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:
HB1525 by Crownover (Relating to authorizing the issuance of revenue bonds for Texas Woman's University.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1525, As Introduced: a negative impact of ($8,400,970) through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($4,200,485)
2007 ($4,200,485)
2008 ($4,200,485)
2009 ($4,200,485)
2010 ($4,200,485)




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1
2006 ($4,200,485)
2007 ($4,200,485)
2008 ($4,200,485)
2009 ($4,200,485)
2010 ($4,200,485)

Fiscal Analysis

The bill would authorize the issuance of a maximum of $44.5 million in tuition revenue bonds by the Texas Woman's University for construction and 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 bond, historically the Legislature has appropriated General Revenue to reimburse institutions for the tuition used to pay the debt service and this policy is assumed to continue.


Methodology

It is assumed the bonds would be issued on September 1, 2005, at a 7 percent interest rate with a 20-year debt service amortization. Based on calculations prepared by Texas Woman's University, the amount of debt service payments would be $4,200,485 for fiscal year 2006 and $4,200,485 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 $84,009,700.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
347 Public Finance Authority, 352 Bond Review Board, 731 Texas Woman's University, 781 Higher Education Coordinating Board
LBB Staff:
JOB, SSh, CT, SD, RT, GO