Bill > HB142

This bill introduces a temporary mechanism to reduce school districts' maximum compressed tax rates for the 2026-2027 school year by allowing the commissioner of education to lower these rates using appropriated federal funds. Specifically, the bill enables the commissioner to reduce each district's maximum compressed tax rate by an equal amount, with a provision ensuring that no district's rate falls below 90% of another district's reduced rate. The bill references federal money received under the "One Big Beautiful Bill Act" to be appropriated to the Texas Education Agency for this tax rate reduction purpose. The legislation modifies various existing education code sections to reflect these changes and ensures that the new maximum compressed tax rate calculations will be used for determining school district funding. Importantly, this provision is temporary, with the new section set to expire on September 1, 2028, and will specifically impact how school districts calculate their tax rates for the 2026-2027 and 2027-2028 school years. The bill takes effect 91 days after the end of the legislative session, providing a clear timeline for implementation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB142