Texas
Independent School District (ISD)
Debt Summary
Quick Facts
| |
FY 2007 |
FY 2008 |
| Number of Issuers |
347
|
251
|
Number of Bond Issues
|
442
|
289
|
| Total Par Amount Issued |
$13,211,014,590
|
$8,824,434,581 |
| Total New Money Issued |
$9,043,269,523
|
$7,712,442,625 |
Total Refunding Money Issued
|
$4,167,745,067
|
$1,111,991,956 |
BOND ISSUES FOR FISCAL YEARS 2007 & 2008
-
During fiscal years 2007 and 2008, 476 school districts completed
731 financing transactions and borrowed $22.04 billion for renovation and construction
of school facilities, for equipment purchases, and for refunding prior outstanding
bonds.
-
School district debt issuance peaked in FY 2007 at $13.21 billion replacing the
prior (then unprecedented) amount of $11.59 billion issued in FY 2005. The FY 2008
issuance volume of $8.82 billion now ranks as the third highest, despite the municipal
market fallout on the national level during this time.
-
$21.72 billion in voter-approved debt was issued, $280.1 million in maintenance
and operations (M&O) debt, $30.2 million in lease-purchase obligations for facilities
and $1.2 million in revenue bonds were issued for improvements to athletic/sports
facilities during fiscal years 2007 and 2008.
BOND ISSUES FOR FISCAL YEARS 2007 & 2008
| Type of Issue |
FY 2007 Refunding Amount
|
FY 2008 Refunding Amount
|
FY 2007 New-Money Amount |
FY 2008 New-Money Amount
|
| Voter Approved
|
$4,166,746,067
|
$1,111,081,956
|
$8,968,204,332
|
$7,478,010,125
|
M&O
|
$0
|
$910,000
|
$57,380,190
|
*$221,727,500
|
| Revenue |
$0
|
$0
|
$1,200,000
|
$0
|
| Lease Revenue
|
$999,000
|
$0
|
$16,485,000
|
$12,705,000
|
|
*includes $150 million commercial paper for Austin ISD. |
-
The U.S. municipal bond market began calendar 2007 with tax-exempt long-term rates
not far from the 38-year low reached in December 2006 causing another spike in the
volume of school district refundings -- $4.17 billion in FY 2007. The amount plummeted
in FY 2008 to $1.11 billion, the lowest volume since FY 2002.
-
ISD refunding volume 5-year trends, highest to lowest: FY 2005 - $5.49 billion,
FY 2007 - $4.17 billion, FY 2006 - $2.71 billion, FY 2003 - $1.43 billion, and FY
2004 - $1.41 billion.
-
Around 96 percent of the 218 districts that refunded bonds since fiscal 2006 did
so to achieve savings and to restructure their debt. Ten (10) districts experienced
both cash and present value losses. Nine of these ten districts had either refinanced
public facility corporation debt or M&O debt as voter-approved bonds.
-
The six school districts that chose to seek voter approval to refinance outstanding
public facility corporation lease-purchase obligations were Abbott, Dawson (Navarro
County), Edinburg Consolidated, Grandview, Hardin and Southside ISDs. Each had school
facilities constructed through these Texas nonprofit corporations.
-
Seven ISDs acquired voter approval to refund M&O obligations as long-term debt
that will be supported by the I&S tax rather than the M&O tax. Those districts were
Abbott, Calallen, Giddings, Hutto, Point Isabel, Royal and Stafford MSD.
-
These refundings during fiscal years 2007 and 2008 resulted in a total cash savings
of $376.4 million and a $249.9 million net present value savings.
VOTER-APPROVED DEBT - TOTAL PRINCIPAL
OUTSTANDING
-
As of August 31, 2008, Texas public school districts had
$53.53 billion in principal outstanding of voter-approved debt. This is an increase
of $5.97 billion since FY 2007. Over the past five years, the average increase per
year is $4.78 billion. The highest increase on record occurred in FY 2007 – a rise
in outstanding debt of $7.67 billion.
-
Total principal outstanding increased by 64.3 percent ($20.94 billion) since FY
2004. In that same five-year period, full-year ADA increased by 6.4 percent.
-
Texas school districts will repay $9.18 billion in principal (17.2 percent) of
voter-approved tax debt within five years and $19.74 billion (36.9 percent) within
ten years. These below-average repayment schedules continue to slowly decline. As
a point of reference, in FY 1991 the municipal performance indicator ratios were
38.7 percent at five years and 73.8 percent at ten years. Repayment of 25 percent
of principal in five years and 50 percent in ten years is considered average.
-
Of the 1,026 Texas public school districts with taxing authority, 78 percent or
799 have voter-approved tax debt on their books, a 9.2 percent increase in the number
of districts in the last five years.
 D
DEBT
SERVICE ON VOTER-APPROVED DEBT - PRINCIPAL + INTEREST
-
Debt service (includes both principal and interest) increased by $10.49 billion
(12.6 percent) since FY 2007 and by $35.68 billion (61.0 percent) in the last five
years.
-
Total debt service for Texas public school districts is now $94.13 billion for
voter-approved debt.
-
The ten public school districts with the highest debt service are located in the
largest metropolitan areas of Texas. Most experienced considerable student growth
in the last five years. Two recorded a decline – Houston and Dallas ISDs. Ranking
order changed somewhat since FY 2006, but these same ten districts appeared on the
list at that time.
-
Houston ISD has held the number one spot since the 1999 school year. Houston’s
student population in the past five years has actually declined (6.8 percent) as
has Dallas ISD’s (4.9 percent). Although Cypress-Fairbanks ISD had the highest growth
in number (23,776), Frisco ISD’s percentage increase in average daily attendance
was the highest at 145.7 percent during that time.
-
Out of a total of 1,026 districts with taxing authority, 799 have outstanding voter-approved
debt. Half of the $94.13 billion total debt-service cost is on the books of
38 school districts.
TEXAS PUBLIC SCHOOL DISTRICTS
With Highest Total Debt Service (Voter Approved)
As of August 31, 2008
|
ISD Name
|
County
|
Total Debt Service
|
Full-Year ADA 2008
|
03-08 ADA Growth
|
03-08 ADA Percent Growth
|
| Houston ISD |
Harris |
$3,418,766,779 |
179,329 |
-13,161.4 |
-6.84% |
| Cypress-Fairbanks ISD |
Harris |
$2,823,682,531 |
90,964 |
23,776.4 |
35.39% |
| Leander ISD |
Williamson |
$2,800,935,716 |
25,132 |
9,176.4 |
57.51% |
| Dallas ISD |
Dallas |
$2,335,668,576 |
144,833 |
-7,400.9 |
-4.86% |
| North East ISD
|
Bexar |
$2,296,060,566 |
58,290 |
7,027.9 |
13.71% |
| Northside ISD
|
Bexar |
$2,211,944,760 |
79,721 |
15,362.2 |
23.87% |
| Frisco ISD |
Collin |
$1,923,845,824 |
26,194 |
15,531.1 |
145.65% |
| Katy ISD |
Harris |
$1,646,998,892 |
51,179 |
13,431.9 |
35.58% |
| Lewisville ISD |
Denton |
$1,375,862,950 |
46,924 |
7,160.9 |
18.01% |
| Fort Bend ISD |
Fort Bend |
$1,370,515,035 |
64,519 |
7,893.2 |
13.94% |
|
Source: Texas Bond Review Board - Bond Finance Office (local
government debt databases);Texas Education Agency for average daily attendance.
|
AVERAGE DEBT PER STUDENT
-
Texas public school districts carrying voter-approved debt had a weighted average
debt of $12,965 per student based on full-year average daily attendance (ADA) at
the end of the 2008 school year.
-
Average per student debt increased by 10.6 percent ($1,243)
between fiscal years 2007 and 2008.
-
In the past five years, average per student debt increased 52.2 percent ($4,444)
for Texas public school districts. In school year 2004, the weighted average was
$8,521.
 D
ATTENDANCE AT TEXAS PUBLIC SCHOOLS
-
There were 58,157 more students in average daily attendance (ADA) in the 2008
school year then in 2007.
-
For the 1,026 school districts with taxing authority, full-year ADA increased
in 2008 by 1.4 percent, slightly below the five-year average increase of 1.7 percent.
-
The highest increase of 3.4 percent (126,345 students) occurred
in the 2001 school year, and an actual decline of 0.01 percent (439 students) was
recorded in 2002.
-
The 2008 school year ADA for Texas public school districts was 4,229,744 compared
to 3,975,317 in the 2004 school year.
 D
|
