The Internal Revenue Service needs to modify its regulations to permit the Texas Permanent School Fund to guarantee twice as much debt, Gov. Rick Perry urged in a letter sent to the agency last month.

In May, Perry signed a bill that permitted the state education board to more than double the amount of debt the PSF can currently back, which would be up to five times the fund's market value or its cost value. However, the bill remains reliant on whether or not the IRS will endorse a broader guarantee, which has been used to provide a majority of Texas local school districts with a triple-A credit rating since 1983.

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