2025 General Fund Budget Development
FY2025 Budget Development has begun! 熱えapp will continue to compile and share information on data impacting the budget development for the upcoming year and priorities received from our community, committees & Board of Trustees.
Check out 熱えapps to participate and converse in the budget development.
Recapture
Passed by the 86th Texas Legislature in 2019, House Bill 3 (HB3) made substantial changes to 熱えapp's Chapter 49 (previously Chapter 41) recapture payment. House Bill 3 amended the Education Code to transfer certain sections from Chapter 41 to Chapter 49, and revised formulas used to determine excess local revenue under the FSP by adding Subchapter F, Chapter 48, Education Code, Section 48.257, Local Revenue in Excess of Entitlement. Texas Education Code, Chapter 49, provision recaptures local tax dollars from property-rich districts and redistributes the funds to property-poor districts; often referred to as share the wealth or Robin Hood plan.
熱えapp is considered a property-rich school district. In FY2023, nearly 57 percent of all local revenue collected from property taxes was subject to recapture; FY2024 budget includes an estimate that 56.4 percent of all local tax revenue will be subjected to recapture. In FY2024, 熱えapp anticipates the district will submit $940.5 million to the state in recapture funds. From FY2001 to FY2024, 熱えapp will have paid the state of Texas close to $7.0 billion in recapture payments.
Figure 1: In FY2024 Adopted Budget
熱えapps estimated recapture payment is $940.5, with a conservative assumption that enrollment will remain flat against the October 2022 PEIMS Student Snapshot. The payment will be half of the Districts Adopted Expenditure budget of $1.86 billion.
熱えapps Recapture & Enrollment Comparison Over Years
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2023 Adopted |
|
|---|---|---|---|---|---|---|---|---|---|
| Recapture | $266,073,630 | $403,324,244 | $540,290,792 | $665,251,676 | $639,599,384 | $706,687,156 | $762,800,496 | $900,910,768 | $940,481,763 |
| Enrollment | 83,270 | 82,766 | 81,346 | 79,787 | 80,911 | 74,982 | 74,602 | 73,384 | 73,681 |
Top 5 Texas Districts (Chapter 49) Recapture Payments
In FY2023, 熱えapp paid $578.3 million more in Recapture Payments than the second highest Texas School District. 熱えapp continues to be the largest payer into the state finance system under current law.
Source: FSP 2022-2023 Recapture District Payment Ledger & FY2024 Adopted Budget via District website
FY2024 General Fund Adopted Expenditures - Breakdown of Each Dollar
The FY2024 Adopted General Fund expenditure budget estimates that 50 percent will comprise the districts (Chapter 49) Recapture payment. When looking at the General Fund and excluding recapture, Salary Related expenses are at 87.0 percent of the fund. Professional and Contracted Services are at 8.0 percent; Supplies and Materials make up 4.0 percent; and Other Operating Costs come in at 2.0 percent of the General Fund budget.
Legend
Payroll Costs 87%
Contracted Services 8%
Supplies & Materials 4%
Other Operating 4.5%
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