As the 85th Texas Legislature convenes today in Austin, the state’s school finance system is the top priority on HISD’s legislative agenda, and the district will ask state lawmakers to make changes that would keep local tax dollars in Houston schools.
Under the state’s current school finance system, HISD is considered “property wealthy” and is subject to sending $162 million in local property taxes to the state – a process known as “recapture.” But on Election Day, Houstonians voted down the ballot measure that would have authorized the $162 million payment and future payments totaling more than $1 billion. This means that, starting in July, the Texas Education Agency can detach $18 billion worth of nonresidential, commercial property from HISD’s tax rolls and reassign those businesses to other school districts for taxing purposes. The TEA will continue to detach property every July for the foreseeable future.