The resolution would propose an amendment to Article III of the Texas Constitution, authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized. The bonds issued under this authority are not included in the computation of the constitutional debt limit required by Section 49-j of the Texas Constitution.
The fiscal impact of the resolution cannot be estimated because the amount and structure of bonds that might be issued in future years is unknown, except that the bond issuance is limited to be equal or less than $6.0 billion. The Bond Review Board estimates the debt service costs would be $822.1 million in the 2026-27 biennium based on the following assumptions: (1) the bonds will be backed by the general revenues of the state; (2) the bonds will have a thirty-year maturity; (3) a conservative fixed-interest rate of 5.50% for fiscal year 2026 and beyond; (4) all bonds authorized under this bill will be issued in the amount of $6,000,000,000 on September 1, 2025 with principal payments every August 1, and semi-annual interest payments every February 1 and August 1, beginning February 1, 2026; (5) cost of issuance and bond insurance fees are excluded; and (6) approximate level debt service payments through the life of the bonds.
The proposed amendment would be submitted to the voters at an election to be held November 4, 2025.
No significant fiscal implication to units of local government is anticipated.