(a) Subject to Subsection (b), if a school district’s tier one local share under § 48.256 exceeds the district’s entitlement under § 48.266(a)(1) less the district’s distribution from the state available school fund, the district must reduce the district’s tier one revenue level in accordance with Chapter 49 to a level not to exceed the district’s entitlement under § 48.266(a)(1) less the district’s distribution from the state available school fund.
(b) This subsection applies only to a school district to which Subsection (a) applies. If a district’s maintenance and operations tax collections from the tax rate described by § 45.0032(a) for the current tax year minus the required reduction in a district’s tier one revenue level under Subsection (a) results in an amount that is less than the amount of the district’s entitlement under § 48.266(a)(1) less the district’s distribution from the state available school fund, the agency shall adjust the amount of the reduction required in the district’s tier one revenue level under Subsection (a) up to the amount of local funds necessary for the district’s entitlement under § 48.266(a)(1) less the district’s distribution from the state available school fund.

(c) For purposes of Subsection (a), state aid to which a district is entitled under this chapter that is not described by § 48.266(a)(3) may offset the amount by which a district must reduce the district’s revenue level under this section. Any amount of state aid used as an offset under this subsection shall reduce the amount of state aid to which the district is entitled.
(d) Except as provided by Subsection (e), a school district is entitled to retain the total amount of the district’s tier two local share described by § 48.266(a)(5)(A).
(e) In any school year for which the amount of state funds appropriated specifically excludes the amount necessary to provide the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort under § 48.202(a-1)(1), a district may only retain the amount of the district’s tier two local share described by § 48.266(a)(5)(A) equal to the amount of revenue that would be generated based on the amount appropriated for the dollar amount guaranteed level of state and local funds.
(f) If the amount of a school district’s tier two local share described by § 48.266(a)(5)(B) to which a district is entitled exceeds the amount described by § 48.202(a-1)(2), the district must reduce the district’s revenue in accordance with Chapter 49 to a level not to exceed the amount described by § 48.202 (a-1)(2).
(g) For a district to which § 45.003(f) applies, revenue generated from any cents of maintenance and operations tax effort that exceeds the maximum rate permitted under § 45.003(d) is subject to the revenue limit established under Subsection (f).