Bill Caption

Relating to bonds issued by certain metropolitan rapid transit authorities.

Fiscal Notes

According to the Legislative Budget Board, no significant fiscal implication to the State is anticipated. The LBB further notes "According to the Capital Metropolitan Transit Authority (CapMetro), the bill would result in a significant, positive fiscal impact for the authority. The provisions of the bill would allow CapMetro to purchase facilities, rather than lease them,and this purchase would result in savings on both a cash-flow basis and a residual asset basis. Using as an example a proposed paratransit operations and maintenance project, financed over 15 years or leased over 20 years, the bill would result in $20,583,609 in cash flow savings and a further $121,402,089 in residual assets compared to a leasing alternative."

Bill Analysis

SB 365 would allow the Capital Metro rapid transit authority in Austin to extend their bond terms to 15 years.    

Vote Recommendation Notes

While we support saving money over time as the fiscal note indicates this bill may do, we cannot support an expansion of authority by an unelected board with no taxpayer oversight. These extended bonds would not be subject to voter approval as they are currently. Diminishing transparency and oversight offend our limited government principle, therefore we oppose SB 365.