Bill > HB2125

This bill addresses a financial adjustment mechanism for certain school districts experiencing revenue loss due to how their property value is determined. Specifically, the bill introduces a new section to the Education Code that allows school districts to receive state aid adjustments when the state's calculated property value (known as the "state value") results in lower funding compared to the district's local property value calculation. Under this provision, the state education agency will compare funding levels using local versus state property valuations, and if the local value would generate more funding, the district can receive compensatory state aid. The adjustment is structured as a phased reduction over three consecutive years: 75% of the difference in the first year, 50% in the second year, and 25% in the third year. After three consecutive years of adjustments, the district becomes ineligible for further adjustments for one year. This bill is designed to protect school districts from potential funding shortfalls resulting from state-level property value assessments, ensuring more stable educational financing. The bill will take effect on September 1, 2025.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2125