Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to a reduction of the amount by which certain school
districts must reduce their local revenue levels in excess of
entitlement under the public school finance system.
Only districts taxing six cents above their maximum compressed rate.
The bill softens recapture, the rule that makes property-wealthy school districts send local tax money back through the state school finance system. It touches only districts that owe recapture and that set a maintenance and operations tax rate for 2024-2025 at least six cents above their maximum compressed rate. For those districts, the state agency must shrink the recapture amount so their operating revenue per student does not fall below what they had in the 2025-2026 school year.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 4709 (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 4709 (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.NEVER GOT A HEARING. Filed Nov 12, 2024 and referred to the House Public Education committee. No public hearing. The bill died.
relating to a reduction of the amount by which certain school
districts must reduce their local revenue levels in excess of
entitlement under the public school finance system.
WHAT IT DOES
Only districts taxing six cents above their maximum compressed rate.
The bill softens recapture, the rule that makes property-wealthy school districts send local tax money back through the state school finance system. It touches only districts that owe recapture and that set a maintenance and operations tax rate for 2024-2025 at least six cents above their maximum compressed rate. For those districts, the state agency must shrink the recapture amount so their operating revenue per student does not fall below what they had in the 2025-2026 school year.
Last action, Mar 22, 2023: Referred to Public Education
Relating to a reduction of the amount by which certain school districts must reduce their local revenue levels in excess of entitlement under the public school finance system.
Caption, 88R bill history
Sources
Texas House · Filed Nov 12, 2024
02/27/2025 H Referred to Public Education: Feb 27 2025 11:13AM
89R2324 MEW-F
By: Plesa
H.B. No. 289
A BILL TO BE ENTITLED
AN ACT
relating to a reduction of the amount by which certain school
districts must reduce their local revenue levels in excess of
entitlement under the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 48.257, Education Code, is amended by
amending Subsection (a) and adding Subsection (b-1) to read as
follows:
(a) Subject to Subsection (b) and except as provided by
Subsection (b-1) , if a school district's tier one local share under
Section 48.256 exceeds the district's entitlement under Section
48.266(a)(1) less the district's distribution from the state
available school fund, the district must reduce the district's tier
one revenue level in accordance with Chapter 49 to a level not to
exceed the district's entitlement under Section 48.266(a)(1) less
the district's distribution from the state available school fund.
(b-1) This subsection applies only to a school district to
which Subsection (a) applies and that adopted a maintenance and
operations tax rate for the 2024-2025 school year equal to or
greater than the sum of the district's maximum compressed tax rate,
as determined under Section 48.2551, and six cents.
Notwithstanding Subsection (a), if, after reducing the tier one
revenue level of a school district to which this subsection applies
as required under Subsection (a), the maintenance and operations
revenue per student in average daily attendance of the district for
a school year would be less than the maintenance and operations
revenue per student in average daily attendance available to the
district for the 2025-2026 school year, excluding any funding
provided to the district under Section 48.279, the agency shall
adjust the amount of the reduction required in the district's tier
one revenue level under Subsection (a) up to the amount of local
funds necessary to provide the district with the amount of
maintenance and operations revenue per student in average daily
attendance available to the district for the 2025-2026 school year.
SECTION 2. This Act takes effect September 1, 2025.