
---|---|---|
2010 | ($378,717) | $7,574,332 |
2011 | ($378,717) | $0 |
2012 | ($378,717) | $0 |
2013 | ($378,717) | $0 |
2014 | ($378,717) | $0 |
The bill would result in a one-time gain in General Revenue-Dedicated Funds of $7,574,332 to the Texas Commission on the Arts’ operating account (#334). The amount available for transfer differs from the LBB Government Effectiveness and Efficiency Report due to losses sustained by the fund since the report's publication. This analysis assumes the Cultural Endowment Fund's value as of January 31, 2009 and that no further changes would be made with regard to the fund’s fair market value. Because the fund would be abolished on December 1, 2009, the amount available for transfer would have to be adjusted.
This analysis also assumes none of the private donations would need to be returned to private donors because the fund’s balance would be transferred to the agency’s operating account to be used to support the agency’s operations. However, if upon review of donor restrictions, the agency finds it must return some portion of the estimated $1,839,807 in private donations to the fund, the amount available for transfer would be reduced. The agency indicates there would be no cost associated with review of donations to determine whether they are available for transfer.
The bill would result in a loss of General Revenue Dedicated-Funds from future interest and income earned on the Cultural Endowment Fund that the agency is required by statute to transfer to its operating account annually. This amount is estimated to be $378,717 per year, based on the fund’s current value and an expected rate of return of 5 percent per year.
Source Agencies: | 813 Commission on the Arts
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LBB Staff: | JOB, WK, JI, LL
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