Texas 2025 - 89th Regular

Texas Senate Bill SB435

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

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.

Impact

The implementation of SB435 would signify a notable shift in how school funding is determined, particularly for districts that depend heavily on local property taxes for revenue. With the new adjustment mechanism, if a school district's entitlement is found to be greater when using local property values as opposed to state-determined values, the commissioner will increase state aid accordingly. This adjustment would occur over a three-year period, decreasing each year until it completely phases out after three consecutive years, which allows districts to initially benefit significantly from the adjustment while pushing them towards potential self-reliance in subsequent years.

Summary

SB435 is a legislative proposal aimed at providing adjustments for certain school districts under the Texas public school finance system. The bill addresses concerns regarding revenue losses that these districts experience due to the state value of taxable property being utilized by the comptroller of public accounts. Specifically, SB435 introduces a new provision that allows for adjustments in state aid based on the taxable value of property in the districts. This adjustment is intended to ensure that districts are adequately funded based on local property valuations rather than potentially lower state valuations, thereby enhancing fairness in the distribution of educational funds.

Contention

There may be points of contention surrounding the priorities of funding allocation, particularly among districts that may feel disadvantaged under the current public school finance system. Critics could argue that while adjustments help some districts, they may lead to disparities where others experience cuts or fail to receive necessary funding increases. Additionally, there may be discussions on the potential fiscal implications for the state budget, considering the adjustments to state aid in light of varying local revenues across districts. The effectiveness of this measure will need careful evaluation to ensure it meets its intended goal without creating inequities.

Notable_points

A central aspect of SB435 is its structured approach to determining the funding adjustments. The bill lays out a clear formula for calculating how much state aid will be increased based on the difference between local and state property values. By establishing a phased adjustment system over three years, it attempts to balance immediate fiscal relief for certain districts while avoiding long-term budgetary impacts. Ultimately, SB435 represents an effort to refine the public school finance framework, striving for a more equitable distribution of funds that can be responsive to the unique challenges faced by different school districts.

Texas Constitutional Statutes Affected

Education Code

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

Government Code

  • Chapter 403. Comptroller Of Public Accounts
    • Section: 302

Companion Bills

TX HB2122

Identical 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.

TX HB2125

Same As 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.

Previously Filed As

TX HB2463

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.

TX SB942

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.

TX HB1324

Relating to the study of school district property values conducted by the comptroller of public accounts.

TX SB1064

Relating to the school district property value study conducted by the comptroller of public accounts.

TX HB3127

Relating to the study of school district property values conducted by the comptroller of public accounts.

TX HB2855

Relating to the margin of error to be used by the comptroller of public accounts in connection with the property value study to determine whether the local value for a school district is valid.

TX HB3966

Relating to the margin of error to be used by the comptroller of public accounts in connection with the property value study to determine whether the local value for a school district is valid.

TX HB167

Relating to the margin of error to be used by the comptroller of public accounts in connection with the property value study to determine whether the local value for a school district is valid.

TX HB149

Relating to the definition of "eligible school district" for purposes of the study of school district property values conducted by the comptroller of public accounts.

TX HB85

Relating to the definition of "eligible school district" for purposes of the study of school district property values conducted by the comptroller of public accounts.

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