Texas House Bill HB114

Texas 2025 - 89th 2nd C.S.

• Filed: 8/15/25

Caption

Relating to a prohibition on the guarantee of public school bonds.

Impact

The legislative discussions surrounding HB 114 highlight a divide among stakeholders. Supporters of the bill argue that it is a necessary step to ensure fiscal responsibility and the long-term viability of public school financing. They believe that by eliminating guarantees, the potential for irresponsible borrowing and unexpected taxpayer liabilities would be minimized. However, those opposed to the bill raise concerns about the potential negative impact on school districts' ability to secure necessary funding for vital projects, leading to possible deteriorating educational facilities and inadequate resources for students.

Summary

House Bill 114 proposes a prohibition on the guarantee of public school bonds, aiming to modify how educational institutions can secure funding for infrastructure projects. This bill is positioned to have significant implications for local school districts that rely on bond financing to construct and improve facilities. By restricting the ability to guarantee such bonds, the bill seeks to change the financial landscape for public education funding in the state. The intent behind this measure is to mitigate financial risks associated with guaranteed bonds and to safeguard public funds from potential losses tied to school district debt defaults.

Contention

HB 114 faces contention primarily due to its implications on local control over educational funding decisions. Critics argue that the prohibition on bond guarantees could limit the financial flexibility of school districts, hindering their capacity to respond to emerging needs for infrastructure improvements. Additionally, opponents express fears that these restrictions might disproportionately affect low-income districts that already struggle with securing adequate resources for education and infrastructure, thus exacerbating inequalities within the state's educational system.