LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 25, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB655 by Fraser (Relating to the statutory limitation imposed on certain university systems to issue revenue bonds to fund facilities at certain institutions of higher education.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB655, As Introduced: a negative impact of ($5,666,996) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 25, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB655 by Fraser (Relating to the statutory limitation imposed on certain university systems to issue revenue bonds to fund facilities at certain institutions of higher education.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB655 by Fraser (Relating to the statutory limitation imposed on certain university systems to issue revenue bonds to fund facilities at certain institutions of higher education.), As Introduced
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB655 by Fraser (Relating to the statutory limitation imposed on certain university systems to issue revenue bonds to fund facilities at certain institutions of higher education.), As Introduced
SB655 by Fraser (Relating to the statutory limitation imposed on certain university systems to issue revenue bonds to fund facilities at certain institutions of higher education.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB655, As Introduced: a negative impact of ($5,666,996) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for SB655, As Introduced: a negative impact of ($5,666,996) 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 $0 2011 ($5,666,996) 2012 ($7,780,329) 2013 ($7,781,196) 2014 ($7,779,196)
2010 $0
2011 ($5,666,996)
2012 ($7,780,329)
2013 ($7,781,196)
2014 ($7,779,196)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 $0 2011 ($5,666,996) 2012 ($7,780,329) 2013 ($7,781,196) 2014 ($7,779,196)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 $0 2011 ($5,666,996) 2012 ($7,780,329) 2013 ($7,781,196) 2014 ($7,779,196)
2010 $0
2011 ($5,666,996)
2012 ($7,780,329)
2013 ($7,781,196)
2014 ($7,779,196)
Fiscal Analysis
Provisions of the bill would eliminate the deadline by which enrollment thresholds must be met in order for the Texas A&M University System to be authorized to issue $65 million in tuition revenue bonds for Texas A&M University - San Antonio and Texas A&M University - Central Texas and for the University of North Texas System to be authorized to issue $25 million in tuition revenue bonds for University of North Texas - Dallas. The most recent information the system offices have provided indicates that the Texas A&M University System would issue bonds in fiscal year 2011 and the University of North Texas System would issue bonds in fiscal year 2012.
Provisions of the bill would eliminate the deadline by which enrollment thresholds must be met in order for the Texas A&M University System to be authorized to issue $65 million in tuition revenue bonds for Texas A&M University - San Antonio and Texas A&M University - Central Texas and for the University of North Texas System to be authorized to issue $25 million in tuition revenue bonds for University of North Texas - Dallas.
The most recent information the system offices have provided indicates that the Texas A&M University System would issue bonds in fiscal year 2011 and the University of North Texas System would issue bonds in fiscal year 2012.
Methodology
Beginning in 2011, the Texas A&M University System would issue bonds based on a six percent interest and 20-year debt service amorization. Debt service associated with these bonds would be $5,666,996 for fiscal year 2011and would be the same for fiscal years 2012 through 2014. Beginning in 2012, the University of North Texas System would issue bonds based on a six percent interest and 20-year debt service amorization. Debt service associated with these bonds would be $2,113,333 in fiscal year 2012, $2,114, 200 in fiscal year 2013 and $2,112,200 in fiscal year 2014.
Beginning in 2011, the Texas A&M University System would issue bonds based on a six percent interest and 20-year debt service amorization. Debt service associated with these bonds would be $5,666,996 for fiscal year 2011and would be the same for fiscal years 2012 through 2014.
Beginning in 2012, the University of North Texas System would issue bonds based on a six percent interest and 20-year debt service amorization. Debt service associated with these bonds would be $2,113,333 in fiscal year 2012, $2,114, 200 in fiscal year 2013 and $2,112,200 in fiscal year 2014.
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, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board
710 Texas A&M University System Administrative and General Offices, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board
LBB Staff: JOB, MN, RT, SSh, GO
JOB, MN, RT, SSh, GO