TX
Texas Senate Bill SB1382

Texas 2025 - 89th Regular

Texas Senate Bill SB1382

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the eligibility of certain school districts with outstanding debt for the guarantee of a bond by the permanent school fund.

Impact

The new criteria for bond guarantees will primarily impact districts with existing debt. By limiting the amount of debt that can be guaranteed, SB1382 aims to promote more prudent fiscal management among school districts. School districts that currently have high levels of outstanding debt or have seen significant decreases in enrollment could be disproportionately affected, potentially limiting their ability to access essential funding through bonds.

Summary

SB1382 seeks to modify the eligibility requirements for certain school districts in Texas to receive bond guarantees from the permanent school fund. The bill stipulates that the Texas commissioner may approve the guarantee of bonds issued by a school district only if the ratio of the district's total outstanding bonds to its enrollment does not exceed $10,000 per student. This legislative change is aimed at ensuring that school districts do not over-leverage themselves with debt relative to the number of students they serve.

Conclusion

The bill, which takes effect on September 1, 2025, is positioned as a safeguard for the state's education funding system. It seeks to establish a more responsible framework for bond issuance among school districts, ensuring that debt levels remain manageable relative to enrollment figures. Overall, SB1382 represents a significant shift in the way that Texas manages the financial health of its school districts through bond guarantees.

Contention

Opponents of the bill may raise concerns about its restrictive nature, as it might hinder the financial capabilities of school districts that legitimately require additional funding to support educational needs. Critics might argue that the bill does not consider variations in local economic conditions or the unique challenges faced by different districts. Proponents, however, would likely counter that the bill is designed to protect the financial integrity of the state’s education funding by preventing excessive borrowing that could jeopardize financial stability.

Texas Constitutional Statutes Affected

Education Code

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

Companion Bills

No companion bills found.

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 HB4344

Relating to the state assistance with the payment of debt under the public school finance system.

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 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 SB2

Relating to a local optional teacher designation system implemented 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 HB2393

Relating to the basic allotment and the guaranteed yield under the Foundation School Program.

TX SB2267

Relating to the basic allotment and the guaranteed yield under the Foundation School Program.

TX HB1672

Relating to the basic allotment and the guaranteed yield under the Foundation School Program.

TX SB2607

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

TX HB2824

Relating to requiring an open-enrollment charter school to conduct an efficiency audit before applying for designation as a charter district or for the guarantee of certain bonds.

Similar Bills

No similar bills found.