LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 22, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SJR39 by Averitt (Proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage advanced clean energy projects.), As Introduced No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882. The resolution would define an "advanced clean energy project," and it would authorize the Legislature, through general law, to authorize Texas Public Finance Authority to issue up to $300 million in general obligation bonds to make and guarantee loans to business entities for advanced clean energy projects in the state. The proposed constituional amendment would be submitted to the voters at an election to be held November 3, 2009. Note: 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 $300 million in new general obligation bond authority for advanced clean energy loan projects is assumed to be repaid with General Revenue Funds and to be not self-supporting general obligation debt. Therefore, 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 to be 4.09 percent. The Bond Review Board estimates that the passage of the resolution would increase the constitutional debt limit by 0.08 percent for a total debt limit of 4.17 percent. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:347 Public Finance Authority, 352 Bond Review Board, 582 Commission on Environmental Quality LBB Staff: JOB, MN, ZS, TL, JJO, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 22, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SJR39 by Averitt (Proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage advanced clean energy projects.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SJR39 by Averitt (Proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage advanced clean energy projects.), 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
SJR39 by Averitt (Proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage advanced clean energy projects.), As Introduced
SJR39 by Averitt (Proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage advanced clean energy projects.), As Introduced
No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882.
No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882.
The cost to the state for publication of the resolution is $90,882.
The resolution would define an "advanced clean energy project," and it would authorize the Legislature, through general law, to authorize Texas Public Finance Authority to issue up to $300 million in general obligation bonds to make and guarantee loans to business entities for advanced clean energy projects in the state. The proposed constituional amendment would be submitted to the voters at an election to be held November 3, 2009. Note: 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 $300 million in new general obligation bond authority for advanced clean energy loan projects is assumed to be repaid with General Revenue Funds and to be not self-supporting general obligation debt. Therefore, 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 to be 4.09 percent. The Bond Review Board estimates that the passage of the resolution would increase the constitutional debt limit by 0.08 percent for a total debt limit of 4.17 percent.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 347 Public Finance Authority, 352 Bond Review Board, 582 Commission on Environmental Quality
347 Public Finance Authority, 352 Bond Review Board, 582 Commission on Environmental Quality
LBB Staff: JOB, MN, ZS, TL, JJO, SD
JOB, MN, ZS, TL, JJO, SD