Bond Guarantee Program
About the Bond Guarantee Program
The Bond Guarantee Program (BGP) allows for bonds that are properly issued by a school district to be fully guaranteed by the corpus of the Permanent School Fund (PSF), on approval by the commissioner of education. The guarantee has received “AAA” ratings from the major bond rating services and replaces the need for private bond insurance.
To participate in the BGP, districts must apply to the Texas Education Agency (TEA) and be approved by the commissioner of education. The TEA reviews each application according to statutory requirements and State Board of Education (SBOE) rules. This review includes making sure the application is complete and accurate and the district is financially sound. The TEA reviews the district's School FIRST rating, its annual financial audit report, its accreditation status, and complaints.
Information on Applying for a Guarantee
Applications for the PSF Bond Guarantee Program are now accepted only through the Municipal Advisory Council’s website at http://www.mactexas.com/.
A link to the sign-up page for the Bond Guarantee Program will be located on MAC’s home page. Click that link.
If you currently have an account with MAC, click the “Please enable my account” button saying that you will be completing PSF Bond Guarantee applications. That will send MAC an email letting them know to grant 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) and then to the page where you will click the “Please enable my account” button saying that you will be completing PSF Bond Guarantee applications. That will send MAC an email letting them know to grant you access to the application.
Once you have been granted access to the application, you will see a link on the left hand side of the page, under My MAC for the PSF Application. Click on that link to begin the process.
Click Create New Application.
Review the application requirements and click Begin PSF Application.
Complete the application as instructed by the system.
If you have any questions about the online application process, please email the MAC (email@example.com) or call 512-476-6947 and ask for Laura Slaughter or Terrence Spencer.
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 pm on the last business day of the calendar month will be held until the fifteenth business day of the subsequent month. On the fifteenth business day of each month, the commissioner of education will announce the results of the prioritization described in the SBOE rules and process applications for the guarantee up to the available capacity.
Each district that submits a valid application will be notified of the application status within fifteen business days of the end of the month following the application deadline.
If a district does not receive a guarantee, the commissioner will consider the application withdrawn, and the district must reapply for a guarantee in a subsequent month. Applications that were denied a guarantee will not be retained for consideration in subsequent months.
In addition, if the guarantee is granted, but the bonds are not approved by the Office of the Attorney General within 180 days (120 for applications received before July 1, 2010) 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.
Law and Rules
Federal Tax Credit Bond Programs
For additional information, contact:
Division of State Funding
Page last modified on 5/13/2013.