S.B. No. 2842 aims to prohibit school districts from using interest and sinking tax revenue for deferred maintenance expenses. The bill amends Section 45.001 of the Education Code, specifically adding a new subsection (d) that states bonds cannot be issued for items with a useful life of less than ten years or for the maintenance of school facilities, which includes preventive maintenance and the replacement of parts or systems. This change is intended to ensure that funds raised through bonds are allocated strictly for long-term investments in school infrastructure rather than ongoing maintenance costs.

Additionally, the bill modifies Section 45.0031 by adding a new subsection (a-1), which requires school districts to demonstrate that any proposed bond issuance complies with the new restrictions outlined in Section 45.001(d). This means that before issuing bonds, districts must show that they are not violating the prohibition against using bond funds for maintenance-related expenses. The bill is set to take effect on September 1, 2025, reinforcing the focus on responsible financial management within school districts.

Statutes affected:
Introduced: Education Code 45.001, Education Code 45.0031 (Education Code 45)