WeVote
Log In

Bill

Bill

HB 3102

Relating to exempting school districts impacted by education savings account programs from the recapture of maintenance and operations ad valorem tax revenue under the public school finance system.

89th Legislature (2025) Introduced by Vikki Goodwin and 1 co-sponsor

Texas bill exempts school districts losing enrollment to education savings accounts from state tax revenue recapture, protecting their local funding but potentially reducing resources for other districts.

Referred to Public Education
#education--primary&secondary--admission&attendance(i0227) #education--primary&secondary--finance(i0250) #education--schooldistricts(i0220)
0
WeVote Research Nonpartisan
Bill Summary · HB 3102

Legislative bill overview

HB 3102 would exempt school districts that experience enrollment losses due to education savings account (ESA) programs from having their local property tax revenue "recaptured" by the state under Texas's public school finance system. Currently, when districts lose students to ESAs, they still maintain the same tax base but receive less state funding, potentially requiring tax increases or budget cuts. This bill would protect those districts from the recapture mechanism that redistributes local tax revenue to other districts.

Why is this important

Texas school finance relies on a complex recapture system where wealthier districts contribute local tax revenue to state funding pools. As ESAs divert students (and their associated state funding) away from traditional public schools, affected districts face a fiscal squeeze—they lose enrollment-based funding without losing their tax obligations. This bill directly addresses whether districts should bear the financial burden of education choice programs, affecting school budgets and potentially property taxes in impacted areas.

Potential points of contention

  • ESA policy disagreement: Supporters of education savings accounts see them as expanding parental choice; opponents view them as diverting resources from public education and question whether districts should subsidize alternatives
  • Equity concerns: Exempting certain districts from recapture could reduce state funding available for lower-income districts, creating different fiscal treatments based on ESA adoption rates
  • Cost and state budget impact: Exemptions would increase state funding obligations during ESA growth, requiring either higher appropriations or reductions elsewhere in education funding

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.