Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

HB 1030 reduces local property taxes for Texas school districts by using surplus state revenue. It requires the state to deposit 90% of excess general revenue (above 104% of the prior biennium's total) into a property tax relief fund. This fund must be used to lower the "state compression percentage" in school finance calculations, which directly affects how much local property tax districts can collect. When the compression percentage reaches zero, districts cannot impose tier-one maintenance and operations taxes and automatically qualify for full state funding as if they had the maximum allowable tax rate. The bill applies to all Texas public school districts and takes effect in 2025.