Texas Public Finance Authority Pre-Legislative

Transcript:Texas Public Finance Authority Pre-Legislative:
Texas Public Finance Authority Pre-Legislative Session Funding Capitol Projects April 30, 2024 Texas Public Finance Authority Lee Deviney, Executive Director lee.deviney@tpfa.texas.gov 512-463-5544 www.tpfa.texas.gov Purpose of this Training Legislative Session Preparation Identify Resources for State Agency Capital Planning Induce Follow Up Questions Specific to Client Agency Needs 2 Additional Training Resources TPFA Case Study Training is available online at: https://www.tpfa.state.tx.us/trainingvideo.aspx Bond Review Board Debt Primer https://www.brb.texas.gov/state-publications/ Bonds 101 Texas Public Finance Seminar (January 2025) TPFA Finance Team (512)463-5544 or BondTeam@TPFA.Texas.Gov 3 I. Capital Projects 4 Capital Projects Capital Projects have a useful life beyond the current appropriation period Buildings Roads Parks Infrastructure Equipment 5 Capital Budget Definitions and Restrictions Legislative Appropriations Request Instructions issued by LBB and OOG General Appropriations Act Article IX, Sec. 14.03. Transfers – Capital Budget Agency Specific Capital Budget Riders Other Statutory Authorizations and GAA Riders 6 Sample Capital Projects State Health Laboratory Highways and Toll Roads State History Museum Higher Education Facilities (Dormitories, Libraries and Laboratories) Capitol Complex Facilities Vehicle Fleets, IT Hardware and Other Equipment 7 Funding Capital Projects Capital Projects may be funded by: Cash (current appropriations) Debt (bond or other debt financing) Lease Purchase Public Private Partnerships 8 Authorization and Appropriation Capital Projects are authorized by the Legislature in General Law or in the General Appropriations Act. Certain bond funded projects may also be authorized by Constitutional Amendment. 9 Authorization and Appropriation State Agencies pursuing a capital project under new or existing authorization must have: 1) an appropriation to fund or finance the project, 2) Capital Budget authority, and 3) an appropriation for debt service is also required for debt financed projects. 10 Planning a Capital Project Bond Review Board and Texas Higher Education Coordinating Board Capital Expenditure Plan Required by GAA, Art. IX, Sec. 11.03 (Mid-April to July 1, 2024) Legislative Appropriations Request Capital Budget Schedules Type of Financing (cash or debt financing) Method of Financing (fund source) 11 Capital Projects and Legislative Appropriations Request Capital Projects may be authorized by a bill that amends general law or in the GAA. The Legislature may wish to fund capital projects through the issuance of general obligation (GO) bonds. In addition to statutory authorization and appropriation, General Obligation bond financing requires voter approval of an amendment to the state constitution. 12 Capital Projects and Legislative Appropriations Request In all cases appropriations for a capital project will be required and are typically addressed in the