In many parts of the country, school budgets are drawn directly from property tax receipts. That is the case in Texas, where an up-to-date property tax relief law is on the table. Senate Act 1 is currently a hot topic of discussion. It was swiftly passed from a recent legislature after it was put on the agenda by Texas Governor Greg Abbott. The goal is to provide homeowners across the state of Texas with real estate tax relief by increasing the homestead exemption from $ 25,000 to $ 40,000.
Although the bill has yet to be approved by voters, it can be converted into law if it receives a majority in May.
Why are local residents concerned?
Many voters have paid close attention to where their property tax money goes. In doing so, they recognized that their property tax revenue is directly linked to the quality of the school system. Parents now have concerns about the quality of education their children are receiving in the state of Texas. Some even fear that the quality of their children’s education could suffer if property tax revenues fall. Members of the Texas Legislature have assured parents and homeowners that school budgets will not be impacted if property tax revenues decline.
School funding is being replaced by excess state funds
Members of the Texas state legislature have stated that the decline in school funding from property tax receipts in the first year will be replaced by surpluses. So far, the state has announced that it will raise $ 2 billion in excess funds and use that to keep school budgets where they are now.
Legislators have also suggested that as long as the state maintains a conservative approach to budgeting, there should be enough surplus funds to cover the school’s running and running costs in the future.
Texas school districts address budget issues
So far, local school district officials have said the change in property tax levels does not concern them when it comes to budget balancing. They claim that the state has an adequate plan to provide every child with a balanced education while offsetting possible loss of income on property taxes.
School districts have also taken a conservative approach to housekeeping, making the most of their limited resources. Therefore, even if SB 1 is finally enshrined in law, the school districts believe that they will be able to keep the budget balanced.