LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 15, 2001
TO: Honorable James E. "Pete" Laney, Speaker of the House,
House of Representatives
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3064 by Junell (Relating to the issuance of general
obligation bonds by the Texas Public Finance Authority
for certain construction and repair projects and
equipment purchases.), As Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3064, As Passed 2nd House: negative impact of $(34,052,500) *
* through the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(5,300,000) *
* 2003 (28,752,500) *
* 2004 (38,107,500) *
* 2005 (58,627,500) *
* 2006 (67,287,500) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(5,300,000) *
* 2003 (28,752,500) *
* 2004 (38,107,500) *
* 2005 (58,627,500) *
* 2006 (67,287,500) *
*****************************************************
Fiscal Analysis
The bill, assuming the voters approve the related constitutional
amendment, HJR 97 in November 2001, authorizes the Texas Public Finance
Authority to issue $850.0 million in general obligation bonds for various
state agencies' construction and repair projects, and equipment
acquisitions. Some of the agencies for which bond funds would be
authorized: the General Services Commission, the Texas Youth Commission,
the Texas Department of Criminal Justice, the Texas Department of Mental
Health and Mental Retardation, the Texas Parks and Wildlife Department,
the Texas Department of Public Safety, the Texas Transportation
Department, the Adjutant General, the Texas Department of Agriculture and
the Schools for the Blind and Deaf.
Methodology
The additional cost to the General Revenue Fund as a result of this
legislation is average annual debt service requirements of $69.3 million
per year for twenty years.
Assuming voter approval in November 2001, the $850.0 million in general
obligation bonds would be issued as follows: $265,000,000 in December
2001; $290,000,000 in October 2003; and $295,000,000 in October 2005.
The debt service was calculated based on a 6 percent interest, and level
principal payments over 20 years.
Any new facilities constructed with these bond proceeds may require
additional staff and funding for facility operating costs. However, new
staff and operating costs associated with operating a new facility are
not estimated in the amounts reflected above.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 347 Texas Public Finance Authority
LBB Staff: JK, SD, MF, ZS