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 FY2021, AISD anticipates the district will submit $606.3 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.
Figure 1: In FY 2020, AISD's recapture payment totaled $618.2 million. This reflects a 400 percent increase in recapture for the last few years. This payment is almost half of the district's annual budget of $1.6 billion.
Figure 2: In FY2020, AISD paid $515 million more in recapture than other recapture districts in Region 13. AISD is the single, largest payer into the state finance system.