Texas 2025 - 89th Regular

Texas House Bill HB4326 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R15873 KJE-D
2	2	By: Noble H.B. No. 4326
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to reducing school district maintenance and operations ad
10	10	valorem taxes through the use of certain state revenue and the
11	11	allocation of certain constitutional transfers of money to the
12	12	economic stabilization fund, the property tax reduction fund, and
13	13	the state highway fund.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 48.255, Education Code, is amended by
16	16	amending Subsection (b) and adding Subsection (d) to read as
17	17	follows:
18	18	(b) Subject to Subsection (d), the [The] state compression
19	19	percentage is the lower of:
20	20	(1) 93 percent, or a lower percentage set by
21	21	appropriation for a school year;
22	22	(2) the percentage determined by the following
23	23	formula:
24	24	SCP = PYCP X 1.025/(1 + ECPV); or
25	25	(3) the percentage determined under this section for
26	26	the preceding school year.
27	27	(d) For each school year, the state compression percentage
28	28	determined under Subsection (b) shall be reduced to the lowest
29	29	percentage possible as a result of money appropriated for that
30	30	purpose under Section 3-a, Article VII, Texas Constitution.
31	31	SECTION 2. The heading to Subchapter H, Chapter 316,
32	32	Government Code, is amended to read as follows:
33	33	SUBCHAPTER H. ALLOCATION OF CONSTITUTIONAL TRANSFERS TO CERTAIN
34	34	FUNDS [ECONOMIC STABILIZATION FUND AND STATE HIGHWAY FUND]
35	35	SECTION 3. The heading to Section 316.092, Government Code,
36	36	is amended to read as follows:
37	37	Sec. 316.092. DETERMINATION OF THRESHOLD FOR
38	38	CONSTITUTIONAL TRANSFER TO CERTAIN FUNDS [STATE HIGHWAY FUND].
39	39	SECTION 4. Section 316.093, Government Code, is amended by
40	40	amending Subsections (b), (c), and (d) and adding Subsection (e) to
41	41	read as follows:
42	42	(b) If the sum described by Subsection (a) is less than the
43	43	amount determined under Section 316.092 for that state fiscal
44	44	biennium, the comptroller shall reduce proportionately the
45	45	allocations [allocation] to the property tax reduction fund and the
46	46	state highway fund as provided by Section 49-g(c-1) [49-g(c)],
47	47	Article III, Texas Constitution, and increase the allocation to the
48	48	economic stabilization fund[,] in an [equal] amount equal to the
49	49	reduction of those allocations[,] until the amount determined under
50	50	Section 316.092 for that state fiscal biennium would be achieved by
51	51	the transfer to the fund or the total amount of the sum described by
52	52	Section 49-g(c), Article III, Texas Constitution, is allocated to
53	53	the fund, whichever occurs first.
54	54	(c) For the purposes of Section 49-g(c-2), Article III,
55	55	Texas Constitution, the comptroller shall adjust the allocation
56	56	provided by Section 49-g(c-1) of that article of amounts to be
57	57	transferred to the fund, the property tax reduction fund, and [to]
58	58	the state highway fund under Section 49-g(c) of that article in a
59	59	state fiscal year beginning on or after September 1, 2043, so that
60	60	half of the total of those amounts is transferred to the economic
61	61	stabilization fund and half of the total of those amounts is
62	62	transferred to the property tax reduction fund.
63	63	(d) The [, except that the] comptroller shall reduce a
64	64	transfer to the economic stabilization fund required [made] under
65	65	Subsection (c) of this section [this subsection] as necessary to
66	66	prevent the amount in the fund from exceeding the limit in effect
67	67	for the state fiscal [that] biennium under Section 49-g(g), Article
68	68	III, Texas Constitution [of that article].
69	69	(e) [(d)] Subsections (a) and (b) and this subsection
70	70	expire December 31, 2042.
71	71	SECTION 5. This Act takes effect September 1, 2027, but only
72	72	if the constitutional amendment proposed by the 89th Legislature,
73	73	Regular Session, 2025, establishing the property tax reduction fund
74	74	to reduce school district maintenance and operations ad valorem
75	75	taxes and dedicating certain unencumbered general revenue and
76	76	certain general revenue that would otherwise be transferred to the
77	77	economic stabilization fund to that fund is approved by the voters.
78	78	If that amendment is not approved by the voters, this Act has no
79	79	effect.