The Texas Water Development Board (TWDB) is projected to run out of capacity to make certain loans sometime before 2013 unless the upcoming legislature authorizes more bonding authority. Specifically, the Development Fund, State Participation Program, and the Water Infrastructure Fund are all in jeopardy unless the legislature acts. Additionally, current estimations are that the TWDB could match future federal Clean Water and Drinking Water State Revolving Fund grants until 2015 without further action from the legislature.
Projects that have already been committed to by the TWDB will continue to receive funding but new projects would be in jeopardy.
The TWDB has requested in their September 2009 Sunset Review self-evaluation report, additional constitutional general obligation bond authority in order to provide financing through the Development Fund, State Participation Program, Water Infrastructure Fund, and Rural Water Assistance Fund and to match future federal Clean Water and Drinking Water State Revolving Fund grants.
Additionally, Kevin Ward, Executive Administrator of TWDB, appeared before the Senate Finance Committee on March 10th and spoke of the TWDB’s request for bond authority, which would require a constitutional election. One option is an evergreen authority which would provide ongoing, capped authority.
Current economic conditions and the downgrading of municipal insurers have created obstacles for many entities that would normally access the municipal market. As a result, the TWDB has reported an increased demand for financing through its programs noting their remaining authority may be fully exhausted before the 83rd Legislative Session unless something is done during this upcoming session.