Abbott’s school property tax elimination proposal raises funding questions

WACO, Texas (KWTX) - A proposal by Governor Greg Abbott to eliminate school property taxes is generating discussion among local school districts, with many officials expressing both excitement and concern about potential impacts on public school funding.

“I certainly want to see property taxes reduced, but I also want to see public education funded appropriately,” said Temple ISD Superintendent Dr. Bobby Ott.

Questions about funding sources

Dr. Ott adds that the proposal raises important questions about how they can implement this without hurting local school districts.

“Where’s the money gonna come from, what is the allocation to make up the difference for that service, and is it sustainable?” he said.

Texas House Representative Hillary Hickland says those concerns are understandable, but assured that details will be worked out.

“Change is scary for everyone and that’s just natural, but I am confident that the state is gonna come in and fill those responsibilities. We’re gonna make sure our schools continue to improve,” she shared.

Two sides of school funding

Dr. Teddy Clevenger with Bartlett ISD explains that there are two sides when it comes to school funding.

“You have your maintenance and operations tax rate. That’s gonna cover everything from you know teacher salaries, to food, to buses, to programs,” he said, “and then you have your interest and sinking tax rate”.

Under Governor Abbott’s proposed plan the state would fully fund the maintenance and operations side, while the interest and sinking side would remain locally funded.

“INS relates to the debt, and interest, and local bonds that local residents have taken on those responsibilities,” Hickland explained.

Sustainability concerns

The state already partially funds the maintenance and operations side, but school property taxes make up a significant portion of the total funds.

This means if property taxes are eliminated the state will have to compensate for a substantial loss in funding for every school district in Texas.

“The state does have a surplus right now, but you have to ask yourself the question, is it sustainable,” Dr. Ott said.

Dr. Clevenger also warns that any loss in funding would be devastating for public schools, whose budgets are already tight.

“It is kind of scary to think about like how will we pay teachers, how will we make payroll, how would we feed our students and educate our kids?” he shared.

However, Hickland says eliminating school property taxes would provide much needed relief to taxpayers.

“It is the largest portion of everyone’s property tax bill, and so for the state to come in and take over the responsibility, it’s a way that we can issue real relief to every Texan,” she said.

The proposal is part of a larger plan to lower property taxes, which will likely be a focus of Abbott’s reelection campaign and the 2027 legislative session, according to Hickland.

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