Texas House Bill HB443

Texas 2019 - 86th Regular

Caption

Relating to a limitation on the amount of school property tax revenue that is subject to recapture under the public school finance system.

Impact

The implementation of HB 443 is expected to have significant implications for school districts across Texas. By allowing districts to retain maintenance and operations tax revenue sufficient to meet the average costs per student, as determined by the state commissioner and adjusted for inflation, the bill ensures that districts do not lose essential funding necessary for supporting daily operational expenses. This approach could lead to more fiscal stability for districts that find themselves under financial strain due to recapture provisions that often siphon off valuable resources.

Summary

House Bill 443 proposes a limitation on the amount of school property tax revenue that can be subject to recapture under the public school finance system in Texas. Specifically, the bill introduces provisions that allow school districts to retain certain portions of their maintenance and operation tax revenue. This retention is conditioned on the execution of agreements to purchase attendance credits that would otherwise reduce the district's wealth per student to the equalized wealth level. The legislation aims to provide a framework within which districts can manage their finances more effectively while adhering to state funding requirements.

Contention

The bill has sparked discussion around its intended benefits and potential drawbacks. Proponents argue that HB 443 is a necessary reform to alleviate the financial pressure on districts, particularly those in areas where property values are rising, thus subjecting them to higher recapture. However, critics may raise concerns about the underlying equity of the public school finance system, questioning whether such limitations could disproportionately favor wealthier districts while undermining the state’s ability to promote equitable education funding across all school districts.