By Carona                                             S.R. No. 1088
         76R17252 CCK-D                           
                                 R E S O L U T I O N
 1-1           WHEREAS, The federal Tax Reform Act of 1986 placed a unified
 1-2     volume cap on the issuance of most private activity debt by states
 1-3     and local governments; in more populated states such as Texas, the
 1-4     effective cap is $50 per capita; and
 1-5           WHEREAS, The bond cap has since remained constant in the face
 1-6     of intervening inflation, and consequently its purchasing power has
 1-7     eroded by more than 30 percent, hindering the state's ability to
 1-8     invest in its communities and to create jobs; and
 1-9           WHEREAS, A pressing need in Texas is affordable housing; the
1-10     state currently allocates approximately $314 million of its cap to
1-11     single-family housing and targets another $74 million for
1-12     multi-family housing; and
1-13           WHEREAS, Demand for affordable housing is greater than ever;
1-14     more than 1.9 million Texas families will need some form of housing
1-15     assistance within the next year, a number that can only increase as
1-16     the state's population grows and the available housing stock
1-17     diminishes; and
1-18           WHEREAS, The United States Congress in the Taxpayer Relief
1-19     Act of 1998 has consented to a 50 percent bond cap increase,
1-20     raising the per capita limit to $75, but that increase is phased in
1-21     over five years, delaying its full usefulness for close to a
1-22     decade; and
1-23           WHEREAS, Two proposed congressional measures, S. 459 and H.R.
1-24     864, each styled the State and Local Investment Opportunities Act
 2-1     of 1999, would raise the per capita bond cap immediately from $50
 2-2     to $75 and lend a timely helping hand to the many Texans who seek
 2-3     affordable housing; now, therefore, be it
 2-4           RESOLVED, That the Senate of the 76th Texas Legislature
 2-5     hereby respectfully urge the Congress of the United States to
 2-6     support legislation providing for an immediate increase of the per
 2-7     capita tax-exempt private activity bond cap; and, be it further
 2-8           RESOLVED, That the secretary of the senate forward official
 2-9     copies of this resolution to the president of the United States, to
2-10     the president of the senate and the speaker of the house of
2-11     representatives of the United States Congress, and to all the
2-12     members of the Texas delegation to the congress with the request
2-13     that this resolution be officially entered in the Congressional
2-14     Record as a memorial to the Congress of the United States of
2-15     America.