AUSTIN — Texas faces a severe budget shortfall of $15-$27 billion over the next two years, but a deeper threat to its AA-plus credit rating is a structural imbalance in how it finances schools, according to Standard & Poor’s analyst Horacio Aldrete-Sanchez.

“Until now, economic growth was dynamic enough to mask these structural deficiencies,” Aldrete-Sanchez told The Bond Buyer’s Texas Public Finance Conference here. “In many ways, the state budget deficit has been four years in the making.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.