Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
SB1543 by Wentworth (Relating to the authority of independent school districts to invest in corporate bonds.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
The bill would authorize school districts with a student population of at least 50,000 in average daily attendance to invest in corporate bonds, debentures, and similar debt obligations as long as these products received a qualified rating from a nationally recognized investment rating firm. According to the Texas Education Agency there are currently 14 school districts that have 50,000 or more students in average daily attendance. Fiscal implications for affected school districts would vary depending upon local investment decisions.