Texas school districts face millions in costs as state progr

Without the state’s safety net, districts with pending bond projects must now decide whether to pay more in interest or halt construction.

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Texas , United States , Lubbock , Texans , Fred Ramos , Matthew Gutierrez , Jodeyc Arrington , Lloyd Doggett , Carolyn Perez , Brian Lopez , Texa Permanent School Fund , Austin Independent School District , Texas Education Agency , Permanent School Fund , House Resolution , Chief Financial Officer Ed Ramos , Superintendent Matthew Gutierrez , Texas Tribune , School Districts Face Millions In Extra Costs As Texas Program That Backs Bond Debt Hits Its Limit By Brian Lopez , He Texas Tribune Feb 24 , 023 Quot School Districts Face Millions In Extra Costs As Texas Program That Backs Bond Debt Hits Its Limit Was First Published By The Tribune , Wa Nonprofit , Onpartisan Media Organization That Informs Texans And Engages With Them About Public Policy , Politics , Overnment And Statewide Issues Sign Up For The Brief , He Texas Tribunes Daily Newsletter That Keeps Readers Up To Speed On The Most Essential Newsa State Backed Program For Decades Has Helped School Districts Get Lowest Interest Rates Possible Bonds And Keep Their Credit Scores High Reached Its Debt Limit It Could Cost Taxpayers Millions Of Dollars Permanent Fund Promises Lenders Who Buy Froma District Will Pay Them Back If Cant But Can Only Vouch So Much Irs , Hich Has Jurisdiction Over Tax Exempt Municipal Bonds , As Set That Limit At About 117 Billion And It Was Reached In December Since Then , T Least 49 School And Charter Districts That Asked The Psf To Back Their Debt Were Denied Due Insufficient Capacity , Esulting In More Than 6 87 Billion Unguaranteed Bonds Psfs Communications Director , Aid The Bond Guarantee Program Will Operate At Very Limited Capacity For Now , Hough It Might Be Able To Take On More Bonds As Other Schools Already In The Program Pay Off Their Debts Previously Reached Its Debt Limit 2009 States Growing Population And Student Enrollment Led Issue For Renewing Decades Old Buildings Erecting New Ones Irs Updated Programs Later That Year , Ut Not Before School Districts Were Forced To Pay Higher Interest Rates On Their Bond Debt Fora Couple Of Months Packages Also Have Gotten Bigger And More Expensive Over The Last Decade As Construction Costs Keep Going Up District Leaders Prefer Get Multiple Projects Passed In One Package So Go Back Ask Taxpayers For Money Perez Said Texas Education Agency Psf Been Working With Members Congress Increase Limit Either Through Legislation Or An Irs Action Us Reps Lloyd Doggett , Ed Austin , Nd Jodeyc Arrington , Ar Lubbock , Iled House Resolution 32 , Hich Would Eliminatea Limit On The Bond Program Withouta Corrective Course , E Re Currently Barreling Toward Sinking Hundreds Of Millions Education Dollars Into Needlessly High Financing Costs , Oggett Said But While Congress Determines The Fate Of Bill , Exas School Officials Will Have To Decide Whether Delay Their Bonds Or Continue Projects At Higher Interest Rates Potentially Having Raise Property Taxes In The Austin Independent District , Oters Approveda 2 44 Billion Bond Package Last Year To Update Infrastructure Across Several Campuses The District Was Denied From Psfs Guarantee Program In November But Sold About 600 Million Of Its Debt January Anyway Because Construction Costs Continue Go Up And Could Not Afford Delay Projects , Hief Financial Officer Ed Ramos Said Estimates The District Will Pay An Additional 20 Million In Interest That Could Ve Been Avoided Through Psfs Program Seguin Isd , Oters Approveda 131 Million Bond Project Last Year The District Couldnt Get 40 Worth Of Bonds Guaranteed Through Psf , Uperintendent Matthew Gutierrez Said Seguin Isd Had Promised Taxpayers That The Bond Package Would Raise Property Tax Rate By Only 2 Cents Now District Leaders Have To Decide Whether Sell Their Bonds In March Without Psfs Guarantee And Potentially Even Higher Or Wait See If Limit Is Raised Again , T The Risk Of Construction Costs Going Up District Could Also Cancel Some Projects To Keep Tax Rate As Promised We Re Hoping That Something Will Happen Here Very Soon So Arent Impacted , E Said It Would Be Really Unfortunate To Have Think About Scaling Down The Scope Of Projects This Article Originally Appeared In Texas Tribune At Https Www Texastribune Org 2023 02 24 School Districts Bond Program Isa Member Supported , Onpartisan Newsroom Informing And Engaging Texans On State Politics Policy Learn More At Texastribune Org ,