Texas school districts face tough choices as bond program hits limit

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Texas school districts face tough choices as bond program hits limit
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Without the state’s safety net, districts with pending bond projects must now decide whether to pay more in interest or halt construction.

Students sit in Norman Gomez's third grade class at Linder Elementary School in Austin on Jan. 14, 2022.has helped school districts get the lowest interest rates possible on bonds

Texas’ Permanent School Fund promises lenders who buy bonds from a school district that the state will pay them back if the district can’t. But it can only vouch for so much debt. PSF’s communications director, Carolyn Perez, said the bond guarantee program will operate at very limited capacity for now, though it might be able to take on more bonds as other schools already in the program pay off their debts.

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