TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB380 by Van de Putte (Relating to a loan program to encourage the use of cleaner hydrogen fuel; providing for the issuance of bonds.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | ($4,519,739) |
2011 | ($23,415,800) |
2012 | ($23,415,650) |
2013 | ($23,414,350) |
2014 | ($23,419,450) |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2009 |
---|---|---|
2010 | ($4,519,739) | 2.0 |
2011 | ($23,415,800) | 2.0 |
2012 | ($23,415,650) | 2.0 |
2013 | ($23,414,350) | 2.0 |
2014 | ($23,419,450) | 2.0 |
The Comptroller estimates that to implement the provisions of the bill the State Energy Conservation Office would require an additional 2 FTEs at a cost of $193,350 per fiscal year out of the General Revenue Fund.
The bill provides that loans may be issued to business entities for the purpose of developing a hydrogen fuel industry. As a result, it is assumed that the debt would be taxable debt.
The Bond Review Board estimates that the entire $250,000,000 in general obligation bonds would be issued on January 2, 2010 at a taxable fixed interest rate of 7.0 percent and with a twenty-year level principle. Debt service would be $4,326,389 in fiscal year 2010 and $23,222,450 in fiscal year 2011out of General Revenue. The debt service will remain relatively flat through fiscal year 2030.
Note: The $250,000,000 in general obligation bonds for hydrogen fuel source projects, contingent upon voter approval of Senate Joint Resolution 17, is assumed to be repaid with General Revenue Funds. As not self-supporting general obligation debt, these bonds would be factored into the state's constitutional debt limit.
As of the end of fiscal year 2008, the Bond Review Board estimates the constitutional debt limit for issued, and authorized but unissued debt, is 4.09 percent. Article III, Section 49-j of the Texas Constitution limits the authorization of additional state debt if the percentage of debt service payable from the General Revenue Fund exceeds 5 percent of the average annual unrestricted General Revenue Fund revenues for the previous three fiscal years. The Bond Review Board estimates that the bill would increase the constitutional debt limit by 0.07 percent for a total debt limit of 4.16 percent.
Source Agencies: | 304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board
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LBB Staff: | JOB, WK, MS, JM, EP, JJO
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