Texas 2009 - 81st Regular

Texas Senate Bill SB1255

Filed
 
Out of Senate Committee
4/7/09  
Voted on by Senate
4/17/09  
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a state intercept credit enhancement program for certain bonds issued by school districts.

Impact

The implementation of SB1255 will likely alter the landscape of school district financing across the state of Texas. By providing an additional layer of guarantee for bonds, school districts may find it easier to obtain necessary funding for educational facilities, new construction, and infrastructure improvements. This move is expected to enhance financial flexibility for districts, particularly in lower-income areas where traditional financing may be difficult to secure. However, there are also considerations regarding the long-term impact on state funding, especially if the Foundation School Program provisions are strained under increased guarantees.

Summary

SB1255 introduces a state intercept credit enhancement program specifically designed for certain bonds issued by school districts. The bill aims to provide additional guarantees for school districts that have their applications for bond guarantees rejected under existing provisions. By allowing districts to seek guarantees from appropriations for the Foundation School Program, SB1255 intends to bolster the financial reliability of school districts, ultimately aiding their ability to issue bonds for capital improvements and operational needs. This measure addresses the financial hurdles faced by districts, particularly those unable to secure funding through traditional means.

Contention

Notably, the bill may face contention regarding its reliance on the Foundation School Program to fund bond guarantees. Some legislators and stakeholders may express concerns over the sustainability of this funding model, especially if many districts begin to utilize these guarantees extensively. There are also discussions about the potential risks associated with this model, such as the implications for the overall financial health of the permanent school fund. Critics may argue that it can create a reliance on state funds that could detract from local revenue-generating efforts and potentially lead to fiscal instability if not managed properly.

Companion Bills

TX HB2894

Identical Relating to additional guarantees for certain bonds issued by school districts.

Previously Filed As

TX SB2

Relating to a local optional teacher designation system implemented by a school district, a security officer employed by a school district, the basic allotment and guaranteed yield under the public school finance system, and certain allotments under the Foundation School Program; making an appropriation.

TX HB38

Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.

TX HB2615

Relating to the operation by a school district of a foundation and trade diploma program to provide eligible high school students with educational training under a plan for the issuance of a high school diploma and the application of certain student-based allotments under the public school finance system.

TX HB1605

Relating to instructional material and technology, the adoption of essential knowledge and skills for certain public school foundation curriculum subjects, and the extension of additional state aid to school districts for the provision of certain instructional materials; authorizing a fee.

TX SB2565

Relating to instructional material and technology, the adoption of essential knowledge and skills for certain public school foundation curriculum subjects, and creating allotments for the procurement of certain instructional materials under the Foundation School Program; authorizing a fee.

TX SB2539

Relating to the administration, coordination, and support of public higher education, including the public junior college state finance program and an Advanced Career and Education (ACE) scholarship program for students enrolled in dual credit courses.

TX HB100

Relating to public education and public school finance, including the rights, certification, and compensation of public school educators, contributions by a public school to the Teacher Retirement System of Texas, and an education savings account program for certain children.

TX HB116

Relating to the basic allotment and guaranteed yield under the public school finance system, certain allotments under the Foundation School Program, determination of a school district's assets to liabilities ratio under the public school financial accountability rating system, and credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.

TX SB2607

Relating to the use of tax collections in determining certain state and local responsibilities for school funding.

TX HB1

Relating to primary and secondary education, including the certification, compensation, and health coverage of certain public school employees, the public school finance system, special education in public schools, the establishment of an education savings account program, measures to support the education of public school students that include certain educational grant programs, reading instruction, and early childhood education, the provision of virtual education, and public school accountability.

Similar Bills

TX HB2894

Relating to additional guarantees for certain bonds issued by school districts.

TX SB597

Relating to the guarantee of open-enrollment charter school bonds by the permanent school fund.

TX HB1437

Relating to the guarantee of open-enrollment charter school bonds by the permanent school fund.

TX SB31

Relating to the guarantee of open-enrollment charter school bonds by the permanent school fund.

TX HB3604

Relating to the guarantee by the permanent school fund of bonds issued by a charter district on the approval of the Bond Review Board.

TX SB570

Relating to the financing of school district facilities and tax relief for facilities debt.

TX SB712

Relating to the financing of school district facilities and property tax relief for school district debt; providing for reduced property tax rates.

TX SB90

Relating to the financing of school district facilities and tax relief for facilities debt.