Texas Education Agency
Certification of the Permanent School Fund
Bond Guarantee Program
June 1999
Report Number 99-038
Overall Conclusion
We certify that the Permanent School Fund Bond Guarantee Program (Program) is in compliance with Section 45.053(a) of the Texas Education Code (Code). As of August 31, 1998, the maximum allowable for guarantee was $25,308,255,572, which is two times the cost value of the Permanent School Fund (Fund). The total amount of bonds guaranteed by the Program as of August 31, 1998, was $14,399,226,318.
Key Facts and Findings
This certification is required by Section 45.053(b) of the Code. The Code states that the Commissioner of Education may not approve bonds for guarantee if the approval would result in the total amount of outstanding guaranteed bonds exceeding an amount equal to two times the cost value or market value, whichever is less, of the Fund, exclusive of real estate.
The Program was created as a means for school districts to improve the credit rating and marketability of school district bonds. Only bonds issued by accredited school districts under Subchapter A, Chapter 45 of the Texas Education Code or Article 717k, Vernon's Texas Civil Statutes are eligible for guarantee by the Fund.
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