Texas Senate Bill SB2842

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to prohibiting a school district from using interest and sinking tax revenue to pay for deferred maintenance.

Impact

If enacted, this bill will impact the financial planning and budgeting processes of independent school districts across Texas. By limiting the purposes for which these funds can be used, the bill is intended to prevent potential misuse of bond-related revenues and ensure fiscal responsibility. School districts will need to adapt by prioritizing their capital projects and maintenance budgets, which could present challenges, particularly for districts with aging infrastructure or those already facing budget constraints.

Summary

SB2842 introduces significant changes to the way school districts in Texas can finance their operations, specifically focusing on banning the use of interest and sinking tax revenue for deferred maintenance expenses. This bill aims to ensure that tax revenues dedicated to repayment of bonds are used only for projects that enhance educational infrastructure rather than for routine or preventive maintenance. Such measures could lead to more strategic use of funds in school districts, directing resources toward long-term investments in school properties rather than short-term fixes.

Contention

Discussion surrounding SB2842 may involve concerns about whether the prohibition of using these tax revenues for maintenance will exacerbate the existing issues of deteriorating school facilities. Critics may argue that the bill could lead to increased maintenance backlogs, as districts might struggle to find alternate funding sources for necessary upkeep. There is also potential concern regarding how this might affect the overall quality of the learning environment for students, particularly in economically disadvantaged areas that rely heavily on state funding and support for proper facility maintenance.

Texas Constitutional Statutes Affected

Education Code

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