State of Texas Debt – An Overview
January 27, 2009
Texas Bond Review Board
Texas Public Finance Authority
Bob Kline, Executive Director
kline@brb.state.tx.us
512-463-1741
www.brb.state.tx.us
Judith Porras, Interim Executive Director
judith.porras@tpfa.state.tx.us
512-463-5681
www.tpfa.state.tx.us
1. Introduction
BRB vs. TPFA
Bond Review Board – Oversight Agency
•
•
•
Approves state debt issues and lease purchases greater than
$250,000 or a term longer than 5 years
Collects, analyzes and reports information on debt issued by
state and local entities – on our website
Administers the state's Private Activity Bond Allocation
Program
Texas Public Finance Authority – Issuing Agency
•
•
•
Issues bonds and other forms of debt as authorized by the
Legislature.
Currently - 23 state agencies including 3 universities
Administers the Master Lease Program
3
Texas Debt Issuers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Texas Public Finance Authority (Universities: MSU, SFA & TSU)
Texas Department of Transportation
Texas Water Development Board
Texas Veteran’s Land Board (General Land Office)
Texas Department of Housing & Community Affairs
Texas State Affordable Housing Corp
Texas Higher Education Coordinating Board
The University of Texas System
The Texas A&M University System
Texas State Technical College System
Texas State University System
The Texas Tech University System
Texas Woman’s University
University of Houston System
The University of North Texas
Texas Agriculture Finance Authority (Dept. of Agriculture)
Office of Economic Development & Tourism
4
TPFA Client Agencies
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Midwestern State University
Stephen F. Austin State University
Texas Southern University
Adjutant General
Department of Agriculture
Office of the Governor/Texas Dept. of Transportation – Colonias Roadways
State Preservation Board
Department of Aging and Disability Services
Texas Department of Criminal Justice
Texas Department of Public Safety
Department State Health Services
Texas Facilities Commission
Texas Historical Commission
Texas Military Preparedness Commission
Texas Parks and Wildlife Department
Texas School for the Blind and Visually Impaired
Texas School for the Deaf
Texas Workforce Commission
Texas Youth Commission
TPFA Charter School Finance Corporation
Texas State Technical College System*
Texas Juvenile Probation Commission*
Texas National Research Laboratory Commission (Superconducting Super Collider)*
*Inactive
2. Debt Instruments
What is a Bond?
A contract between a borrower and a lender, specifying:
•
When the loan is due (“term” or “maturity”) Example: 20 years
•
What interest rate the borrower will pay Example: 5%
•
•
When the payments will be made
Example: Monthly, Semi-annually, annually
What revenue source will be pledged to make the payments
7
Common Terms
• Par – 100% of the face value of a security.
•
•
•
•
•
8
- A “par bond” is a bond selling at its face value.
Premium- the amount by which the price paid for a security
exceeds par value.
Discount – the amount by which the price paid for a security is
less than par value.
Maturity date– the date principal is due and payable to bond
owner.
Coupon – now, the term is used as a synonym for the interest
rate paid on a security. (Used to be an actual coupon
detachable from the physical bond, which was the interest rate
on the bond.)
Yield– generally, references the investor’s rate of return:
calculated as “yield to maturity” or “yield to call.”
Terms - Example
Excerpt
Stephen F. Austin State University
Revenue Financing System Revenue Bonds, Series 2009
Underwritten 11:30AM 1.14.2009
Maturity
Date
Amount
Rate
Yield
Price
10/15/2017
990,000
3.25%
3.09%
101.209
10/15/2018
1,025,000
3.50%
3.33%
101.271
10/15/2019
1,060,000
3.50%
3.58%
99.290
10/15/2020
1,095,000
3.75%
3.88%
98.782
Types of State Debt Instruments
•
Bonds: Long term (5+ years), fixed interest rate
•
Notes: Short Term (<5 years)
•
Commercial Paper (maximum maturity of 270 days), variable
interest rate
10
Commercial Paper
•
•
Can be secured by the state’s general obligation pledge or by a
specified revenue source.
Maturity ranges from 1 to 270 days.
•
As the paper matures, it can be paid off or reissued (“rolled
over”) at a new interest rate
•
Variable interest rate – usually much lower than long term
interest rate
11
Municipal Market Data
6.00%
5.00%
Rate (%)
4.00%
3.00%
2.00%
1.00%
0.00%
1
2
3
4
5
6
7
8
9
10
11 12 13
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Maturity
Municipal Market Data (01/20/2009)
12
Fixed Rates vs. Variable Rates
Bond Buyer Index vs. SIFMA Index vs. TPFA CP
(as of 12-31-08)
9%
8%
7%
6%
5%
4%
3%
2%
1%
1/1/2000
4/1/2000
7/1/2000
10/1/2000
1/1/2001
4/1/2001
7/1/2001
10/1/2001
1/1/2002
4/1/2002
7/1/2002
10/1/2002
1/1/2003
4/1/2003
7/1/2003
10/1/2003
1/1/2004
4/1/2004
7/1/2004
10/1/2004
1/1/2005
4/1/2005
7/1/2005
10/1/2005
1/1/2006
4/1/2006
7/1/2006
10/1/2006
1/1/2007
4/1/2007
7/1/2007
10/1/2007
1/1/2008
4/1/2008
7/1/2008
10/1/2008
0%
Bond Buyer Index (BBI-20): Long-term, fixed rate tax-exempt, revenue debt index;
SIFMA: Short-term, variable rate tax-exempt index;
TPFA CP: Weighted average rate of TPFA commercial paper
13
Bond Buyer Index
SIFMA
TPFA CP
Taxation
•
“Taxable” – Interest earnings are taxable for federal income
tax purposes
•
“Tax-Exempt” – Interest earnings are exempt from federal
income taxes
• Lower Interest Rate – Investors will accept a lower interest
rate than taxable bonds, such as corporate bonds, U.S.
Treasury Bonds, because they don’t pay taxes on the
interest
•
•
$1.00 (interest) - $.25 (taxes) = $0.75 (tax-exempt)
Federal tax law limits issuance, investment and use of
proceeds of tax-exempt bonds
14
3. Types of Texas Debt
General Obligation (GO) Debt
• Constitutional Pledge: Legally secured by a
constitutional pledge of the first monies coming into
the State Treasury that are not constitutionally
dedicated for another purpose.
• Voter Approval: Resolution passed by a 2/3 vote of
both houses of the legislature, and by a majority of
the voters.
• General Government functions: prisons, mental
health facilities, parks.
16
Revenue Debt
•
Legally secured by a specific revenue source
•
Does not require voter approval
•
•
Enterprise Activities: utilities, airports, toll roads, colleges and
universities
Lease Revenue or Annual Appropriation Bonds
17
TPFA Revenue Lease Purchase
•
•
•
•
•
•
TPFA issues revenue debt to finance a specifically authorized project
or a property acquisition under the Master Lease Program (MLPP).
TPFA takes title to the financed project and leases it to a client agency.
The client agency is obligated to make lease payments to TPFA.
The lease payments are usually from general revenue appropriated to
the client agency.
TPFA uses the lease payments to pay debt service on the bonds or
commercial paper.
Administrative costs assessable to a client agency under MLPP and
other related administrative costs, such as property insurance, are also
paid by the client agency with general revenue appropriations.
18
Tax and Revenue Anticipation
Notes (TRANs)
•
•
•
•
Issued by the CPA, Treasury Operations to address the cash
flow mismatch between revenues and expenditures in the
general revenue fund
Repaid by the end of the biennium in which they are used, but
are usually repaid by the end of each fiscal year
Repaid with tax receipts and other revenues of the General
Revenue fund
Approved by the Cash Management Committee (Governor, Lt.
Governor, CPA. Speaker is a non-voting member).
19
Debt Issued by Universities
•
•
•
Revenue Bonds: Universities may issue revenue bonds or notes to
finance permanent improvements for their institution(s), and pledge all
system-wide revenue (Revenue Financing System Bonds), except
legislative appropriations, to the repayment of the revenue bonds or
notes.
Tuition Revenue Bonds: The Legislature may also authorize “tuition
revenue bonds”, usually for specific purposes or projects and appropriate
general revenue to offset the institution’s debt service; legislative
appropriations made directly for debt service would be unconstitutional.
PUF/HEAF: The University of Texas and Texas A&M Systems may issue
obligations backed by income from the Permanent University Fund (PUF),
in accordance with Texas Constitution, Art. VII, §18. Texas’ other
institutions may issue Higher Education Assistance Fund (HEAF) bonds,
in accordance with Texas Constitution, Art. VII, §17.
20
Refunding Bonds
•
•
•
•
•
•
Refinance - Issue new bonds to pay off old bonds
Lower interest rate - BRB recommends 3%
Change Bond Covenants
Change Repayment Schedule (“Restructure”)
One-Time - Federal tax law prohibits tax-exempt
bonds issued after 1986 from being advance
refunded more than one time.
Can be current refunding or advance refunding
21
4. Bond Sale Mechanics
Debt Issuance Process
1.
Legislative authorization and appropriation
2.
Issuer Board approval
3.
Bond Review Board approval
4.
Bond sale (Negotiated/Competitive)
5.
Bond closing – Attorney General approval
6.
Ongoing Administration: paying debt service,
federal tax law, change in use, arbitrage rebate
compliance
23
Finance Team
• Financial Advisor
• Bond Counsel/Disclosure Counsel
• Underwriter
• Commercial Paper Transactions:
- Dealer
- Paying Agent
- Liquidity Provider
24
Methods of Sale
Competitive
• Straightforward structure
• Well known credit and security pledge
• Size will attract bidders
Negotiated
• Complex financial or legal structure
• Market timing important to structure (e.g.,
•
refunding)
Bonds require intensive pre-marketing effort
25
Competitive
• Underwriter determined through competitive bid
for the purchase of the bonds, i.e. lowest True
Interest Cost
• Financial Advisor and Bond Counsel structure
transaction and bond documents
• The bidder (underwriter) determines structure of
underwriting syndicate – not the issuer
26
Negotiated
• Underwriter usually selected through RFP process
• Underwriter and underwriter’s counsel work with
FA and Bond Counsel to structure transaction,
prepare offering documents
• Price, interest rates, and other terms of the bonds
negotiated with Underwriter on pricing (sale) date
• More flexibility in timing of sale, structure of bonds,
and composition of underwriting syndicate
27
Pricing/Trading
•
•
•
•
•
•
•
•
The sale of negotiated bonds is through a “pricing” process.
Underwriter, FA, and issuer closely check the market; reference MMD,
assessing where the bonds are in relation to the MMD scale (ie, the
“spread” to MMD). Spread to MMD dictated by credit quality of
security.
Before pricing Underwriter, FA, and issuer review structure and market
update, discuss pricing views and agree on a preliminary pricing scale.
The agreed preliminary scale is sent out to the market (via wire) for a
“pricing period,” during which orders are received
Depending on orders received, the preliminary scale may be revised up
or down if necessary.
At the end of pricing period, the Underwriter makes a formal offer to
buy the bonds at specific rates, terms, structure.
Issuer accepts offer, and Bond Purchase Agreement is signed.
Trading on secondary market similar: investor/broker assesses credit
factors and spread to MMD.
28
5. General Revenue Impact
Self-Supporting vs. Not Self-Supporting
Self-Supporting
•
•
•
Self-supporting debt is designed to be repaid with revenues
other than state general revenues. Self-supporting debt can be
either general obligation debt or revenue debt.
GO: Water Development Board debt repaid from loans made to
communities for water and wastewater projects.
Revenue: State Highway Fund debt, Housing and Community
Affairs debt
30
Not Self-Supporting
•
•
•
Not self-supporting debt is intended to be repaid with state
general revenues. Not self-supporting debt can be either
general obligation debt or revenue debt.
GO: HEAF Bonds, TPFA Bonds, Water Development Bonds
Revenue: TPFA Bonds, TPFA MLPP, armory improvement
bonds (TMFC/Adj. Gen.)
31
6. Questions and Answers
7. Texas State Debt
State Debt Outstanding
Texas Debt Outstanding as of August 31, 2008* (millions)
Self-Supporting
Not
Self- Supporting
Total
General Obligation
$8,439
$2,339
$10,778
Revenue**
$19,967
$509
$20,476
Total
$28,406
$2,848
$31,254
*Includes commercial paper and variable rate notes; however does not include TRANs (short-term debt
issued by the CPA, Treasury Operations for cash management purposes).
**Includes $2.1 billion of Tuition Revenue Bonds
34
Historical State Debt
Billions
As of 8/31/08 (billions)
33
30
27
24
21
18
15
12
9
6
3
0
1999
2000
2001
2002
Revenue Not Self Supporting
GO Not Self Supporting
2003
2004
2005
2006
2007
2008
Revenue Self Supporting
GO Self Supporting
35
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Millions
Texas Debt Service
as of 8/31/08 (millions)
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
REV/SS
REV/NSS
GO/NSS
GO/SS
36
Constitutional Debt Limit
•
•
The Texas Constitution prohibits the issuance of additional state
debt if the percentage of debt service payable by general
revenue in any fiscal year exceeds 5% of the average of
unrestricted general revenue for the past three years.
For FY2008, this percentage was 1.30% of issued debt and
4.09%, including authorized but unissued debt.
37
Constitutional Debt Limit
Debt service payable by GR as a % of the previous three years of unrestricted GR average.
Fiscal Year
Issued Debt
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1.30%
1.32%
1.33%
1.51%
1.51%
1.51%
1.42%
1.47%
1.51%
1.58%
Issued + Authorized but
Unissued
4.09%
1.82%
1.87%
2.21%
2.31%
2.37%
2.22%
1.91%
2.03%
2.20%
38
College & University Debt Outstanding
As of 08-31-08 (billions)
6
5
Billions
4
3
2
1
0
2004
2005
PUF
2006
Non TRB
2007
2008
TRB
39
College & University Debt Service
as of 08-31-08 (millions)
500
450
400
Millions
350
300
250
200
150
100
50
-
2009
2010
PUF
2011
Rev Bonds
2012
2013
TRB
40
8. Texas’ Credit Ratings, Debt
Affordability and Swaps
Texas’ Credit Ratings
Texas’ Credit Ratings are:
– Moody’s
– Standard and Poor’s
– Fitch
Aa1
AA
AA+
Rating agencies consider the following four factors in
determining a state’s credit rating:
– Economy
– Financial condition
– Debt burden
– General management practices
42
STATE GENERAL OBLIGATION BOND RATINGS
August 2008
Tier
Ranking
1
2
2
3
3
4
4
5
5
6
7
7
8
9
10
11
12
State
Delaware, Georgia, Maryland,
Missouri, North Carolina, Utah,
Virginia
Minnesota
South Carolina
Florida
Vermont
Nevada, Ohio, Tennessee
New Mexico
TEXAS
Washington
Alaska
Alabama, Hawaii, Massachusetts,
New Hampshire, Pennsylvania,
Oregon,Montana
Arkansas
Oklahoma
Connecticut, Illinois, Maine,
Mississippi, Rhode Island
New Jersey, Wisconsin, New York
Michigan, West Virginia
California, Louisiana
Moody's
Investors
Service
Standard
&
Poor's
Fitch
Ratings
Aaa
AAA
AAA
Aa1
Aaa
Aa1
Aaa
Aa1
Aa1
Aa1
Aa1
Aa2
AAA
AA+
AAA
AA+
AA+
AA+
AA
AA+
AA+
AAA
AAA
AA+
AA+
AA+
**
AA+
AA
AA
Aa2
AA
AA
Aa2
Aa3
AA
AA+
**
AA
Aa3
AA
AA
Aa3
Aa3
A1
AA
AAA+
AAAAA+
** Not rated
Sources: Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings.
43
Texas’ State & Local Debt
TOTAL STATE AND LOCAL DEBT OUTSTANDING: TEN MOST POPULOUS STATES
Total State and Local Debt
State Debt
Local Debt
Per
Per
Population Capita Amount
Capita
State
(thousands) Rank (millions) Amount
New York
19,306
1
$241,407 $12,504
Illinois
12,832
2
110,788
8,634
Pennsylvania 12,441
3
106,041
8,524
California
36,458
4
299,535
8,216
Texas
23,508
5
165,571
7,043
Michigan
10,096
6
70,826
7,015
Florida
18,090
7
119,674
6,615
Ohio
11,478
8
63,658
5,546
North Carolina 8,857
9
43,937
4,961
Georgia
9,364
10
42,086
4,494
MEAN
$126,352
$7,355
Per
Capita Amount
Rank (millions)
1
$105,306
2
53,655
5
32,121
3
109,417
10
24,501
4
28,986
8
29,312
6
24,713
7
17,749
9
10,493
% of
Total
Debt
43.6%
48.4%
30.3%
36.5%
14.8%
40.9%
24.5%
38.8%
40.4%
24.9%
Per
Per
Capita Capita Amount
Amount Rank (millions)
$5,455
1
$136,101
4,181
6
57,133
2,582
3
73,920
3,001
4
190,118
1,042
2
141,070
2,871
7
41,840
1,620
5
90,362
2,153
8
38,945
2,004
10
26,188
1,121
9
31,593
% of
Total
Debt
56.4%
51.6%
69.7%
63.5%
85.2%
59.1%
75.5%
61.2%
59.6%
75.1%
Per
Capita
Amount
$7,050
4,452
5,942
5,215
6,001
4,144
4,995
3,393
2,957
3,374
$43,625
34.3%
$2,603
65.7%
$4,752
$82,727
Note: Detail may not add to total due to rounding.
Source: U.S. Census Bureau, State and Local Government Finances by Level of Government and by State: 2005-2006, the most recent data available.
44
Texas Local Government Debt
(as of 8/31/2007)
($48.5 billion)
Public School
Districts
34.3%
($1.5 billion)
($23.0 billion)
Health & Hospital
Water Districts &
Districts
Authorities
1.0%
16.2%
($4.3 billion)
Other Special
Districts &
Authorities
3.1%
($10.0 billion)
Counties
7.1%
($2.8 billion)
Community and
Junior Colleges
2.0%
($51.3 billion)
Cities, Towns,
Villages
36.3%
$141.4 billion total outstanding debt
Source: Texas Bond Review Board
45
BRB Online Database
Local government searchable databases and downloadable data available on the
Bond Review Board’s web site:
http://www.brb.state.tx.us/lgs/lgs.aspx
Texas Bond Review Board
46
Debt Affordability Study (DAS)
•
•
•
•
•
•
Annual DAS is the responsibility of BRB in coordination with the
LBB.
Purpose is to provide state leadership with metrics to assess the
general revenue impact of debt-service requirements for not selfsupporting debt over the next 5 years.
Uses an Excel-based model (Debt Capacity Model) to calculate
five key debt ratios to measure the state’s debt capacity.
Debt capacity is defined as annual debt-service.
Enables policymakers to run debt-service scenarios to ensure the
state’s available revenues are used for the highest priority needs.
Publication is planned for early February.
47
DAS of January, 2008
•
•
•
•
•
Ratio 1 – Not Self-supporting Debt Service as a
Percent of Unrestricted Revenues (T=2%,
C=3%, 2.33% by FY2012)
Ratio 2 – Not Self-supporting Debt Service as a
Percent of Budgeted General Revenue
(historically <1.5%, 1.38% for FY 2009)
Ratio 3 – Not Self-supporting Debt to Personal Income
(S&P <3%, 0.69% by FY2012)
Ratio 4 – Not Self-supporting Debt per Capita
($299.38 by FY2012)
Ratio 5 – Rate of Debt Retirement (50% of NSS debt
retired in 10 yrs, for Texas: 71.9%)
48
What is an Interest Rate Swap?
•
•
•
•
•
•
Form of Derivative
Alternate way to access capital
Does not represent debt – interest rate management
agreement
2 parties agree to exchange different forms of interest
rates for a definite period
Achieve lower cost financing by using short-term
interest rates rather than higher, long-term rates
Huge market: > $150 trillion in notional amount, ~5X
> sum of world’s stock markets
49
Pay-Fixed, Receive-Variable Swap
50
Swap Comparison
Long-term, fixed-rate bonds

5.88% (coupon)
+ 0.05% (amortized COI)
Swap


VR% (floating bond rate)
+ 0.60% (remarketing
and liquidity)
5.93% (all-in cost)



Swap Financial Group
+ 2.58% (fixed swap rate)
– VR (floating swap rate)
3.18% (all-in cost)
51
Major Swap Risks
•
Termination Risk – swap could terminate before scheduled
termination date.
•
Credit Risk – swap counterparty fails to fulfill its financial
obligations.
•
Basis Risk – variable-rate payment received doesn’t cover
interest payment owed on underlying debt.
•
Rollover Risk – underlying variable-rate debt becomes unhedged if either party terminates the swap.
•
•
Tax Risk – changes in federal or state tax codes.
Fair Value – sum of net settlement payments based on yield
curve; if negative, the issuer pays counterparty
at termination.
52
Texas Swap Examples
PAY-FIXED, RECEIVE VARIABLE (Synthetic Fixed
Rate)
Fixed-Rate Paid
TDHCA Single Family Variable Rate Mortgage Revenue
Bonds Series 2006A
3.86%
UT Revenue Financing System Bonds, Series 2008B
Veterans Housing Fund II Bonds Series 2008A
3.61%
3.19%
Variable-Rate Received
63% of LIBOR +.30%
SIFMA
68% of 1M LIBOR
PAY-VARIABLE, RECEIVE FIXED (Synthetic
Floating Rate)
Veterans Land Tax Refunding Bonds Series 2006B
Variable-Rate Paid
4.61%
Fixed-Rate Received
100% of 6M LIBOR
PAY-VARIABLE, RECEIVE-VARIABLE (Basis
Swap)
Veterans Land Tax Bonds Series 2000A/2002A
TTC General Obligation Mobility Series 2006A
Variable-Rate Paid
131.25% of SIFMA
SIFMA
Variable-Rate Received
100% of 1M LIBOR
69.42% of 10 yr LIBOR
53
Texas Swaps Outstanding
PAY-FIXED, RECEIVE-VARIABLE (Synthetic Fixed-Rate)
Texas Department of Housing and Community Affairs
University of Texas System
Veterans Land Board
Total
Notional Amount as of
8/31/08
(in thousands)
$359,930
$1,042,960
$1,457,920
$2,860,810
PAY-VARIABLE, RECEIVE-FIXED (Synthetic Floating Rate)
Veterans Land Board
$22,990
PAY-VARIABLE, RECEIVE-VARIABLE (Basis Swap)
Veterans Land Board
Texas Transportation Commission
Total
$211,580
$400,000
$611,580
Total Swaps Outstanding
$3,495,380
54
9. The State of Texas
Private Activity Bond
Allocation Program in 2009
John Barton
Financial Analyst & Program Administrator
Texas Bond Review Board
512-463-9891
barton@brb.state.tx.us
www.brb.state.tx.us
Private Activity Bond Program
A private activity bond is a tax-exempt bond the proceeds of
which are used either partially or entirely for non-governmental
purposes. General types of private activity bonds are:
– an exempt facility bond (Ex: airports, pollution control)
– a qualified mortgage bond
– a qualified veterans mortgage bond
– a qualified small issue bond
– a qualified student loan bond
– a qualified redevelopment bond
– a qualified 501(c)(3) bond
56
PAB - Federal Program
•
•
•
•
•
•
“State Ceiling” or “Volume Cap” - Each state’s annual limit on the
amount of Private Activities financed by tax-exempt bonds
2009 Volume Cap $90 per capita = $2.18B for Texas
2008 Volume Cap $85 per capita = $2.03B for Texas
Congress has allocated $15B of PAB authority to be allocated by the
U.S. Secretary of Transportation for eligible Highway projects and RailTruck Transfer Facilities.
Housing and Economic Recovery Act of 2008 created $748 million in
PAB authority for housing issues.
Economic Stabilization Act of 2008 created $1.8 billion in authority for
areas affected by Hurricane Ike.
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How Texas Administers Its PAB
•
Texas Legislature determines Texas’ allocation breakdown
•
Bond Review Board (BRB) administers the program in Texas
•
Reserved by lottery and priority within each calendar year
•
Volume cap divided into six sub-ceilings for the first 8.5 months
•
August 15 - Any remaining cap is redistributed to ALL subceilings with remaining applications.
58
Sub-ceilings
•
Sub-ceiling #1 - Single Family Housing – 28%
MRBs or MCCs benefiting residents of low to moderate income
•
Sub-ceiling #2 - State Voted Issues – 8%
Bonds that have been approved by Texas voters
•
Sub-ceiling #3 - Qualified Small Issues – 2%
Industrial Development Bonds & Empowerment Zone Bonds
•
Sub-ceiling #4 - Multifamily Housing – 22%
Residential Rental Developments for low to moderate income residents
•
•
Sub-ceiling #5 - Student Loan Bonds – 10.5%
Sub-ceiling #6 - All Other Issues – 29.5%
Exempt Facilities
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Private Activity Bond
2008 Results
2008 STATE CEILING
TOTAL
$ 2,031,872,300
28.00%
SC 1
MRB's
$ 568,924,244
8.00%
SC 2
State Voted
$ 162,549,784
2.00%
SC 3
IDBs
$40,637,446
22.00%
SC 4
MF Housing
$ 447,011,906
10.50%
SC 5
Student Loan
$ 213,346,592
28.00%
SC 6
All Other
$ 599,402,328
RESERVATIONS
$ 3,911,865,438
$ 469,735,556
$ 75,000,000
$63,000,000
$ 463,200,000
$ 426,530,886
$ 745,518,975
ALLOCATIONS
$
$ 99,000,000
$ 74,997,184
$30,869,207
$ 38,530,714
$ 58,500,000
$ 668,300,000
CARRYFORWARD
$ 1,043,014,493
970,197,105
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10. Q & A