Honorable Geanie Morrison, Chair, House Committee on Higher Education
John S. O'Brien, Deputy Director, Legislative Budget Board
HB2002 by McClendon (Relating to authorizing the issuance of revenue bonds for The University of Texas Health Science Center at San Antonio.), As Introduced
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GENERAL REVENUE FUND
The bill would authorize The University of Texas System to issue additional revenue bonds in an amount not to exceed $20,000,000. The debt service payments would be $3,487,382 in each year of the 2006-07 biennium. The board of regents of The University of Texas System would acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, or other facilities, including roads and related infrastructure, for a Center for Academic Medicine and Clinical Research at The University of Texas Health Science Center at San Antonio, to be financed with the proceeds of the bonds authorized in the subchapter.
While the bill does not specify issuance of tuition revenue bonds, Tuition Revenue Bonds are assumed to be issued in accordance with The University of Texas System revenue financing program.
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.
The cost to issue the bonds is based on an assumed 20-year, tax-exempt bond issue structured with level debt service with a 6% interest rate. The debt service payment for fiscal year 2006 would be $1,743,691; fiscal year 2007 would be $1,743,691; fiscal year 2008 would be $1,743,691; fiscal year 2009 would be $1,743,691; fiscal year 2010 would be $1,743,691.
347 Public Finance Authority, 352 Bond Review Board, 720 The University of Texas System Administration
JOB, CT, RT, MM