Bill Caption

Relating to the extension of additional state aid for tax reduction provided to certain school districts.

Fiscal Notes

From LBB: Estimated Two-year Net Impact to General Revenue Related Funds for HB22, As Introduced: a negative impact of ($355,600,000) through the biennium ending August 31, 2019. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

This bill would extend provisions that would allow districts to take advantage of more state aid until 2019, as long as the amount that the district would have received in state and local revenue is less than the state and local revenue that would have been available if the increase in the residence homestead exemption and the additional limitation on tax increases, adopted by the 84th Legislature, had not occurred. HB 22 would also make districts receiving less than 4 percent of total M&O revenue from ASATR ineligible for the additional aid. The measure would also prevent districts that receive no ASATR funding for fiscal years 2017 and later from re-qualifying for ASATR in a subsequent year.

Vote Recommendation Notes

HB 22 aims to continue the practice of recapture by extending the date that property poorer districts can be eligible for more state aid by another two years. This violates our limited government principle and we oppose HB 22.