LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
March 10, 2013

TO:
Honorable Jim Pitts, Chair, House Committee On Appropriations
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB1336 by Keffer (Relating to funding for state and county roads affected in areas of increased energy production.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1336, As Introduced: an impact of $0 through the biennium ending August 31, 2015.



Fiscal Year Appropriation out of
Economic Stabilization Fund
599
2014 $1,400,000,000
2015 $0



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 $0
2015 $0




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0




Fiscal Year Probable Revenue Gain/(Loss) from
Economic Stabilization Fund
599 		Probable Revenue Gain/(Loss) from
New Fund - Transportation Infrastructure Fund
2014 ($1,411,241,000) $1,400,000,000
2015 ($21,315,000) $0
2016 ($28,915,000) $0
2017 ($36,958,000) $0
2018 ($45,576,000) $0

Fiscal Analysis

The bill would amend the Transportation Code to create the transportation infrastructure fund as a special fund outside the State Treasury to be administered by the Texas Department of Transportation (TxDOT), consisting of money transferred or deposited by law, the proceeds of fees or taxes imposed by law to be deposited in the fund, any other revenue that the Legislature dedicates to the fund by statute, and interest earned on fund balances.  Money in the fund could be appropriated to TxDOT only for the purposes of this subchapter, and TxDOT could be appropriated no more than one-tenth of the fund balance to administer the grant program.
 
The bill would appropriate $1,400,000,000 from the Economic Stabilization Fund to the new fund for the state fiscal year beginning September 1, 2013. 
 
The bill would require TxDOT to establish and administer a grant program to make grants for transportation infrastructure projects on state or county roads in areas of increased energy production. The bill would require TxDOT to distribute at least 50 percent of the transportation infrastructure fund for county transportation infrastructure grant projects.

This bill would take effect September 1, 2013.


Methodology

The bill would appropriate $1.4 billion from the Economic Stabilization Fund No. 599 to a new Transportation Infrastructure Fund outside the State Treasury in fiscal year 2014. Because the bill would decrease the balance of the Economic Stabilization Fund, this analysis assumes there would be a resulting decrease in interest income that would otherwise have been credited to that fund.  Amounts reflected in the table above were based on the Comptroller's 2014-15 Biennial Revenue Estimate for the purpose of this analysis.

Assuming no additional funds or appropriations would be made available for deposit to the credit of the new fund, up to $140 million or one-tenth of the initial appropriation to the fund could be used by TxDOT to administer the transportation infrastructure grant program under the provisions of the bill; at least 50 percent or $700 million would be used to provide grants for county transportation infrastructure projects; and $560 million would be available for eligible state road projects. Since the bill gives authority over the distribution of grants to TxDOT, the dates and amounts of expenditures from the Transportation Infrastructure Fund  and interest that would accrue on remaining balances each fiscal year cannot be estimated.

Based on the information provided by TxDOT, it is assumed that any costs or duties associated with implementing the provisions of the bill could be accomplished within the administrative allowance provided from the new fund as specified by the bill and within the agency's existing staffing levels.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.


Local Government Impact

The bill would require TxDOT to ensure that at least 50 percent of the Transportation Infrastructure Fund is distributed for county infrastructure grant projects in areas of increased energy production.


Source Agencies:
304 Comptroller of Public Accounts, 601 Department of Transportation
LBB Staff:
UP, KK, MW, TG