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Summary: Under current law, the Texas Education Agency (TEA) fully guarantees school bonds through the Permanent School Fund (PSF) (About the Bond Guarantee Program). HB 885 allows open-enrollment charter schools to refund and refinance these bonds. There is a 3% cap on the PSF for bond funding and this bill will set a cap on refunding and refinancing at 1.5% in order to allow the PSF to continue funding bonds.
Analysis: HB 885 makes government less indebted by allowing open-enrollment charter schools the ability to refund and refinance bonds which leads to overall lowering of the debt. The bill both lowers the debt and uses tax dollars more effectively. We support HB 885.