Fiscal Note

HB0120 - School Building Needs

State Impact:
The bill does not specify if the entire bond amount will be issued at once. If the entire bond is issued at once with no brick and mortar to fund, the State runs the risk of violating federal arbitrage laws. If the bond is issued in pieces, the State will pay costs for each issuance. This note assumes that the bond will be issued in four equal increments with a 5 percent interest rate over 20 years. Since the bonds can only be amortized from the date of approval, the second issuance will be funded over 19 years. Local school districts would be able to build some schools for 30 percent of the total cost assuming they can meet the matching requirement.

Individual and Business Impact:
Any fiscal impact will be dependent on actions that may be taken by local school districts.

Office of the Legislative Fiscal Analyst
2/1/2001 8:12:34 AM

Last Revised: 30 August, 2000