LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 21, 2011 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HJR137 by Ritter (Proposing a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495. The joint resolution proposes a constitutional amendment which would authorize the Water Development Board (TWDB) to issue additional general obligation bonds for one or more accounts of the Texas Water Development Fund II (DFund II) such that the aggregate principal amount of the bonds issued for the DFund II does not exceed $6 billion outstanding at any one time. The proposed constitutional amendment would be submitted to the voters at an election to be held November 8, 2011. This joint resolution includes bond authority that would comprise a mixture of self-supporting debt and non-self-supporting debt. Any non-self-supporting debt that receives a General Revenue appropriation for debt service would impact the state's constitutional debt limit (CDL). TWDB can only issue non-self-supporting debt with the authorization of the Legislature. For the purposes of calculating the CDL, this entire authorization would be considered self-supporting and would not have an impact on the CDL until the Legislature authorizes the issuance of non-self-supporting general obligation water bonds. 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. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 352 Bond Review Board, 580 Water Development Board LBB Staff: JOB, SZ, ZS, AH, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 21, 2011
TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HJR137 by Ritter (Proposing a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board.), Committee Report 1st House, Substituted
TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HJR137 by Ritter (Proposing a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board.), Committee Report 1st House, Substituted
Honorable Allan Ritter, Chair, House Committee on Natural Resources
Honorable Allan Ritter, Chair, House Committee on Natural Resources
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HJR137 by Ritter (Proposing a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board.), Committee Report 1st House, Substituted
HJR137 by Ritter (Proposing a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Development Board.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495.
No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495.
The cost to the state for publication of the resolution is $105,495.
The joint resolution proposes a constitutional amendment which would authorize the Water Development Board (TWDB) to issue additional general obligation bonds for one or more accounts of the Texas Water Development Fund II (DFund II) such that the aggregate principal amount of the bonds issued for the DFund II does not exceed $6 billion outstanding at any one time. The proposed constitutional amendment would be submitted to the voters at an election to be held November 8, 2011. This joint resolution includes bond authority that would comprise a mixture of self-supporting debt and non-self-supporting debt. Any non-self-supporting debt that receives a General Revenue appropriation for debt service would impact the state's constitutional debt limit (CDL). TWDB can only issue non-self-supporting debt with the authorization of the Legislature. For the purposes of calculating the CDL, this entire authorization would be considered self-supporting and would not have an impact on the CDL until the Legislature authorizes the issuance of non-self-supporting general obligation water bonds. 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 joint resolution proposes a constitutional amendment which would authorize the Water Development Board (TWDB) to issue additional general obligation bonds for one or more accounts of the Texas Water Development Fund II (DFund II) such that the aggregate principal amount of the bonds issued for the DFund II does not exceed $6 billion outstanding at any one time. The proposed constitutional amendment would be submitted to the voters at an election to be held November 8, 2011.
This joint resolution includes bond authority that would comprise a mixture of self-supporting debt and non-self-supporting debt. Any non-self-supporting debt that receives a General Revenue appropriation for debt service would impact the state's constitutional debt limit (CDL). TWDB can only issue non-self-supporting debt with the authorization of the Legislature. For the purposes of calculating the CDL, this entire authorization would be considered self-supporting and would not have an impact on the CDL until the Legislature authorizes the issuance of non-self-supporting general obligation water bonds. 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.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 352 Bond Review Board, 580 Water Development Board
304 Comptroller of Public Accounts, 352 Bond Review Board, 580 Water Development Board
LBB Staff: JOB, SZ, ZS, AH, KK
JOB, SZ, ZS, AH, KK