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Recapture

Passed by the 86th Texas Legislature in 2019, House Bill 3 (HB3) made substantial changes to �鶹������ý ISD'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.

�鶹������ý ISD is considered a property-rich school district. In the FY2025-26 adopted budget, the district estimates that $715.5 million of local property tax revenue will be subject to recapture and remitted to the state under Chapter 49. By comparison, in recent years a majority of �鶹������ý ISD’s locally generated property tax revenue has been redirected through the state’s recapture system.

Figure 1: In FY2026 Adopted Budget

�鶹������ý ISD’s estimated recapture payment is $715.5, with a projected student enrollment of 72,303 from the October 2024 PEIMS Student Snapshot.  The payment will be just under half of the district’s adopted expenditure budget of $1.70 billion. From FY2000-01 to FY2024-25, �鶹������ý ISD will have paid the state of Texas approximately $8.3 billion. 

�鶹������ý ISD’s Recapture & Enrollment Comparison Over Years

Top 10 Texas District’s (Chapter 49) Recapture Payments

In FY2023–24, �鶹������ý ISD remitted $467.8 million more in recapture payments than the second-highest contributing district, Pecos-Barstow-Toyah ISD. Notably, �鶹������ý ISD’s total recapture contribution exceeded the combined payments of the next five highest-paying districts.

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