LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 2, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1760 by Lucio (Relating to the housing trust fund.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1760, As Introduced: negative impact of $(18,879,200) 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 $(9,440,000) * * 2003 (9,439,200) * * 2004 (9,441,500) * * 2005 (9,440,850) * * 2006 (9,436,550) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Probable Revenue * * Year Savings/(Cost) from Gain/(Loss) from New Gain/(Loss) from New * * General Revenue Fund Other Housing Other Housing * * 0001 Safekeeping Trust Safekeeping Trust * * Fund Fund * * 2002 $(9,440,000) $100,000,000 $(100,000,000) * * 2003 (9,439,200) 0 0 * * 2004 (9,441,500) 0 0 * * 2005 (9,440,850) 0 0 * * 2006 (9,436,550) 0 0 * ************************************************************************** Technology Impact None. Fiscal Analysis The bill would amend the Government Code relating to the Housing Trust Fund (HTF). The bill would allow the Texas Department of Housing and Community Affairs (TDHCA) to place the HTF with a depository selected in conformance with the terms of a bond indenture. Currently, the HTF must be placed with the Texas Treasury Safekeeping Trust Company. The bill would allow the HTF to receive the proceeds of a general obligation (GO) bond issuance and to make payment for costs associated with GO bonds issued as authorized by the Texas Constitution. The bill would take effect January 1, 2002, but only if the constitutional amendment authorizing such action were approved by the voters. Also, the bill would take effect only if a specific appropriation for its implementation were provided in the General Appropriations Act enacted by the 77th Legislature, Regular Session, 2001. Methodology The Bond Review Board estimates the fiscal impact to the state with the following assumptions: issuance of a single series of $100 million in tax-exempt general obligation bonds at 7 percent fixed interest rate and a 20-year term, assuming an approximate level of debt service excluding cost of issuance, bonds insurance, and underwriter's discount; and, debt service would come from the General Revenue Fund. According to the Bond Review Board, the fiscal impact to the state would be debt service payments of $9,440,000 in fiscal year 2002 and $9,439,200 in fiscal year 2003. Additional debt service payments would range from $9,441,500 in fiscal year 2004 to $9,436,550 in 2006. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 332 Texas Department of Housing and Community Affairs, 352 Texas Bond Review Board LBB Staff: JK, DB, RT, ER