LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 15, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3755 by Cook (Relating to management of certain metropolitan rapid transit authorities.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Transportation Code to implement recommendations from the Sunset Commission for the Capital Metropolitan Transportation Authority (Capital Metro). The bill would require the Capital Metro board to annually adopt a balanced budget that includes operating and capital spending; develop a five-year capital plan; and adopt and annually reevaluate a five-year strategic plan. The bill also would require the board to maintain a reserve equal to at least two months of operating expenses at the beginning of the fiscal year. The board would be required to employ a rail director; maintain a comprehensive rail safety plan; and regularly report on rail system safety to the Texas Department of Transportation. Capital Metro would be required to competitively bid and purchase all transit services not directly provided by its own employees. Local Government Impact According to the Sunset Commission, the only section of the bill expected to have a significant fiscal impact is the requirement of competitive bidding. Based on estimates, Capital Metro could experience a net savings of $11,800,000 in Fiscal Year (FY) 2013; $16,200,000 in FY 201415; and $22,200,000 in FY 2016. Capital Metro would need to add three full-time employees for FY 2012 and seven full-time employees for FY 201316. Source Agencies:116 Sunset Advisory Commission LBB Staff: JOB, KJG, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 15, 2011
TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3755 by Cook (Relating to management of certain metropolitan rapid transit authorities.), As Introduced
TO: Honorable Larry Phillips, Chair, House Committee on Transportation
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB3755 by Cook (Relating to management of certain metropolitan rapid transit authorities.), As Introduced
Honorable Larry Phillips, Chair, House Committee on Transportation
Honorable Larry Phillips, Chair, House Committee on Transportation
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB3755 by Cook (Relating to management of certain metropolitan rapid transit authorities.), As Introduced
HB3755 by Cook (Relating to management of certain metropolitan rapid transit authorities.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Transportation Code to implement recommendations from the Sunset Commission for the Capital Metropolitan Transportation Authority (Capital Metro). The bill would require the Capital Metro board to annually adopt a balanced budget that includes operating and capital spending; develop a five-year capital plan; and adopt and annually reevaluate a five-year strategic plan. The bill also would require the board to maintain a reserve equal to at least two months of operating expenses at the beginning of the fiscal year. The board would be required to employ a rail director; maintain a comprehensive rail safety plan; and regularly report on rail system safety to the Texas Department of Transportation. Capital Metro would be required to competitively bid and purchase all transit services not directly provided by its own employees.
The bill would amend the Transportation Code to implement recommendations from the Sunset Commission for the Capital Metropolitan Transportation Authority (Capital Metro). The bill would require the Capital Metro board to annually adopt a balanced budget that includes operating and capital spending; develop a five-year capital plan; and adopt and annually reevaluate a five-year strategic plan.
The bill also would require the board to maintain a reserve equal to at least two months of operating expenses at the beginning of the fiscal year. The board would be required to employ a rail director; maintain a comprehensive rail safety plan; and regularly report on rail system safety to the Texas Department of Transportation. Capital Metro would be required to competitively bid and purchase all transit services not directly provided by its own employees.
Local Government Impact
According to the Sunset Commission, the only section of the bill expected to have a significant fiscal impact is the requirement of competitive bidding. Based on estimates, Capital Metro could experience a net savings of $11,800,000 in Fiscal Year (FY) 2013; $16,200,000 in FY 201415; and $22,200,000 in FY 2016. Capital Metro would need to add three full-time employees for FY 2012 and seven full-time employees for FY 201316.
Source Agencies: 116 Sunset Advisory Commission
116 Sunset Advisory Commission
LBB Staff: JOB, KJG, TP
JOB, KJG, TP