Education

Texas School-Finance Overhaul Prompts Rush to Bond Market

By Lonnie Harp — February 27, 1991 1 min read
  • Save to favorites
  • Print

Several Texas school districts that had planned bond sales this spring are scurrying to close the deals early to head off the legislature’s April deadline for replacing the state’s school-finance system.

Many districts that had planned bond sales in April and May have instead set their sights on March, said Jerry Turner, a lawyer representing the Austin Independent School District, which now hopes to close by March 19 a $37-million bond sale originally set for late April.

“I think everybody that has voted a bond authorization and has board-approved projects is trying to accelerate the process,” said Mr. Turner, adding that the spring rush to the bond market may prove advantageous, since interest rates are low.

Gary Davis, the Austin district’s assistant superintendent for finance, said the court’s threat to shut off school funding this spring if the legislature does not adequately address school-fi4nance inequities prompted school officials to speed up their paperwork rather than put several construction projects in jeopardy.

The Austin district is not alone. According to the Municipal Advisory Council of Texas, a trade association of security dealers, bond sales that have averaged about $150 million a month recently jumped to nearly $500 million, with schools accounting for 90 percent of that amount, said Danny Burger, the group’s executive director.

During the first three days of this week alone, bids were scheduled to open on 17 district projects totaling over $280 million, Mr. Burger said.

Bond-market observers said that despite the flurry of Texas districts entering the bond market, rates should not be affected because the sales should not create a glut. Further, officials said that so far the bond market has not flinched at the court’s threatened school-aid cutoff.

A version of this article appeared in the February 27, 1991 edition of Education Week as Texas School-Finance Overhaul Prompts Rush to Bond Market


Commenting has been disabled on edweek.org effective Sept. 8. Please visit our FAQ section for more details. To get in touch with us visit our contact page, follow us on social media, or submit a Letter to the Editor.


Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Teaching Webinar
What’s Next for Teaching and Learning? Key Trends for the New School Year
The past 18 months changed the face of education forever, leaving teachers, students, and families to adapt to unprecedented challenges in teaching and learning. As we enter the third school year affected by the pandemic—and
Content provided by Instructure
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Curriculum Webinar
How Data and Digital Curriculum Can Drive Personalized Instruction
As we return from an abnormal year, it’s an educator’s top priority to make sure the lessons learned under adversity positively impact students during the new school year. Digital curriculum has emerged from the pandemic
Content provided by Kiddom
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Equity & Diversity Webinar
Leadership for Racial Equity in Schools and Beyond
While the COVID-19 pandemic continues to reveal systemic racial disparities in educational opportunity, there are revelations to which we can and must respond. Through conscientious efforts, using an intentional focus on race, school leaders can
Content provided by Corwin

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Judge's Temporary Order Allows Iowa Schools to Mandate Masks
A federal judge ordered the state to immediately halt enforcement of a law that prevents school boards from ordering masks to be worn.
4 min read
Iowa Gov. Kim Reynolds speaks to reporters following a news conference, Thursday, Aug. 19, 2021, in West Des Moines, Iowa. Reynolds lashed out at President Joe Biden Thursday after he ordered his education secretary to explore possible legal action against states that have blocked school mask mandates and other public health measures meant to protect students against COVID-19. Reynolds, a Republican, has signed a bill into law that prohibits school officials from requiring masks, raising concerns as delta variant virus cases climb across the state and schools resume classes soon. (AP Photo/Charlie Neibergall)
Education Hurricane Ida Deals New Blow to Louisiana Schools Struggling to Reopen
The opening of the school year offered teachers a chance to fully assess the pandemic's effects, only to have students forced out again.
8 min read
Six-year-old Mary-Louise Lacobon sits on a fallen tree beside the remnants of her family's home destroyed by Hurricane Ida, in Dulac, La., on Sept. 4, 2021. Louisiana students, who were back in class after a year and a half of COVID-19 disruptions kept many of them at home, are now missing school again after Hurricane Ida. A quarter-million public school students statewide have no school to report to, though top educators are promising a return is, at most, weeks away, not months.
Six-year-old Mary-Louise Lacobon sits on a fallen tree beside the remnants of her family's home destroyed by Hurricane Ida, in Dulac, La., on Sept. 4, 2021.
John Locher/AP
Education Massachusetts National Guard to Help With Busing Students to School
250 guard personnel will be available to serve as drivers of school transport vans, as districts nationwide struggle to hire enough drivers.
1 min read
Massachusetts National Guard soldiers help with logistics in this Friday, April 17, 2020 file photo, at a food distribution site outside City Hall, in Chelsea, Mass. Mass. Gov. Charlie Baker on Monday, Sept. 13, 2021, activated the state's National Guard to help with busing students to school as districts across the country struggle to hire enough drivers.
Massachusetts National Guard soldiers help with logistics in this Friday, April 17, 2020 file photo, at a food distribution site outside City Hall, in Chelsea, Mass.
Michael Dwyer/AP
Education FDA: ‘Very, Very Hopeful’ COVID Shots Will Be Ready for Younger Kids This Year
Dr. Peter Marks said he is hopeful that COVID-19 vaccinations for 5- to 11-year-olds will be underway by year’s end. Maybe sooner.
4 min read
Dr. Peter Marks, director of the Center for Biologics Evaluation and Research in the Food and Drug Administration, testifies during a Senate health, education, labor, and pensions hearing to examine an update from federal officials on efforts to combat COVID-19 on Capitol Hill in Washington on May 11, 2021. On Friday, Sept. 10, 2021, Marks urged parents to be patient, saying the agency will rapidly evaluate vaccines for 5- to 11-year-olds as soon as it gets the needed data.
Dr. Peter Marks, director of the Center for Biologics Evaluation and Research in the Food and Drug Administration, testifies during a Senate health, education, labor, and pensions hearing to examine an update from federal officials on efforts to combat COVID-19 on Capitol Hill in Washington on May 11, 2021.
Jim Lo Scalzo/AP