YISD gets huge debt assistance from Texas

We were happy to learn the other day from an alert reader that the Ysleta Independent School District had received a commitment $212.5 million from the state of Texas that will relieve half of the $430 million in debt  that the voters approved in their last bond election.

That is great news for us locally.

From a story aired by KVIA TV:

“It’s a $430.5 million bond. But in terms of the burden to our community it’s a $215.25 million bond and that’s all they are being asked to pay for because the state is paying for the other half,” De La Torre said.

We thank the board and staff of YISD.

The district sold half of the allowed bonds in 2016.

What we did not hear from either the YISD superintendent or board president was that the district will not issue the other half of the bonds.

Do they plan to take the $215 million from the state and add it to the voter approved amount?

From our viewpoint the right thing to do is not to issue the other half.  If they need more money they should ask the voters again.

Is that too much to hope for?

We deserve better

Brutus

One Response to YISD gets huge debt assistance from Texas

  1. good governance oxymoron says:

    Brutus,

    The total amount of the voter approved bonds, $430 million, must be issued.

    The State programs are for debt relief and the program structure prevents a school district from using the money to increase the bond amount approved by voters.

    The State does not pay the district in a lump sum instead it pays off the principal and interest on the eligible bonds, which for YISD is $215 million, and the taxpayers pay the remaining balance which is $215 million.

    Below are the links and brief desriptions of the State funding for your reference.

    http://tea.texas.gov/Finance_and_Grants/State_Funding/Facilities_Funding_and_Standards/Existing__Debt_Allotment_Program/

    Existing Debt Allotment Program

    Created by the Texas Legislature in 1999, the Existing Debt Allotment (EDA) program provides tax rate equalization for local debt service taxes. Specifically, the program provides a guaranteed yield on interest and sinking fund (I&S) taxes levied by school districts to pay the principal of and interest on eligible bonds. It guarantees a specific amount of state and local funds per student for each cent of tax effort up to $0.29 per $100 of assessed valuation. Currently, the guaranteed yield for EDA provides $35 per student in average daily attendance (ADA) per penny of tax effort.
    The program operates without applications and has no award cycles.

    http://tea.texas.gov/Finance_and_Grants/State_Funding/Facilities_Funding_and_Standards/Instructional_Facilities_Allotment_Program/

    Instructional Facilities Allotment Program

    The Instructional Facilities Allotment (IFA) program provides assistance to school districts in making debt service payments on qualifying bond or lease-purchase agreements. Bond or lease-purchase proceeds must be used for the construction or renovation of an instructional facility. This program was enacted by House Bill 1 of the 75th Legislature.

    Like

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