Texas Sells Record $10 Billion Notes for Schools: Muni Credit
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Texas will issue $9.8 billion of tax-exempt general-obligation notes today, the state’s largest short-term debt offering, to fund public schools.
Texas increased its annual top-rated tax and revenue anticipation note sale from last year by $2 billion to cover payments to school districts until the bulk of tax revenue receipts next year. The additional borrowing will compensate for the end of federal stimulus funding and property-tax collections that are below what was budgeted, said R.J. DeSilva, a spokesman for Comptroller Susan Combs. The state will direct more money to districts where property-tax revenue has fallen short.