LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 28, 1995



 TO:     Honorable John Montford, Chair         IN RE:  House Joint
         Committee on Finance                   Resolution
         Senate                                                No. 50, as
         Austin, Texas                          engrossed
                                                        By: Hernandez









FROM: John Keel, Director

In response to your request for a Fiscal Note on House Joint
Resolution No. 50 (Proposing a constitutional amendment providing
for the issuance of general obligation bonds by the Texas Higher
Education Coordinating Board.) this office has determined the
following:

The proposed constitutional amendment would provide additional
bonding authority to the Texas Higher Education Coordinating
Board for student loans granted through the Hinson-Hazelwood
College Student Loan Program.  Total issuance could not exceed
$200 million.  The sale of new bonds is needed to issue student
loans for the 1996-97 academic year.

The Hinson-Hazelwood College Student Loan Program is designed to
be self supporting.  Program revenues, including loan repayments
and investment earnings should be sufficient to pay debt service
on bonds authorized by HJR50 and operation of the program. 
Historically, the Hinson-Hazelwood College Student Loan Program
has never drawn on general revenue.  There is no anticipation
that program conditions will change resulting in a draw on the
general revenue fund.  However, should the program revenues be
insufficient, the bonds carry a general obligation pledge, or
full faith and credit of the state which would require a draw on
general revenue.

Estimated debt service on the bonds is:    




FY 1996 - $3.62 million
FY 1997 - $10.86 million
FY 1998 - $14.48 million
 FY 1999 - $14.48 million
FY 2000 - $16.54 million
level debt service ($16.54 million for year 6 through year 25)

No additional direct or indirect costs to the state are
anticipated as a result of the bond issuance other than the cost
of publication. 

The cost to the State for publication of the resolution is
$90,000.
    

    







Source:   LBB Staff: JK, DF