TO: | Honorable Florence Shapiro, Chair, Senate Committee on Education |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB1912 by Wolens ( Relating to authorizing the issuance of revenue bonds for certain research facilities of component institutions of The University of Texas System and exempting the facilities financed by the bonds from prior approval by the Texas Higher Education Coordinating Board.), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | ($8,506,000) |
2006 | ($8,506,000) |
2007 | ($8,506,000) |
2008 | ($8,506,000) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|
2004 | $0 |
2005 | ($8,506,000) |
2006 | ($8,506,000) |
2007 | ($8,506,000) |
2008 | ($8,506,000) |
The University of Texas System Administration assumed the bonds would be issued during fiscal year 2005 at a 5.00 percent interest rate with a 20-year level debt service amortization. Based on calculations prepared by The University of Texas System Administration, debt service payments (principal and interest) would be $8,506,000 for fiscal year 2005. (If debt service payments were for interest only, the estimated costs would be $4,240,000 in fiscal year 2005.)
No amounts are included for operations and maintenance costs related to additional facilities. Operations and maintenance costs are provided to institutions of higher education based on predicted square feet not actual square feet. However, if the increased space resulted in an increase in predicted square feet, operations and maintenance cost would increase.
Source Agencies: | 347 Public Finance Authority, 352 Bond Review Board, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board
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LBB Staff: | JK, SD, JO, CT, PF, GS
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