Recapture

What is Recapture?

House Bill (HB) 3, passed in the recent legislative session, made substantial changes to the District's recapture (Chapter 41) payment. Under HB 3, districts must reduce local revenue in excess of entitlement. Texas Education Code, Chapter 49. The Chapter 49 provision recaptures local tax dollars from property-rich districts and redistributes the funds to property-poor districts.

AISD is considered a property-rich school district. In FY2020, nearly 46 percent of all local revenue collected from property taxes will be subject to recapture. In FY2020, AISD anticipates the district will submit $612.2 million to the state in recapture funds. From FY2002 to FY2020, AISD will have paid the state of Texas more than $4.0 billion in recapture payments.

Learn more about recapture and its effects on Austin ISD students and staff in the video below. 

 

Austin ISD Finance Video 2019 from Austin ISD TV on Vimeo.


 

FY2020 General Fund including Recapture

Salary Related expenses (49 percent) and Recapture payments (43 percent) make up a combined 92 percent of the total FY2020 budget.  Professional and Contracted Services come in next at five percent, Supplies and Materials make up 2 percent; Other Operating Costs are at one percent; and Debt Service and Capital Outlay both are under one percent each.

FY2020 General Fund excluding Recapture

Looking at the General Fund and excluding recapture, Salary Related expenses are at 86 percent of the fund. Professional and Contracted Services are at nine percent; Supplies and Materials make up three percent; Other Operating Costs come in at two percent; and Capital Outlay and Debt Service are still both under one percent of the General Fund budget.