Relating to the limitation on the amount of supplemental payments under the Texas Economic Development Act.
Impact
The impact of HB 2488 involves a significant refinement of existing regulations surrounding economic development agreements impacting public education funding. By instituting a cap on supplemental payments to school districts, the legislation could potentially limit the financial resources available for schools in areas receiving such supplemental funding, thereby affecting their operational budgets. Furthermore, this change could influence the attractiveness of Texas to businesses looking to establish or expand operations in the state by altering the financial incentives available through these agreements.
Summary
House Bill 2488 aims to amend Section 313.027(i) of the Tax Code by imposing limitations on supplemental payments made by individuals to school districts under the Texas Economic Development Act. The proposed legislation establishes that agreements between a person and a school district for supplemental payments cannot exceed the greater of $100 per student per year in average daily attendance or $75,000 per year. This amendment is intended to create a cap on the financial contributions made to school districts, which could have implications on how economic development agreements are structured in relation to school funding and support.
Contention
Notable contention surrounding HB 2488 could arise from debates about the fairness and effectiveness of limiting contributions to public education funding from private agreements. Proponents of the bill may argue that it levels the playing field among school districts, ensuring that no district receives disproportionate funding based on varying agreements with different businesses. In contrast, opponents could raise concerns that the limitation may hinder the ability of economically disadvantaged districts to access vital funding necessary for educational improvements and resources, potentially exacerbating existing inequalities within the state's education system.
Relating to limitations on the use of public money under certain economic development agreements or programs adopted by certain political subdivisions.
Relating to limitations on the use of public money under certain economic development agreements or programs adopted by certain political subdivisions.
Relating to limitations on the issuance of bonds by the Texas Water Development Board for the development of certain projects in economically distressed areas.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, to provide supplemental payments to full-time classroom teachers in school districts, and to except certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.