White House agreement may help Texas pay off Super Collider debt.

WASHINGTON -- The Clinton Administration has agreed to give Texas $145 million that could be used to pay off part of the $500 million of tax-exempt bonds that the state issued for the $11 billion Superconducting Super Collider project canceled by Congress last year.

Gov. Ann Richards and officials of the U.S. Department of Energy announced at a joint press conference in Dallas late Friday afternoon that the federal government will give the state $145 million in cash as reimbursement for its contributions to the giant physics research project, a spokeswoman for the governor's office in Austin said.

The aide to Richards said she did not know if the $145 million would be used to redeem some of the $500 million of bonds, but said she understood there were no federal limitations on the use of the money.

Other Texas and federal officials familiar with the agreement could not be reached for comment on how it might affect the outstanding bonds.

In addition to the cash, the federal government has agreed to contribute $65 million to help transform part of the project site, located south of Dallas, into a regional medical facility containing cancer research and treatment facilities, the aide to Richards said.

The agreement, which does not have to be approved by Congress, also calls for the land and existing facilities to become the property of the state.

Congress voted to kill the giant physics research project last October in the face of soaring costs, but agreed to provide $640 million in funds this fiscal year for an orderly termination of the project.

Ever since, Texas officials have been trying to convince the administration either to allow some of the termination money to be used to help redeem the $500 million of bonds that the state issued for its share of the project or to provide additional funds to redeem the debt.

To help convince federal officials to locate the super collider in Texas, the state originally promised to pay $1 billion toward the cost of the giant project.

Texas issued $250 million of general obligation bonds in 1990 and another $250 million of lease revenue bonds in 1991 as part of its share. The remaining $500 million of debt was never issued.

The GO bonds are backed by the full faith and credit of the state, but the lease revenue bonds are backed by appropriations. Texas has appropriated debt service payments through August 1995. The state is not legally bound to make payments after that date, although Texas officials from the governor on down have pledged to continue appropriating the lease payments.

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