The 86th Texas Legislature convened and concluded with shared priorities including public school funding and property tax reform.
Here’s a little breakdown of the two big bills:
Governor Abbott noted that the bill “is a protection to make sure those reduced taxes don’t creep right back up over a few years, as has happened with past property tax reforms.”
The bill carried most of the recommendations from the year-long, bi-partisan work of the Texas Commission on Public School Finance. The bill, which was signed by the Governor on June 12, includes a $6.1 billion investment in public education and $5.5 billion to lower school district taxes. As a result, the average homeowner ($250,000 home) will save about $200 per year in fiscal year 2020 and about $325 per year in fiscal year 2021.Here are a few highlights from the 300+ page bill:
- Funds full-day Pre-K
- Expands Career and Technical Education funding weights to 7th and 8th grades
- Requires Free Application for Federal Student Aid (FAFSA) application completion in order to graduate from high school
- Provides outcomes funding for every student that graduates college/career ready and access college, the military, or an industry certificate
- Increases the basic allotment from $5,140 to $6,160
- Provides $1.6 billion to increase educator pay (prioritizing educators with 6+ years of experience)
- Regarding maintenance and operations (M&O) rates, the new law
- Caps districts at 2.5 percent M&O revenue growth rate
- Requires districts to conduct an efficiency audit before seeking voter approval to go above the 2.5 percent M&O tax rate
- Regarding recapture (“Robin Hood”), the new law increases its share of the cost of public education therefore reducing the recapture amounts paid by school districts