TO: | Honorable Geanie Morrison, Chair, House Committee on Higher Education |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB1736 by Brown, Fred (Relating to authorizing the issuance of revenue bonds for the College of Medicine of The Texas A&M University System Health Science Center.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($3,492,800) |
2007 | ($3,492,800) |
2008 | ($3,492,800) |
2009 | ($3,492,800) |
2010 | ($3,492,800) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|
2006 | ($3,492,800) |
2007 | ($3,492,800) |
2008 | ($3,492,800) |
2009 | ($3,492,800) |
2010 | ($3,492,800) |
The bill amends Subchapter B, Chapter 55 of the Education Code by adding Section 55.1751 that would authorize The Texas A&M University System to issue additional revenue bonds in an amount not to exceed $40,000,000. The debt service payments would be $3,492,800 in each year of the 2006-07 biennium. The board of regents of The Texas A&M University System would acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, or other facilities, including roads and related infrastructure for educational facilities for the College of Medicine of The Texas A&M University System Health Science Center, with the proceeds of the bonds authorized in the subchapter.
In addition the bill states the board may pledge irrevocably all or any part of the revenue funds, including student tuition charges of The Texas A&M University System for payment of the bonds. Furthermore, if funds are not available to meet the bond obligations authorized by this section, the section authorizes the board of regents to transfer funds among institutions, branches, and entities of The Texas A&M University System in an equitable manner to ensure each the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes.
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.
Source Agencies: | 347 Public Finance Authority, 352 Bond Review Board, 710 Texas A&M University System Administrative and General Offices
|
LBB Staff: | JOB, CT, RT, MM
|