LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 25, 2025 TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HJR182 by Patterson (Proposing a constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized.), As Introduced There would be a negative fiscal impact to the state depending on the amount, timing, and structure of general obligation bonds issued under provisions of the bill. Those factors cannot be determined at this time.The cost to the state for publication of the resolution is $191,689. The resolution would propose an amendment to Article III of the Texas Constitution, authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized. The bonds issued under this authority are not included in the computation of the constitutional debt limit required by Section 49-j of the Texas Constitution. The fiscal impact of the resolution cannot be estimated because the amount and structure of bonds that might be issued in future years is unknown, except that the bond issuance is limited to be equal or less than $6.0 billion. The Bond Review Board estimates the debt service costs would be $822.1 million in the 2026-27 biennium based on the following assumptions: (1) the bonds will be backed by the general revenues of the state; (2) the bonds will have a thirty-year maturity; (3) a conservative fixed-interest rate of 5.50% for fiscal year 2026 and beyond; (4) all bonds authorized under this bill will be issued in the amount of $6,000,000,000 on September 1, 2025 with principal payments every August 1, and semi-annual interest payments every February 1 and August 1, beginning February 1, 2026; (5) cost of issuance and bond insurance fees are excluded; and (6) approximate level debt service payments through the life of the bonds.The proposed amendment would be submitted to the voters at an election to be held November 4, 2025. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 305 General Land Office and Veterans' Land Board, 352 Bond Review Board LBB Staff: b > td > JMc, FV, LCO, KCu
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 25, 2025
TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HJR182 by Patterson (Proposing a constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized.), As Introduced
TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HJR182 by Patterson (Proposing a constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized.), As Introduced
Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HJR182 by Patterson (Proposing a constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized.), As Introduced
HJR182 by Patterson (Proposing a constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized.), As Introduced
There would be a negative fiscal impact to the state depending on the amount, timing, and structure of general obligation bonds issued under provisions of the bill. Those factors cannot be determined at this time.The cost to the state for publication of the resolution is $191,689.
There would be a negative fiscal impact to the state depending on the amount, timing, and structure of general obligation bonds issued under provisions of the bill. Those factors cannot be determined at this time.The cost to the state for publication of the resolution is $191,689.
The cost to the state for publication of the resolution is $191,689.
The resolution would propose an amendment to Article III of the Texas Constitution, authorizing the Veterans' Land Board to issue general obligation bonds in an aggregate principal amount that is greater than amounts previously authorized. The bonds issued under this authority are not included in the computation of the constitutional debt limit required by Section 49-j of the Texas Constitution. The fiscal impact of the resolution cannot be estimated because the amount and structure of bonds that might be issued in future years is unknown, except that the bond issuance is limited to be equal or less than $6.0 billion. The Bond Review Board estimates the debt service costs would be $822.1 million in the 2026-27 biennium based on the following assumptions: (1) the bonds will be backed by the general revenues of the state; (2) the bonds will have a thirty-year maturity; (3) a conservative fixed-interest rate of 5.50% for fiscal year 2026 and beyond; (4) all bonds authorized under this bill will be issued in the amount of $6,000,000,000 on September 1, 2025 with principal payments every August 1, and semi-annual interest payments every February 1 and August 1, beginning February 1, 2026; (5) cost of issuance and bond insurance fees are excluded; and (6) approximate level debt service payments through the life of the bonds.The proposed amendment would be submitted to the voters at an election to be held November 4, 2025.
The fiscal impact of the resolution cannot be estimated because the amount and structure of bonds that might be issued in future years is unknown, except that the bond issuance is limited to be equal or less than $6.0 billion. The Bond Review Board estimates the debt service costs would be $822.1 million in the 2026-27 biennium based on the following assumptions: (1) the bonds will be backed by the general revenues of the state; (2) the bonds will have a thirty-year maturity; (3) a conservative fixed-interest rate of 5.50% for fiscal year 2026 and beyond; (4) all bonds authorized under this bill will be issued in the amount of $6,000,000,000 on September 1, 2025 with principal payments every August 1, and semi-annual interest payments every February 1 and August 1, beginning February 1, 2026; (5) cost of issuance and bond insurance fees are excluded; and (6) approximate level debt service payments through the life of the bonds.
The proposed amendment would be submitted to the voters at an election to be held November 4, 2025.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 305 General Land Office and Veterans' Land Board, 352 Bond Review Board
305 General Land Office and Veterans' Land Board, 352 Bond Review Board
LBB Staff: b > td > JMc, FV, LCO, KCu
JMc, FV, LCO, KCu