LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 7, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 2413
          Committee on Higher Education                              By: Jones, Delwin
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2413 ( Relating 
to certain bonds and notes issued by the board of regents of 
Texas Tech University.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2413-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
Similar annual fiscal implications This bill would authorize 
the Board of Regents of Texas Tech University to combine Higher 
Education Fund bond issues for Texas Tech University and Texas 
Tech Health Sciences Center.  Currently, the two institutions 
issue bonds separately.  Since the debt service and related 
costs would be paid from Higher Education Fund allocations defined 
by statute, no fiscal impact to the State is anticipated.  However, 
the bill would result in reduced bond issuance costs and more 
efficient administrative and financial reporting functions. 
 The amount of savings would depend upon the size and type of 
the issue, as well as contractual arrangements with bond finance 
consultants.   In addition, the Texas Tech University Health 
Sciences Center would be able to take advantage of interim financing 
during the construction phase and would realize additional cost 
savings for reduced interest costs.  As a result, Texas Tech 
University and Texas Tech University Health Sciences Center 
could use less of the Higher Education Fund allocation for interest 
and bond issuance costs and more for buildings and other capital 
items.  Texas Tech University and Texas Tech University Health 
Sciences Center estimate interest and bond issuance costs would 
be reduced by $1.7 million for the 1998-99 biennium.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   733   Texas Tech University
                                         781   Higher Education Coordinating Board
                                         352   Bond Review Board
                                         
                      LBB Staff:   JK ,LP ,DB