Senator West presented Senate Bill 6 04 to require the Texas Permanent School Fund Corporation to publish, on a quarterly basis, the amount and holders of bonds backed by the bond guarantee program (BGP) that have been downgraded to speculative or non-investment grade status.

West told the committee the BGP guarantees bonds for more than 900 districts and charter entities and covers more than $117 billion in debt; when a bond’s rating falls to speculative because a district fails to timely pay debt service or shows other financial deterioration, taxpayers remain ultimately liable. The sponsor noted that more than $100 million in BGP-backed bonds had been downgraded to junk status in fiscal year 2024–25 and argued that public tracking would provide an early indicator of financial stress requiring earlier intervention.

No public witnesses appeared in favor or opposition at the hearing; the committee closed public testimony and left the bill pending.

If enacted, SB 6 04 would direct the Permanent School Fund Corporation to post the list of downgraded bonds on its website each fiscal quarter; committee members did not take a vote at the hearing.