Texas Senate Bill SB315

Texas 2015 - 84th Regular

Caption

Relating to the issuance of tax-supported bonds by certain school districts and increasing the tax rate limitation on the issuance of those bonds.

Impact

The key impact of SB315 on state law will be the enhanced ability of eligible school districts to secure funding through tax-supported bonds. Specifically, districts with an interest and sinking fund tax rate of $0.45 or greater will be permitted to utilize a tax rate that is 20% higher than existing limits, provided they follow certain requirements, including the adoption of a capital improvement plan. This could facilitate additional funding for necessary school facility improvements, directly influencing educational infrastructure and capacity in growing communities.

Summary

SB315 pertains to the issuance of tax-supported bonds by certain school districts and aims to increase the tax rate limitation on the issuance of those bonds. The bill amends existing provisions in the Education Code, specifically Section 45.0031, to modify the criteria under which school districts can issue bonds. It increases the allowable tax rate to fund such bonds, particularly benefiting districts experiencing high enrollment growth. This bill requires districts to demonstrate their financial capability to pay back bonds before issuance, supporting fiscal responsibility.

Contention

While supporters of SB315 argue that the bill will provide much-needed resources for districts with increasing student populations, there are concerns about the implications of increasing tax rates on local property owners. Critics may argue that raising the tax cap can lead to financial strain for families and communities, especially in economically disadvantaged areas. Thus, the discussion around SB315 may focus on balancing the need for improved educational facilities with the potential financial burden on taxpayers.