Recapture
Passed by the 86th Texas Legislature in 2019, House Bill (HB) 3 made substantial changes to the 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 FY2023-24, nearly 52.2 percent of all local revenue collected from property taxes is estimated to be subject to recapture; FY2024-25 budget includes an estimate that 52.4 percent of all local tax revenue will be subjected to recapture. In FY2023-24, 熱えapp anticipates the district will submit $699 million to the state in recapture funds. From FY2000-01 to FY2024-25, 熱えapp will have paid the state of Texas approximately $8.3 billion.
Figure 1: In FY2024-25 Adopted Budget, 熱えapps estimated recapture payment is $821 million, with a conservative assumption that enrollment will remain flat against the October 2023 PEIMS Student Snapshot. The payment will be almost half, 46.3 percent, of the Districts Adopted Expenditure budget of $1.78 billion.
The FY2024-25 Adopted General Fund expenditure budget estimates that 46.3 percent will comprise the districts (Chapter 49) Recapture payment. When looking at the General Fund and excluding recapture, Salary Related expenses are at 89 percent of the fund. Professional and Contracted Services are at 6 percent; Supplies and Materials make up 3 percent; and Other Operating Costs come in at 2 percent of the General Fund budget.
Figure 1: FY2024-25 General Fund Adopted Expenditures - Breakdown of Each Dollar
Figure 2: In FY2024-25, 熱えapp's estimated recapture payment is $821 million. This reflects a nearly a 400 percent increase in recapture when compared to payment made in FY2014-15.
Figure 2: 熱えapp's Recapture & Enrollment Comparison Over Years
| 20214-15 | 2015-2016 | 2016-2017 | FY2017-18 | FY2018-19 | FY2019-20 | FY2020-21 | FY2021-22 | FY2022-23 | FY2023-24 | FY2024-25 Adopted | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Recapture | $181,118,956 | $266,073,630 | $403,324,244 | $540,290,792 | $665,251,676 | $639,599,384 | $706,687,156 | $765,741,768 | $900,910,768 | $664,839,391 | $821,055,366 |
| Enrollment | 84,191 | 83,270 | 82,766 | 81,346 | 79,787 | 80,911 | 74,982 | 74,602 | 73,384 | 72,830 | 73,100 |
Figure 3: In FY2022-23, 熱えapp paid $624.5 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.
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Figure 4: In FY2022-23, 熱えapp paid $323.2 million more in recapture than the top 10 recapture paying Region 13 Districts combined.
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