Texas SB2842 prohibits school districts from using interest and sinking tax revenue for deferred maintenance.

Texas SB2842 amends the Education Code to prohibit school districts from using interest and sinking tax revenue to pay for deferred maintenance. The bill specifies that school districts can issue bonds for construction, acquisition, equipment, and other school-related expenses but cannot use the revenue for deferred maintenance. The bonds must mature within 40 years and cannot be used for items with a useful life of less than 10 years. The bill also outlines procedures for demonstrating the district's ability to pay for bonds and includes limitations on the issuance of tax-supported bonds.

Texas SB2842 prohibits school districts from using interest and sinking tax revenue for deferred maintenance.

Texas SB2842 amends the Education Code to prohibit school districts from using interest and sinking tax revenue to pay for deferred maintenance. The bill specifies that school districts can issue bonds for construction, acquisition, equipment, and other school-related expenses but cannot use the revenue for deferred maintenance. The bonds must mature within 40 years and cannot be used for items with a useful life of less than 10 years. The bill also outlines procedures for demonstrating the district's ability to pay for bonds and includes limitations on the issuance of tax-supported bonds.