Relating to a determination of a school district's assets to liabilities ratio under the public school financial accountability rating system.

HB 1260 changes Texas' public school financial accountability system by removing three specific requirements from school districts' financial ratings. It prohibits counting districts' failure to spend 65% of operating funds on instruction as a rating factor, stops lowering ratings for that reason, and excludes costs required by Chapter 49 (school finance reforms) when calculating a district's assets-to-liabilities ratio. This directly affects Texas public school districts by altering how their financial health is measured under state accountability rules. The bill takes effect for the 2025-2026 school year.