LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 6, 1995



 TO:     Honorable Kenny Marchant, Chair        IN RE:  House Bill No. 1320
         Committee on Financial Institutions            By: Romo
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1320 (relating to unissued general obligation and revenue bonds
of the state) this office has determined the following:

The bill would implement the Comptroller of Public Accounts
Gaining Ground recommendation GG19 by revoking the authorization
to issue bonds that have been approved, but will not be issued,
to pay for the Superconducting Super Collider (SSC) and the state
Capitol renovation.  The authorized but unissued debt is $250
million of general obligation bonds for the SSC and $67.5 million
in revenue bonds for the Capitol renovation.   The debt reduction
is based on the Congressional decision to end funding for the SSC
and the use of state general revenue for the Capitol renovation. 
The revocation of the authority to issue the $250 million of
general obligation bonds would require the adoption of a
constitutional amendment proposed by House Joint Resolution 73.

There would be no direct savings to the state as a result of
these recommendations.   However, lowering the state's bond
authorization could eventually lead to an increase in the state's
bond rating and thereby lower borrowing costs in the future.   As
a result, the fiscal implication to the state cannot be
determined.

The bill would require the Bond Review Board to review all
authorized but unissued general obligation and revenue bond
authorization and report to the legislature each biennium
recommending whether authorization should be revoked.    




No fiscal implication to units of local government is 
anticipated.


Source:   Texas Public Finance Authority, Bond Review Board,
Comptroller of Public Accounts
          LBB Staff: JK, LP, RR