Gov. Greg Abbott wants to zero out the school property taxes Fort Bend ISD and Stafford MSD homeowners pay on their homesteads. He estimates the plan would cost the state $10 billion a year.

For a home with $300,000 in taxable value, the savings would be roughly $3,000 a year, according to Pat O'Connor, president of O'Connor Property Tax Reduction & Appeals Services. In Fort Bend County, that tracks closely with current school tax bills: $2,991 for an FBISD homeowner and $3,006 for a Stafford MSD homeowner at 2026 rates, according to Covering Katy.

Abbott pitched the plan at a campaign event Wednesday, Oct. 7, as a centerpiece of his bid for a fourth term, as first reported by KPRC 2. He said homeowners' school-district property tax bills "should be zero dollars."

The proposal is a campaign promise, not law. Lawmakers would need to pass legislation in the 2027 session and establish a way to replace the revenue school districts currently collect.

Both districts already face budget pressure

Fort Bend ISD, the state's sixth-largest district, is running a $32.8 million budget shortfall this fiscal year. The board adopted a total tax rate of $0.9969 per $100 valuation for 2026-27, the highest it could set without calling a voter election, according to Chief Financial Officer Kris Lynn.

The district also projects a $7.8 million to nearly $12 million funding loss from the Texas Education Freedom Accounts (TEFA) voucher program, according to Community Impact. A Texas Comptroller demographic report shows 2,024 FBISD students received funded TEFA accounts for 2026-27.

Stafford MSD draws 75% of its budget from local revenue, with tax collections projected at $32.2 million for 2026-27, according to the district's proposed budget. The district is also a "recapture" district, meaning it sends excess local tax collections back to the state. That complicates any calculation of how eliminating homestead school taxes would affect Stafford's bottom line.

Stafford MSD's board listed "School Funding & Legislative Session" as a factor the district cannot control in its budget documents.

Tax experts see compromise ahead

O'Connor, a 35-year property tax veteran, said a complete elimination is unlikely next session. "It would be great if it could be accomplished," he said. "But I'd say it's highly unlikely to happen in the 2027 legislative session."

The change could take multiple sessions. O'Connor said raising the state sales tax is the most practical replacement. Texas has no income tax, leaving fewer options to fill a $10 billion hole.

Tax attorney Keith Cothrell said replacement options include taxes on tobacco, liquor and corporations, but each carries political opposition. He predicted lawmakers would land on a compromise between Abbott's proposal and the current system.

What it means locally

Neither FBISD nor Stafford MSD officials have publicly responded to Abbott's specific proposal. FBISD Superintendent Marc Smith has said the voucher program already makes enrollment projections "almost impossible in this environment," according to Houston Public Media.

State Sen. Molly Cook, D-Houston, warned at a Senate committee hearing in September that relying on surpluses to fund permanent tax relief is risky. She called the approach "a structural deficit on layaway," as reported by Community Impact.

The Texas Legislature's next regular session begins in January 2027. No bill number or committee hearing date has been announced.