Texas House Bill HB4373

Texas 2019 - 86th Regular

Caption

Relating to the limitation on the amount of supplemental payments that a person may agree to provide to a school district or any other entity on behalf of a school district under the Texas Economic Development Act.

Impact

The implementation of HB4373 is designed to create more consistent funding mechanisms for school districts across Texas. By placing a limit on supplemental payments, the bill aims to prevent excessive funding disparities among districts that might otherwise occur due to varying agreements. The adjustments stipulated in the bill could contribute to a more equitable distribution of financial resources within the educational system and could also affect how school districts plan their budgets in relation to supplemental funding contracts.

Summary

House Bill 4373 amends provisions of the Texas Tax Code related to agreements for supplemental payments that can be made to school districts under the Texas Economic Development Act. The primary focus of the bill is to establish limits on the amount of supplemental payments that individuals or entities may agree to provide to school districts on behalf of the districts. Specifically, the bill sets a cap at $100 per student per year based on average daily attendance or $75,000 per year, which is an increase from the previous cap of $50,000.

Contention

While supporters of HB4373 argue that the bill promotes fairness and financial responsibility in funding school districts, there may be concerns from local stakeholders about the limitations it imposes. Some may argue that the caps could hinder the ability of wealthier individuals or corporations to contribute more significantly to local school funding initiatives. This could lead to debates surrounding local control over educational financing and the role of private contributions in public education funding.