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Committee adopts substitute creating property-value study group to review school funding measures
Summary
The committee adopted a substitute for House Bill 42 36 to create a study group that will examine property-value studies’ effect on school finance distribution and recommend alternatives for valuing complex properties; testimony emphasized complexity and potential unintended consequences of prior fixes.
A committee substitute to House Bill 42 36 that creates a study group to review property-value studies and their effects on school finance was adopted and left pending after witness testimony.
Senator King explained the committee substitute would direct a study group to examine how the property value study (PBS) affects distribution of state financial aid for schools and to develop recommendations for verifying valuations of complex properties. The substitute specifies the study group’s composition: three members of the Senate appointed by the lieutenant governor, including one vice chair, and three members of the House appointed by the Speaker, including one vice chair. The group’s findings are due to the legislature by Dec. 1, 2026.
Carl Walker of the Texas Taxpayers and Research Association testified in full support and told the committee the PBS “punishes school districts for valuations they have no control over.” Walker recommended a comprehensive look at equity, administrative burdens, appraisal-district practices, and alternatives such as consolidating studies (PVS, ratio studies, MAP, TARP) into a more robust single study.
Committee members asked about unintended consequences of tinkering with margin of error and other mechanical changes. Walker urged a careful, thorough review because prior narrower fixes may have had unstudied effects.
Senator Menéndez moved adoption of the committee substitute; the substitute was adopted with no recorded opposition. Public testimony closed and House Bill 42 36 was left pending for future committee action.
