Texas HB87 prohibits school districts from issuing bonds if the total debt exceeds 18% of their annual budget.

Texas HB87 amends the Education Code to prevent school districts from holding elections to issue bonds if the combined principal and interest on existing and proposed bonds exceed 18% of the district's most recently adopted or amended annual budget. This prohibition applies only to elections ordered after the effective date of the Act, while elections ordered before remain governed by previous law. The Act takes effect 91 days after the legislative session concludes.

Texas HB87 prohibits school districts from issuing bonds if the total debt exceeds 18% of their annual budget.

Texas HB87 amends the Education Code to prevent school districts from holding elections to issue bonds if the combined principal and interest on existing and proposed bonds exceed 18% of the district's most recently adopted or amended annual budget. This prohibition applies only to elections ordered after the effective date of the Act, while elections ordered before remain governed by previous law. The Act takes effect 91 days after the legislative session concludes.