Texas House Bill HB3102

Texas 2025 - 89th Regular

• Filed: 2/20/25

Caption

Relating to exempting school districts impacted by education savings account programs from the recapture of maintenance and operations ad valorem tax revenue under the public school finance system.

Notes

The proposed changes would take effect on September 1, 2025, meaning school districts would need to prepare for the financial restructuring associated with this legislation. The timing of such a change could have significant implications for budgeting and financial planning in affected districts, particularly as they adapt to the evolving landscape of public and private education choices.

Impact

The implementation of HB 3102 is expected to provide financial relief to school districts facing declining enrollment as a result of students opting for education savings account programs. By allowing these districts to retain more of their tax revenue, it aims to support their operational costs and maintain their financial stability. The bill's intended effect is to ensure that districts are not penalized for decreased enrollment tied to state-supported educational alternatives, thus promoting a more flexible landscape for educational funding.

Summary

House Bill 3102 proposes to amend the Education Code to exempt school districts that are affected by education savings account (ESA) programs from the recapture of maintenance and operations (M&O) ad valorem tax revenue. This means that if a school district experiences a decline in student enrollment due to students utilizing ESAs for nonpublic education, they would not be subjected to the usual tax revenue recapture rules that apply under the current public school finance system. This exemption is intended to mitigate the financial impact on school districts as they lose students to alternative educational options.

Contention

However, the bill may also spark some controversy regarding the broader implications of education savings accounts. Proponents argue that ESAs provide necessary alternatives for families seeking different educational opportunities, thus justifying the need for this exemption to protect school funding. Critics, on the other hand, might contend that these changes represent a further move towards privatization of education and could undermine public school financing by favoring nonpublic sectors. The debate surrounding education savings accounts often emphasizes issues such as equity in educational opportunities and the long-term sustainability of public school funding.

Texas Constitutional Statutes Affected

Education Code

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