H.B. No. 4786 proposes significant changes to the Education Code and Tax Code, primarily aimed at simplifying the funding structure for school districts and enhancing their financial autonomy. The bill repeals provisions that required school districts to reduce local revenue levels exceeding their entitlement, specifically by deleting references to local revenue levels in excess of entitlement under Chapter 49. Key amendments include the removal of stipulations that mandated adjustments in funding for districts with higher local revenue levels, allowing for additional state aid if revenue falls below certain thresholds without the constraints of the now-deleted Chapter 49.

Additionally, the bill introduces provisions for extra state aid for school districts affected by tax rate compression, particularly for the 2022-2023 school year, and modifies how taxable property values are determined by the comptroller. It also establishes state assistance for employees of participating school districts and charter schools in purchasing group health coverage. By repealing several existing provisions, including Chapter 49 and certain sections of the Tax Code, the bill aims to streamline the funding and taxation processes for school districts, ultimately enhancing financial support while simplifying the legal framework governing school finance. The changes are set to take effect on 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, Tax Code 21, Education Code 45, Government Code 403, Insurance Code 1579, Tax Code 312, Tax Code 48, Education Code 48, Education Code 37, Education Code 29, Education Code 12, Education Code 13)