What is Recapture?
Recapture is a function of Chapter 41 of the Texas Education Code and is intended to equalize educational spending across school districts that have varying amounts of property wealth. The Chapter 41 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 FY2018, approximately 55 percent of AISD revenue generated beyond the protected “golden pennies” (the first 6 cents per dollar that is generated above a district’s compressed tax rate) will be sent to the state for redistribution to property-poor school districts. It is estimated that nearly 51 percent of all local revenue collected from property taxes will be subject to recapture in FY2019.
In FY2019, AISD anticipates the district will submit $669.6 million to the state in recapture funds. This amount is expected to increase by $115 million in FY2020, as a result of a projected increase in the district’s taxable property value and tax collection and the recalculation of the state funding formulas. From FY2002 to FY2019, AISD will have paid the state of Texas more than $3.7 billion in recapture payments.