TO: | Honorable Geanie Morrison, Chair, House Committee on Higher Education |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2759 by Wong ( Relating to authorizing the issuance of revenue bonds for The University of Texas M.D. Anderson Cancer Center for biotechnology research and development facilities.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($1,605,000) |
2005 | ($1,605,000) |
2006 | ($1,605,000) |
2007 | ($1,605,000) |
2008 | ($1,605,000) |
Fiscal Year | Probable (Cost) fromGENERAL REVENUE FUND 1 |
---|---|
2004 | ($1,605,000) |
2005 | ($1,605,000) |
2006 | ($1,605,000) |
2007 | ($1,605,000) |
2008 | ($1,605,000) |
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 (prinicipal and interest) would be $1,605,000 for fiscal year 2004 and would be $1,605,000 for fiscal year 2005. (If debt service payments were for interest only, the estimated costs would be $1,000,000 in fiscal year 2004 and $1,000,000 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, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board, 352 Bond Review Board
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LBB Staff: | JK, JO, CT, PF, GS
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