| TO: | Honorable Dennis Bonnen, Chair, House Committee on Land & Resource Management |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3971 by Ritter (Relating to the funding of certain activities of the General Land Office pertaining to the management of coastal public land.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | ($11,974,196) |
| 2011 | ($12,781,196) |
| 2012 | ($13,592,196) |
| 2013 | ($14,349,196) |
| 2014 | ($15,283,196) |
| Fiscal Year | Probable Revenue Gain/(Loss) from Sporting Good Tax-State Parks Account No. 64 400 |
Probable Revenue Gain/(Loss) from Sporting Good Tax-Local Parks Account No. 467 401 |
Probable Revenue Gain/(Loss) from Sporting Good Tax - Conservation and Capital Acct No. 5004 403 |
Probable Savings/(Cost) from Sporting Good Tax-State Parks Account No. 64 400 |
|---|---|---|---|---|
| 2010 | ($18,182,000) | ($6,142,000) | ($247,000) | $12,596,804 |
| 2011 | ($18,780,000) | ($6,344,000) | ($254,000) | $12,596,804 |
| 2012 | ($19,380,000) | ($6,547,000) | ($262,000) | $12,596,804 |
| 2013 | ($19,922,000) | ($6,754,000) | ($270,000) | $12,596,804 |
| 2014 | ($20,632,000) | ($6,969,000) | ($279,000) | $12,596,804 |
| Fiscal Year | Probable Revenue Gain/(Loss) from Coastal Erosion Response Account |
Probable Savings/(Cost) from Coastal Erosion Response Account |
|---|---|---|
| 2010 | $24,571,000 | ($24,571,000) |
| 2011 | $25,378,000 | ($25,378,000) |
| 2012 | $26,188,000 | ($26,188,000) |
| 2013 | $27,015,000 | ($27,015,000) |
| 2014 | $27,880,000 | ($27,880,000) |
The bill would reduce the statutory maximum of SGST available to the Texas Parks and Wildlife Department (TPWD) from 94 percent to 74 percent, and would reduce the statutory maximum of SGST available for three TPWD accounts: the SGST Transfer to the State Parks Account No. 64, the SGST Transfer to the Texas Recreation and Parks Account No. 467 (the Local Parks Account), and the SGST Transfer to the Parks and Wildlife Conservation and Capital Account No. 5004 (the Capital Account). Under current law, the Comptroller cannot credit to the funds SGST in excess of amounts appropriated.
The bill would provide that the 20 percent of the allocation of sales tax revenue received from the sale of sporting goods (Sporting Goods Sales Tax - SGST) be deposited instead to the Coastal Erosion Response Account.
Under current law, 94 percent of funds from the SGST allocation, or $234.8 million of the estimated $249.7 million in SGST receipts in the Comptroller's 2010-11 Biennial Revenue Estimate are available for transfer to the three TPWD accounts noted above. Actual transfers to the three TPWD accounts are set through the General Appropriations Act.
Currently, $25.2 million of the SGST Transfer to the State Parks Account No. 64 is passed through, via an interagency contract, to the General Land Office (GLO) for Coastal Erosion projects. This estimate assumes that the $25.2 million ($12,596,804 each fiscal year) pass-through to GLO would be deducted from the SGST Transfer to the State Parks Account No. 64, and instead be deposited to the Coastal Erosion Response Account. (This amount is shown above as a savings to the SGST Transfer - State Parks Account No. 64.)
This estimate also assumes that the entire 20 percent would be deposited to the Coastal Erosion Response Account and that additional amounts (in excess of the $12,596,804 each fiscal year currently received as an interagency contract) would be used for coastal erosion control projects. The Coastal Erosion Response Account was also not exempted from funds consolidation during the Eightieth Legislature, 2007. For purposes of this analysis, it is assumed that passage of this legislation would recreate this account and it would receive 20 percent of the state sales tax revenue received from the sale of sporting goods.
The amounts included in the table above for the Coastal Erosion Response Account are based on a 20 percent allocation of the SGST allocation as identified in the Comptroller's Biennial Revenue Estimate for 2010-11.
This estimate also assumes that the amounts that would be deposited to the Coastal Erosion Response Account would be at the expense of the three TPWD accounts noted above because the transfers would not otherwise be appropriated.
| Source Agencies: | 304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 802 Parks and Wildlife Department, 808 Historical Commission
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| LBB Staff: | JOB, WK, ZS, TL, TB
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