The bill, H.B. No. 558, proposes amendments to the public school finance system in Texas, specifically regarding the calculation of property values for funding purposes. It amends Section 7.062(c) of the Education Code to prioritize the use of excess funds, not exceeding $20 million in any state fiscal year, for making grants to school districts when the appropriated amount exceeds the entitlement under Subchapters A and B of Chapter 46. Additionally, it modifies the definition of "taxable value" in Section 403.302(d) of the Government Code to exclude certain exemptions, including the total dollar amount of residence homestead exemptions granted under specific sections of the Tax Code, thereby ensuring that property values considered for funding reflect optional homestead exemptions.

Furthermore, the bill repeals Section 48.259 of the Education Code and specifies that the amendments to Section 403.302 will only apply to property value studies conducted for tax years beginning on or after January 1, 2026. The effective date for the bill is set for September 1, 2025. These changes aim to create a more equitable funding mechanism for public schools by accurately accounting for property values and exemptions.

Statutes affected:
Introduced: Education Code 7.062, Education Code 11.35 (Education Code 7, Education Code 11)