Toth’s ‘Budget Savings’ Program Pays Private School Tuition

The text as introduced · 1,759 words

By: Toth
H.B. No. 986

A BILL TO BE ENTITLED

AN ACT

relating to state savings achieved through a budget savings program

administered by the comptroller of public accounts making an

appropriation of a portion of those savings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 403, Government Code, is amended by

adding Subchapter N to read as follows:

SUBCHAPTER N. BUDGET SAVINGS PROGRAM

Sec. 403.351. PURPOSE. The purpose of this subchapter is to

provide financial savings to the state budget and increase

efficiency.

Sec. 403.352. DEFINITIONS. In this subchapter:

(1) "Budget Savings Account" is established in the

foundation school fund and is administered by the comptroller.

(2) "Collector" means the officer or employee

responsible for collecting ad valorem taxes for a school district.

(3) "Program" means the budget savings program

established under this subchapter.

(4) "Qualifying school" means:

(A) a school district that serves and charges a

tuition fee for a student transferring to the district from another

school district under Section 25.038, Education Code; or

(B) a school that is accredited by an

organization recognized by the Texas Private School Accreditation

Commission.

(5) "Qualifying taxpayer" means a person who:

(A) pays school district maintenance and

operations ad valorem taxes in an amount that is at least the lesser

of the two amounts described by Section 403.353(e); and

(B) makes a designation to cover tuition for the

enrollment of at least one eligible student in a qualifying school

in accordance with rules adopted by the comptroller.

(6) "Tuition" includes any fee required to be paid for

an eligible student to attend a qualified school.

(8) "Gross savings" means the total savings to the

state prior to any reimbursements made pursuant to Sec. 353.353

(e).

(9) "Net savings" means the total savings to the state

after any reimbursements made pursuant to Sec. 353.353 (e).

Sec. 403.353. BUDGET SAVINGS PROGRAM. (a) The comptroller

shall establish a budget savings program through which a qualifying

taxpayer may designate an amount equal to all or a portion of the

school district maintenance and operations ad valorem taxes paid by

the taxpayer to be used as a grant from the state to pay the tuition

for the enrollment of an eligible student at a qualifying school

through the use of a budget savings form.

(b) For each year in which a qualifying taxpayer elects to

participate in the program, the taxpayer shall submit to the

collector, in addition to the taxpayer's school district ad valorem

taxes, a budget savings form for students for whom the taxpayer

designates tuition for enrollment at a qualifying school. The form

must be submitted not later than the date the school district taxes

are due, and the taxes must be paid in full by the due date.

(c) The comptroller by rule shall prescribe the format of

the budget savings form and shall include in the form any

information the comptroller determines necessary to administer the

program.

(d) The collector shall report on program participation to

the comptroller in a manner and format as determined by

comptroller.

(e) A designated student is entitled to receive a grant for

the payment of tuition for enrollment at a qualifying school for an

amount equal to the lesser of:

(1) the total amount of tuition the taxpayer

designated for the enrollment of one or more eligible students in a

qualifying school; or

(2) the product of:

(A) 80 percent of the state average maintenance

and operations expenditures per student in average daily

attendance; and

(B) the number of eligible students for whom the

taxpayer designated tuition for enrollment in a qualifying school.

(f) A student is eligible to participate in the program if

the student is a school-age child who resides in this state.

(f-1) Notwithstanding Subsection (f), for a school year

before the 2038-2039 school year, a student is eligible to

participate in the program only if the student is a school-age child

who resides in this state and:

(1) is entering kindergarten or first grade;

(2) attended a public school for all of the school year

immediately preceding initial participation in the program;

(3) participated in the program in a preceding school

year; or

(4) is a sibling of a student who participated in the

program in a preceding school year.

(f-2) This subsection and subsection (f-1) expire September

1, 2039.

(g) The comptroller may not use money from the available

school fund or federal money to reimburse a qualifying school under

this section.

(h) A qualifying school may not be required to comply with a

state law, including a rule governing the school's educational

program, as a prerequisite for receiving a reimbursement under this

subchapter unless that law applies generally to schools in this

state that are accredited by an organization recognized by the

Texas Private School Accreditation Commission, or in effect prior

to January 1, 2025.

(i) Notwithstanding any other provision of this subchapter,

the comptroller may implement a program for taxpayers who live in an

apartment or otherwise owe property taxes insufficient to cover the

amount due under Section 403.352(5)(A). Such taxpayer participants

shall only be entitled to participate if the comptroller determines

that the reimbursement will result in a savings to the state budget.

Sec. 403.354. BUDGET SAVINGS ACCOUNT. (a) The budget

savings account is established in the foundation school fund and is

administered by the comptroller on behalf of Texas students who

participate in the program.

(b) The account consists of:

(1) money transferred to the credit of the account by

the comptroller under Section 48.304 Education Code; and

(2) other amounts appropriated to the account by the

legislature.

(c) Money in the account may be used only to award grants for

the payment of tuition for enrollment of eligible students at

qualifying schools in the manner prescribed by Section 403.353 and

rules adopted by the comptroller.

(d) Interest and income from the assets of the account shall

be credited to and deposited in the account.

(e) Notwithstanding Subsection (c), the comptroller may

deduct a percentage of each reimbursement made from the account to

cover the comptroller's administrative costs in implementing and

administering the program. The percentage deducted from each

reimbursement may not exceed the lesser of:

(1) the pro rata cost of the program in the applicable

year; or

(2) two percent of the amount of the reimbursement.

(f) This subsection and Subsection (e) expire September 1,

2036.

Sec. 403.355. RULES. (a) The comptroller shall adopt rules

for the implementation and administration of this subchapter,

including rules relating to:

(1) the format and content of the budget savings form;

(2) a timeline for making payments for qualifying

students under the program in a manner that maximizes savings to the

state without imposing an unnecessary burden on program

participants;

(3) the prevention of fraud and abuse in financial

transactions under the program;

(4) the prevention of dual counting of eligible

students; and

(5) the computation of the gross and net savings to the

state from the program.

SECTION 2. Subchapter G, Chapter 48, Education Code, is

amended by adding Section 48.304 to read as follows:

Sec. 48.304. BUDGET SAVINGS GRANT. (a) A person to whom

the comptroller awards a grant under Subchapter N, Chapter 403,

Government Code, is entitled to receive an amount equal to the

amount of the grant as provided by that subchapter.

(b) The agency shall re-appropriate to the credit of the

budget savings account established under Section 403.354,

Government Code, the amount appropriated to the agency for purposes

of this section for use by the comptroller in awarding grants as

provided by Subchapter N, Chapter 403, Government Code.

SECTION 3. (a) The constitutionality and other validity

under the state or federal constitution of all or any part of

Chapter 403, Government Subchapter N, as added by this Act, may be

determined in an action for declaratory judgment in a district

court in Travis County under Chapter 37, Civil Practice and

Remedies Code, except that this section does not authorize an award

of attorney's fees against this state and Section 37.009, Civil

Practice and Remedies Code, does not apply to an action filed under

this section. This section does not authorize a taxpayer suit to

contest the denial of a tax credit by the comptroller of public

accounts.

(b) An appeal of a declaratory judgment or order, however

characterized, of a district court, including an appeal of the

judgment of an appellate court, holding or otherwise determining

that all or any part of Chapter 403, Government Code, Subchapter N,

as added by this Act, is constitutional or unconstitutional, or

otherwise valid or invalid, under the state or federal constitution

is an accelerated appeal.

(c) If the judgment or order is interlocutory, an

interlocutory appeal may be taken from the judgment or order and is

an accelerated appeal.

(d) A district court in Travis County may grant or deny a

temporary or otherwise interlocutory injunction or a permanent

injunction on the grounds of the constitutionality or

unconstitutionality, or other validity or invalidity, under the

state or federal constitution of all or any part of Chapter 403,

Government Code, Subchapter N as added by this Act.

(e) There is a direct appeal to the Texas Supreme Court from

an order, however characterized, of a trial court granting or

denying a temporary or otherwise interlocutory injunction or a

permanent injunction on the grounds of the constitutionality or

unconstitutionality, or other validity or invalidity, under the

state or federal constitution of all or any part of Chapter 403,

Government Code, Subchapter N, as added by this Act.

(f) The direct appeal is an accelerated appeal.

(g) This section exercises the authority granted by Section

3-b, Article V, Texas Constitution.

(h) The filing of a direct appeal under this section will

automatically stay any temporary or otherwise interlocutory

injunction or permanent injunction granted in accordance with this

section pending final determination by the Texas Supreme Court,

unless the supreme court makes specific findings that the applicant

seeking such injunctive relief has pleaded and proved that:

(1) the applicant has a probable right to the relief it

seeks on final hearing; and

(2) the applicant will suffer a probable injury that

is imminent and irreparable, and that the applicant has no other

adequate legal remedy.

(i) An appeal under this section, including an

interlocutory, accelerated, or direct appeal, is governed, as

applicable, by the Texas Rules of Appellate Procedure, including

Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),

38.6(a) and (b), 40.1(b), and 49.4.

SECTION 4. This Act takes effect September 1, 2025.