Texas Senate Bill SB758

Texas 2021 - 87th Regular

Caption

Relating to authorizing the issuance of revenue bonds to fund capital projects at public institutions of higher education.

Impact

The legislation is expected to significantly impact the ability of public universities to access necessary funding for development and infrastructure improvements. By leveraging bonds, these institutions can undertake various capital projects that might otherwise be financially unfeasible. The bill specifically allows boards to pledge the revenue generated including student tuition towards bond repayment, which could diversify the financing options available to schools and potentially lead to better facilities and educational environments for students.

Summary

SB758 aims to authorize the issuance of revenue bonds to support capital projects at public institutions of higher education in Texas. This bill enables various boards of regents, including those of major university systems such as The Texas A&M University System and The University of Texas System, to finance projects through the sale of bonds up to a maximum aggregate principal amount of $50 million. The intention is to enhance the facilities of these higher education institutions, including the construction, improvement, renovation, and equipping of buildings and necessary infrastructure.

Contention

While SB758 has the potential to facilitate essential growth and improvement in higher education infrastructure, it also raises questions regarding financial responsibility and the implications of pledging student tuition fees as security for bonds. There may be concerns over how such financial commitments could affect tuition rates and the financial stability of institutions in the long term. Without proper oversight and regulations, critics may argue that relying on bond financing could lead to an increased debt burden for universities, which could trickle down to students and taxpayers.