Schools Hit Tax Cap. Increase Indebtedness.

Schools turned to bond financing to cover construction costs when the Legislature reduced state funding in 2011. Bond financing requires increased revenue to cover the indebtedness.  The uptick after 2011 for school bond financing resulted in more school districts hitting the tax cap.

When the Legislature addresses school finance, there will be a renewed push for facilities funding. Facilities funding would address schools that incur indebtedness to cover construction costs associated with growing student populations. [Houston Chronicle]