Texas House Bill HB33

Texas 2023 - 88th 1st C.S.

• Filed: 5/30/23

Caption

Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

Impact

The implementation of HB 33 is expected to have a significant impact on state laws regarding education funding and taxation. By reducing the state compression percentage, school districts could experience a shift in funding dynamics, whereby they are less reliant on local property taxes and more on state appropriations. This could lead to improved fiscal stability for districts that might otherwise struggle with tax revenue fluctuations. Moreover, the bill outlines a system for allocating surplus state revenue to support these tax reductions, reflecting a movement toward more sustainable and equitable funding for education.

Summary

House Bill 33 is designed to address the financial burdens placed on school districts by reducing maintenance and operations ad valorem taxes through the strategic use of certain surplus state revenue. The bill aims to amend existing education codes to allow the Commissioner of Education the authority to reduce the state compression percentage, which directly impacts how much school districts can levy in local taxes. The provisions of this bill are intended to offer property tax relief to residents while ensuring that school districts still receive necessary funding for operations.

Sentiment

Discussions surrounding the bill reveal a generally positive sentiment among supporters, who argue that tax relief for school districts is necessary for reducing the financial strain on families within the community. Advocates for the bill believe it will enhance the quality of education by allowing school districts to concentrate on instructional funding rather than funding constraints. However, there are also concerns raised by opponents who worry about potential cuts in funding and services within school districts if the reliance on local taxation is diminished.

Contention

Notable points of contention related to HB 33 include concerns regarding the adequacy of state funding to fully replace lost local revenue. Critics of the bill express anxiety that the proposed changes could lead to disparities in funding between affluent and less affluent districts, as reliance on state funds could potentially create inconsistencies in educational quality across the state. The balance between providing immediate tax relief and ensuring long-term sustainability and equity in education funding remains a contentious topic within legislative discussions regarding HB 33.

Texas Constitutional Statutes Affected

Education Code

• Chapter 48. Foundation School Program
  • Section: New Section

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 109