LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 4, 1995



 TO:     Honorable Irma Rangel, Chair           IN RE:  House BillNo. 2747,
         Committee on Higher Education                        as amended
         House of Representatives                       By: Holzheauser
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2747 (Relating to the issuance of tuition revenue bonds for the
University of Houston-Victoria) this office has determined the
following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would authorize the University of Houston System on
behalf of the University of Houston - Victoria to issue up to $9
million of revenue bonds for the acquisition, purchase,
construction, renovation, and equipping of buildings, facilities,
roads, land, and infrastructure.  These bonds would be payable
from pledged revenues, including student tuition.  The bill would
authorize interest and principal on the bonds and maintenance and
operations of the new facilities to be paid from appropriations
to UH-Victoria for lease of facilities.

The bonds would not be general obligations of the State; however,
the issuance of these bonds could have fiscal implications for
the State.  Although tuition income is pledged against the bonds,
historically the Legislature has appropriated general revenue to
reimburse institutions of higher education for tuition used to
pay debt service.  It is assumed that the Legislature would
continue this policy.  

It is also assumed that the amount of bonds issued would be
adjusted from the $9 million authorized so that the annual cost    




of debt service payments and additional physical plant operating 
costs would not exceed the current appropriation level for lease
of facilities at UH - Victoria, thus making the bill revenue
neutral for the State.


No fiscal implication to the State or units of local government
is anticipated.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, LS, WRR