A three-district case study was conducted to determine the effects of the 50-cent debt test on fast-growth Texas school districts. The 50-cent debt test for Texas schools came into existence as part of Senate Bill 351 in 1991. Prior to the passing of Senate Bill 351, districts in Texas were limited to issuing 10% of their assessed valuation. Of the 75 school districts that currently meet the criteria to be considered a fast-growth district, 15 of the districts had an Interest and Sinking tax rate of $0.50 in 2014. Also, 33 of the 75 districts had an Interest and Sinking tax rate of $0.40 or higher in 2014. The 50-cent cap on the interest and sinking fund tax rate for districts is arbitrary and inefficient. The limit does not take into account a district's enrollment growth or the wishes of local taxpayers who might vote to authorize debt to build additional facilities or a higher tax rate to pay down debt sooner. Over the past 20 years, Texas voters have approved $96.7 billion of the $118.4 billion resulting in over 81% of funding sought for facilities being approved. The issuance of the approved bond authorization by these voters is governed by the Texas Attorney General's Office, and local districts must pass the 50-cent test by statute. This study examined the impact the 50-cent test has had on three districts through interviews with district staff, and by analyzing and comparing enrollment and various financial data. Specifically, property values, bond types and terms, as well as project delays and operating budgets were assessed.
| Identifer | oai:union.ndltd.org:unt.edu/info:ark/67531/metadc1248421 |
| Date | 08 1900 |
| Creators | O'Neal, Thomas Edward |
| Contributors | Brackett, David, Cooper, Danielle, Brooks, John, Reedy, Rick |
| Publisher | University of North Texas |
| Source Sets | University of North Texas |
| Language | English |
| Detected Language | English |
| Type | Thesis or Dissertation |
| Format | vi, 84 pages, Text |
| Coverage | United States - Texas |
| Rights | Public, O'Neal, Thomas Edward, Copyright, Copyright is held by the author, unless otherwise noted. All rights Reserved. |
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