Chapter-41

I’ve had a lot of conversations lately about school funding, and one term that keeps coming up is “golden pennies.” It’s confusing, so here’s a plain-English explanation using real numbers. Note: The example below is intentionally simplified and assumes no exemptions, homestead caps, or special adjustments, just to make the concept easier to follow. 🪙 First: what is a “penny”? In Texas, school tax rates are measured in pennies. Literally pennies. ...

A lot of folks have asked what it means that Leon ISD is a “Chapter 41” school district. Here’s a simple explanation. 🟩 What is a Chapter 41 school district? A “Chapter 41” (also called “recapture”) district is a Texas school district that the state considers property-wealthy under state law. That means: The district has more taxable property value per student than the state funding formulas allow. Because of that, the district must send a portion of its local school tax revenue back to the state to help fund other school districts. This system is often referred to as “Robin Hood.” ...

In Texas, when someone says a school district is a “Chapter 41” district, they’re talking about recapture — sometimes called the “Robin Hood” system. In plain terms: if a district’s local property tax collections are high enough under the state formulas, the district can be required to send a portion of that money back through the state school finance system. That money is then used to support funding across the broader system. ...

Now that we’ve talked about what a Chapter 41 (recapture) school district is, I want to explain something most people don’t realize: 👉 For Chapter 41 districts like Leon ISD, passing a school bond is one of the only ways to keep more local tax money here at home instead of sending it back through the state system. If you haven’t read the Chapter 41 explainer yet, start here: What Is a Texas Chapter 41 School District? This sounds backwards, so here’s the simple version. ...