Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
Your Money and Education Debt

Your Money and Education Debt

Ratings: (0)|Views: 32 |Likes:
The report from the Texas Comptroller, “Your Money and Education Debt,” provides a snapshot of how much debt public and higher education institutions in Texas are carrying. The report also includes recommendations intended to provide greater transparency regarding education-related public debt in Texas and reduce debt across public and higher education.
The report from the Texas Comptroller, “Your Money and Education Debt,” provides a snapshot of how much debt public and higher education institutions in Texas are carrying. The report also includes recommendations intended to provide greater transparency regarding education-related public debt in Texas and reduce debt across public and higher education.

More info:

Published by: Texas Comptroller of Public Accounts on Oct 25, 2012
Copyright:Public Domain

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

09/21/2013

pdf

text

original

 
Susan Combs
 Texas Comptrollerof Public Accounts
 Your Money andEducation Debt
A “Texas, It’s Your Money”report digging deeperinto public and highereducation debt.
 
YOUR MONEY AND EDUCATION DEBT
2
F
ollow the Comptroller’s“Texas, It’s Your Money” series of reports at
www.TexasItsYourMoney.org
 
T
exans
’ R 
ighT
 
To
K
now
To maintain Texas’ position as a global economic powerhouse, we have to ensure that tomorrow’s leaders have the education they need to keep ourstate competitive. But educating Texans is becomingincreasingly expensive, and
some of these costs are
being pushed o for future generations to pay
.School districts have the largest outstandingshare of local government debt in Texas. Debtservice payments have increased from
7 percent
  to
9.8 percent
of total school district expenditures,making them the fastest-rising spending category inTexas public education during the past decade. Thisgrowth is largely due to school construction and technology upgrades.The debt burden of higher education is risingrapidly as well. Since 2001, state university and col- lege enrollment rose by
32 percent
, while outstand-ing debt increased by
246 percent
.This report on public and higher education debt provides a snapshot of how much debt our publicand higher education institutions are carrying,highlighting trends in debt growth. It also suggestsinformation that taxpayers should getfrom their state and local governments before approving new debt.Texans deserve comprehensiveinformation on the detailsof all debt carried in theirnames. This report is the thirdin a series that will help Texas taxpayers know more about the ways in which government affects their wallets. We encourage you to visit
www.TexasItsYourMoney.org
and toread this report for a detailed look at howmuch school districts, community colleges andstate universities and colleges owe.
 pin A harp y nnsinliains
ua 
 as m  uli  Auns
u n y  and nsin liains
A“ Te xas,It ’sYo uMne ” ep rt di ggingee er into  ubl ic nsi ns
 
 
 
T    p  f    
Y    y    
“  T   , ’  Y   y ”   p in  p  
 
 S u s a n  C o m b s
 T e x a sC o m p t r o ll e r  o f  P u b l i c A c c o u n t s
 Y o u r  M o n e y  a n d  T e   a x i n g   F a c t s
A T e x a s, I t ’ s Y o u r M o n e y ” r e p o r t o n  w h o i s t a x in g  y o ua n dw h y.
A
s Comptroller, one of my roles is to predict how and whereour economy will grow and to provide state leaders withcritical information for future decisions. Educating youngTexans is crucial to the state’s continued economic success, but these costs are rising. Our public and higher education
institutions have an obligation to be nancially prudent and
manage their expenditures and debts, just as Texas taxpayersand business owners do.
Our ofce is committed to making Texas state
government transparent and our books open, accessible andunderstandable to our citizens. Government should not makeit hard for you to see our books. But it really only works when taxpayers use that information to make informeddecisions and hold their government accountable. As taxpayers, you need accurate information to decide whether public and higher education institutions are meeting the responsibility of managing debt as prudently andconservatively as possible.”
SUSAN COMBS
EVERY TEXAN’S RIGHTS
Y
ou
 
have
 
a
 
RighT
 
 to know who is taxing you and for what purpose.
Your hard-earned dollars deserve the light of day,down to the penny.
Y
ou
 
have
 
a
 
RighT
 
 to know exactly how and where state and localgovernments spend your money.
Through our Web resources such as Where the MoneyGoes, we’ve opened the state’s books for public inspection,and we’re encouraging all other levels of Texas governmentto make transparency their highest priority as well,
placing annual budgets, annual nancial reports and
virtual “check registers” online.
Y
ou
 
have
 
a
 
RighT
 
 to expect that government obligations are transparently
funded, and that government nances are managed soundly
and prudently.
Government should provide its citizens with an honest
assessment of the nancial challenges it faces.
Y
ou
 
have
 
a
 
RighT
 
 to know about the debt local ofcials issue in your name.
All ballots proposing new debt should provide voters witha full disclosure of existing debt.
Y
ou
 
have
 
a
 
RighT
and
 
a
 
ResponsibiliTY
 to be aware of and engaged in the affairs of your government.Our democracy depends on it.
In short, you need to know, and have the right to know.
 
SUSAN COMBS:
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS
3
A
nyone who follows the economy — or has a child — knows thateducation is vitally important for our kids’ success as well as for our stateas a whole. Virtually all of tomorrow’s jobs will require a quality educationand some degree of technical training.Education is not exempt from rising costs. Alongside the increasedexpense of delivering instruction, continued investments in classrooms, technology and other facilities, leaders in public schools, community and junior colleges, and the state’s public college and university systems have to make strategic decisions about how to pay for education. That has
included issuing new debt and renancing existing debt to take advantage
of improved interest rates or more advantageous terms.For
public schools
, the majority of debt service is supported directly by local property tax revenues, although the state’s Permanent SchoolFund is the guarantor for much of this debt, and state funds directlysupport annual debt service for almost half the school districts with debt.
Community colleges
, too, have local property tax levies as part of a broadspectrum of revenue.Overall, the debt incurred by schools, colleges and universities isincreasing, passing costs to future generations. Each school district,community college district and university has unique needs and mustgrapple with a broad array of challenges. The reasons for issuing debt,identifying available revenue, and other variables can affect how, why and when educational institutions spend money.Public education accounts for more than
one-third
of local governmentdebt in Texas. As citizens and taxpayers, you should ask questions of oureducation leaders and hold them accountable for their spending decisions to
ensure they are spending borrowed dollars efciently and effectively.
Public universities and colleges
don’t collect taxes directly, but rely onstate appropriations to service some debt, as well as drawing on revenuegenerated by state assets through the Public University Fund and HigherEducation Fund.To understand the issues surrounding public education debt, you need to understand the basic facts. This report highlights the numbers through
scal 2011 (the most recent available data). We hope it will provide a useful
 basis for exploring education-related government debt.
THE COST OF EDUCATION: TODAY AND TOMORROW
WHAT IS DEBT?
DEBT
can refer to debt issued oroutstanding debt.
AUTHORIZED BUT UNISSUEDDEBT
is debt available forborrowing without the need forfurther voter approval.
DEBT ISSUED
is the total amountof funds borrowed during a
specied time period.
DEBT OUTSTANDING
is the totalprincipal owed over the remaininglife of all bond issues.
DEBT SERVICE
is the amountneeded to repay the principal andinterest on debt outstanding.
LEASE PURCHASE
is nancing
the purchase of an asset overtime through lease payments thatinclude principal and interest.
Lease purchases can be nanced
through a private vendor.
REVENUE-SUPPORTED DEBT
issecured by nontax revenues suchas tuition or admissions to athleticevents. This type of debt does notrequire voter approval.
TAX-SUPPORTED DEBT
is fundedby property tax levies within theschool or community collegedistrict’s boundaries. It must bevoter-approved.
WHO ISSUES DEBT?
PUBLIC SCHOOL DISTRICTS
 may issue debt supported by localproperty taxes, state funds andother revenues.
COMMUNITY AND JUNIORCOLLEGE DISTRICTS
may issuedebt supported by local propertytaxes, tuition and fees, staterevenue and other revenues.
PUBLIC COLLEGES ANDUNIVERSITIES
may issue debtsupported by state generalrevenue, the Permanent UniversityFund’s revenue, tuition and fees orother revenues.
LOCAL GOVERNMENT DEBT OUTSTANDING – 2011
15.7%32.6%6.9%33.0%7.7%2.2%1.8%
OUTSTANDING TOTAL$192.7 BILLION
PUBLIC SCHOOL DISTRICTS
COMMUNITY AND JUNIOR COLLEGES
HEALTH/HOSPITAL DISTRICTS
COUNTIES
CITIES
OTHER SPECIAL PURPOSE DISTRICTS
WATER DISTRICTS/RIVER AUTHORITIES
Note: Total may not sum due to rounding.Source: Texas Bond Review Board

You're Reading a Free Preview

Download