TO: | Honorable Teel Bivins, Chair, Senate Committee on Finance |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2759 by Wong (Relating to authorizing the issuance of revenue bonds for certain component institutions of The University of Texas System.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($6,179,000) |
2005 | ($6,179,000) |
2006 | ($6,179,000) |
2007 | ($6,179,000) |
2008 | ($6,179,000) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|
2004 | ($6,179,000) |
2005 | ($6,179,000) |
2006 | ($6,179,000) |
2007 | ($6,179,000) |
2008 | ($6,179,000) |
The University of Texas System Administration assumed the bonds would be issued during fiscal year 2004 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 $6,179,000 per fiscal year. (If debt service payments were for interest only, the estimated costs would be $3,080,000 per fiscal year.)
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: | 720 The University of Texas System Administration, 347 Public Finance Authority, 781 Higher Education Coordinating Board, 352 Bond Review Board
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LBB Staff: | JK, SD, JO, CT, PF, GS
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