Districts keep enough to cover their own three-year average cost per student.
The bill caps how much property tax money a wealthy school district must send to the state under the recapture system. A district that buys attendance credit gets to keep enough maintenance and operations tax money to cover its own average cost per student over the last three years, adjusted for inflation by the education commissioner. Property-wealthy districts keep more of their local tax revenue, and the commissioner's cost figure is final with no appeal.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 1749 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 1749 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.ACROSS THE AISLE. Joint authors: 1 Republican, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.NEVER GOT A HEARING. Filed Jan 23, 2025 and referred to the House Public Education committee. No public hearing. The bill died.
relating to a limitation on the amount of school property tax
revenue that is subject to recapture under the public school
finance system.
WHAT IT DOES
Districts keep enough to cover their own three-year average cost per student.
The bill caps how much property tax money a wealthy school district must send to the state under the recapture system. A district that buys attendance credit gets to keep enough maintenance and operations tax money to cover its own average cost per student over the last three years, adjusted for inflation by the education commissioner. Property-wealthy districts keep more of their local tax revenue, and the commissioner's cost figure is final with no appeal.
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Public Education · Final status: Died in committee
Subjects
Education--Primary & Secondary--Finance
Education--School Districts
Taxation--School District
EDUCATION, COMMISSIONER OF
Text
The text as introduced · 325 words
89R3425 AMF-D
By: Meyer
H.B. No. 2051
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the amount of school property tax
revenue that is subject to recapture under the public school
finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 49, Education Code, is
amended by adding Section 49.1531 to read as follows:
Sec. 49.1531. LIMITATION ON TOTAL COST. (a)
Notwithstanding any other provision of this chapter, a school
district that executes an agreement to purchase attendance credit
in an amount sufficient to reduce the district's local revenue
level to a level that is equal to or less than the level established
under Section 48.257:
(1) is entitled to retain maintenance and operations
tax revenue sufficient to pay the district's average maintenance
and operations costs per student in average daily attendance, as
determined under Subsection (b) and adjusted for inflation; and
(2) may not be required to pay a total amount for
attendance credit that would reduce the district's retained
maintenance and operations tax revenue below the amount described
by Subdivision (1).
(b) For purposes of Subsection (a)(1), the commissioner
shall determine a school district's average maintenance and
operations costs per student in average daily attendance based on
the district's maintenance and operations expenditures per student
in average daily attendance for the preceding three school years.
The commissioner shall adjust a district's average costs to reflect
inflation in a manner determined appropriate by the commissioner.
(c) A determination by the commissioner under this section
is final and may not be appealed.
(d) The commissioner shall adopt rules necessary to
implement this section.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.