A History of the Texas School Finance System

When the Texas Legislature reduced property tax rates by one-third in 2006, they guaranteed that school districts would have the ability to maintain at least the same revenue level per student as the district received for the 2005-2006 school year by creating Additional State Aid for Tax Reduction (ASATR).

Each district was entitled to different amounts of ASATR revenue based on a variety of district-specific factors, relating to the revenue they would have otherwise been able to generate at the time of tax rate compression.

In 2011, the state significantly reduced funding for public education and some of those cuts came through a percentage reduction to ASATR. At that time the Legislature also enacted a repeal of ASATR effective September 1, 2017.