SB 435

relating to an adjustment for certain school districts under the
public school finance system for revenue lost due to the use of the
state value of the district's taxable value of property determined
by the comptroller of public accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2711 to read as follows:
Sec. 48.2711.  ADJUSTMENT FOR LOSS OF REVENUE DUE TO USE OF
STATE VALUE.  (a)  This section applies only to a school district
for which the state value for the district's taxable value of
property is used under Section 403.302(c), Government Code.
(b)  For each school district to which this section applies,
the agency shall determine whether the district's entitlement under
this chapter for a school year is greater if the district's taxable
(2)  the state value as determined by the comptroller
under Sections 403.302(a) and (b), Government Code.
(c)  If the agency determines under Subsection (b) that the
school district's entitlement is greater for the applicable school
year using the local value for the district's taxable value of
property, the commissioner shall increase state aid or adjust the
limit on local revenue under Section 48.257 for the district for
that school year in an amount equal to:
(1)  for the first school year in which this subsection
applies to the district, 75 percent of the difference between the
amounts determined under Subsection (b);
(2)  for the second consecutive school year in which
this subsection applies to the district, 50 percent of the
difference between the amounts determined under Subsection (b); and
(3)  for the third consecutive school year in which
this subsection applies to the district, 25 percent of the
difference between the amounts determined under Subsection (b).
(d)  A school district may not receive an adjustment under
this section for more than three consecutive school years.  If a
school district receives an adjustment under this section for three
consecutive school years, the district is not eligible to receive
an adjustment under this section in the subsequent school year but
may be again eligible for the adjustment following a school year for
which the local value is used for the district's taxable value of
property under Section 403.302(c), Government Code.
SECTION 2.  This Act takes effect September 1, 2025.