Budget & Taxes (Debt & Bonds)

HB 87 prohibits Texas school districts from authorizing new bonds if their existing debt payments (principal and interest) plus the proposed bond would exceed 18% of the district's annual budget. It specifically blocks elections for new bonds when either current debt payments alone surpass 18% of the budget or the combined total of existing and proposed debt would exceed that threshold. The bill applies only to bond elections ordered on or after its effective date (91 days after the legislative session ends), leaving pre-existing election plans governed by current law. This directly affects school districts seeking to issue new bonds for projects like facility construction or improvements.