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
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* 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. *
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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) *
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All Funds, Five-Year Impact:
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*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 *
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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