TX
Texas House Bill HB1

Texas 2023 - 88th 2nd C.S.

Texas House Bill HB1

Filed
6/28/23  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression.

Impact

If passed, HB1 will have a significant impact on state education funding mechanisms. It mandates the Texas Education Agency to calculate new funding standards based on adjusted tax rates, creating a more equitable distribution of resources among school districts. The bill aims to ensure that all districts can maintain adequate funding despite reduced local revenue, which is critical for supporting educational programs and services. However, the bill's temporary nature is evident, as it includes expiration clauses that will require future legislative action to extend its provisions beyond the outlined timeframes.

Summary

House Bill 1 (HB1) proposes a reduction in the maximum compressed tax rate for school districts in Texas for the 2023-2024 academic year. The bill specifies a decrease of $0.162 in the tax rate for each district, aiming to provide greater financial relief for schools facing fiscal pressures. Additionally, the bill establishes a framework for supplementing state aid for districts affected by tax compression. This aid is intended to help ensure that these districts have sufficient resources to operate effectively while managing the impact of lowered tax rates on their revenue.

Sentiment

The sentiment surrounding HB1 appears largely positive among proponents, particularly among those advocating for increased educational equity and financial support for struggling school districts. Supporters argue that the reduction in tax rates will alleviate some of the financial burdens faced by districts and allow for better allocation of resources. Conversely, some critics express concern about the long-term sustainability of these funding measures and the potential impacts on district planning and local governance. The discussions reflect a broader debate on balancing state-level funding with local educational needs and district autonomy.

Contention

Notable points of contention in the discussions around HB1 include concerns over how these legislative changes might affect the overall funding and governance of Texas school districts. Critics worry about the implications for local discretion in setting tax rates and fear that significant state intervention could lead to a one-size-fits-all approach to education funding, potentially overlooking the unique challenges faced by different districts. The expiration dates outlined in the bill also raise questions about the future of state aid and budget predictability for districts relying on this support.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 48. Foundation School Program
    • Section: 2555
    • Section: 283
    • Section: New Section
    • Section: 2551
    • Section: 2552
    • Section: 2553
    • Section: 2555
    • Section: 2556
    • Section: 283

Tax Code

  • Chapter 26. Assessment
    • Section: 08
    • Section: 09
    • Section: 15
    • Section: 08
    • Section: 09
    • Section: 15

Latest HB1 Activity

Companion Bills

TX HJR1

Enabling for Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

Similar Bills

TX SB4

Relating to the maximum compressed tax rate of a school district.

TX SB12

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate and to the protection of school districts against the resulting loss in local revenue.

TX HB11

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate and to the protection of school districts against the resulting loss in local revenue.

TX SB945

Relating to funding under the public school finance system for a school district with a compressed tax rate below the state maximum compressed tax rate.

TX SB1

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against the resulting loss in local revenue.

TX SB12

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

TX HB113

Relating to a temporary reduction in the maximum compressed tax rate of a school district and the form of the ballot proposition to be used in an election to approve a tax rate adopted by a school district that exceeds the district's voter-approval tax rate; making appropriations.

TX SB91

Relating to a temporary reduction in the maximum compressed tax rate of a school district and the form of the ballot proposition to be used in an election to approve a tax rate adopted by a school district that exceeds the district's voter-approval tax rate; making an appropriation.