H.B. No. 4786 proposes significant changes to the Education Code and Tax Code regarding school funding and local revenue management. The bill repeals provisions that mandated school districts to reduce local revenue levels exceeding their entitlement, specifically removing the language related to "options for local revenue levels in excess of entitlement under Chapter 49." Additionally, it introduces new language to clarify funding mechanisms, ensuring that state aid is provided in addition to other funding sources, and modifies definitions and calculations related to average daily attendance and alternative education services funding.

The bill also includes provisions for additional state aid for districts affected by tax rate compression and revises the calculation of taxable property values by the comptroller, eliminating previous adjustments tied to Chapter 49. Furthermore, it establishes a state contribution for group health coverage for employees in participating school districts and charter schools, which will be allocated through school finance formulas. The overall aim of the bill is to streamline the school finance and taxation framework, with an effective date set for September 1, 2025.

Statutes affected:
Introduced: Education Code 12.013, Education Code 12.029, Education Code 13.054, Education Code 25.081, Education Code 29.087, Education Code 29.203, Education Code 37.0061, Education Code 45.251, Education Code 45.261, Education Code 48.010, Education Code 48.252, Education Code 48.2543, Education Code 48.2553, Education Code 48.258, Education Code 48.260, Education Code 48.266, Education Code 48.267, Education Code 48.272, Education Code 48.2721, Education Code 45.003, Education Code 48.283, Government Code 403.302, Insurance Code 1579.251, Tax Code 48.275, Tax Code 21.02, Tax Code 312.210 (Education Code 25, Education Code 13, Insurance Code 1579, Education Code 37, Education Code 12, Education Code 48, Government Code 403, Tax Code 21, Education Code 29, Education Code 45, Tax Code 48, Tax Code 312)