LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
April 2, 2001
TO: Honorable Kip Averitt, Chair, House Committee on
Financial Institutions
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.),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3064, Committee Report 1st House, Substituted: negative impact *
* of $(27,627,500) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(4,300,000) *
* 2003 (23,327,500) *
* 2004 (32,832,500) *
* 2005 (53,502,500) *
* 2006 (62,312,500) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(4,300,000) 0.0 *
* 2003 (23,327,500) 0.0 *
* 2004 (32,832,500) 0.0 *
* 2005 (53,502,500) 0.0 *
* 2006 (62,312,500) 0.0 *
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Technology Impact
None.
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 $800.0 million in general obligation bonds for
construction and repair projects for the following agencies: 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, Texas
Natural Resource Conservation Commission, State Preservation Board,
Adjutant General, Texas Department of Agriculure and the Schools for the
Blind and Deaf.
The additional cost to the General Revenue Fund as a result of this
legislation is average annual debt service requirements of $65.2 million
per year for twenty years.
Methodology
Assuming voter approval in November 2001, the $800.0 million in general
obligation bonds would be issued as follows: $215,000,000 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.
New facilities constructed with these bond proceeds may require
additional staff and funding for operating facilities. However, new
staff and other 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: 303 General Services Commission, 347 Texas Public
Finance Authority, 405 Texas Department of Public
Safety, 655 TX Dept. of Mental Health & Mental
Retardation, 582 Texas Natural Resource
Conservation Commission, 771 Texas School for the
Blind & Visually Impaired
LBB Staff: JK, JO, ZS