The bill, H.B. No. 152, proposes amendments to the public school finance system in Texas, specifically regarding the calculation of funding based on property values that consider optional homestead exemptions. 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 grants to school districts when the appropriated amount exceeds the entitlement under Subchapters A and B of Chapter 46. Additionally, it modifies Section 403.302(d) of the Government Code to redefine "taxable value" by removing the provision that previously deducted one-half of the total dollar amount of certain residence homestead exemptions, thereby potentially increasing the taxable value for school funding calculations.

Furthermore, the bill repeals Section 48.259 of the Education Code and establishes 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 bill is set to take effect on September 1, 2025. These changes aim to ensure that the funding system more accurately reflects property values while considering the impact of homestead exemptions on school district financing.

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