H.B. No. 2764 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 the state fiscal years from September 1, 1994, and must include detailed information on appropriations for school finance from various funding sources, expenditures categorized by purpose, any funds transferred for other uses, and 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 how funds are reported and utilized within the education system. 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)