Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1172 by Nichols (Relating to the issuance of obligations payable from and secured by the Texas Mobility Fund.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Transportation Code to specify that the Texas Transportation Commission may not issue obligations under Section 49-k, Article III, Texas Constitution (Texas Mobility Fund) after January 1, 2015, except for obligations issued to refund outstanding obligations and renew or replace credit agreements related to variable rate obligations.
As of February 2015 the Texas Mobility Fund (TMF) bond program is at its statutorily authorized capacity, and the Texas Department of Transportation (TxDOT) does not plan to issue additional new money TMF bonds in fiscal years 2015 through 2017. However, TxDOT assumes additional bond capacity would be available to fund transportation projects in fiscal year 2018 under current law. This analysis does not include estimates of the loss of potential additional bond proceeds for transportation projects and the associated savings to the TMF for debt service costs that would be avoided as a result of the bill. Based on the analysis provided by TxDOT, it is assumed the provisions of the bill would not result in a significant fiscal impact to the state.
Local Government Impact
No fiscal implication to units of local government is anticipated.