What is problematic about the current system?

To ensure that school districts did not lose revenue as a result of property tax relief granted in 2006, the Legislature enacted what is called a hold harmless feature. This feature substitutes state aid for lost school property taxes.There are many potential problems associated with the hold harmless feature. As noted by the Texas Association of School Boards, the feature “leaves some districts at a relative advantage while leaving others at a disadvantage”. This can be explained in light of the fact that there is a fixed amount promised to each school. This amount does not change to reflect changing circumstances, or the different needs of different school districts. For this reason, the hold harmless feature is a source of concern, and will hopefully be a source of debate during the next congressional session.