Fitch Rates Texas Public Finance Authority's $96MM GOs 'AA+'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch assigns an 'AA+' rating to approximately $96.1 million Texas Public Finance Authority (TPFA TPFA Texas Public Finance Authority TPFA Taiwan Provincial Farmers Association TPFA Texas Professional Farriers Association TPFA Two Point Flux Approximation TPFA Trinity Place Foundation of Alberta (Canada) ) Texas' general obligation (GO) bonds series 2007 expected to sell via negotiation through a syndicate led by Citi on Oct. 10, 2007. The bonds will mature serially Oct. 1, 2008-27. Fitch also affirms the 'AA+' rating on approximately $10.2 billion in outstanding GOs of the state. The Rating Outlook is Stable. TPFA acts as issuer of certain state GOs, including the new bonds, which are payable from the state's general fund. The 'AA+' rating on Texas' GOs including the TPFA GOs reflects the state's low debt, conservative financial operations and an economy that has expanded and diversified. Financial pressures include the demands that rapid growth place on the state's concentrated tax system. The general fund remains vulnerable to longer term shortfalls arising from property tax relief in the form of increased state funding of school finance, although resolved for the fiscal-years (FYs) 2008-2009 biennium bi·en·ni·um n. pl. bi·en·ni·ums or bi·en·ni·a A two-year period. [Latin : bi-, two; see bi-1 + annus, year; see at- . The Stable Outlook reflects the state's strong economic and revenue growth and satisfactory balances. Pursuant to the state constitution, the bonds now offered are GOs and payable from constitutional appropriations out of the first moneys coming into the state treasury not otherwise appropriated ($36.1 billion in FY2007) in an amount sufficient to pay principal and interest. Texas' debt remains low in relation to resources. Net tax-supported debt of $10.3 billion is equal to $437 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. and 1.2% of personal income. Most debt is GO, with the bulk of GO considered self-supporting, including water loans, the veterans' loan program, and loans to college students. Debt levels are rising with issuance of $4 billion in GO bonds for transportation purposes. During a 2006 special legislative session the state finalized See finalization. a major reform of the school funding system a system or scheme of finance or revenue by which provision is made for paying the interest or principal of a public debt. See also: Funding , in response to a 2005 state supreme court ruling that found certain aspects of the system unconstitutional. The reform package lowered local property taxes and increased state education support to approximately 50% by FY2008 from 36% in fiscal 2006. The reforms are being funded through new tax revenues, broadening taxes on business, raising the motor vehicle sales and use tax Sales and use tax refers to:
The Texas economy has enjoyed strong growth in recent years with gains since 2004 ahead of the nation. Employment rose 2.2% in August 2007 from a year earlier. Personal income growth also has been robust, returning to 8% growth in the second quarter of 2007, compared to 6.4% nationally. Financial performance in FY2007 was strong as general fund revenues rose 9.4% from a year earlier, led by rising sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. and franchise tax collections. Sales tax collections rose $1.9 billion, or 10.9% above a year ago and were well above estimates. Franchise tax collections rose almost 21% above the prior year due to the change in rate and enlarged base. While oil and gas production tax collections declined 14.7% from very strong levels, they remained over forecast. General revenue fund cash balances on Aug. 31, 2007 were a healthy $9.4 billion, equivalent to 14.4% of revenues. Including borrowable resources, balances rise to $15.6 billion and include $1.3 billion held in the economic stabilization fund Stabilization fund may refer to:
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