LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 22, 2013 TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1017 by Paxton (Relating to the funding for and administration of travel and information operations by the Texas Department of Transportation.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB1017, As Engrossed: an impact of $0 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.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 22, 2013
TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1017 by Paxton (Relating to the funding for and administration of travel and information operations by the Texas Department of Transportation.), As Engrossed
TO: Honorable Larry Phillips, Chair, House Committee on Transportation
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1017 by Paxton (Relating to the funding for and administration of travel and information operations by the Texas Department of Transportation.), As Engrossed
Honorable Larry Phillips, Chair, House Committee on Transportation
Honorable Larry Phillips, Chair, House Committee on Transportation
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1017 by Paxton (Relating to the funding for and administration of travel and information operations by the Texas Department of Transportation.), As Engrossed
SB1017 by Paxton (Relating to the funding for and administration of travel and information operations by the Texas Department of Transportation.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB1017, As Engrossed: an impact of $0 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.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1017, As Engrossed: an impact of $0 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.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromState Highway Fund6 Change in Number of State Employees from FY 2013 2014 $0 0.0 2015 $3,500,000 (61.0) 2016 $3,500,000 (61.0) 2017 $3,500,000 (61.0) 2018 $3,500,000 (61.0) The table above assumes operations of 12 travel information centers would be transferred to a local government, nonprofit, or private entity. Fiscal Analysis The bill would implement recommendations in the report "Evaluate the Benefits of and Limit the Use of State Highway Funds for Travel Information Centers" in the Legislative Budget Board's Government Effectiveness and Efficiency Report submitted to the Eighty-third Texas Legislature, 2013. The bill would authorize the Texas Department of Transportation (TxDOT) to enter into an agreement with a local government or issue a request for proposals to private or nonprofit entities for the operation of a travel information center. The bill would authorize TxDOT to set rates for commercial advertising space and other services available at a travel information center at a level that generates receipts to cover the cost of travel information center operations. This revenue and donations would be deposited to a separate account in the State Highway Fund dedicated for use in TxDOT travel and information operations. Methodology This analysis assumes TxDOT would continue to spend State Highway Funds to maintain the 12 travel information centers it currently operates. According to TxDOT, operations includes items such as salaries, janitorial services, consumable supplies, in-state travel, and uniforms. This analysis assumes it would require one fiscal year to complete the transfer of travel information center operations. TxDOT reports transferring operations for all 12 travel information centers to a local government, private, or nonprofit entity would save $3.5 million per fiscal year in State Highway Funds. If TxDOT continues to operate any travel information centers rather than transfer their operations, the amount of savings and reduction in full-time equivalents would decrease. The amount of State Highway Fund revenue that would be generated and authorized for use in funding travel information center operations as the result of selling commercial advertising space, setting rates for other services, or from donations cannot be determined at this time. The amount of revenue would depend upon the retail activities at the centers, the structure of any programs charging for services, and changes made to current operations.
Fiscal Year Probable Savings/(Cost) fromState Highway Fund6 Change in Number of State Employees from FY 2013 2014 $0 0.0 2015 $3,500,000 (61.0) 2016 $3,500,000 (61.0) 2017 $3,500,000 (61.0) 2018 $3,500,000 (61.0)
2014 $0 0.0
2015 $3,500,000 (61.0)
2016 $3,500,000 (61.0)
2017 $3,500,000 (61.0)
2018 $3,500,000 (61.0)
The table above assumes operations of 12 travel information centers would be transferred to a local government, nonprofit, or private entity.
Fiscal Analysis
The bill would implement recommendations in the report "Evaluate the Benefits of and Limit the Use of State Highway Funds for Travel Information Centers" in the Legislative Budget Board's Government Effectiveness and Efficiency Report submitted to the Eighty-third Texas Legislature, 2013. The bill would authorize the Texas Department of Transportation (TxDOT) to enter into an agreement with a local government or issue a request for proposals to private or nonprofit entities for the operation of a travel information center. The bill would authorize TxDOT to set rates for commercial advertising space and other services available at a travel information center at a level that generates receipts to cover the cost of travel information center operations. This revenue and donations would be deposited to a separate account in the State Highway Fund dedicated for use in TxDOT travel and information operations.
The bill would implement recommendations in the report "Evaluate the Benefits of and Limit the Use of State Highway Funds for Travel Information Centers" in the Legislative Budget Board's Government Effectiveness and Efficiency Report submitted to the Eighty-third Texas Legislature, 2013.
The bill would authorize the Texas Department of Transportation (TxDOT) to enter into an agreement with a local government or issue a request for proposals to private or nonprofit entities for the operation of a travel information center. The bill would authorize TxDOT to set rates for commercial advertising space and other services available at a travel information center at a level that generates receipts to cover the cost of travel information center operations. This revenue and donations would be deposited to a separate account in the State Highway Fund dedicated for use in TxDOT travel and information operations.
Methodology
This analysis assumes TxDOT would continue to spend State Highway Funds to maintain the 12 travel information centers it currently operates. According to TxDOT, operations includes items such as salaries, janitorial services, consumable supplies, in-state travel, and uniforms. This analysis assumes it would require one fiscal year to complete the transfer of travel information center operations. TxDOT reports transferring operations for all 12 travel information centers to a local government, private, or nonprofit entity would save $3.5 million per fiscal year in State Highway Funds. If TxDOT continues to operate any travel information centers rather than transfer their operations, the amount of savings and reduction in full-time equivalents would decrease. The amount of State Highway Fund revenue that would be generated and authorized for use in funding travel information center operations as the result of selling commercial advertising space, setting rates for other services, or from donations cannot be determined at this time. The amount of revenue would depend upon the retail activities at the centers, the structure of any programs charging for services, and changes made to current operations.
This analysis assumes TxDOT would continue to spend State Highway Funds to maintain the 12 travel information centers it currently operates. According to TxDOT, operations includes items such as salaries, janitorial services, consumable supplies, in-state travel, and uniforms. This analysis assumes it would require one fiscal year to complete the transfer of travel information center operations. TxDOT reports transferring operations for all 12 travel information centers to a local government, private, or nonprofit entity would save $3.5 million per fiscal year in State Highway Funds. If TxDOT continues to operate any travel information centers rather than transfer their operations, the amount of savings and reduction in full-time equivalents would decrease.
The amount of State Highway Fund revenue that would be generated and authorized for use in funding travel information center operations as the result of selling commercial advertising space, setting rates for other services, or from donations cannot be determined at this time. The amount of revenue would depend upon the retail activities at the centers, the structure of any programs charging for services, and changes made to current operations.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 601 Department of Transportation
601 Department of Transportation
LBB Staff: UP, AG, JI, MMe
UP, AG, JI, MMe