Tex.
Gov't Code Section 1231.063
Debt Affordability Study
(a)
The board, in consultation with the Legislative Budget Board, shall annually prepare a study regarding the state’s current debt burden by:(1)
analyzing the state’s historical debt use and financial and economic resources to determine the amount of additional not self-supporting debt the state can accommodate; and(2)
monitoring how annual changes and new debt authorizations affect the mechanism described in Subsection (b).(b)
The study must include a mechanism that can be used to determine, at a minimum, the state’s debt affordability and serve as a guideline for debt authorizations and debt service appropriations. The mechanism must be designed to calculate:(1)
the not self-supporting debt service as a percentage of unrestricted revenues;(2)
the ratio of not self-supporting debt to personal income;(3)
the amount of not self-supporting debt per capita;(4)
the rate of debt retirement; and(5)
the ratio of not self-supporting debt service to budgeted or expended general revenue.(c)
Not later than February 15 of each year, the board shall submit the annual study to:(1)
the governor;(2)
the comptroller;(3)
the presiding officer of each house of the legislature; and(4)
the Senate Committee on Finance and House Appropriations Committee.(d)
The annual study submitted under Subsection (c) must include a target and limit ratio for not self-supporting debt service as a percentage of unrestricted revenues.
Source:
Section 1231.063 — Debt Affordability Study, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.1231.htm#1231.063 (accessed May 18, 2024).
