cushion for districts hurt by the comptroller’s property values

The text as introduced · 412 words

89R662 MEW-D

By: Hinojosa of Hidalgo
S.B. No. 435

A BILL TO BE ENTITLED

AN ACT

relating to an adjustment for certain school districts under the

public school finance system for revenue lost due to the use of the

state value of the district's taxable value of property determined

by the comptroller of public accounts.

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

SECTION 1. Subchapter F, Chapter 48, Education Code, is

amended by adding Section 48.2711 to read as follows:

Sec. 48.2711. ADJUSTMENT FOR LOSS OF REVENUE DUE TO USE OF

STATE VALUE. (a) This section applies only to a school district

for which the state value for the district's taxable value of

property is used under Section 403.302(c), Government Code.

(b) For each school district to which this section applies,

the agency shall determine whether the district's entitlement under

this chapter for a school year is greater if the district's taxable

value of property is:

(1) the local value; or

(2) the state value as determined by the comptroller

under Sections 403.302(a) and (b), Government Code.

(c) If the agency determines under Subsection (b) that the

school district's entitlement is greater for the applicable school

year using the local value for the district's taxable value of

property, the commissioner shall increase state aid or adjust the

limit on local revenue under Section 48.257 for the district for

that school year in an amount equal to:

(1) for the first school year in which this subsection

applies to the district, 75 percent of the difference between the

amounts determined under Subsection (b);

(2) for the second consecutive school year in which

this subsection applies to the district, 50 percent of the

difference between the amounts determined under Subsection (b); and

(3) for the third consecutive school year in which

this subsection applies to the district, 25 percent of the

difference between the amounts determined under Subsection (b).

(d) A school district may not receive an adjustment under

this section for more than three consecutive school years. If a

school district receives an adjustment under this section for three

consecutive school years, the district is not eligible to receive

an adjustment under this section in the subsequent school year but

may be again eligible for the adjustment following a school year for

which the local value is used for the district's taxable value of

property under Section 403.302(c), Government Code.

SECTION 2. This Act takes effect September 1, 2025.