Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB769 by Gervin-Hawkins (Relating to a grant program for neighborhood organization pedestrian infrastructure administered by the Texas Department of Housing and Community Affairs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB769, As Introduced: a negative impact of ($357,138) through the biennium ending August 31, 2027. This amount represents the cost estimate of administering the grant program only. Because the amount of any Legislative appropriations that would comprise the grant fund are unknown, the total fiscal impact of the bill cannot be determined.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($181,319)
2027
($175,819)
2028
($201,402)
2029
($200,714)
2030
($200,714)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain from New General Revenue Dedicated
Probable Savings/(Cost) from New General Revenue Dedicated
Change in Number of State Employees from FY 2025
2026
($181,319)
$181,319
($181,319)
2.0
2027
($175,819)
$175,819
($175,819)
2.0
2028
($201,402)
$201,402
($201,402)
2.3
2029
($200,714)
$200,714
($200,714)
2.3
2030
($200,714)
$200,714
($200,714)
2.3
Fiscal Analysis
The bill would amend Chapter 2306 of Government Code to establish the Pedestrian Infrastructure Program through which the Texas Department of Housing and Community Affairs (TDHCA) would provide grants or forgivable loans to neighborhood organizations for the construction of pedestrian infrastructure. The bill would create a new General Revenue-Dedicated fund in the treasury to which could be deposited: appropriations from the Legislature; gifts, grants and other donations; and interest earned on investment of money in the grant fund.
Note: 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 in, with, or outside 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.
Methodology
Based on analysis by TDHCA, the agency would require 2.0 additional FTEs beginning in fiscal year 2026 to administer the grant program, including developing rules, training materials, and disbursing funds. The agency would require 1.0 additional Program Specialist III FTE, with an annual salary of $62,136 and benefits of $18,591, and 1.0 additional Program Specialist V FTE, with an annual salary of $70,662 and benefits of $21,130. In addition, the agency would require an additional 0.25 Auditor III FTE beginning in fiscal year 2028 to provide contract monitoring. The Auditor III would have an annual salary of $18,844 and benefits of $5,638. The additional FTEs would result in miscellaneous operating expenses of $3,300 in each of fiscal year 2026 and 2027 and of $3,713 each subsequent fiscal year.
Technology
According to TDHCA, the agency would face one-time costs to provide hardware and software for the additional FTEs of $5,500 in fiscal year 2026 and $688 in fiscal year 2028.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs