LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 13, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB421 by West (Relating to the computation of the state debt limit.), As Introduced No significant fiscal implication to the State is anticipated. The bill would implement two recommendations from the report "Implement Strategies to Increase the Transparency of the State Constitutional Debt Limit" from the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011. The bill would permit the Bond Review Board to use common or standard debt issuance practices to make changes to the assumptions used for estimating debt service amounts for any unissued debt included in the constitutional debt limit (CDL) calculation. This could include changes to assumptions for interest rates, debt maturity, and debt service payment structures. The impact to the debt limit would depend upon what, if any, changes the Bond Review Board makes to the current assumptions it uses for unissued debt. The bill would also require the Bond Review Board to publish an explanation of how CDL is calculated, including the debt service amounts for issued and unissued debt and the assumptions used for unissued debt. It is anticipated any additional costs related to the provisions of the bill could be absorbed within existing agency resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:352 Bond Review Board LBB Staff: JOB, KK, JI, JJO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 13, 2011
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB421 by West (Relating to the computation of the state debt limit.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB421 by West (Relating to the computation of the state debt limit.), 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
SB421 by West (Relating to the computation of the state debt limit.), As Introduced
SB421 by West (Relating to the computation of the state debt limit.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would implement two recommendations from the report "Implement Strategies to Increase the Transparency of the State Constitutional Debt Limit" from the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011. The bill would permit the Bond Review Board to use common or standard debt issuance practices to make changes to the assumptions used for estimating debt service amounts for any unissued debt included in the constitutional debt limit (CDL) calculation. This could include changes to assumptions for interest rates, debt maturity, and debt service payment structures. The impact to the debt limit would depend upon what, if any, changes the Bond Review Board makes to the current assumptions it uses for unissued debt. The bill would also require the Bond Review Board to publish an explanation of how CDL is calculated, including the debt service amounts for issued and unissued debt and the assumptions used for unissued debt. It is anticipated any additional costs related to the provisions of the bill could be absorbed within existing agency resources.
The bill would implement two recommendations from the report "Implement Strategies to Increase the Transparency of the State Constitutional Debt Limit" from the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011.
The bill would permit the Bond Review Board to use common or standard debt issuance practices to make changes to the assumptions used for estimating debt service amounts for any unissued debt included in the constitutional debt limit (CDL) calculation. This could include changes to assumptions for interest rates, debt maturity, and debt service payment structures. The impact to the debt limit would depend upon what, if any, changes the Bond Review Board makes to the current assumptions it uses for unissued debt.
The bill would also require the Bond Review Board to publish an explanation of how CDL is calculated, including the debt service amounts for issued and unissued debt and the assumptions used for unissued debt.
It is anticipated any additional costs related to the provisions of the bill could be absorbed within existing agency resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 352 Bond Review Board
352 Bond Review Board
LBB Staff: JOB, KK, JI, JJO
JOB, KK, JI, JJO