| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the state compression percentage and a school |
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| 7 | 9 | | district's maximum compressed tax rate under the public school |
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| 8 | 10 | | finance system. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. Section 48.255(b), Education Code, is amended to |
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| 11 | 13 | | read as follows: |
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| 12 | 14 | | (b) The state compression percentage is the lower of: |
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| 13 | 15 | | (1) 93 percent, or a lower percentage set by |
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| 14 | 16 | | appropriation for a school year; |
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| 15 | 17 | | (2) the percentage determined by the following |
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| 16 | 18 | | formula: |
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| 17 | 19 | | SCP = PYCP X 1.01 [1.025]/(1 + ECPV); or |
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| 18 | 20 | | (3) the percentage determined under this section for |
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| 19 | 21 | | the preceding school year. |
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| 20 | 22 | | SECTION 2. Section 48.2551(b), Education Code, is amended |
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| 21 | 23 | | to read as follows: |
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| 22 | 24 | | (b) Except as provided by Subsection (c), a district's |
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| 23 | 25 | | maximum compressed rate ("MCR") is the lesser of: |
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| 24 | 26 | | (1) the rate determined by the following applicable |
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| 25 | 27 | | formula: |
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| 26 | 28 | | (A) if "DPV" exceeds "PYDPV" by an amount equal |
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| 27 | 29 | | to or greater than one [2.5] percent: |
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| 28 | 30 | | MCR = (1.01 [1.025]((PYDPV+E) X PYMCR))/DPV; or |
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| 29 | 31 | | (B) if Paragraph (A) does not apply: |
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| 30 | 32 | | MCR = PYMCR; or |
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| 31 | 33 | | (2) the product of the state compression percentage, |
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| 32 | 34 | | as determined under Section 48.255, for the current tax year, |
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| 33 | 35 | | multiplied by $1.00. |
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| 34 | 36 | | SECTION 3. This Act takes effect September 1, 2025. |
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