Texas House Bill HB302

Texas 2025 - 89th 1st C.S.

• Filed: 8/13/25

Caption

Relating to a prohibition on the issuance of certain bonds by a school district.

Impact

If enacted, HB302 would impose stricter financial restrictions on school districts, potentially limiting their ability to finance new projects or manage existing debt through bond elections. The measure is intended to protect school districts from accruing unsustainable debt levels, thereby promoting fiscal responsibility and safeguarding taxpayer interests. However, this could also mean that essential improvements and developments in educational infrastructure may be hindered due to the lack of funding available through bonds, raising concerns about the adequacy of educational facilities in the state.

Summary

House Bill 302 introduces a significant amendment to the Education Code regarding the issuance of bonds by school districts. The bill specifically prohibits a school district's governing body or commissioners court from ordering elections to authorize the issuance of bonds under certain financial conditions. This includes situations where the required payments for existing bonds exceed 18 percent of the district's most recently adopted or amended annual budget. This legislation aims to ensure that school districts do not overextend their financial commitments through bond issuances, potentially affecting their financial stability and operational capabilities.

Contention

There are notable points of contention surrounding HB302, primarily focusing on the balance between fiscal responsibility and the need for adequate funding for school districts. Advocates for the bill argue that it prevents financial overreach and ensures that districts do not become burdened by debt. Conversely, opponents may view this restriction as an impediment to necessary funding for educational improvements and expansion efforts. Some stakeholders argue that while the intent of the bill is to foster prudent financial management, it could inadvertently restrict valuable resources needed to enhance student learning environments.

Texas Constitutional Statutes Affected

Education Code

• Chapter 45. School District Funds
  • Section: New Section