LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
April 28, 2013

TO:
Honorable Craig Estes, Chair, Senate Committee on Agriculture, Rural Affairs & Homeland Security
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB1554 by Lucio (Relating to the establishment of a matching grant program for community development in certain municipalities and counties.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB1554, Committee Report 1st House, Substituted: a negative impact of ($5,143,027) through the biennium ending August 31, 2015.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 ($2,573,696)
2015 ($2,569,331)
2016 ($2,569,331)
2017 ($2,569,331)
2018 ($2,569,331)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1 		Change in Number of State Employees from FY 2013
2014 ($2,573,696) 1.0
2015 ($2,569,331) 1.0
2016 ($2,569,331) 1.0
2017 ($2,569,331) 1.0
2018 ($2,569,331) 1.0

Fiscal Analysis

The bill would amend the Agriculture Code requiring the Texas Department of Agriculture (TDA) to create a Community Development Matching Grant Program to foster community and economic development in certain municipalities and counties. Under provisions of the bill, preference when awarding matching grants would be given to multi-jurisdiction applications submitted by two or more eligible municipalities or counties. The bill would require TDA to adopt rules and establish criteria for matching grant requirements.

Methodology

This estimate assumes TDA would administer a matching grant program of $2.5 million per fiscal year from the General Revenue Fund to implement the provisions of the bill. The average grant awarded through the program would be $250,000 and the program would fund no more than 10 grants per fiscal year. According to the agency, TDA would seek stakeholder input in creating the program. The Community Development Matching Grant Program would use a combination of collaborative planning and capacity building grants as well as implementation grants that could fund public infrastructure to both support communities and augment economic development objectives in certain municipalities and counties.

Based on information provided by TDA, the agency would require administrative costs, including 1.0 FTE, of $73,696 in fiscal year 2014 and $69,331 each subsequent year. Administrative costs consist of annual salary and benefits costs of $68,841 per year and other operating expenses of $490 per year. This estimate assumes additional first year start up costs of $4,365.


Local Government Impact

Local entities accepted for grant funding would receive new funds but would also be required to provide matching funds. Since the grant application process is discretionary, it is assumed a local entity would apply only if sufficient matching funds were available.


Source Agencies:
551 Department of Agriculture
LBB Staff:
UP, SZ, ZS, JP, KKR