Trustees of the San Angelo Independent School District voted last week to hold off on a $117 million bond sale until the state can restore the Permanent School Fund bond guaranty capacity.
Officials in the West Texas district said the proceeds will not be needed until June.
The fund provides triple-A rated guarantees on bonds issued by qualifying local school districts, but it has reached the limits of its bond capacity. Local districts must either wait for it to rebound or issue on their own credit.
The PSF’s value is about $17.6 billion, down from $26.6 billion in 2007.
The school board set a 25-year maturity for the debt and a maximum rate of 6% when the bonds can be sold.
The district’s bonds have unenhanced rates of A-plus from Standard & Poor’s and A1 from Moody’s Investors Service.
San Angelo voters approved the bonds in November 2008.
