Honorable Geanie Morrison, Chair, House Committee on Higher Education
John S. O'Brien, Deputy Director, Legislative Budget Board
HB1451 by Farabee (Relating to authorizing the issuance of revenue bonds for utility infrastructure and campus renovations at Midwestern State University.), As Introduced
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
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GENERAL REVENUE FUND
The bill would authorize the issuance $10,395,000 in tuition revenue bonds by Midwestern State University for utility infrastructure and campus renovations.
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.
It is assumed the bonds would be issued on September 1, 2005, at a 6.0 percent interest rate with a 20-year level debt service amortization. Based on calculations prepared by Midwestern State University the amount of debt service payments would be $831,725 for fiscal year 2006 and $908,100 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 $18,090,525.
347 Public Finance Authority, 352 Bond Review Board, 735 Midwestern State University
JOB, SSh, CT, RT