LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 3189
Committee on Ways & Means By: Kuempel
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3189 ( Relating
to the authority of the Parks and Wildlife Department to issue
revenue bonds and to the allocation of certain sales, excise,
and use tax revenue to the Parks and Wildlife Department for
debt service on revenue bonds.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB3189-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(10,000,000) to General Revenue Related
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the Parks and Wildlife Code authorize the
Texas Parks and Wildlife Department to request the issuance
of up to $60 million in revenue bonds. The bonds would be issued
by the Texas Public Finance Authority and would be used for
the repair, renovation, improvement, and equipping of parks
and wildlife facilities. The bond proceeds would be deposited
to the credit of the Texas Parks and Wildlife Capital GR-Account
5004.
The bill would limit the amounts that the State Parks
GR-Account 0064 and the Texas Recreation and Parks GR-Account
0467 would receive in state sales tax revenues from the sale
of sporting goods.
Chapter 151 of the Tax Code would be amended
to increase the maximum annual credit of sales tax on sporting
goods to the Parks and Wildlife Department from $32 million
to $37 million.
The bill would take effect September 1, 1997.
Methodolgy
The bill would have no effect on the State Parks Account and
the Texas Recreation and Parks Accounts because their formulas
are currently computed using the limit proposed by the bill.
The amounts above the current limit of $32 million and up to
the new $37 million cap would be credited to the Parks & Wildlife
Capital Account in the General Revenue Fund.
The bonds
issued by the department would be revenue bonds and would thus
be supported directly by the revenues of the facilities constructed
or improved. Unless otherwise specified in the indenture, holders
of these revenue bonds would have no claims on the issuer's
other resources.
The cost of debt service in the following
table is provided for illustrative purposes only as the bill
does not specify the increments of the bond issuance. It assumes
that the $60 million of bond authority that would be granted
upon passage of the bill would be issued in four $15 million
annual installments. The estimate also assumes that the debt
service would be paid out of the GR dedicated Texas Parks and
Wildlife Capital Account 5004. The following are the total
estimated debt service payment amounts (principal and interest)
that will be incurred on $15 million bond issues, each with
a 20 year maturity, issued annually for four years. It is assumed
that the bonds will be fixed-rate and tax-exempt, issued in
the 1998 fiscal year, and will remain outstanding for 20 years,
paying level annual debt service amounts.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue Probable Debt
Gain/(Loss) from Gain/(Loss) from Service (Cost)
General Revenue Texas Parks and from Texas Parks
Fund Wildlife Capital and Wildlife
Account/ Capital Account/
GR-Dedicated GR-Dedicated
0001 5004 5004
1998 ($5,000,000) $5,000,000 ($1,288,998)
1998 (5,000,000) 5,000,000 (2,581,543)
2000 (5,000,000) 5,000,000 (3,872,698)
2001 (5,000,000) 5,000,000 (5,160,813)
2002 (5,000,000) 5,000,000 (5,160,180)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($5,000,000)
1999 (5,000,000)
2000 (5,000,000)
2001 (5,000,000)
2002 (5,000,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 347 Texas Public Finance Authority
802 Parks and Wildlife Department
352 Bond Review Board
304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,SM