LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 1, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB241 by Lucio (Relating to the financing, construction,
and improvement to critical transportation projects by
the Texas Department of Transportation.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB241, As Introduced: positive impact of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Probable *
* Year Gain/(Loss) from Savings/(Cost) from Savings/(Cost) from *
* State Highway Fund State Highway Fund Federal Funds - *
* -Bond Proceeds 0006 Federal *
* 0006 0555 *
* 2002 $712,645,000 $(237,548,334) $(46,519,182) *
* 2003 711,695,000 (474,780,000) (139,723,703) *
* 2004 0 (474,780,000) (186,410,838) *
* 2005 0 (237,231,666) (186,408,327) *
* 2006 0 0 (186,409,894) *
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Fiscal Analysis
The bill is contingent on the passage and voter approval of Senate Joint
Resolution (SJR) 7, SJR 10, or similar legislation which proposes a
constitutional amendment authorizing the Texas Transportation Commission
(TTC) to issue bonds, including Grant Anticipation Revenue Bonds, to fund
improvements to transportation projects in the Pharr, Laredo, and El
Paso border transportation districts.
The bill would take effect on the date on which the constitutional
amendment proposed by the 77th Legislature, Regular Session, authorizing
the issuance of bonds for certain improvements to the state highway
system would take effect. If that amendment does not receive approval
by the voters, this bill would have no effect.
Methodology
Contingent on the passage and voter approval of SJR 7, SJR 10, or similar
legislation, the bill would require debt service costs estimated on the
assumption that there would be two separate bond issuances of $750
million of project costs on February 1, 2002 and 2003 at an interest
rate of 4.4 and 4.5 percent respectively; that each issuance would be
for a ten year period; that there would be level debt service; that
repayments would be financed through federal funds; and that the amount
of each bond issue would be reduced by the estimated interest earned on
the balance of bond proceeds deposited during each of the three year
construction periods. Other assumptions include fees of $400,000 for
the cost of issuance; underwriting fees of $5 per $1,000 of bonds; and
that the bonds would be issued over a two year period at the same
project cost amount. Costs include approximately $46.5 million in
fiscal year 2002, $139.7 million in fiscal year 2003, and $186.4 million
for fiscal years 2004-06 respectively.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 352 Texas Bond Review Board, 601 Texas Department
of Transportation, 116 Sunset Advisory Commission,
304 Comptroller of Public Accounts
LBB Staff: JK, JO, RT, MW