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TX HB3102

TX HB3102
Relating to exempting school districts impacted by education savings account programs from the recapture of maintenance and operations ad valorem tax revenue under the public school finance system.


summary

Introduced
02/20/2025
In Committee
03/20/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to exempting school districts impacted by education savings account programs from the recapture of maintenance and operations ad valorem tax revenue under the public school finance system.

AI Summary

This bill modifies the Texas Education Code to provide a financial protection for school districts experiencing student enrollment declines due to education savings account (ESA) programs. Currently, school districts must reduce their tier one revenue if their local tax share exceeds their state funding entitlement. The bill creates an exception to this rule: if a school district experiences a net decline in student enrollment specifically attributable to students participating in an ESA or similar program that allows state funds to be used for non-public primary or secondary education, the district will be exempt from the mandatory revenue reduction. In plain language, this means that if students leave a public school district to use state-funded educational accounts at private schools, the district will not be financially penalized through reduced state funding. The bill is set to take effect on September 1, 2025, giving school districts and state education administrators time to prepare for this change in the funding mechanism.

Committee Categories

Education

Sponsors (2)

Last Action

Referred to Public Education (on 03/20/2025)

bill text


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