Texas’ Permanent School Fund’s Bond debt is almost finished.
The bond is a state-funded program created back in 1854, designed to help school districts get the lowest interest rates possible.
The initial fund was a total of $56 billion; today only 652.6 million is left behind.
Though that 600 million remaining may seem sufficient, it's not and it's projected to run out very quickly.
The result of the funds depleting would mean more money from taxpayers.
Dr. Robert Tennant, professor in Economics and Accounting with Texas A&M Central Texas explains why.
“That means that municipalities like Austin and San Antonio which have had very large bonds that have been authorized, would have to issue the bonds without that protection and they would have a higher interest rate, which means they would have to authorize a larger bond to cover what they want to build, which means taxes could potentially go up for homeowners.”
