HB 97

By: Kerwin
  H.B. No. 97
  A BILL TO BE ENTITLED
  AN ACT
  relating to reducing school district maintenance and operations ad
  valorem taxes through the use of certain surplus state revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 48.255, Education Code, is amended by
  amending Subsection (b) and adding Subsections (d) and (e) to read
  as follows:
         (b)  Subject to Subsection (d), the [The] state compression
  percentage is the lower of:
               (1)  93 percent, or a lower percentage set by
  appropriation for a school year;
               (2)  the percentage determined by the following
  formula:
  SCP = PYCP X 1.025/(1 + ECPV); or
               (3)  the percentage determined under this section for
  the preceding school year.
         (d)  For each school year, the commissioner shall reduce the
  state compression percentage determined under Subsection (b) to the
  lowest percentage possible as a result of:
               (1)  money deposited to the credit of the property tax
  relief fund under Section 403.109(e), Government Code; and
               (2)  any additional money appropriated for purposes of
  this subsection.
         (e)  Notwithstanding any other provision, if for any school
  year the commissioner determines under Subsection (b) or (d) that
  the state compression percentage is zero:
               (1)  a school district may not impose a tier one
  maintenance and operations tax for that school year or for any
  subsequent school year; and
               (2)  each school district is entitled to funding under
  Chapter 46 and this chapter for each school year as if the district
  had:
                     (A)  a tier one maintenance and operations tax
  rate equal to the district's maximum compressed tax rate determined
  under Section 48.2551; and
                     (B)  no local share for purposes of Section
  48.256.
         SECTION 2.  Section 403.109, Government Code, is amended by
  adding Subsections (e) and (f) to read as follows:
         (e)  For each state fiscal biennium beginning before a
  determination by the commissioner of education under Section
  48.255(e), Education Code, the comptroller shall:
               (1)  allocate for deposit to the credit of the fund
  general revenue in an amount equal to 90 percent of the amount by
  which the amount of general revenue received in that biennium
  exceeds the amount of consolidated general revenue appropriations,
  as defined by Section 316.001, that could be appropriated within
  the limit on the rate of growth of those appropriations adopted
  under Section 316.005 for that biennium; and
               (2)  periodically deposit to the credit of the fund the
  general revenue allocated under Subdivision (1), with the final
  deposit for that biennium to be made not later than the 90th day of
  the next state fiscal biennium.
         (f)  Notwithstanding any other provision of this section,
  except as otherwise provided by this subsection, money deposited to
  the credit of the fund under Subsection (e) may be appropriated only
  to the Texas Education Agency for use in providing property tax
  relief through reduction of the state compression percentage, as
  defined by Section 48.255, Education Code.  If the amount of money
  available to be appropriated under this subsection for a state
  fiscal biennium exceeds the amount of school district maintenance
  and operations taxes the commissioner of education estimates to be
  payable for that biennium, the legislature may appropriate the
  surplus amount for any purpose.
         SECTION 3.  This Act applies beginning with the state fiscal
  biennium beginning September 1, 2027.
         SECTION 4.  This Act takes effect on the 91st day after the
  last day of the legislative session.