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Royse City ISD officials warn homestead exemption and school finance changes could squeeze budget, imperil bond timing
Summary
District finance staff told trustees the Senate's homestead exemption proposal (SB4) and the Senate substitute for HB2 would reduce the district's discretionary revenue and could delay issuing the 2023 bond authorization without a hold‑harmless amendment.
Royse City ISD finance staff told the Board of Trustees that two pieces of pending legislation could materially alter the district's 2025–26 revenue picture and the timing for issuing previously authorized bond projects.
Chief Financial Officer Byron Bryan said Senate Bill 4 would raise the homestead exemption from $100,000 to $140,000 and currently carries no automatic hold‑harmless to protect the district's 2023 bond authorization, a $863,000,000 authorization. “If this is not put in place, then all the value that’s added to our rolls is gonna be less the $40,000 increase of those homestead exemptions,” Bryan said, adding that could compress the district’s property tax base and delay when bonds can be sold.
Bryan also reviewed the House and Senate versions of the school finance bill (HB2). Under the House plan the district would have seen about $5.9 million in additional state aid next year; the Senate substitute, Bryan said, is projected to generate roughly $4.0 million but much of that increase is tied to specific allotments — teacher raises, special‑education evaluation funding and school safety — leaving limited discretionary dollars for local priorities.
District staff urged trustees and community members to contact legislators this week and said staff would provide a message template for outreach. The presentation emphasized that SB4 requires a voter constitutional amendment and would not take effect until after voter approval; if passed the district would return to the board to amend the debt service schedule. Trustees asked clarifying questions about distribution and next steps; staff said they are working with Representative Katrina Pearson’s office and attorneys to craft hold‑harmless language.
