Frequently Asked Questions
What is recapture?
What is recapture?
In a 1993 response to court rulings calling for a more equitable school funding system, the Legislature began requiring school districts with higher levels of property wealth per student to send a portion of their locally raised property tax revenue to the state. The process is often referred to as Robin Hood.
The intent of recapture is to reduce large funding gaps between school districts with high property values and those with low property values.
How much have school districts paid in recapture to the state of Texas?
How much have school districts paid in recapture of the state of Texas?
The state took $2.97 billion in local property tax dollars out of 210 Texas school districts during the 2024-25 school year through recapture, according to data from the Texas Education Agency.
Since 1993, the state has removed over $45 billion in local property taxes from Texas communities through recapture.
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What causes recapture payments to increase?
What causes recapture payments to increase?
The system of funding public education relies heavily on local property taxes. And the more the system relies on property taxes, the more it relies on recapture. When property values increase, then more of a district’s local revenue becomes subject to recapture unless the district is growing by a proportional amount of students, or if the state chooses to increase its investment in public education or to invest more in property tax rate reduction.
Who are the districts that pay recapture?
Who are the districts that pay recapture?
Districts must pay recapture if their local property wealth per student exceeds a level set in state law. This can include districts with modest tax rates, fast-growing enrollment, or rising home values - not just districts perceived as "wealthy."
Approximately 210 school districts are expected to pay recapture during the 2023-24 school year.
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What happens to recapture funds once the state receives them?
What happens to recapture funds once the state receives them?
In Texas, recapture funds collected from property-wealthy school districts are deposited with the state and counted as part of the funding for the Foundation School Program. Rather than being directly sent to specific districts, these dollars are used within the statewide school finance formulas to help fund public education overall. In practice, recapture also reduces the amount of general revenue the state must contribute to meet its school funding obligations.
Can school districts simply reduce their recapture payment by lowering the tax rate?
Can school districts simply reduce their recapture payment by lowering the tax rate?
It's not that simple. If a school district reduces its tax rate beyond the reductions that are mandated in state law, the state will penalize the school district by reducing its entitlement. The entitlement is the amount of money that the state says a school district should have to educate each student. In effect, when a school district reduces its tax rate to pay less in recapture, it would likely pay about the same amount to the state in recapture, but it would have fewer dollars to educate students and pay teachers.
Do recapture dollars go directly to other school districts?
Do recapture dollars go directly to other school districts?
No. Recapture funds are not sent directly from one district to another. Instead, they are combined with state funds and distributed through school finance formulas. The state does not track the movement of funds from one district to another.
Does recapture increase overall funding for Texas public schools?
Does recapture increase overall funding for Texas public schools?
Not necessarily. Because recapture is counted as part of the state's education funding, it can reduce how much the state contributes from other revenue sources rather than increasing total school funding. When this happens, recapture saves the state money that it can use for other purposes.
How does recapture affect local taxpayers and school budgets?
How does recapture affect local taxpayers and school budgets?
Even though local taxpayers pay school property taxes, some of that money is sent out of their community through recapture. This can limit a district's ability to use local tax dollars for teacher pay, classroom resources, or student programs.