As the Houston Independent School District (HISD) prepares to present a historic $4.4 billion bond proposal to voters, concerns have been raised about the district's ability to manage and allocate these funds effectively. Voters have reached out to the KHOU 11 Verify Team to understand the intricacies of this bond measure, seeking clarity on what can and cannot be done with the money if it is approved.

Empowering Voters: Navigating the HISD Bond Proposal

Spending Bonds Across State Lines

School bonds are a crucial tool for districts to fund major projects, such as building new schools, purchasing land for future campuses, acquiring new school buses, and upgrading technology infrastructure. While the Texas Association of School Boards (TASB) confirms that school bond money can be spent out-of-state, there are specific legal provisions and mechanisms in place to ensure that a significant portion of the funds benefits in-state and local vendors.

The Texas constitution has long recognized the importance of public education, establishing a perpetual fund for free public schools since the state's inception in 1845. Through the Bond Guarantee Program (BGP), created in 1983, the Permanent School Fund (PSF) now fully guarantees school bonds, providing a stable source of funding for districts across the state. This program has been a resounding success, with the PSF contributing $765 million annually to local school districts and not a single district defaulting on its bond payments in the history of the BGP.

Superintendent's Spending Authority

When it comes to the superintendent's spending authority, the Texas Association of School Boards (TASB) explains that school districts delegate a certain level of purchasing discretion to their superintendents, as outlined in local policies. However, these policies also stipulate that the procurement of bond funds must comply with both state law and local regulations.

This means that while the superintendent may have some autonomy in managing bond-funded projects, they are not free to spend the money without oversight or approval from the district's governing body. The HISD Board of Managers, which is currently in place due to the state takeover, has the same powers as an elected board of trustees and must approve any significant spending decisions related to the bond funds.

Adjusting Bond Allocations

If the HISD bond is approved by voters, the district will have the ability to sell the bonds and access the funds for the projects outlined in the proposal. However, the Texas Association of School Boards (TASB) emphasizes that any changes to how the money is spent must remain within the scope of what voters initially approved.

This means that the HISD Board of Managers cannot simply reallocate the bond funds to entirely different projects or purposes without seeking additional voter approval. If the district determines that certain projects have been completed or abandoned, they may be able to repurpose the remaining funds for other approved uses, but this would require a public meeting and separate board votes to establish the new purpose.

In the event that there are authorized but unissued bonds or funds that were not used for their original purpose, the district may need to hold another election to seek voter consent for the proposed new uses of the bond money.

Ensuring Transparency and Accountability

The process of selling and managing school bonds in Texas is subject to a robust system of checks and balances, with districts accountable to various state and federal agencies, including the U.S. Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS).

Districts must comply with local policies, state laws, and federal regulations to ensure the proper tracking and reporting of bond funds. This level of oversight helps to safeguard the integrity of the bond process and provides voters with the assurance that their approved funds will be used as intended.

As HISD prepares to present its historic $4.4 billion bond proposal to the community, it is crucial for voters to understand the legal frameworks and best practices that govern the management of these funds. By staying informed and engaged, the public can play a vital role in ensuring that the bond money is utilized effectively to enhance the educational experiences and opportunities for students across the district.