Recapture

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.


 

FY2019 General Fund including Recapture

Recapture payments and Salary Related expenses, separately, take up 46 percent of the General Fund. Professional and Contracted Services come in next at five percent, Supplies and Materials make up two percent; Other Operating Costs are at one percent; Debt Service and Capital Outlay both are under one percent.

 

FY2019 General Fund exluding 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.