S.B. No. 2576 proposes significant changes to the Education Code and Tax Code, primarily focusing on the repeal of provisions that required school districts to reduce local revenue levels exceeding entitlement. The bill eliminates references to Chapter 49, which previously governed local revenue adjustments, thereby removing the mandate for revenue reductions. This change allows school districts greater flexibility in managing their local revenues and adjusts definitions and entitlements related to state funding, streamlining the funding processes and providing districts with more autonomy over their financial management.

Additionally, the bill introduces amendments that clarify funding provisions and eligibility for state aid, including provisions for additional state aid for districts affected by tax rate compression. It modifies the calculation of taxable property values by the comptroller, removing previous requirements tied to Chapter 49, and establishes a state contribution for group health coverage for employees of participating school districts and charter schools. The bill aims to simplify the funding framework and clarify tax obligations for school districts, 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 13, Education Code 37, Education Code 25, Education Code 45, Tax Code 48, Education Code 29, Government Code 403, Tax Code 21, Education Code 48, Tax Code 312, Insurance Code 1579, Education Code 12)