LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
April 14, 2005

TO:
Honorable Geanie Morrison, Chair, House Committee on Higher Education
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB1419 by Blake (Relating to authorizing the issuance of revenue bonds for Stephen F. Austin State University.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1419, As Introduced: a negative impact of ($11,126,850) through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($5,319,750)
2007 ($5,807,100)
2008 ($5,806,900)
2009 ($5,804,800)
2010 ($5,805,500)




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1
2006 ($5,319,750)
2007 ($5,807,100)
2008 ($5,806,900)
2009 ($5,804,800)
2010 ($5,805,500)

Fiscal Analysis

The bill would authorize the issuance of $66,450,000 in tuition revenue bonds by Stephen F. Austin State University for improvement of facilities and related infrastructure.

The bonds would be payable from pledged revenue plus tuition. The bonds would not be general obligations of the State. However, the issued bonds would have fiscal implications for the State. Although tuition income is pledged against the bonds, historically the Legislature has appropriated General Revenue to reimburse institutions for the tuition used to pay the debt service. This note assumes the Legislature would continue this policy. 


Methodology

It is assumed the bonds would be issued on September 1, 2005, at a 6 percent interest rate with a 20-year level debt service amortization. Based on calculations prepared by Stephen F. Austin State University, the amount of debt service payments would be $5,319,750 for fiscal year 2006 and $5,807,100 for fiscal year 2007.  The total estimated amount of debt service (principal and interest) from fiscal year 2006 to fiscal year 2025 is estimated to be $115,633,050.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
347 Public Finance Authority, 781 Higher Education Coordinating Board, 352 Bond Review Board, 755 Stephen F. Austin State University
LBB Staff:
JOB, SSh, CT, RT