LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 17, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3335 by Pena (Relating to the amount of certain general obligation bonds authorized to be issued to provide financial assistance for colonia access roadway projects to serve border colonias.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3335, As Introduced: a negative impact of ($7,410,000) through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 17, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3335 by Pena (Relating to the amount of certain general obligation bonds authorized to be issued to provide financial assistance for colonia access roadway projects to serve border colonias.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB3335 by Pena (Relating to the amount of certain general obligation bonds authorized to be issued to provide financial assistance for colonia access roadway projects to serve border colonias.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB3335 by Pena (Relating to the amount of certain general obligation bonds authorized to be issued to provide financial assistance for colonia access roadway projects to serve border colonias.), As Introduced
HB3335 by Pena (Relating to the amount of certain general obligation bonds authorized to be issued to provide financial assistance for colonia access roadway projects to serve border colonias.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3335, As Introduced: a negative impact of ($7,410,000) through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3335, As Introduced: a negative impact of ($7,410,000) through the biennium ending August 31, 2013.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $0 2013 ($7,410,000) 2014 ($6,330,000) 2015 ($6,150,000) 2016 ($5,970,000)
2012 $0
2013 ($7,410,000)
2014 ($6,330,000)
2015 ($6,150,000)
2016 ($5,970,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromBond Proceed-Gen Obligat780 2012 $0 ($60,000,000) 2013 ($7,410,000) $0 2014 ($6,330,000) $0 2015 ($6,150,000) $0 2016 ($5,970,000) $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromBond Proceed-Gen Obligat780 2012 $0 ($60,000,000) 2013 ($7,410,000) $0 2014 ($6,330,000) $0 2015 ($6,150,000) $0 2016 ($5,970,000) $0
2012 $0 ($60,000,000)
2013 ($7,410,000) $0
2014 ($6,330,000) $0
2015 ($6,150,000) $0
2016 ($5,970,000) $0
Fiscal Analysis
The bill would amend Government Code Chapter 1403 to increase the aggregate amount of general obligation bonds by $60,000,000, from $175,000,000 to $235,000,000 to be issued by the Texas Public Finance Authority as authorized by the governor to provide financial assistance for colonias access roadway projects to serve border colonias. The bill would take effect on the date on which the constitutional amendment proposed by the Eighty-second Legislature, Regular Session, 2011, authorizing the issuance of up to $60,000,000 in general obligation bonds to provide financial assistance to counties for roadway projects to serve colonias is approved by voters. Otherwise, the bill would not take effect.
The bill would amend Government Code Chapter 1403 to increase the aggregate amount of general obligation bonds by $60,000,000, from $175,000,000 to $235,000,000 to be issued by the Texas Public Finance Authority as authorized by the governor to provide financial assistance for colonias access roadway projects to serve border colonias.
The bill would take effect on the date on which the constitutional amendment proposed by the Eighty-second Legislature, Regular Session, 2011, authorizing the issuance of up to $60,000,000 in general obligation bonds to provide financial assistance to counties for roadway projects to serve colonias is approved by voters. Otherwise, the bill would not take effect.
Methodology
Based on information provided by the Texas Public Finance Authority, it is assumed that the voters would approve the proposed constitutional amendment and $60 million in General Obligation Bonds would be issued on January 1, 2012. The related debt service would be $7,410,000 out of the General Revenue Fund in fiscal year 2013. Other assumptions for the debt service estimate include the issuance of tax-exempt debt at a six percent interest rate and a 20 year level principal repayment schedule. 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. As of the end of fiscal year 2010, the Bond Review Board estimates the constitutional debt limit for issued, and authorized but unissued debt, to be 4.10 percent. The Bond Review Board estimates that the additional authorization of $60 million in not self-supporting general obligation bond authority would increase the ratio for issued, and authorized but unissued debt by 0.02 percent. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources.
Based on information provided by the Texas Public Finance Authority, it is assumed that the voters would approve the proposed constitutional amendment and $60 million in General Obligation Bonds would be issued on January 1, 2012. The related debt service would be $7,410,000 out of the General Revenue Fund in fiscal year 2013. Other assumptions for the debt service estimate include the issuance of tax-exempt debt at a six percent interest rate and a 20 year level principal repayment schedule.
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. As of the end of fiscal year 2010, the Bond Review Board estimates the constitutional debt limit for issued, and authorized but unissued debt, to be 4.10 percent. The Bond Review Board estimates that the additional authorization of $60 million in not self-supporting general obligation bond authority would increase the ratio for issued, and authorized but unissued debt by 0.02 percent.
It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources.
Local Government Impact
This resolution, if approved by voters would authorize $60 million in general obligation bonds to provide counties with financial assistance for roadway projects to serve border colonias.
Source Agencies: 304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board, 601 Department of Transportation
304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board, 601 Department of Transportation
LBB Staff: JOB, KK, MS, EP, JJO
JOB, KK, MS, EP, JJO