House Bill No. 2764, introduced by Guillen, mandates the Texas Education Agency and the comptroller to jointly prepare and submit a comprehensive report on school finance to the legislature by December 31, 2025. This report will cover school finance data from the state fiscal year beginning September 1, 1994, and must include details such as the amount appropriated for school finance from various funding sources, the items for which the funds were spent, any transfers or alternative uses of the funds, and any unspent amounts retained by the agency. The section detailing this reporting requirement will expire on September 1, 2026.

Additionally, the bill amends Section 48.273 of the Education Code to require that all reporting related to the Foundation School Program and other education funding must clearly differentiate between "local recapture funding" collected under Chapter 49 or former Chapter 41 and "state funding." This ensures transparency in the reporting of education funding sources. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Subchapter F, Chapter , Education Code 48.273 (Subchapter F, Chapter , Education Code 48)