Recapture

Passed by the 86th Texas Legislature in 2019, House Bill (HB) 3 made substantial changes to the ��Ƭapp'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.

��Ƭapp is considered a property-rich school district. In FY2022, nearly 53 percent of all local revenue collected from property taxes is estimated to be subject to recapture; FY2023 budget includes an estimate that 54.5 percent of all local tax revenue will be subjected to recapture. In FY2022, ��Ƭapp anticipates the district will submit $761.3 million to the state in recapture funds. From FY2001 to FY2022, ��Ƭapp will have paid the state of Texas close to $6.0 billion in recapture payments.

Figure 1: In FY2023 Adopted Budget, ��Ƭapp’s estimate recapture payment is $845.9, with a conservative assumption that enrollment will remain flat against the October 2021 PEIMS Student Snapshot. The payment will be half of the District’s Adopted Expenditure budget of $1.68 billion.

Figure 1: FY2023 General Fund Adopted Expenditures - Breakdown of Each Dollar

Breakdown of Each Dollar - Available for ��Ƭapp

Figure 2: The FY2023 Adopted General Fund expenditure budget estimates that 50.3 percent will comprise the district’s (Chapter 49) Recapture payment. When looking at the General Fund and excluding recapture, Salary Related expenses are at 86.7 percent of the fund. Professional and Contracted Services are at 8.0 percent; Supplies and Materials make up 3.7 percent; and Other Operating Costs come in at 1.7 percent of the General Fund budget.

Figure 2: FY2023 General Fund Adopted Expenditures including/excluding Recapture

Total Expenditures (Including Recapture)

Operating Expenditures (Excluding Recapture)

Figure 3: In FY2023, ��Ƭapp's estimated recapture payment is $845.9 million. This reflects a nearly a 400 percent increase in recapture when compared to payment made in FY2015.

��Ƭapp's Recapture & Enrollment Comparison Over Years

**Recapture vs. Enrollment**
	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022 Projected	FY2023 Adopted
Recapture	$181,118,956	$266,073,630	$403,324,244	$540,290,792	$665,251,676	$639,599,384	$706,687,156	$761,337,104	$845,896,628
Enrollment	84,191	83,270	82,766	81,346	79,787	80,911	74,982	74,713	74,713

Figure 4: In FY2021, ��Ƭapp paid $473.4 million more in recapture than other recapture Region 13 Districts combined.

Top 10 Region 13 Districts Recapture Payments)

Source: District’s Annual Financial Report & Adopted Budget Summary
*Preliminary 2022 Summary of Finance run ID 36851, July 18th, 2022

Figure 5: In FY2021, ��Ƭapp paid $508.87 million more in Recapture Payments than the second highest Texas School District. ��Ƭapp continues to be the largest payer into the state finance system.

Top 10 Texas Districts (Chapter 49) Recapture Payments