By:  Moffat                                            H.B. No. 738
       73R2628 CAS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain public school finance studies.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 16.202, Education Code, is amended to
    1-5  read as follows:
    1-6        Sec. 16.202.  Studies.  (a)  On a biennial basis, the
    1-7  Legislative Education Board and the Legislative Budget Board, with
    1-8  the assistance of the Educational Economic Policy Center and the
    1-9  Central Education Agency, shall complete each of the following
   1-10  studies and develop recommended amounts where appropriate for each
   1-11  year of the next biennium:
   1-12              (1)  <a study of> the fiscal neutrality of the system
   1-13  to determine the status of the state and local finance system with
   1-14  regard to the policies established under the provisions of Section
   1-15  16.001 of this code, including recommendations for adjustments
   1-16  necessary to maintain fiscal neutrality;
   1-17              (2)  the accountable costs per student to school
   1-18  districts of providing educational programs, personnel, and other
   1-19  operating costs that meet accreditation criteria and the provisions
   1-20  of law and regulation;
   1-21              (3)  program cost differentials designed by program to
   1-22  provide support for the added expense of high-cost courses or
   1-23  programs for students participating in such courses or programs,
   1-24  with the program funding level expressed as dollar amounts and as
    2-1  weights applied to the adjusted basic allotment for the appropriate
    2-2  year;
    2-3              (4)  transportation and career ladder allotments;
    2-4              (5)  the levels of tax effort necessary for each tier
    2-5  of the Foundation School Program necessary to fulfill the
    2-6  requirements of Sections 16.001 and 16.008 of this code; and
    2-7              (6)  capital outlay and debt service requirements and
    2-8  formula elements for the requirements of Subchapter I of this
    2-9  chapter or other provisions of this chapter.
   2-10        (b)  In conducting studies and making recommendations under
   2-11  Subsection (a) of this section, the boards shall consider the
   2-12  amount by which school districts' state and local fund requirements
   2-13  are reduced due to receipt of federal funds.
   2-14        (c)  The Legislative Education Board and the Legislative
   2-15  Budget Board, jointly, shall write a report based on their studies.
   2-16  Not later than October 1 preceding each regular session of the
   2-17  legislature, the Legislative Education Board and the Legislative
   2-18  Budget Board shall provide the report to the foundation school fund
   2-19  budget committee.  The foundation school fund budget committee
   2-20  shall consider the report in determining the amount of money to be
   2-21  placed in the foundation school fund for the succeeding biennium to
   2-22  finance the Foundation School Program.
   2-23        SECTION 2.  The importance of this legislation and the
   2-24  crowded condition of the calendars in both houses create an
   2-25  emergency and an imperative public necessity that the
   2-26  constitutional rule requiring bills to be read on three several
   2-27  days in each house be suspended, and this rule is hereby suspended,
    3-1  and that this Act take effect and be in force from and after its
    3-2  passage, and it is so enacted.