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SPONSOR: |
Garcia, MH |
DATE TYPED: |
2/11/03 |
HB |
195 |
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SHORT TITLE: |
Teacher Housing Revenue Bonds |
SB |
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ANALYST: |
Neel |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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|
|
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NFI |
|
|
|
|
|
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|
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(Parenthesis ( ) Indicate Revenue Decreases)
LFC files
Responses
Received From
State Department
of Education (SDE)
SUMMARY
Synopsis
of Bill
House Bill 195 amends
the Teacher Housing Revenue Bond act adopted in 2002 to add a specific
non-impairment clause with regard to the pledge of Federal Fund to repay bonds
issued by a local school district.
Significant
Issues
The School Revenue Bond Act, Section 22-19A-1 et seq. NMSA 1978, allows school districts to issue school revenue bonds to finance the purchase, construction, renovation, equipping or furnishing of an income project. These bonds are to be paid solely from pledgeable revenue and do not constitute an indebtedness or general obligation for the school district, the state or any other political subdivision of the state.
House Bill 195 would prevent the state from interfering in the agreements made with bondholders and local school boards until the bonds have been retired, assuring that the district will retain the ability to make prompt payment of bonds. This will prevent the recapture of cash balances by the state and reduce hardships to the districts as they work to retire their bond obligations.
POSSIBLE QUESTIONS
Will HB 195 affect the
current practice of “taking credit” for Federal Impact Aid in the State
Equalization Guarantee if these revenues are deemed “pledgeable revenue”?
SN/sb