LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 18, 2009 TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB993 by Farias (Relating to enrollment requirements for the operation of Texas A&M University--San Antonio as a general academic teaching institution and the issuance of bonds for that institution.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB993, As Introduced: a negative impact of ($6,974,764) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 18, 2009
TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB993 by Farias (Relating to enrollment requirements for the operation of Texas A&M University--San Antonio as a general academic teaching institution and the issuance of bonds for that institution.), As Introduced
TO: Honorable Dan Branch, Chair, House Committee on Higher Education
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB993 by Farias (Relating to enrollment requirements for the operation of Texas A&M University--San Antonio as a general academic teaching institution and the issuance of bonds for that institution.), As Introduced
Honorable Dan Branch, Chair, House Committee on Higher Education
Honorable Dan Branch, Chair, House Committee on Higher Education
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB993 by Farias (Relating to enrollment requirements for the operation of Texas A&M University--San Antonio as a general academic teaching institution and the issuance of bonds for that institution.), As Introduced
HB993 by Farias (Relating to enrollment requirements for the operation of Texas A&M University--San Antonio as a general academic teaching institution and the issuance of bonds for that institution.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB993, As Introduced: a negative impact of ($6,974,764) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB993, As Introduced: a negative impact of ($6,974,764) through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($3,487,382) 2011 ($3,487,382) 2012 ($3,487,382) 2013 ($3,487,382) 2014 ($3,487,382)
2010 ($3,487,382)
2011 ($3,487,382)
2012 ($3,487,382)
2013 ($3,487,382)
2014 ($3,487,382)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($3,487,382) 2011 ($3,487,382) 2012 ($3,487,382) 2013 ($3,487,382) 2014 ($3,487,382)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($3,487,382) 2011 ($3,487,382) 2012 ($3,487,382) 2013 ($3,487,382) 2014 ($3,487,382)
2010 ($3,487,382)
2011 ($3,487,382)
2012 ($3,487,382)
2013 ($3,487,382)
2014 ($3,487,382)
Fiscal Analysis
Provisions of the bill would reduce the enrollment requirement from 1,500 to 1,000 full-time students for the Texas A&M University System to be authorized to issue $40 million in tuition revenue bonds for Texas A&M University - San Antonio. Provisions of the bill also remove the connection between the authority for Texas A&M University - San Antonio to operate as a general academic teaching institution and the issuance of tuition revenue bonds, and remove the date by which the enrollment threshold has to be met (January 1, 2010.) The bonds would be payable from pledged revenue plus tuition. The bonds would not be generalobligations of the State. However, the issued bonds would have fiscal implications for the State.Although tuition income is pledged against the bonds, historically the Legislature has appropriatedGeneral Revenue to reimburse institutions for the tuition used to pay the debt service. For purposes ofthis fiscal note it is assumed the bonds would be issued on September 1, 2009.
Provisions of the bill would reduce the enrollment requirement from 1,500 to 1,000 full-time students for the Texas A&M University System to be authorized to issue $40 million in tuition revenue bonds for Texas A&M University - San Antonio. Provisions of the bill also remove the connection between the authority for Texas A&M University - San Antonio to operate as a general academic teaching institution and the issuance of tuition revenue bonds, and remove the date by which the enrollment threshold has to be met (January 1, 2010.)
The bonds would be payable from pledged revenue plus tuition. The bonds would not be generalobligations of the State. However, the issued bonds would have fiscal implications for the State.Although tuition income is pledged against the bonds, historically the Legislature has appropriatedGeneral Revenue to reimburse institutions for the tuition used to pay the debt service. For purposes ofthis fiscal note it is assumed the bonds would be issued on September 1, 2009.
Methodology
The debt service calculations were based on a six percent interest rate and a 20-year debtservice amorization. Based on these assumptions, the debt service calculations for fiscal year 2010 isestimated to be $3,487,382 and for fiscal year 2011 is estimated to be $3,487,382.
The debt service calculations were based on a six percent interest rate and a 20-year debtservice amorization. Based on these assumptions, the debt service calculations for fiscal year 2010 isestimated to be $3,487,382 and for fiscal year 2011 is estimated to be $3,487,382.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 710 Texas A&M University System Administrative and General Offices, 781 Higher Education Coordinating Board
710 Texas A&M University System Administrative and General Offices, 781 Higher Education Coordinating Board
LBB Staff: JOB, KK, RT, SSh, ESi
JOB, KK, RT, SSh, ESi