AUSTIN — Texas lawmakers are examining how the state would replace billions of dollars in school funding if Gov. Greg Abbott’s proposal to eliminate school district property taxes for homeowners becomes law. The House Ways and Means Committee discussed the proposal during a Tuesday hearing as part of a broader review of property-tax relief. Abbott has called for ending school maintenance-and-operations taxes on homesteads while directing the state to make up the lost revenue so public schools remain fully funded. School districts collect about $29 billion each year through maintenance-and-operations, or M&O, property taxes, according to Tetyana Melnyk of the Texas Comptroller’s Office. Those taxes pay for routine expenses such as operating schools and employing staff. Homeowners currently account for about $8.6 billion of that revenue. Melnyk told lawmakers the amount could grow to approximately $12 billion by 2032, increasing the potential cost of a statewide replacement plan. “School finance gets very complicated very quickly,” Texas Education Agency Commissioner Mike Morath said during the hearing. The discussion follows lawmakers’ recent expansion of the state’s homestead exemption. Homeowners can now exclude the first $140,000 of a home’s value from school district taxes. Homeowners who are at least 65 or have disabilities receive an exemption on the first $200,000. Abbott’s proposal is not the only tax plan under consideration. Lt. Gov. Dan Patrick has promoted a proposal known as the “Double Nickel” plan, which would freeze a home’s taxable value when its owner turns 55. Under current law, Texans who are 65 and older already receive a school-tax freeze on their homesteads. Rep. Trey Martinez Fischer, D-San Antonio, said lawmakers should also consider reducing the state sales tax if Texas has surplus revenue. Sales taxes generally place a larger burden on lower-income households because those residents spend a greater share of their income on taxable goods and services. “If sales tax is the workhorse for the state, when we have excess revenue, shouldn’t we be cutting the sales tax,” Martinez Fischer said. The debate over school property taxes has direct implications for homeowners, renters and school districts. Eliminating the taxes could reduce costs for some property owners, but the state would need a durable replacement for the revenue or districts could face pressure on staffing, programs and other day-to-day services. The hearing did not settle how Texas would cover the projected multibillion-dollar gap.