At the start of the school year, Cy-Fair ISD was reclassified as a Chapter 41 district under the Texas Education Code, making it potentially subject to providing recapture payments to the state.

However, for a district to be required to send money to the state, it must have a property wealth per student greater than $514,000 and a maintenance and operations tax rate greater than $1.06. CFISD does not currently meet either standard.

As a result of these stipulations, the reclassification has no effect on the funding the district receives from the state, CFISD Chief Financial Officer Stuart Snow said.

“At this point, it is a nonissue for CFISD unless or until our wealth per student exceeds $514,000 in the future, or unless in the unlikely event that we increase our M&O tax rate ... which would require an election,” he said.

Snow said the reclassification happened because property values are increasing at a greater rate than the student population. He said he predicted this change would occur four years ago.

“We have been preparing for that designation since 2012-13 by conservative budgeting, strict financial management and continuing to increase the fund balance in the event that state laws would change to cause such a designation to have a negative financial impact,” Snow said.

The state uses recaptured funds for the public education budget. Snow said if the Legislature were to reduce or eliminate recapture, it would have to appropriate more funds.

“Based on the current state-wide economic position in which state revenues from sales tax, natural gas tax, oil production taxes and other taxes are well below projections, the Legislature will not likely have the ability to provide additional funds for public education,” he said.

Snow said as long as property values are increasing, the amount of state funding CFISD receives will decrease. The district’s budget for fiscal year 2016-17 includes $377 million in revenue from the state, which is down from $393 million in 2014-15.