HB 1260
AN ACT relating to a determination of a school district's assets to
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Modifies how school districts' financial performance is evaluated by preventing certain metrics from negatively impacting their financial management ratings. Specifically, it prevents rating systems from penalizing districts for not spending a specific percentage of operating funds on instruction or considering mandatory expenditures when calculating a district's assets-to-liabilities ratio. The changes aim to provide school districts more flexibility in financial management and reporting, potentially helping districts with tight budgets maintain their financial standing.
Subject Areas
Bill Text
relating to a determination of a school district's assets to liabilities ratio under the public school financial accountability BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.082(c), Education Code, is amended to (c) The system may not include an indicator under Subsection (b) or any other performance measure that: (1) requires a school district to spend at least 65 percent or any other specified percentage of district operating funds for instructional purposes; [or] (2) lowers the financial management performance rating of a school district for failure to spend at least 65 percent or any other specified percentage of district operating funds for (3) for a school district required to reduce its local revenue level under Section 48.257, includes in determining the district's ratio of assets to liabilities any amount required to be expended by the district to comply with Chapter 49. SECTION 2. This Act applies beginning with the 2025-2026 SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to a determination of a school district's assets to
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