Excess Local Revenue

This page is under construction! Given the magnitude of changes prescribed by House Bill 3 (HB 3), 86th Texas Legislature, R.S., it will be several months before the agency can make conforming changes. Chapter 41, Education Code, was repealed. HB 3 amended the Education Code to transfer certain sections from Chapter 41 to Chapter 49, and revised formulas used to determine entitlement under the FSP by adding Subchapter F, Chapter 48, Education Code, Section 48.257, Local Revenue in Excess of Entitlement.

Chapter 41 of the Texas Education Code (TEC) makes provisions for certain school districts to share their local tax revenue with other school districts. For the purposes of the school finance system in Texas, districts are designated as either Chapter 41 or Chapter 42 districts. The relative wealth of the school district is measured in terms of the taxable value of property that lies within the school district borders divided by the number of students in weighted average daily attendance (WADA). Chapter 41’s provisions are sometimes referred to as the “share the wealth” or “Robin Hood” plan because districts subject to Chapter 41 of the TEC are required to share their wealth with other school districts. The funds that are distributed by Chapter 41 districts are “recaptured” by the school finance system to assist with the financing of public education for all school districts. 

 

Law and Rules  

Reports, Links and Other Information

Payment Instructions

  • Comptroller's Instructions for Wiring Funds                                (Word, 32 KB) (PDF, 96 KB)
  • Comptroller’s Instructions for ACH Receiver Services               (Word, 32 KB) (PDF, 94 KB)

Option 3 Payment Schedule Report

Disaster Aid Assistance 

  • Application for Disaster Aid Assistance                                      (Word, 28 KB)  (PDF, 100 KB)
  • Cost Associated with Disaster Relief Application - Revised       (Excel, 20 KB)  (PDF, 100 KB

Frequently Asked Questions

  • Chapter 41 Questions and Answers                                           (Word, 24KB)  (PDF, 52 KB)
     

    Correspondence

    • 2019–2020 Annual Review of Local Revenues                          (Word, 90 KB)  (PDF, 220 KB)
    • 2018–2019 Near Final Chapter 41 Recapture Letter                 (Word, 72 KB)  (PDF, 89 KB)
    • 2018–2019 Official Chapter 41 Notification Letter                      (Word, 90 KB)  (PDF, 100 KB)  
    • 2018–2019 Preliminary Chapter 41 Notification Letter               (Word, 85 KB)  (PDF, 99 KB)
    • 2017–2018 Final Chapter 41 Recapture Letter                          (Word, 85 KB)  (PDF, 210 KB)
    • 2017–2018 Near Final Chapter 41 Recapture Letter                 (Word, 75 KB)  (PDF, 75 KB)
    • 2017–2018 Official Chapter 41 Notification Letter                      (Word, 82 KB)  (PDF, 99 KB)
    • 2017–2018 Preliminary Chapter 41 Notification Letter               (Word, 80 KB)  (PDF, 97 KB)
    • 2016–2017 Near Final Chapter 41 Recapture Letter                 (Word, 76 KB)  (PDF, 68 KB)
    • 2016–2017 Official Chapter 41 Notification Letter                      (Word, 81 KB)  (PDF, 90 KB)
    • 2016–2017 Preliminary Chapter 41 Notification Letter               (Word, 81 KB)  (PDF, 92 KB
    • 2015–2016 Final Cost of Recapture Report Letter                     (Word, 85 KB)  (PDF, 120 KB
    • 2015–2016 Near Final Chapter 41 Recapture Letter                 (Word, 80 KB(PDF, 68 KB
    • 2015–2016 Official Chapter 41 Notification Letter                      (Word, 80 KB)  (PDF, 72 KB)
    • 2015–2016 Preliminary Chapter 41 Notification Letter               (Word, 76 KB)  (PDF, 72 KB
       

    Manuals

     

    Option 3 Agreements

    • Purchase of Attendance Credit                                                   (PDF, 110 KB)
    • Purchase of Attendance Credit (Netting Chapter 48 Funding)   (PDF, 100 KB)

     

    Option 4 Agreements

    • Education of Nonresident Students, with CAD Cost Language
    • Education of Nonresident Students, no CAD Cost Language

     

    Notification Status, Partner District Data and Recapture Paid

    Chapter 41 Status

      Potential Partner Districts

      • Potential Partner District Data 2018–2019                                 (Excel, 180 KB)  (PDF, 220 KB);
      • Potential Partner District Data 2017–2018                                 (Excel, 185 KB)  (PDF, 240 KB)
      • Potential Partner District Data 2016–2017                                 (Excel, 87 KB)    (PDF, 204 KB)  

        Recapture Paid

         

         


        For more information, contact:

        Division of State Funding

        Kim Wall
        (512) 463-4809
        kim.wall@tea.texas.gov