Relating to establishing the permanent public school fund to reduce school district maintenance and operations ad valorem taxes and provide funding for public school prekindergarten programs.

HB 3301 establishes a permanent public school fund in the Texas state treasury, requiring $10 million in annual deposits starting September 1, 2025. The fund’s interest earnings - only - may be used to either reduce school district property taxes (via adjusting state tax compression) or fund public prekindergarten programs. It prohibits using the principal balance for any purpose, ensuring only investment returns support these specific education priorities. The bill directly affects school districts through potential tax relief and public prekindergarten programs statewide.