89R15873 KJE-D
By: Noble H.B. No. 4326
A BILL TO BE ENTITLED
AN ACT
relating to reducing school district maintenance and operations ad
valorem taxes through the use of certain state revenue and the
allocation of certain constitutional transfers of money to the
economic stabilization fund, the property tax reduction fund, and
the state highway fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 48.255, Education Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) Subject to Subsection (d), the [The] state compression
percentage is the lower of:
(1) 93 percent, or a lower percentage set by
appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.025/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
(d) For each school year, the state compression percentage
determined under Subsection (b) shall be reduced to the lowest
percentage possible as a result of money appropriated for that
purpose under Section 3-a, Article VII, Texas Constitution.
SECTION 2. The heading to Subchapter H, Chapter 316,
Government Code, is amended to read as follows:
SUBCHAPTER H. ALLOCATION OF CONSTITUTIONAL TRANSFERS TO CERTAIN
FUNDS [ECONOMIC STABILIZATION FUND AND STATE HIGHWAY FUND]
SECTION 3. The heading to Section 316.092, Government Code,
is amended to read as follows:
Sec. 316.092. DETERMINATION OF THRESHOLD FOR
CONSTITUTIONAL TRANSFER TO CERTAIN FUNDS [STATE HIGHWAY FUND].
SECTION 4. Section 316.093, Government Code, is amended by
amending Subsections (b), (c), and (d) and adding Subsection (e) to
read as follows:
(b) If the sum described by Subsection (a) is less than the
amount determined under Section 316.092 for that state fiscal
biennium, the comptroller shall reduce proportionately the
allocations [allocation] to the property tax reduction fund and the
state highway fund as provided by Section 49-g(c-1) [49-g(c)],
Article III, Texas Constitution, and increase the allocation to the
economic stabilization fund[,] in an [equal] amount equal to the
reduction of those allocations[,] until the amount determined under
Section 316.092 for that state fiscal biennium would be achieved by
the transfer to the fund or the total amount of the sum described by
Section 49-g(c), Article III, Texas Constitution, is allocated to
the fund, whichever occurs first.
(c) For the purposes of Section 49-g(c-2), Article III,
Texas Constitution, the comptroller shall adjust the allocation
provided by Section 49-g(c-1) of that article of amounts to be
transferred to the fund, the property tax reduction fund, and [to]
the state highway fund under Section 49-g(c) of that article in a
state fiscal year beginning on or after September 1, 2043, so that
half of the total of those amounts is transferred to the economic
stabilization fund and half of the total of those amounts is
transferred to the property tax reduction fund.
(d) The [, except that the] comptroller shall reduce a
transfer to the economic stabilization fund required [made] under
Subsection (c) of this section [this subsection] as necessary to
prevent the amount in the fund from exceeding the limit in effect
for the state fiscal [that] biennium under Section 49-g(g), Article
III, Texas Constitution [of that article].
(e) [(d)] Subsections (a) and (b) and this subsection
expire December 31, 2042.
SECTION 5. This Act takes effect September 1, 2027, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, establishing the property tax reduction fund
to reduce school district maintenance and operations ad valorem
taxes and dedicating certain unencumbered general revenue and
certain general revenue that would otherwise be transferred to the
economic stabilization fund to that fund is approved by the voters.
If that amendment is not approved by the voters, this Act has no
effect.