Texas House Bill HB662

Texas 2019 - 86th Regular

Caption

Relating to the recovery of overallocated state funds by the Texas Education Agency.

Impact

The impact of HB662 is significant as it offers a statute of limitations for the recovery of state funds, potentially preventing financial strain on school districts that might have faced clawbacks of funding after a considerable time lapse. By limiting the recovery to a seven-year window, the bill also allows districts to maintain more predictable financial planning and budgeting, thereby fostering a stable educational environment. However, it retains the ability for the state to recover funds if districts have received reimbursement from external sources like insurance or federal disaster relief.

Summary

House Bill 662 addresses the recovery of overallocated state funds by the Texas Education Agency (TEA). This bill establishes specific regulations regarding the circumstances under which the TEA can recover previously allocated state funds. Notably, it prohibits the recovery of funds if the overallocation occurred more than seven years prior to its discovery and if it resulted from statutory changes to related requirements. This provision aims to provide some level of protection for districts that may have inadvertently received excess funding due to changes in legislation.

Contention

Notable points of contention surrounding HB662 may arise from differing perspectives on financial accountability versus support for school districts. Proponents argue that the bill strikes a necessary balance, protecting districts that operate under changing regulations while still allowing the state to reclaim funds when there is a clear path to recovery due to reimbursements. Critics, on the other hand, could express concerns that the limitations on fund recovery might encourage less cautious financial management within school districts, potentially leading to questions about the responsible allocation of state resources.