Bond Guarantee Program
The Bond Guarantee Program (BGP), using the corpus of the Permanent School Fund (PSF), guarantees bonds issued by a school district or charter school. The PSF guarantee has received “AAA” ratings from the major bond rating services and replaces the need for private bond insurance.
Both districts and charters must apply to the TEA and be approved by the commissioner of education to participate in this program. The TEA reviews each application according to statutory requirements and State Board of Education (SBOE) rules. This review must confirm that the application is complete and accurate. The district or charter must also be financially sound. The TEA also reviews the School FIRST rating or Charter FIRST rating, the annual financial audit report, accreditation status, and any complaints.
Law and Rules
Information on Applying for a Guarantee
The TEA only accepts applications for the BGP through the Municpal Advisory Council (MAC) website.
The link to the sign-up page for the BGP is located on MAC home page. Click that link.
- If you currently have an account with the MAC, click the Please enable my account button (indicating that you will be completing PSF Bond Guarantee applications). This action will send the MAC an email instructing them to give you access to the application.
- If you do not currently have an account, the link will first take you to a page to create an account (at no charge). On the succeeding page, click the Please enable my account button. This action will send the MAC an email instructing them to give you access to the application.
Once you have been granted access to the application, you will see a link for the PSF application under My MAC (on the left side of the page). Click on that link to begin the process.
- Click Create New Application.
- Review the application requirements.
- Click Begin PSF Application.
- Complete the application as instructed by the system.
If you have any questions about the online application process, please send an email to the MAC at email@example.com or call Laura Slaughter or Terrence Spencer at (512) 476-6947.
Applications for New or Combination Issues
Applications for new or combination (new and refunding) issues are subject to a monthly prioritization system in accordance with SBOE rules. Applications that are received on or before 5:00 p.m. of the last business day of the calendar month will be held until the fifteenth business day of the subsequent month. The commissioner of education announces the results of the prioritization on this day each month.
Each district or charter that submits a valid application will be notified of the application status on the fifteenth business day of the month that follows the application deadline.
If a district does not receive a guarantee, the commissioner will consider the application withdrawn. The TEA will not retain applications that were denied a guarantee. However, a district or charter may reapply for a guarantee in a subsequent month.
If the guarantee is granted, but the bonds are not approved by the Office of the Attorney General within 180 days of the application deadline, the commissioner will consider the application withdrawn.
Applications for Refunding Bonds with Present Value Savings
Applications for refunding bonds with present value savings (that refund previously guaranteed bonds) require a separate application form and are not subject to the monthly prioritization system.
Percentage of Students in Open-Enrollment Charters
The Texas Administrative Code 33.67(d)(1) requires the commissioner of education to post information each year stating the percentage of students enrolled in charter schools. This information is used to calculate the available capacity of the PSF to guarantee bonds for charter schools. Charter schools enrolled 203,290 out of a total enrollment of 5,151,925 students in the 2013–2014 school year.* For the purposes of the BGP, this represents 3.95% of total bond guarantees.
* Per statute, these numbers are based on enrollment data submitted by school districts and charter schools to the Public Information Managment System (PEIMS) during the fall 2013 submission.
For additional information, contact:
Division of State Funding
Page last modified on 7/10/2014 12:39:44 PM.