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20-923 Corrections Debt Service

Program Authorization: R.S. 39:1787

PROGRAM DESCRIPTION

This program provides for the principal and interest payments for the Louisiana Correctional Facilities Corporation Lease Revenue Bonds, Series 1985, which were sold for the construction of prison facilities. One hundred fifty million dollars ($150,000,000) of bonds were sold with initial payment on June 15, 1993 and final payment scheduled for December 15, 2003 - if the bond issue is not paid off early. If the amortization schedule was followed, approximately $48.4 million in interest will have been paid over the life of these lease revenue refunding bonds.

 

RESOURCE ALLOCATION FOR THE PROGRAM

This agency's recommended appropriation does not include any funds for short-term debt.

This agency's recommended appropriation includes $17,339,688 for long-term debt.

SOURCE OF FUNDING

The funding for this program is State General Fund.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$17,189,043

$17,189,043

0

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$17,189,043

$17,189,043

0

 

EXISTING OPERATING BUDGET November 20, 1998

 

 

 

 

 

$150,645

$150,645

0

 

Other Adjustments - Revision to reflect debt service requirements per the Amortization Schedule

($1,000,000)

($1,000,000)

0

 

Other Adjustments - Use of bond reserve accrued interest to pay debt service in lieu of State General Fund

 

 

 

 

 

$16,339,688

$16,339,688

0

 

TOTAL RECOMMENDED

 

 

 

 

 

($849,355)

($849,355)

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 95.1% of the existing operating budget. It represents 94.2% of the total request ($17,339,688) for this program. The recommended funding level provides for administrative costs and the required principal and interest payments pursuant to the bond amortization schedule adjusted for accrued interest savings.

PROFESSIONAL SERVICE

This program does not have funding for Professional Services for Fiscal Year 1999-2000.

OTHER CHARGES

$13,435,000

 

Corrections Debt Service - principal payment due on December 15, 1999

$2,804,688

 

Corrections Debt Service - interest payments due on December 15, 1999 ($1,070,281) and on June 15, 2000 ($1,734,407) at 5.0% computed interest rate

$100,000

 

Corrections Debt Service administrative expenses

 

 

 

$16,339,688

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.


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