LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 25, 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.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3064, As Introduced:  negative impact of $(1,200,000) 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 Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                                   $0  *
          *       2003                          (1,200,000)  *
          *       2004                          (1,070,000)  *
          *       2005                          (1,040,000)  *
          *       2006                          (1,010,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal      Probable        Probable        Probable       Change in     *
* Year    Savings/(Cost)     Revenue      Savings/(Cost) Number of State  *
*          from General    Gain/(Loss)      from Bond     Employees from  *
*          Revenue Fund     from Bond        Proceeds        FY 2001      *
*              0001          Proceeds          0854                       *
*                              0854                                       *
*  2002                $0      $2,000,000    $(2,000,000)             0.0 *
*  2003       (1,200,000)       7,000,000     (7,000,000)             0.0 *
*  2004       (1,070,000)       1,000,000     (1,000,000)             0.0 *
*  2005       (1,040,000)               0               0             0.0 *
*  2006       (1,010,000)               0               0             0.0 *
***************************************************************************
  
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 $10.0 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, and the Texas Parks and Wildlife Department.

The only additional cost to the General Revenue Fund expected to result
from adoption of this legislation is annual debt service requirements of
approximately $1.0 million for the next 20 years.
  
  
Methodology
  
Assuming voter approval in November 2001, the $10.0 million in general
obligation bonds would be issued in February 2002.  The debt service was
calculated based on a 6 percent interest, and level principal payments
over 20 years.  Given the size of the bond issue and the small number of
projects that could be funded, it is assumed that all bond proceeds
would be expended or committed by the close of fiscal year 2004.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   347   Texas Public Finance Authority
LBB Staff:         JK, JO, ZS