About the Texas Bond Review Board

What the Board is

The Texas Bond Review Board (BRB) was created in 1987.

The Board has four members: the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, and the Comptroller of Public Accounts.

BRB's authority comes from Chapter 1231 and Chapter 1372 of the Texas Government Code.

Mission

BRB's mission is to ensure that debt financing is used prudently to meet Texas' infrastructure needs and other public purposes.

BRB also supports and improves the debt issuance and debt management work of state and local entities.

BRB administers the state's private activity bond allocation.

Strategic plan goals

A strategic plan guides BRB's work. The Strategic Plan for Fiscal Years 2027-2031 sets four goals: one for each of BRB's three programs, and a fourth for its purchasing.

document Strategic Plan 2027-2031 (PDF)

Goal 1: state bonds

The first goal is for Texas state bonds to get the highest possible bond rating and to be issued in the most cost-effective way.

BRB works toward this goal by writing debt issuing guidelines, reviewing state debt issuance, and doing statewide capital planning.

The Board reviews and approves all bonds, installment sales and lease-purchases issued by state debt issuers when the principal is greater than $250,000 or the term is longer than five years.

Four kinds of debt are outside this review: Tax Revenue Anticipation Notes, State Highway Fund Revenue Anticipation Notes, Permanent University Fund issuances, and non-general obligation issuances by university systems with an unenhanced long-term rating of at least AA- or its equivalent.

This review is the final step before the bonds go to market.

State issuers must give the Board a detailed plan for administering and spending bond proceeds. The plan covers investment provisions and any special provisions for the safety and security of the proceeds.

The Board must send the Legislature an annual report of bond transaction information from state issuers.

A 1997 law also requires the Board to compile a statewide capital expenditure plan. The plan identifies the state's capital needs, other ways to finance them, and the possible effect on the state's debt capacity.

Goal 2: local government debt information

The second goal is that public officials can get current information on local government capital planning, finance and debt management.

BRB collects, maintains and analyzes the status of local government debt. It reports its findings to the Legislature, other state officials and local policy makers.

In even-numbered years, BRB must send the Legislature a report on state and local government debt. The report covers debt outstanding, debt service requirements, the costs of issuing debt, savings from refunding, and related information.

Goal 3: private activity bonds

The third goal is that authority to issue private activity bonds is allocated in line with the Legislature's mandates, in the most equitable way possible, and in the best interest of the people of Texas.

The federal Tax Reform Act of 1986 requires this allocation. It sets a per resident limit on tax-exempt bonds used for private activities.

The Legislature sets the priorities and mandates for the Private Activity Bond Allocation Program. BRB drafts the administrative rules and guidelines for processing and reviewing applications.

page Private Activity Bond Allocation Program Overview

Goal 4: purchasing from historically underutilized businesses

The fourth goal is to "establish and carry out policies governing purchasing and contracting that will foster meaningful and substantive inclusion of historically underutilized businesses."

The BRB uses its best efforts to obtain sales quotes and make acquisitions from Historically Underutilized Business (HUB) firms as outlined in the agency’s long-range plan.

The BRB primarily purchases through the state supply store and through state contracts for its consumables and supplies necessary to conduct business.

page HUB reports

How the agency is organized

BRB staff work in two groups.

Administration includes the Executive Director and the CFO/HR/Administration role.

The Local Government Services, Private Activity Bond Allocation Program and State Bond Finance group includes financial analysts, a data analyst, an accountant and accounting technicians.