LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION Revision 1 April 20, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB650 by Hegar (Relating to management of certain metropolitan rapid transit authorities.), As Engrossed 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 five-year capital plan; and adopt and annually reevaluate a 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 to be established not later than September 1, 2016. The board would be required to adopt a comprehensive rail safety plan that would be implemented by the general manager; and to 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. Capital Metro would be authorized to issue bonds at any time for any amounts it considers necessary or appropriate for managing or funding self-insurance or for retirement or pension fund reserves for pension plans existing as of January 1, 2011. 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, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
Revision 1
April 20, 2011
Revision 1
Revision 1
TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB650 by Hegar (Relating to management of certain metropolitan rapid transit authorities.), As Engrossed
TO: Honorable Larry Phillips, Chair, House Committee on Transportation
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB650 by Hegar (Relating to management of certain metropolitan rapid transit authorities.), As Engrossed
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
SB650 by Hegar (Relating to management of certain metropolitan rapid transit authorities.), As Engrossed
SB650 by Hegar (Relating to management of certain metropolitan rapid transit authorities.), As Engrossed
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 five-year capital plan; and adopt and annually reevaluate a 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 to be established not later than September 1, 2016. The board would be required to adopt a comprehensive rail safety plan that would be implemented by the general manager; and to 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. Capital Metro would be authorized to issue bonds at any time for any amounts it considers necessary or appropriate for managing or funding self-insurance or for retirement or pension fund reserves for pension plans existing as of January 1, 2011.
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, SD
JOB, KJG, TP, SD