The Texas comptroller says the state is likely to have a $33 billion surplus for the next two-year budget cycle. In January, Glenn Hegar estimated the state legislature would have 26% more revenue than the last two-year budget for a total of $188 billion.
Governor Greg Abbott says both chambers of the state legislature are now writing budgets that would use half the surplus to buy down local property taxes. At an event with business leaders in Arlington, he said he would also push to develop a long-term solution to reduce the amount people pay in property tax.
Rocket Mortgage says Texas has the country's seventh highest property tax collection for the average land owner.
"My long term vision goal is this: We have a property tax reduction fund and for us to put money toward that property tax reduction fund every session," Abbott says.
Abbott says the reduction fund would ultimately "buy down" the amount of property taxes that pay for schools. He says Texas would increase funding from the state to public schools to make up the difference.
"You'll still have your local property taxes, but with the school property tax eliminated, your property tax bill would be cut in two thirds or three fourths," he says.
"When it comes to school finance, the details matter," says Arlington ISD Superintendent Marcelo Cavazos. "The comments provide some insight as to the thought process of school finance. We also know school finance in Texas has been a system that has been challenged, it's been broken. There have been many attempts to actually improve it, and it has made some improvements."
Cavazos says details would give districts the ability to adjust to changes in funding mechanisms at a time when education is changing to ensure students graduate high school prepared for college or to join the workforce.
"There are more opportunities today for students in Arlington ISD," he says. "Those opportunities have been well-received by our community and our students to either pursue college, career, or workforce. Those opportunities come with a cost."
In 2019, Arlington voters passed a $966 million bond to replace four schools, add junior high school and high school performing arts and dual language academies, expand the Dan Dipert Career and Technical Center, create a third competition field and improve security and technology at campuses. That bond did not change the tax rate.
Cavazos says those changes will give students more options to pursue potential careers that are in demand, they find exciting or where they might excel.
"Texas is a leader in job creation, business and industry," he says. "Our students are filling many of those jobs and being the attractive workforce for these businesses over many years."
He says increased funding from the state could show support for public schools and reduce the need for local property taxes, but districts will need more information before they can take any action.
"I think this is a message that deals with how to adequately fund the expectations we all have for public schools," Cavazos says.
Abbott stayed to take pictures after the event in Arlington, but his staff did not allow questions.
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