"If the Internal Revenue Service doesn't raise the limit, Perry wrote in a Feb. 25 letter to Treasury Secretary Henry Paulson, school districts will face "higher costs to finance and insure ... bonds and will have to raise the taxes levied on local property owners to pay for these costs."
"The situation will worsen with each successive district bond election, further increasing property taxes for Texans," Perry wrote. This is from an article in the Austin American-Statesman on April 24, 2008.
Seems as if all the schools wanting to ask for bond assistance has put a burden on the State of Texas. It appears without help from the IRS the state may not be able to offer assistance on bond issues. Also, due to the sub-prime market melt down there appears to be a problem with the possibility of getting bond insurance. Without the bond insurance the low rates will not exist for there will be very few buyers for school bonds without the guarantee of bond insurance.
Don't count on that state aid! This site all along has advocated that planning should take place based upon the worst case and that case is 43 cents and not 32.5 cents. Guess some would call this community bashing.
Looks like another sub-prime bubble on the horizon, however, this time it will involve school district bonds!
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