TX HB4326

Requires the state compression percentage for school district maintenance and operations tax rates to be reduced to the lowest percentage possible using money appropriated from the property tax reduction fund under the Texas Constitution

Modifies the allocation of constitutional transfers so that when transfers fall below the threshold, reductions are made proportionately to both the property tax reduction fund and state highway fund, with corresponding increases to the economic stabilization fund

Beginning September 1, 2043, directs that half of constitutional transfer amounts go to the economic stabilization fund and half to the property tax reduction fund

Requires the comptroller to reduce transfers to the economic stabilization fund as necessary to prevent exceeding the constitutional balance limit for that fund

Takes effect September 1, 2027, contingent upon voter approval of a related constitutional amendment establishing the property tax reduction fund proposed by the 89th Legislature in 2025