Growth factor drops from 2.5 percent to 1 percent.
The bill lowers the growth factor in the school tax compression formulas from 2.5 percent to 1 percent. It touches every Texas school district's maximum compressed maintenance and operations tax rate and the state compression percentage. On the ground, district tax rates compress faster when property values rise more than 1 percent, which caps local school tax growth tighter and shifts more of the funding load to the state.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R SB 1704 by Sen. Middleton (Died in committee) and this bill (Died in committee). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R SB 1704 by Sen. Middleton (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 Mar 14, 2025 and referred to the House Ways & Means committee. No public hearing. The bill died.
relating to the state compression percentage and a school
district's maximum compressed tax rate under the public school
finance system.
WHAT IT DOES
Growth factor drops from 2.5 percent to 1 percent.
The bill lowers the growth factor in the school tax compression formulas from 2.5 percent to 1 percent. It touches every Texas school district's maximum compressed maintenance and operations tax rate and the state compression percentage. On the ground, district tax rates compress faster when property values rise more than 1 percent, which caps local school tax growth tighter and shifts more of the funding load to the state.
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Ways & Means · Final status: Died in committee
Subjects
Taxation--Property-Tax Rate
Taxation--School District
Text
The text as introduced · 212 words
By: Troxclair
H.B. No. 5579
A BILL TO BE ENTITLED
AN ACT
relating to the state compression percentage and a school
district's maximum compressed tax rate under the public school
finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 48.255(b), Education Code, is amended to
read as follows:
(b) The state compression percentage is the lower of:
(1) 93 percent, or a lower percentage set by
appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.01 [1.025]/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
SECTION 2. Section 48.2551(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), a district's
maximum compressed rate ("MCR") is the lesser of:
(1) the rate determined by the following applicable
formula:
(A) if "DPV" exceeds "PYDPV" by an amount equal
to or greater than one [ 2.5 ] percent:
MCR = ( 1.01 [1.025]((PYDPV+E) X PYMCR))/DPV; or
(B) if Paragraph (A) does not apply:
MCR = PYMCR; or
(2) the product of the state compression percentage,
as determined under Section 48.255, for the current tax year,
multiplied by $1.00.
SECTION 3. This Act takes effect September 1, 2025.