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

HB 1553 would reduce school district property taxes by using surplus state revenue to lower the "state compression percentage" under Texas law. It directs 90% of excess state general revenue into a dedicated fund, which the commissioner must use to decrease the compression percentage to the lowest possible level. If the percentage reaches zero, school districts cannot impose tier one maintenance and operations taxes and instead receive full state funding as if they had a compressed tax rate. This directly affects all Texas public school districts by potentially lowering local property tax burdens through state-funded relief.