TX
Texas House Bill HB289

Texas 2025 - 89th Regular

Texas House Bill HB289

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

Caption

Relating to a reduction of the amount by which certain school districts must reduce their local revenue levels in excess of entitlement under the public school finance system.

Impact

This bill is expected to have positive implications for school districts facing financial difficulties due to current reductions in local revenue. By allowing districts to maintain higher revenue levels despite being over their entitlement, the legislation aims to ensure that educational funding remains stable, enabling districts to continue providing necessary services and resources for students. The bill's provisions are particularly relevant for districts anticipating enrollment growth or needing to enhance educational programs amid economic challenges.

Summary

House Bill 289 addresses public school finance in Texas by modifying the parameters under which certain school districts reduce their local revenue levels that exceed their entitlement. By amending Section 48.257 of the Education Code, the bill seeks to provide a more favorable adjustment for districts that adhere to specific tax rate criteria. Specifically, it creates a provision that prevents drastic reductions in revenue for districts that set their maintenance and operations tax rate at or above a defined threshold.

Contention

Potential points of contention surrounding HB 289 may arise from concerns regarding the equity of funding among school districts. Critics may argue that by favoring districts that meet specific tax rate criteria, the bill creates disparities among districts that struggle to maintain such tax rates. Additionally, discussions may center around whether the restructuring of local revenue impacts the state's ability to manage its overall education budget effectively, particularly if many districts pursue the outlined tax thresholds and subsequently require more substantial state resources.

Enactment_date

The bill is set to take effect on September 1, 2025, signaling a planned timeline for implementation that aligns with the administrative needs of school districts and state budget considerations.

Texas Constitutional Statutes Affected

Education Code

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

Companion Bills

No companion bills found.

Previously Filed As

TX HB4709

Relating to a reduction of the amount by which certain school districts must reduce their local revenue levels in excess of entitlement under the public school finance system.

TX HB3907

Relating to a reduction of the amount by which certain districts with high enrollment of educationally disadvantaged students must reduce the districts' local revenue levels in excess of entitlement under the public school finance system.

TX HB620

Relating to repeal of provisions requiring a school district to reduce its local revenue level in excess of entitlement.

TX HB116

Relating to the basic allotment and guaranteed yield under the public school finance system, certain allotments under the Foundation School Program, determination of a school district's assets to liabilities ratio under the public school financial accountability rating system, and credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.

TX HB100

Relating to public education and public school finance, including the rights, certification, and compensation of public school educators, contributions by a public school to the Teacher Retirement System of Texas, and an education savings account program for certain children.

TX SB40

Relating to the public school finance system.

TX SB37

Relating to the public school finance system.

TX HB62

Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.

TX SB2

Relating to a local optional teacher designation system implemented by a school district, a security officer employed by a school district, the basic allotment and guaranteed yield under the public school finance system, and certain allotments under the Foundation School Program; making an appropriation.

TX SB2

Relating to a local optional teacher designation system implemented by a school district, the basic allotment and guaranteed yield under the public school finance system, and certain allotments under the Foundation School Program; making an appropriation.

Similar Bills

No similar bills found.