The state will be able to provide for necessary capital facilities. The cost of the project will be paid for over the period benefited. Financing through the issuance of bonds would allow for the project to be paid for as the facility is used. Cash payments from current funds for capital construction will severely reduce the funds available for other State programs. Voter approval for bond issues is required.
Debt is created, burdening both current and future taxpayers.
The portion of future revenue designated for debt service will be unavailable to meet future operating costs. Texas Performance Review. This takes into consideration issuance costs of 1.5 percent. The interest rate will be 7.5 percent annually. Issuance costs are assumed to be 1.5 percent of the total issue amount.