LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 8, 2015 TO: Honorable Gary Elkins, Chair, House Committee on Government Transparency & Operation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1255 by McClendon (Relating to the authority of the Texas Facilities Commission to manage a construction project at the site of the G. J. Sutton State Office Complex in Bexar County.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1255, As Introduced: a negative impact of ($27,202,250) through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
April 8, 2015
TO: Honorable Gary Elkins, Chair, House Committee on Government Transparency & Operation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1255 by McClendon (Relating to the authority of the Texas Facilities Commission to manage a construction project at the site of the G. J. Sutton State Office Complex in Bexar County.), As Introduced
TO: Honorable Gary Elkins, Chair, House Committee on Government Transparency & Operation
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1255 by McClendon (Relating to the authority of the Texas Facilities Commission to manage a construction project at the site of the G. J. Sutton State Office Complex in Bexar County.), As Introduced
Honorable Gary Elkins, Chair, House Committee on Government Transparency & Operation
Honorable Gary Elkins, Chair, House Committee on Government Transparency & Operation
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1255 by McClendon (Relating to the authority of the Texas Facilities Commission to manage a construction project at the site of the G. J. Sutton State Office Complex in Bexar County.), As Introduced
HB1255 by McClendon (Relating to the authority of the Texas Facilities Commission to manage a construction project at the site of the G. J. Sutton State Office Complex in Bexar County.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1255, As Introduced: a negative impact of ($27,202,250) through the biennium ending August 31, 2017. 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 HB1255, As Introduced: a negative impact of ($27,202,250) through the biennium ending August 31, 2017.
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 2016 ($13,009,750) 2017 ($14,192,500) 2018 ($14,196,100) 2019 ($14,192,600) 2020 ($14,196,400)
2016 ($13,009,750)
2017 ($14,192,500)
2018 ($14,196,100)
2019 ($14,192,600)
2020 ($14,196,400)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromBond Proceeds-Rev Bonds781 Change in Number of State Employees from FY 2015 2016 ($13,009,750) ($162,450,000) 3.0 2017 ($14,192,500) $0 3.0 2018 ($14,196,100) $0 3.0 2019 ($14,192,600) $0 3.0 2020 ($14,196,400) $0 3.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromBond Proceeds-Rev Bonds781 Change in Number of State Employees from FY 2015 2016 ($13,009,750) ($162,450,000) 3.0 2017 ($14,192,500) $0 3.0 2018 ($14,196,100) $0 3.0 2019 ($14,192,600) $0 3.0 2020 ($14,196,400) $0 3.0
2016 ($13,009,750) ($162,450,000) 3.0
2017 ($14,192,500) $0 3.0
2018 ($14,196,100) $0 3.0
2019 ($14,192,600) $0 3.0
2020 ($14,196,400) $0 3.0
Fiscal Analysis
The bill would authorize the Texas Facilities Commission to construct a building and parking facility at the current site of the G.J. Sutton State Complex in Bexar County.Based on information provided by the Texas Public Finance Authority (TPFA) , it is estimated that the fiscal impact would be $13,009,750 in fiscal year 2016 and $14,192,500 in fiscal year 2017. The Historical Commission has indicated any additional costs associated with the provisions of the bill could be reasonably absorbed by the agency.
Methodology
Based on information provided by TPFA, it is assumed $162,450,000 in revenue bonds would be issued on January 1, 2016. Other assumptions for the debt service estimate include a six percent interest rate and a 20 year level debt service repayment schedule. It is estimated that the related debt service would be $13,009,750 in fiscal year 2016 and $14,192,500 in fiscal year 2017.TFC estimates the bill provisions would require one Project Manager IV (1.0 FTE), one Project Manager II (1.0 FTE) and one Inspector V (1.0 FTE). The costs related to these FTEs would be paid out of the revenue bond proceeds. Lease payments appropriated from General Revenue would be the source of repayment of the bonds issued under the provisions of the bill. As such, the debt would be considered not self-supporting and included in the calculation of the Constitutional Debt Limit. 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 revenues for the previous three fiscal years. As of the end of fiscal year 2014, the Bond Review Board (BRB) estimates the constitutional debt limit for issued, and authorized but unissued debt, to be 2.71 percent. The BRB estimates that the additional authorization of $162,450,000 in not self-supporting general obligation bond authority would increase the ratio for issued, and authorized by unissued debt by 3 basis points to 2.74 percent.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 303 Facilities Commission, 347 Public Finance Authority, 352 Bond Review Board, 808 Historical Commission
303 Facilities Commission, 347 Public Finance Authority, 352 Bond Review Board, 808 Historical Commission
LBB Staff: UP, FR, EP, KPe, LBe, TBo
UP, FR, EP, KPe, LBe, TBo