EXPLORING THE IMPACT OF 313 AGREEMENTS
Chapter 49 “Recapture” Grows as
Chapter 313 nears extinction
STRONG COMMUNITIES HELP SUPPORT SCHOOLS ACROSS TEXAS
Recapture or Chapter 49 is a process Texas uses to make school funding more equal by sharing money from property-wealthy districts with those that have less property wealth. This is often referred to as the Robin Hood system.
Due to the amount of industry within our boundaries, we have one of the strongest tax bases in the region. Each year, G-PISD must make recapture payments to the state. However, in recent years, we’ve been able to limit those payments by using Chapter 313 Agreements.
PROTECTING OUR LOCAL FUNDS
Chapter 313 agreements allow school districts to temporarily limit the amount of tax revenue that new industries pay into the Maintenance & Operations (M&O) fund for up to 10 years. This helps reduce how much the district owes in state recapture and gives time to plan for future payments.
During this period, through the Chapter 313 Agreements, the industry provides revenue-protection and supplemental payments to make up for the reduced M&O taxes.
A Chapter 313 Agreement does not impact Interest & Sinking (I&S) funds. The district continues to collect all the taxes on this side of the budget/rate.
313 EXPANDED OPPORTUNITIES
Over the last XX years, G-PISD has received approximately $XX million through revenue-protection and supplemental payments from local industry.
This has allowed us to provide competitive teacher salaries and expand and enhance instructional materials.
Additionally, since Chapter 313 doesn’t impact the I&S rate, we’ve been able to increase our bond capacity for facility improvements without increasing the local tax rate. Most recently, voters approved a $205 million school bond in May 2025 with 90 percent of the bond funded by tax contributions from local industry.