LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 2, 2021 TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2219 by Canales (relating to the issuance of Texas Mobility Fund obligations.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB2219, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023. 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 toGeneral Revenue Related Funds2022$02023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromBond Proceeds - Texas Mobility Fund8105 Probable Savings/(Cost) fromTexas Mobility Fund3652022$1,500,000,000$02023$0($40,000,000)2024$1,500,000,000($50,000,000)2025$0($100,000,000)2026$0($110,000,000) Fiscal AnalysisThe bill would amend Section 201.943 of the Transportation Code, relating to the issuance of Texas Mobility Fund (TMF) bonds, to repeal Section 201.943(l) which specifies that the Transportation Commission (TTC) may not issue TMF obligations after January 1, 2015, except to refund outstanding obligations to provide savings to the state and to refund outstanding variable rate obligations and renew or replace credit agreements. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 2, 2021
TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2219 by Canales (relating to the issuance of Texas Mobility Fund obligations.), Committee Report 1st House, Substituted
TO: Honorable Terry Canales, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2219 by Canales (relating to the issuance of Texas Mobility Fund obligations.), Committee Report 1st House, Substituted
Honorable Terry Canales, Chair, House Committee on Transportation
Honorable Terry Canales, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2219 by Canales (relating to the issuance of Texas Mobility Fund obligations.), Committee Report 1st House, Substituted
HB2219 by Canales (relating to the issuance of Texas Mobility Fund obligations.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB2219, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023. 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 HB2219, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 $1,500,000,000 $0
2023 $0 ($40,000,000)
2024 $1,500,000,000 ($50,000,000)
2025 $0 ($100,000,000)
2026 $0 ($110,000,000)
Fiscal Analysis
The bill would amend Section 201.943 of the Transportation Code, relating to the issuance of Texas Mobility Fund (TMF) bonds, to repeal Section 201.943(l) which specifies that the Transportation Commission (TTC) may not issue TMF obligations after January 1, 2015, except to refund outstanding obligations to provide savings to the state and to refund outstanding variable rate obligations and renew or replace credit agreements. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
Methodology
The bill would remove the statutory prohibition on the issuance of new TMF obligations under Section 49-k, Article III, Texas Constitution, and Section 201.943 of the Transportation Code, for the purpose of providing financing for transportation projects. Based on the information provided by the Texas Department of Transportation (TxDOT), it is assumed current revenue estimates for the Texas Mobility Fund and market interest rates would enable the TTC to issue as much as $3.0 billion in new bond proceeds to provide financing for transportation projects. Based on analysis provided by TxDOT, it is assumed that $1.5 billion new TMF obligations would be issued in fiscal year 2022, with a final maturity date in 2045 (23 years), and $1.5 billion would be issued in fiscal year 2024, with a final maturity date in 2042 (18 years), with an aggregate interest rate of 3.2 percent. Issuance of the obligations would result in revenue gains to the Texas Mobility Fund from the receipt of bond proceeds in fiscal years 2022 and 2024. Debt service payments on the new TMF obligations which would begin in fiscal year 2023 at a cost of $40.0 million to the Texas Mobility Fund 365, with debt service payments and costs to Fund 365 continuing through fiscal year 2045. TxDOT estimates total repayment over the life of the bonds would be $4.5 billion from Fund 365.
Based on the information provided by the Texas Department of Transportation (TxDOT), it is assumed current revenue estimates for the Texas Mobility Fund and market interest rates would enable the TTC to issue as much as $3.0 billion in new bond proceeds to provide financing for transportation projects. Based on analysis provided by TxDOT, it is assumed that $1.5 billion new TMF obligations would be issued in fiscal year 2022, with a final maturity date in 2045 (23 years), and $1.5 billion would be issued in fiscal year 2024, with a final maturity date in 2042 (18 years), with an aggregate interest rate of 3.2 percent. Issuance of the obligations would result in revenue gains to the Texas Mobility Fund from the receipt of bond proceeds in fiscal years 2022 and 2024. Debt service payments on the new TMF obligations which would begin in fiscal year 2023 at a cost of $40.0 million to the Texas Mobility Fund 365, with debt service payments and costs to Fund 365 continuing through fiscal year 2045. TxDOT estimates total repayment over the life of the bonds would be $4.5 billion from Fund 365.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 601 Department of Transportation
601 Department of Transportation
LBB Staff: b > td > JMc, AAL, MB, TG
JMc, AAL, MB, TG