S.B. No. 2576 proposes significant changes to the Education Code and Tax Code regarding school funding and local revenue levels. The bill repeals the requirement for school districts to reduce local revenue levels that exceed their entitlement, as indicated by the deletion of provisions in Section 12.013(b) of the Education Code. This repeal allows districts to retain additional state aid based on their local revenue without the previous restrictions tied to Chapter 49. The bill also clarifies funding provisions and eligibility criteria, ensuring that districts can count students in specific programs for funding purposes, thereby enhancing their financial autonomy.

Additionally, the bill introduces new provisions for 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 obtaining group health coverage. By repealing Chapter 49 and other related sections, 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 (Tax Code 21, Education Code 48, Education Code 29, Education Code 12, Education Code 13, Education Code 25, Education Code 37, Tax Code 48, Insurance Code 1579, Tax Code 312, Education Code 45, Government Code 403)