Texas House Bill HB4786

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

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

Impact

If enacted, HB 4786 would enable school districts to retain more of their local revenue, which could lead to increased funding for educational programs and initiatives. Supporters argue that this change allows schools to have greater control over their funding and better respond to the specific needs of their students and communities. By removing the requirement for revenue reduction, districts might find themselves in a better position to invest in facilities, personnel, and educational resources.

Summary

House Bill 4786 is designed to repeal certain provisions within the Texas Education Code that require school districts to reduce their local revenue levels when they exceed specific entitlement thresholds. This bill proposes to amend various sections related to the funding mechanisms for school districts, specifically focusing on reducing the financial pressures schools face in managing their local funding sources. The implications of this bill primarily impact how funding is allocated to school districts, potentially offering more financial autonomy to those that had previously been constrained under existing regulations.

Contention

Opposition to HB 4786 may arise from concerns that unregulated local revenue growth could lead to disparities in funding quality between wealthier and less affluent school districts. Critics argue that such changes could exacerbate existing inequalities in the education system, as districts with larger tax bases would be able to accumulate more resources, leaving those in lower-income areas at a disadvantage. Furthermore, discussions surrounding the bill may center on the balance needed in funding education equitably across the state.

Texas Constitutional Statutes Affected

Education Code

• Chapter 12. Charters
  • Section: New Section
  • Section: 029

• Chapter 29. Educational Programs
  • Section: 203
  • Section: 087

• Chapter 48. Foundation School Program
  • Section: New Section
  • Section: 2543
  • Section: 2553
  • Section: 260
  • Section: 266
  • Section: 272
  • Section: 2721
  • Section: 283

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: New Section

Tax Code

• Chapter 21. Taxable Situs
  • Section: 01

• Chapter 312. Property Redevelopment And Tax Abatement Act
  • Section: 210

Finance Code

• Chapter 1. General Provisions
  • Section: New Section

Insurance Code

• Chapter 1579. Texas School Employees Uniform Group Health Coverage
  • Section: 251

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302