S.B. No. 2644 amends the Education Code and Government Code to adjust the public school finance system by incorporating property values that account for optional homestead exemptions. Specifically, it modifies Section 7.062(c) of the Education Code to prioritize the use of excess funds for grants to school districts, with a cap of $20 million per fiscal year, while ensuring that these funds are only utilized if the total state funds allocated to school districts are not reduced. Additionally, it revises Section 403.302(d) of the Government Code to redefine "taxable value" by removing the provision that previously deducted one-half of the total dollar amount of certain residence homestead exemptions, thereby potentially increasing the taxable value for school funding purposes.

Furthermore, the bill repeals Section 48.259 of the Education Code, which may have previously governed certain aspects of school funding related to property values. The changes made by this bill will only apply to school district property value studies conducted for tax years beginning on or after January 1, 2026, and the act is set to take effect on September 1, 2025. These amendments aim to enhance the funding framework for public schools by ensuring that property values reflect the impact of homestead exemptions more accurately.

Statutes affected:
Introduced: Education Code 7.062, Education Code 11.35 (Education Code 7, Education Code 11)