By: Ratliff S.B. No. 7
A BILL TO BE ENTITLED
AN ACT
1-1 relating to public school education and finance.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 16, Education Code, is amended to read as
1-4 follows:
1-5 CHAPTER 16. FOUNDATION SCHOOL PROGRAM
1-6 SUBCHAPTER A. GENERAL PROVISIONS
1-7 Sec. 16.001. State Policy. (a) It is the policy of the
1-8 State of Texas that the provision of public education is a state
1-9 responsibility and that a thorough and efficient system be provided
1-10 and substantially financed through state revenue sources so that
1-11 each student enrolled in the public school system shall have access
1-12 to programs and services that are appropriate to his or her
1-13 educational needs and that are substantially equal to those
1-14 available to any similar student, notwithstanding varying local
1-15 economic factors.
1-16 (b) The public school finance system of the State of Texas
1-17 shall adhere to a standard of neutrality which provides for
1-18 substantially equal access to similar revenue per student at
1-19 similar tax effort, considering all state and local tax revenues of
1-20 districts after acknowledging all legitimate student and district
1-21 cost differences.
1-22 Sec. 16.002. Purpose of Foundation School Program. (a) The
1-23 purposes of the Foundation School Program set forth in this chapter
1-24 are to guarantee that each school district in the state has:
2-1 (1) adequate resources to provide each eligible
2-2 student a basic instructional program and facilities suitable to
2-3 the student's educational needs; and
2-4 (2) access to a substantially equalized program of
2-5 financing in excess of basic costs for certain services, as
2-6 provided by this chapter.
2-7 (b) The Foundation School Program consists of two tiers to
2-8 provide for the purposes specified by Subsection (a) of this
2-9 section. The first tier guarantees sufficient financing for all
2-10 school districts to provide a basic program of education that meets
2-11 accreditation and other legal standards. The second tier provides
2-12 a guaranteed yield system of financing to provide all school
2-13 districts with substantially equal access to funds to provide an
2-14 enriched program and additional funds for facilities.
2-15 Sec. 16.003. Student Eligibility. (a) A student is
2-16 entitled to the benefits of the Foundation School Program if he is
2-17 5 years of age or older and under 21 years of age at the beginning
2-18 of the scholastic year and has not graduated from high school.
2-19 (b) A student to whom Subsection (a) of this section does
2-20 not apply is entitled to the benefits of the Foundation School
2-21 Program if the student is enrolled in a prekindergarten class under
2-22 Section 21.136 of this code.
2-23 (c) The commissioner of education, in consultation with the
2-24 Commissioner of Human Services, shall monitor and evaluate
2-25 prekindergarten programs in the State of Texas as to their
2-26 developmental appropriateness. Furthermore, the commissioner of
2-27 education, in consultation with the Commissioner of Human Services,
3-1 shall evaluate the potential for coordination on a statewide basis
3-2 of prekindergarten programs with government-funded early childhood
3-3 care and education programs such as child care administered under
3-4 Chapter 44 of the Human Resources Code and federal Head Start
3-5 programs. This evaluation shall utilize recommendations contained
3-6 in the report to the 71st Legislature required by Chapter 717, Acts
3-7 of the 70th Legislature, Regular Session, 1987. For the purpose of
3-8 providing cost-effective care for children during the full work day
3-9 with developmentally appropriate curriculum, the commissioners
3-10 shall investigate the use of existing child care program sites as
3-11 prekindergarten sites. Following the evaluation required by this
3-12 section, the commissioners, in cooperation with school districts
3-13 and other program administrators, shall integrate programs, staff,
3-14 and program sites for prekindergarten, child care, and federal Head
3-15 Start programs to the greatest extent possible.
3-16 (d) A child may be enrolled in the first grade if he is at
3-17 least six years of age at the beginning of the scholastic year or
3-18 has been enrolled in the first grade or has completed kindergarten
3-19 in the public schools in another state prior to transferring to a
3-20 Texas public school.
3-21 Sec. 16.005. Administration of the Program. The
3-22 commissioner of education, in accordance with the rules of the
3-23 State Board of Education, shall take such action and require such
3-24 reports consistent with the terms of this chapter as may be
3-25 necessary to implement and administer the Foundation School
3-26 Program.
3-27 Sec. 16.006. Average Daily Attendance. (a) In this
4-1 chapter, average daily attendance is the quotient of the sum of
4-2 <determined by the daily> attendance for each day <as averaged each
4-3 month> of the minimum school year as described under Section
4-4 16.052(a) of this code and for each day approved by the
4-5 commissioner of education for an extended year program under
4-6 Section 21.562 of this code divided by the number of days in the
4-7 minimum school year.
4-8 (b) A school district that experiences a decline of two
4-9 percent or more in average daily attendance as a result of the
4-10 closing or reduction in personnel of a military base shall be
4-11 funded on the basis of the actual average daily attendance of the
4-12 immediately preceding school year.
4-13 (c) The commissioner of education shall adjust the average
4-14 daily attendance of school districts that have a significant
4-15 percentage of students whose parent or guardian is a migrant
4-16 worker. For the purposes of this subsection, "migrant worker" has
4-17 the meaning assigned by Section 21.5515 of this code.
4-18 (d) The commissioner may adjust the average daily attendance
4-19 of a school district in which a disaster, flood, extreme weather
4-20 condition, fuel curtailment, or other calamity has a significant
4-21 effect on the district's attendance.
4-22 Sec. 16.007. Public Education Information Management System
4-23 (PEIMS). (a) Each school district <and each county education
4-24 district> shall participate in the Public Education Information
4-25 Management System (PEIMS) and shall provide through that system
4-26 information required for the administration of this chapter and of
4-27 other appropriate provisions of this code.
5-1 (b) Each school district shall use a uniform accounting
5-2 system adopted by the commissioner of education for the data
5-3 required to be reported for the Public Education Information
5-4 Management System.
5-5 <(c) The Central Education Agency shall report annually to
5-6 the Legislative Education Board the financial status of each county
5-7 education district. The report shall include the total state and
5-8 local education revenues for each tier of the Foundation School
5-9 Program.>
5-10 Sec. 16.008. EQUALIZED FUNDING ELEMENTS. (a) The
5-11 Legislative Education Board shall adopt rules, subject to
5-12 appropriate notice and opportunity for public comment, for the
5-13 calculation for each year of a biennium of the qualified funding
5-14 elements under Section 16.256(e) of this code necessary to achieve
5-15 the state policy under Section 16.001 of this code not later than
5-16 the 1994-1995 school year and for each school year thereafter.
5-17 (b) Not <Beginning in 1992, not> later than October 1
5-18 preceding each regular session of the legislature, the board shall
5-19 report the equalized funding elements to the foundation school fund
5-20 budget committee, the commissioner of education, and the
5-21 legislature.
5-22 <Sec. 16.009. REVENUE LIMIT. (a) The revenue limit is an
5-23 amount equal to 110 percent of the amount of state and local funds
5-24 guaranteed under the Foundation School Program per student in
5-25 weighted average daily attendance to each school district at a
5-26 total tax rate of $0.25 per $100 of taxable value of property as
5-27 calculated for the 1994-1995 school year.>
6-1 <(b) Not later than April 15, the commissioner of education
6-2 shall estimate the revenue limit for each school district for the
6-3 current school year and shall certify that amount to each school
6-4 district.>
6-5 <(c) Not later than August 15 of each year the commissioner
6-6 of education shall determine as nearly as possible for the current
6-7 school year:>
6-8 <(1) the total amount of state and local funds per
6-9 student in weighted average daily attendance available in each
6-10 school district; and>
6-11 <(2) the total amount of state and local funds per
6-12 student in weighted average daily attendance required for debt
6-13 service in each school district.>
6-14 <(d) The commissioner shall determine the total number of
6-15 students in weighted average daily attendance in school districts
6-16 in which the amount specified in Subsection (c)(1) of this section,
6-17 less the amount specified in Subsection (c)(2) of this section,
6-18 exceeds the revenue limit.>
6-19 <(e) If the total number of students in weighted average
6-20 daily attendance in districts with state and local revenues
6-21 exceeding the revenue limit equals or exceeds two percent of the
6-22 total number of students in weighted average daily attendance for
6-23 the current school year, no school district may levy a tax at a
6-24 rate that would result in an amount of state and local funds,
6-25 excluding funds required for debt service, during the next school
6-26 year that exceeds the revenue limit, except that those districts
6-27 exceeding the revenue limit may maintain during the next school
7-1 year the total amount of state and local funds per student in
7-2 weighted average daily attendance for the current school year. The
7-3 commissioner shall notify those districts in which revenues are
7-4 subject to the limitation imposed in this subsection.>
7-5 <(f) In this section:>
7-6 <(1) "Weighted student in average daily attendance"
7-7 has the meaning assigned in Section 16.302 of this code.>
7-8 <(2) "Taxable value of property" has the meaning
7-9 assigned in Section 11.86 of this code.>
7-10 <Sec. 16.010. DEFINITION. In this chapter, "school
7-11 district" does not include a county education district unless
7-12 expressly included.>
7-13 <Sec. 16.011. NOTICE OF YIELDS TO BE PUBLISHED. (a) Not
7-14 earlier than the 30th day or later than the seventh day before the
7-15 date of adopting a tax rate for the years 1991, 1992, 1993, and
7-16 1994, a school district shall publish the following notice, using
7-17 the yields and tax rates certified by the commissioner:>
7-18 <"NOTICE OF COMPARABLE TAX RATES AND REVENUES>
7-19 <"The legislature has enacted a statute on school funding to
7-20 comply with a court mandate enforcing the state constitution.
7-21 Under prior statutes, the tax rate for last year provides _____ per
7-22 student in state and local revenues. Under this statute, that same
7-23 rate now provides _____ per student in state and local revenues.>
7-24 <"State law only requires a minimum tax rate of _____ for
7-25 county education districts. State law does not require a school
7-26 district to adopt additional taxes. Neither does state law require
7-27 a school district to adopt a tax rate that maximizes the receipt of
8-1 state funds.>
8-2 <"The board of trustees of the _____ School District hereby
8-3 gives notice that it is considering the adoption of a tax rate of
8-4 _____ that will provide _____ per student in state and local
8-5 revenues.">
8-6 <(b) If a district is required to give public notice of a
8-7 hearing under Section 26.06, Tax Code, the notice described by
8-8 Subsection (a) of this section may be included in the required
8-9 notice under Section 26.06, Tax Code.>
8-10 <(c) The notice described by Subsection (a) of this section
8-11 shall be published in the two newspapers with the largest
8-12 circulation within the school district unless only one newspaper is
8-13 in general circulation within the district. The notice may not be
8-14 smaller than one-quarter page of a standard-size or a tabloid-size
8-15 newspaper, and the headline must be 18-point or larger type.>
8-16 <(d) The notice described by Subsection (a) of this section
8-17 must also be included in the tax bill or a separate statement
8-18 accompanying the tax bill.>
8-19 <(e) The commissioner shall adopt rules to implement this
8-20 section.>
8-21 <(f) This section expires January 1, 1995.>
8-22 SUBCHAPTER B. REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
8-23 FOUNDATION SCHOOL PROGRAM FUND
8-24 Sec. 16.051. Required Compliance. In order to receive
8-25 financial support from the Foundation School Fund, a school
8-26 district must comply with the standards set forth in this
8-27 subchapter.
9-1 Sec. 16.052. Operation of Schools; Teacher Preparation and
9-2 Staff Development. (a) Each school district must provide for not
9-3 less than 180 days of instruction for students and not less than
9-4 three days of preparation for teachers for each school year, except
9-5 as provided in Subsection (c) of this section.
9-6 (b) Each school district must provide for not less than 20
9-7 hours of staff development training under guidelines provided by
9-8 the commissioner of education. The training provided must include
9-9 technology training and must occur during regular hours of required
9-10 teacher service. On the request of a teacher, a school district
9-11 may credit the teacher compensatory time to be applied toward the
9-12 number of training hours required under this subsection for
9-13 workshops, conferences, or other professional training that the
9-14 teacher has attended.
9-15 (c) The commissioner of education may approve the operation
9-16 of schools for less than the number of days of instruction and
9-17 teacher preparation otherwise required when disasters, floods,
9-18 extreme weather conditions, fuel curtailments, or other calamities
9-19 have caused the closing of the school.
9-20 (d) Each school district may reserve three hours of the
9-21 first preparation day provided each school year under Subsection
9-22 (a) of this section for faculty staff meetings.
9-23 Sec. 16.053. ACCREDITATION. Each school district must be
9-24 accredited by the Central Education Agency.
9-25 Sec. 16.054. Student/Teacher Ratios; Class Size.
9-26 (a) Except as provided by Subsection (b) of this section, each
9-27 school district must employ a sufficient number of certified
10-1 teachers to maintain an average ratio of not less than one teacher
10-2 for each 20 students in average daily attendance.
10-3 (b) A school district may not enroll more than 22 students
10-4 in a kindergarten, first, second, third, or fourth grade class.
10-5 This requirement shall not apply during the last 12 weeks of any
10-6 school year.
10-7 (c) In determining the number of students to enroll in any
10-8 class, a district shall consider the subject to be taught, the
10-9 teaching methodology to be used, and any need for individual
10-10 instruction.
10-11 (d) On application of a school district, the commissioner
10-12 may except the district from the limits in Subsection (b) of this
10-13 section if the commissioner finds the limits work an undue hardship
10-14 on the district. An exception expires at the end of the semester
10-15 for which it is granted, and the commissioner may not grant an
10-16 exception for more than one semester at a time.
10-17 (e) The commissioner shall report to the legislature each
10-18 biennium regarding compliance with this section. The report must
10-19 include:
10-20 (1) a statement of the number of school districts
10-21 granted an exception under Subsection (d) of this section; and
10-22 (2) an estimate of the total cost incurred by school
10-23 districts in that biennium in complying with this section.
10-24 (f) Not later than the 45th day after the first day of the
10-25 school year, each school committee established under Section 21.931
10-26 of this code shall file a written report with the school district
10-27 that states the class size of each class in the school. Not later
11-1 than the 60th day after the first day of the school year, each
11-2 school district shall forward the reports to the commissioner.
11-3 Sec. 16.055. Compensation of Professional and
11-4 Paraprofessional Personnel. (a) A school district must pay each
11-5 employee who is qualified for and employed in a position classified
11-6 under the Texas Public Education Compensation Plan set forth in
11-7 Section 16.056 of this chapter not less than the minimum monthly
11-8 base salary, plus increments for teaching experience, specified for
11-9 the position.
11-10 (b) Contracts for personnel shall be made on the basis of a
11-11 minimum of 10 months' service, which must include the number of
11-12 days of instruction for students and days of preparation for
11-13 personnel required by Section 16.052 of this code. The days of
11-14 preparation required under Section 16.052(a) of this code <herein>
11-15 shall be conducted by local boards of education under rules and
11-16 regulations established by the State Board of Education that are
11-17 consistent with the state accreditation standards for program
11-18 planning, preparation, and improvement. Personnel employed for
11-19 more than 10 months shall be paid not less than the minimum monthly
11-20 base pay plus increments for experience for each month of actual
11-21 employment. Personnel employed for 11 months at pay grades 1-11
11-22 must render 202 days of service, and personnel employed for 12
11-23 months at pay grades 1-11 must render 220 days of service.
11-24 Personnel employed for 11 months at pay grades 12-18 must render
11-25 207 days of service, and personnel employed for 12 months at pay
11-26 grades 12-18 must render 226 days of service. However, the number
11-27 of days of service required by this subsection may be reduced by
12-1 the commissioner under Section 16.052(c) of this code, and the
12-2 reduction shall not reduce the total salaries of personnel.
12-3 (c) Notwithstanding Subsection (b) of this section, a
12-4 vocational agriculture teacher employed for 12 months shall render
12-5 226 days of service regardless of pay grade.
12-6 Sec. 16.056. Texas Public Education Compensation Plan.
12-7 (a) School district personnel who are qualified for and employed
12-8 in positions described in Subsection (d) of this section shall be
12-9 paid not less than the monthly base salary, plus increments for
12-10 teaching experience, set forth in Subsection (c) of this section,
12-11 or greater amounts provided by appropriation.
12-12 (b) Each individual shall advance one step per each year of
12-13 experience until step 10 is reached. For each year, up to a
12-14 maximum of two years, of work experience required for certification
12-15 in a vocational field, a vocational teacher who is certified in
12-16 that field is entitled to salary step credit as if the work
12-17 experience were teaching experience.
12-18 (c) SALARY SCHEDULE BY STEPS
12-19 0 1 2 3 4 5 6 7 8 9 10
12-20 1700 1814 1928 2042 2156 2270 2384 2498 2612 2726 2840
12-21 (d) The following positions are entitled to the minimum
12-22 monthly salary set by Subsection (c) of this section for the number
12-23 of annual contract months specified:
12-24 No. Class Title
12-25 Months Paid
12-26 10 Nurse, R.N. and/or
12-27 Bachelor's Degree
13-1 10 Special Education
13-2 Related
13-3 Service Personnel (other
13-4 than Occupational or
13-5 Physical Therapist),
13-6 Bachelor's Degree
13-7 10 Teacher, Bachelor's
13-8 Degree
13-9 10 Vocational Teacher,
13-10 11 Bachelor's Degree and/or
13-11 12 Certified in Field
13-12 10 Librarian I, Bachelor's
13-13 Degree
13-14 10 Visiting Teacher I,
13-15 Psychological Associate,
13-16 Bachelor's Degree
13-17 10 Special Education
13-18 Related
13-19 Service Personnel (other
13-20 than Occupational or
13-21 Physical Therapist),
13-22 Master's Degree
13-23 10 Teacher, Master's Degree
13-24 10 Vocational Teacher,
13-25 11 Master's Degree
13-26 12
13-27 10 Librarian II, Master's
14-1 Degree
14-2 10 Physician, M.D.
14-3 10 Teacher, Bachelor of Laws
14-4 or Doctor of Jurispru-
14-5 dence Degree
14-6 10 Teacher, Doctor's Degree
14-7 10 Special Duty Teacher,
14-8 Master's Degree
14-9 10 Occupational Therapist
14-10 10 Physical Therapist
14-11 10 Educational
14-12 Diagnostician
14-13 10 Visiting Teacher II,
14-14 Master's Degree
14-15 10 Counselor I,
14-16 Psychologist
14-17 10 School Social Worker
14-18 10 Supervisor I
14-19 10 Part-time Principal--11 or
14-20 fewer teachers on campus
14-21 10 Instructional/Administra-
14-22 tive Officer I
14-23 10 Assistant Principal--20 or
14-24 more teachers on campus
14-25 10 Instructional/Administra-
14-26 tive Officer II
14-27 11 Principal--19 or fewer
15-1 teachers on campus
15-2 10 Instructional/Administra-
15-3 tive Officer III
15-4 11 Principal--20-49 teachers
15-5 on campus
15-6 11 Instructional/Administra-
15-7 tive Officer IV
15-8 11 Principal--50-99 teachers
15-9 on campus
15-10 12 Principal--100 or more
15-11 teachers on campus
15-12 12 Instructional/Administra-
15-13 tive Officer V
15-14 12 Instructional/Administra-
15-15 tive Officer VI
15-16 12 Superintendent--District
15-17 with 3,000
15-18 or less ADA
15-19 12 Instructional/Administra-
15-20 tive Officer VII
15-21 12 Superintendent--District
15-22 with 3,001-12,500 ADA
15-23 12 Instructional/Administra-
15-24 tive Officer VIII
15-25 12 Superintendent--District
15-26 with 12,501-50,000 ADA
15-27 12 Superintendent--District
16-1 with 50,000 or more ADA
16-2 (e) With the approval of the State Board of Education, the
16-3 commissioner of education may add additional positions and months
16-4 of service to the Texas Public Education Compensation Plan to
16-5 reflect curriculum and program changes authorized by law. With the
16-6 approval of the board, the commissioner shall also develop policies
16-7 for the implementation and administration of the compensation plan.
16-8 (f) Each person employed in the public schools of this state
16-9 who is an educational aide, teacher trainee, or nondegree teacher
16-10 or who is assigned to a position classified under the Texas Public
16-11 Education Compensation Plan must be certified according to the
16-12 certification requirements or standards for each position as
16-13 established by rule adopted by the State Board of Education.
16-14 However, additional certification may not be required of a person
16-15 holding a valid state license as a speech language pathologist or
16-16 audiologist. Persons other than those holding such a license may
16-17 only be employed to render such services if an acceptable licensed
16-18 applicant is not available.
16-19 (g) The State Board of Education shall prescribe the general
16-20 duties and required preparation and education for educational
16-21 aides, teacher trainees, and nondegree teachers and for the
16-22 positions listed in Subsection (d) of this section under the
16-23 circumstances described therein.
16-24 (h) In determining the placement of a teacher on the salary
16-25 schedule under Subsection (c) of this section, a district shall
16-26 credit the teacher for each year of experience, whether or not the
16-27 years are consecutive. Notwithstanding the provision of this
17-1 subsection, no teacher shall be placed on the salary schedule at a
17-2 step above the step where the teacher would have been placed had
17-3 that teacher remained in continuous service.
17-4 Sec. 16.057. Career Ladder Salary Supplement. (a) Except
17-5 as provided by Subsection (c) of this section, each teacher on
17-6 level two, three, or four of a career ladder is entitled to the
17-7 following annual supplement in addition to the minimum salary set
17-8 by this subchapter:
17-9 Level 2 . . . . . . . . . . . . . $2,000
17-10 Level 3 . . . . . . . . . . . . . $4,000
17-11 Level 4 . . . . . . . . . . . . . $6,000
17-12 (b) If the district pays more than the state minimum salary
17-13 prescribed by this subchapter, the teacher is entitled to the
17-14 career ladder supplement in addition to the amount otherwise paid
17-15 by the district for the teacher's step.
17-16 (c) If the allotment under Section 16.158 of this code that
17-17 is designated for support of the career ladder will not fully fund
17-18 the supplements under this section:
17-19 (1) the district may reduce the supplements to not
17-20 less than the following:
17-21 Level 2 . . . . . . . . . . . . . $1,500
17-22 Level 3 . . . . . . . . . . . . . $3,000
17-23 Level 4 . . . . . . . . . . . . . $4,500
17-24 or;
17-25 (2) provide for stricter performance criteria than
17-26 that provided under Section 13.302 of this code, subject to the
17-27 approval of the State Board of Education; or
18-1 (3) take action under both Subdivisions (1) and (2) of
18-2 this subsection.
18-3 SUBCHAPTER C. BASIC ENTITLEMENT
18-4 Sec. 16.101. Basic Allotment. For each student in average
18-5 daily attendance, not including the time students spend each day in
18-6 special education or vocational education programs for which an
18-7 additional allotment is made under Subchapter D of this chapter, a
18-8 district is entitled to an allotment of $2,450, as adjusted under
18-9 Section 16.158 of this code, <$2,200 for the 1991-1992 school year,
18-10 $2,400 for the 1992-1993 school year, $2,600 for the 1993-1994
18-11 school year, and $2,800 for the 1994-1995 school year and
18-12 thereafter> or a greater amount adopted by the foundation school
18-13 fund budget committee under Section 16.256 of this code <for the
18-14 1993-1994 school year and each school year thereafter>. A
18-15 different <greater> amount for any school year may be provided by
18-16 appropriation.
18-17 Sec. 16.102. Cost of Education Adjustment. (a) The basic
18-18 allotment for each district is adjusted to reflect the geographic
18-19 variation in known resource costs and costs of education due to
18-20 factors beyond the control of the school district. <Except as
18-21 provided by this section, the adjustment is that provided under
18-22 Section 16.206 of this code.>
18-23 (b) The adjustment for the 1993-1994 and
18-24 1994-1995 <1991-1992 and 1992-1993> school years is the cost of
18-25 education index and formula adopted in December 1990 by the
18-26 foundation school fund budget committee. The <For the 1991-1992
18-27 and 1992-1993 school years, the> commissioner of education shall
19-1 recalculate the cost of education index for school districts that
19-2 are eligible for the adjustment under Section 16.103 of this code,
19-3 excluding from the computation the calculation for the diseconomies
19-4 of scale component and substituting a value of 1.00. Beginning
19-5 with the 1995-1996 school year, the foundation school fund budget
19-6 committee shall determine the cost of education adjustment under
19-7 Section 16.256 of this code. <This subsection expires September 1,
19-8 1993.>
19-9 Sec. 16.103. SMALL DISTRICT ADJUSTMENT. (a) The basic
19-10 allotment for certain small districts is adjusted in accordance
19-11 with Subsections (b) and (c) of this section. In this section:
19-12 (1) "AA" is the district's adjusted allotment per
19-13 student;
19-14 (2) "ADA" is the number of students in average daily
19-15 attendance for which the district is entitled to an allotment under
19-16 Section 16.101 of this code; and
19-17 (3) "ABA" is the adjusted basic allotment determined
19-18 under Section 16.102 of this code.
19-19 (b) The basic allotment <average daily attendance> of a
19-20 school district that contains at least 300 square miles and has not
19-21 more than 1,600 students in average daily attendance is adjusted by
19-22 applying the formula:
19-23 (c) The basic allotment <average daily attendance> of a
19-24 school district that contains less than 300 square miles and has
19-25 not more than 1,600 students in average daily attendance is
19-26 adjusted by applying the formula:
19-27 <(e) This section expires September 1, 1993.>
20-1 Sec. 16.1031. USE OF SMALL DISTRICT ADJUSTMENT IN
20-2 CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
20-3 special allotment under Subchapter D of this chapter for a district
20-4 to which Section 16.103 of this code applies, a district's adjusted
20-5 basic allotment is considered to be the district's adjusted
20-6 allotment determined under Section 16.103. <This section expires
20-7 September 1, 1993.>
20-8 Sec. 16.104. Sparsity Adjustment. Notwithstanding Sections
20-9 16.101, 16.102, and 16.103 of this code, a school district that has
20-10 fewer than 130 students in average daily attendance shall be
20-11 provided an adjusted basic allotment on the basis of 130 average
20-12 daily attendance if it offers a kindergarten through grade 12
20-13 program and has prior or current year's average daily attendance of
20-14 at least 90 students or is 30 miles or more by bus route from the
20-15 nearest high school district. A district offering a kindergarten
20-16 through grade 8 program whose prior or current year's average daily
20-17 attendance was at least 50 students or which is 30 miles or more by
20-18 bus route from the nearest high school district shall be provided
20-19 an adjusted basic allotment on the basis of 75 average daily
20-20 attendance. An average daily attendance of 60 students shall be
20-21 the basis of providing the adjusted basic allotment if a district
20-22 offers a kindergarten through grade 6 program and has prior or
20-23 current year's average daily attendance of at least 40 students or
20-24 is 30 miles or more by bus route from the nearest high school
20-25 district. <This section expires September 1, 1993.>
20-26 SUBCHAPTER D. SPECIAL ALLOTMENTS
20-27 Sec. 16.151. Special Education. (a) For each student in
21-1 average daily attendance in a special education program under
21-2 Subchapter N, Chapter 21, of this code, in a mainstream
21-3 instructional arrangement, a school district is entitled to an
21-4 annual allotment equal to the adjusted basic allotment multiplied
21-5 by 1.1. For each full-time equivalent student in average daily
21-6 attendance in a special education program under Subchapter N,
21-7 Chapter 21, of this code, in an instructional arrangement other
21-8 than a mainstream instructional arrangement, a district is entitled
21-9 to an annual allotment equal to the adjusted basic allotment
21-10 multiplied by a weight determined according to instructional
21-11 arrangement as follows:
21-12 Homebound ................................... 5.0
21-13 Hospital class ........................ 3.0 <5.0>
21-14 Speech therapy ....................... 5.0 <7.11>
21-15 Resource room ......................... 3.0 <2.7>
21-16 Self-contained, mild and moderate,
21-17 regular campus ........................ 3.0 <2.3>
21-18 Self-contained, severe, regular
21-19 campus ................................ 3.0 <3.5>
21-20 Self-contained, separate campus ............. 2.7
21-21 Multidistrict class ................... 2.7 <3.5>
21-22 Nonpublic day school .................. 1.7 <3.5>
21-23 <Vocational adjustment class ............... 2.3>
21-24 Community class ....................... 2.7 <3.5>
21-25 <Mainstream ............................... 0.25>
21-26 (b) A special instructional arrangement for handicapped
21-27 students residing in care and treatment facilities, other than
22-1 state schools, whose parents or guardians do not reside in the
22-2 district providing education services shall be established under
22-3 the rules of the State Board of Education. The funding weight for
22-4 this arrangement shall be 4.0 <5.0> for those students who receive
22-5 their education service on a local school district campus. A
22-6 special instructional arrangement for handicapped students residing
22-7 in state schools shall be established under the rules of the State
22-8 Board of Education with a funding weight of 2.8 <5.0>.
22-9 (c) Beginning with the 1995-1996 school year, the
22-10 self-contained, separate campus; multidistrict class; and community
22-11 class instructional arrangements shall be combined into a single
22-12 instructional arrangement known as the off home campus
22-13 instructional arrangement. For funding purposes, the number of
22-14 contact hours credited per day for each student in the off home
22-15 campus instructional arrangement may not exceed the contact hours
22-16 credited per day for the multidistrict class instructional
22-17 arrangement in the 1992-1993 school year.
22-18 (d) Beginning with the 1995-1996 school year, for funding
22-19 purposes the contact hours credited per day for each student in the
22-20 resource room; self-contained, mild and moderate; and
22-21 self-contained, severe, instructional arrangements may not exceed
22-22 the average of the statewide total contact hours credited per day
22-23 for those three instructional arrangements in the 1992-1993 school
22-24 year.
22-25 (e) The State Board of Education by rule shall prescribe the
22-26 qualifications an instructional arrangement must meet in order to
22-27 be funded as a particular instructional arrangement under this
23-1 section. In prescribing the qualifications that a mainstream
23-2 instructional arrangement must meet, the board shall require that
23-3 the arrangement provide to eligible students with disabilities
23-4 special education services in the regular classroom with any
23-5 necessary direct or indirect special education support.
23-6 (f) In this section, "full-time equivalent student" means 30
23-7 hours of contact a week between a special education student and
23-8 special education program personnel.
23-9 (g) The State Board of Education shall adopt rules and
23-10 procedures governing contracts for residential placement of special
23-11 education students. The legislature shall provide by appropriation
23-12 for the state's share of the costs of those placements.
23-13 (h) Funds allocated under this section, other than an
23-14 indirect cost allotment established under State Board of Education
23-15 rule, must be used in the special education program under
23-16 Subchapter N, Chapter 21, of this code.
23-17 (i) In the determination of instructional arrangements for
23-18 students in residential instructional arrangements, the State Board
23-19 of Education shall develop arrangements that encourage placement of
23-20 students in the least restrictive environment appropriate for their
23-21 educational needs.
23-22 (j) The Central Education Agency shall encourage the
23-23 placement of students in special education programs in the least
23-24 restrictive environment appropriate for their educational needs.
23-25 <The Central Education Agency shall provide transitional support
23-26 for the movement of students from self-contained severe (totally
23-27 self-contained) to self-contained mild and moderate (partially
24-1 self-contained) instructional arrangements. For each student
24-2 placed in a partially self-contained classroom who was placed in a
24-3 totally self-contained classroom for at least two-thirds of the
24-4 prior year, a district will receive $2,500. This payment must be
24-5 used to facilitate the placement of the student in the less
24-6 restrictive environment (partially self-contained classroom). A
24-7 district may not receive more than one support payment for any
24-8 individual student. This support payment shall be forfeited by the
24-9 district if the student is returned to the totally self-contained
24-10 classroom instructional arrangement within one month of placement
24-11 into the partially self-contained classroom or within one year of
24-12 initial reclassification without adequate justification.>
24-13 (k) A school district that maintains for two successive
24-14 years a ratio of full-time equivalent students placed in partially
24-15 or totally self-contained classrooms to the number of full-time
24-16 equivalent students placed in resource room or mainstream
24-17 instructional arrangements <partially self-contained classrooms>
24-18 that is 25 percent higher than the statewide average ratio shall be
24-19 reviewed by the Central Education Agency to determine the
24-20 appropriateness of student placement. The commissioner of
24-21 education may reduce the special education allotment the district
24-22 receives to the level to which the district would be entitled if
24-23 the district's ratio was not more than 25 percent higher than the
24-24 statewide average ratio. <To the extent that there are net cost
24-25 savings to the state resulting from the movement of students from
24-26 totally self-contained to partially self-contained, as provided in
24-27 Subsection (j) of this section, those net savings will be directed
25-1 to regional education service centers to provide technical
25-2 assistance in accordance with Section 11.33(c) of this code
25-3 regarding the movement of students to less restrictive environments
25-4 to those school districts whose ratio of full-time equivalent
25-5 students placed in totally self-contained classrooms is 25 percent
25-6 higher than the statewide average.>
25-7 (l) A school district that provides an extended year program
25-8 required by federal law for special education students who may
25-9 regress is entitled to receive funds in an amount equal to 75
25-10 percent, or a lesser percentage determined by the commissioner of
25-11 education, of the adjusted basic allotment or adjusted allotment,
25-12 as applicable, for each full-time equivalent student in average
25-13 daily attendance, multiplied by the amount designated for the
25-14 student's instructional arrangement under this section, for each
25-15 day the program is provided divided by the number of days in the
25-16 minimum school year. The total amount of state funding for
25-17 extended year services under this section may not exceed $10
25-18 million per year. A school district may use funds received under
25-19 this section only in providing an extended year program <student in
25-20 a mainstream instructional arrangement who is not also in another
25-21 instructional arrangement as provided in Subsection (a) of this
25-22 section is provided the support necessary for the student to remain
25-23 in the regular classroom. This support may include related
25-24 services as defined in Section 21.502 of this code, special
25-25 teaching, or other special education support services while in the
25-26 regular classroom>.
25-27 (m) From the total amount of funds appropriated for special
26-1 education under this section, the commissioner of education shall
26-2 withhold an amount specified in the General Appropriations Act,
26-3 which for the 1994-1995 biennium may not exceed $2 million, and
26-4 distribute that amount to school districts for programs under
26-5 Section 21.513 of this code. The program established under that
26-6 section is required only in school districts in which the program
26-7 is financed by funds distributed under this section and any other
26-8 funds available for the program. After deducting the amount
26-9 withheld under this subsection from the total amount appropriated
26-10 for special education, the commissioner of education shall reduce
26-11 each district's allotment proportionately and shall allocate funds
26-12 to each district accordingly.
26-13 Sec. 16.152. COMPENSATORY EDUCATION ALLOTMENT. (a) For
26-14 each student who is educationally disadvantaged or who is a
26-15 nonhandicapped student residing in a residential placement facility
26-16 in a district in which the student's parent or legal guardian does
26-17 not reside, a district is entitled to an annual allotment equal to
26-18 the adjusted basic allotment multiplied by 0.2, and by 2.41 for
26-19 each full-time equivalent student who is in a remedial and support
26-20 program under Section 21.557 of this code because the student is
26-21 pregnant.
26-22 (b) For purposes of this section, the number of
26-23 educationally disadvantaged students is determined by averaging the
26-24 best six months' enrollment in the national school lunch program of
26-25 free or reduced-price lunches for the preceding school year.
26-26 (c) Funds allocated under this section, other than an
26-27 indirect cost allotment established under State Board of Education
27-1 rule, which shall not exceed 15 percent, must be used in providing
27-2 remedial and compensatory education programs under Section 21.557
27-3 of this code, and the district must account for the expenditure of
27-4 state funds by program and by campus. Funds allocated under this
27-5 section, other than the indirect cost allotment, shall only be
27-6 expended to improve and enhance programs and services funded under
27-7 the regular education program.
27-8 (d) The Central Education Agency shall evaluate the
27-9 effectiveness of remedial and support programs provided under
27-10 Section 21.557 of this code for students at risk of dropping out of
27-11 school.
27-12 (e) A school district in which the actual dropout rate in
27-13 any school year exceeds the state's dropout rate goal for that year
27-14 under Subsection (a) of Section 11.205 of this code shall, for the
27-15 school year immediately following that school year, allocate a
27-16 percentage of the district's allotment under this section to
27-17 remedial and support programs under Section 21.557 of this code for
27-18 students at risk of dropping out of school. The percentage
27-19 allocated to those programs must be at least equal to the state's
27-20 actual dropout rate for the preceding year. The programs must be
27-21 programs authorized by the State Board of Education. The Central
27-22 Education Agency shall provide to the district technical assistance
27-23 in reducing the district's dropout rate. At the request of a
27-24 district, the commissioner of education may exempt the district
27-25 from the requirements of this section if the commissioner finds
27-26 that special circumstances in the district merit the exemption.
27-27 (f) The commissioner of education may:
28-1 (1) retain a portion of the total amount allotted
28-2 under Subsection (a) of this section that the commissioner
28-3 considers appropriate to finance pilot programs under Section
28-4 11.191 of this code and to finance intensive remedial instruction
28-5 programs and study guides provided under Sections 21.552(b) and (c)
28-6 of this code; and
28-7 (2) reduce each district's allotment proportionately.
28-8 (g) From the total amount of funds appropriated for
28-9 allotments under this section, the commissioner of education shall,
28-10 each fiscal year, withhold the amount of $10,000,000 and distribute
28-11 that amount for programs under Section 21.114 of this code. The
28-12 program established under that section is required only in school
28-13 districts in which the program is financed by funds distributed
28-14 under this section and any other funds available for the program.
28-15 (h) The commissioner of education shall coordinate the funds
28-16 withheld under Subsection (g) of this section and any other funds
28-17 available for the program and shall distribute those funds. To
28-18 receive funds for the program, a school district must apply to the
28-19 commissioner. The commissioner shall give a preference to the
28-20 districts that apply that have the highest concentration of
28-21 students who are pregnant or who are parents.
28-22 (i) The commissioner of education shall withhold funds
28-23 allocated under this section to a district that fails to timely
28-24 prepare or make available on request of a member of the general
28-25 public the report required under Section 21.557(i) of this code.
28-26 The commissioner may restore withheld funds only when the
28-27 commissioner is satisfied that the district has provided the
29-1 information requested.
29-2 (j) <(i)> After deducting the amount withheld under
29-3 Subsection (g) of this section from the total amount appropriated
29-4 for the allotment under Subsection (a) of this section, the
29-5 commissioner of education shall reduce each district's allotment
29-6 under Subsection (a) proportionately and shall allocate funds to
29-7 each district accordingly.
29-8 (k) <(j)> From the total amount of funds appropriated for
29-9 allotments under this section, the commissioner of education shall,
29-10 each fiscal year, withhold the amount of $5,000,000 and distribute
29-11 that amount for programs under Subchapter V, Chapter 21, of this
29-12 code. A program established under that subchapter is required only
29-13 in school districts in which the program is financed by funds
29-14 distributed under this section or other funds distributed by the
29-15 commissioner for a program under that subchapter.
29-16 (l) <(k)> The commissioner of education shall coordinate the
29-17 funds withheld under Subsection (k) <(j)> of this section and any
29-18 other funds available for the program and shall distribute those
29-19 funds. To receive funds for the program, a school district must
29-20 apply to the commissioner. The commissioner shall give a
29-21 preference to the districts that apply that have the highest
29-22 concentration of at-risk students. For each school year that a
29-23 school district receives funds under this section, the district
29-24 shall allocate an amount of local funds for school guidance and
29-25 counseling programs that is equal to or greater than the amount of
29-26 local funds that the school district allocated for that purpose
29-27 during the preceding school year.
30-1 (m) <(l)> After deducting the amount withheld under
30-2 Subsection (k) <(j)> of this section from the total amount
30-3 appropriated for the allotment under Subsection (a) of this
30-4 section, the commissioner of education shall reduce each district's
30-5 allotment under Subsection (a) on a per pupil basis.
30-6 Sec. 16.153. BILINGUAL EDUCATION ALLOTMENT. (a) For each
30-7 student in average daily attendance in a bilingual education or
30-8 special language program under Subchapter L, Chapter 21, of this
30-9 code, a district is entitled to an annual allotment equal to the
30-10 adjusted basic allotment multiplied by 0.1.
30-11 (b) Funds allocated under this section, other than an
30-12 indirect cost allotment established under State Board of Education
30-13 rule, must be used in providing bilingual education or special
30-14 language programs under Subchapter L, Chapter 21, of this code.
30-15 (c) A district's bilingual education or special language
30-16 allocation may be used only for program and pupil evaluation,
30-17 instructional materials and equipment, staff development,
30-18 supplemental staff expenses, salary supplements for teachers, and
30-19 other supplies required for quality instruction and smaller class
30-20 size.
30-21 Sec. 16.155. VOCATIONAL EDUCATION ALLOTMENT. (a) For each
30-22 full-time equivalent student in average daily attendance in an
30-23 approved vocational education program in grades nine through 12 or
30-24 in vocational education for the handicapped programs in grades
30-25 seven through 12, a district is entitled to an annual allotment
30-26 equal to the adjusted basic allotment multiplied by a weight of
30-27 1.37.
31-1 (b) In this section, "full-time equivalent student" means 30
31-2 hours of contact a week between a student and vocational education
31-3 program personnel.
31-4 (c) Funds allocated under this section, other than an
31-5 indirect cost allotment established under State Board of Education
31-6 rule, must be used in providing vocational education programs in
31-7 grades nine through 12 or vocational education for the handicapped
31-8 programs in grades seven through 12 under the provisions of
31-9 Sections 21.111, 21.1111, and 21.112 of this code.
31-10 (d) The indirect cost allotment established under board
31-11 rules shall first be effective for the 1991-1992 school year
31-12 consistent with the weight effective that year.
31-13 (e) The commissioner shall conduct a cost-benefit comparison
31-14 between vocational education programs and mathematics and science
31-15 programs.
31-16 (f) <(h)> Out of the total statewide allotment for
31-17 vocational education under this section, the commissioner of
31-18 education shall set aside an amount specified in the General
31-19 Appropriations Act, which may not exceed an amount equal to one
31-20 percent of the total amount appropriated, to support regional
31-21 vocational education planning committees established under Section
31-22 21.115(b) of this code. After deducting the amount set aside under
31-23 this subsection from the total amount appropriated for vocational
31-24 education under this section, the commissioner shall reduce each
31-25 district's allotment in the same manner described for a reduction
31-26 in state funds under Section 16.254<(d)> of this code.
31-27 Sec. 16.156. TRANSPORTATION ALLOTMENT. (a) Each district
32-1 or county operating a transportation system is entitled to
32-2 allotments for transportation costs as provided by this section.
32-3 (b) As used in this section:
32-4 (1) "Regular eligible pupil" means a pupil who resides
32-5 two or more miles from his or her campus of regular attendance,
32-6 measured along the shortest route that may be traveled on public
32-7 roads, and who is not classified as an eligible handicapped pupil.
32-8 (2) "Eligible handicapped pupil" means a pupil who is
32-9 handicapped as defined in Section 21.503 of this code and who would
32-10 be unable to attend classes without special transportation
32-11 services.
32-12 (3) "Linear density" means the average number of
32-13 regular eligible pupils transported daily, divided by the approved
32-14 daily route miles traveled by the respective transportation system.
32-15 (c) Each district or county operating a regular
32-16 transportation system is entitled to an allotment based on the
32-17 daily cost per regular eligible pupil of operating and maintaining
32-18 the regular transportation system and the linear density of that
32-19 system. In determining the cost, the commissioner shall give
32-20 consideration to factors affecting the actual cost of providing
32-21 these transportation services in each district or county. The
32-22 average actual cost is to be computed by the commissioner of
32-23 education and included for consideration by the Foundation School
32-24 Fund Budget Committee and the legislature in the General
32-25 Appropriations Act. The allotment per mile of approved route may
32-26 not exceed the amount set by appropriation.
32-27 (d) A district or county may apply for and on approval of
33-1 the commissioner of education receive an additional amount of up to
33-2 10 percent of its regular transportation allotment to be used for
33-3 the transportation of children living within two miles of the
33-4 school they attend who would be subject to hazardous traffic
33-5 conditions if they walked to school. Each board of trustees shall
33-6 provide to the commissioner the definition of hazardous conditions
33-7 applicable to that district and shall identify the specific
33-8 hazardous areas for which the allocation is requested. A hazardous
33-9 condition exists where no walkway is provided and children must
33-10 walk along or cross a freeway or expressway, an underpass, an
33-11 overpass or a bridge, an uncontrolled major traffic artery, an
33-12 industrial or commercial area, or another comparable condition.
33-13 (e) The state commissioner of education may grant an amount
33-14 set by appropriation for private or commercial transportation for
33-15 eligible pupils from isolated areas. The need for this type of
33-16 transportation grant shall be determined on an individual basis and
33-17 the amount granted shall not exceed the actual cost. The grants
33-18 shall be made only in extreme hardship cases, and no grants shall
33-19 be made if the pupils live within two miles of an approved school
33-20 bus route.
33-21 (f) The cost of transporting vocational education students
33-22 from one campus to another inside a district or from a sending
33-23 district to another secondary public school for a vocational
33-24 program or an area vocational school or to an approved
33-25 post-secondary institution under a contract for instruction
33-26 approved by the Central Education Agency shall be reimbursed based
33-27 on the number of actual miles traveled times the district's
34-1 official extracurricular travel per mile rate as set by their local
34-2 board of trustees and approved by the Central Education Agency.
34-3 (g) A school district or county that provides special
34-4 transportation services for eligible handicapped pupils is entitled
34-5 to a state allocation paid on a previous year's cost-per-mile
34-6 basis. The maximum rate per mile allowable shall be set by
34-7 appropriation based on data gathered from the first year of each
34-8 preceding biennium. Districts may use a portion of their support
34-9 allocation to pay transportation costs, if necessary. The
34-10 commissioner of education may grant an amount set by appropriation
34-11 for private transportation to reimburse parents or their agents for
34-12 transporting eligible handicapped pupils. The mileage allowed
34-13 shall be computed along the shortest public road from the pupil's
34-14 home to school and back, morning and afternoon. The need for this
34-15 type transportation shall be determined on an individual basis and
34-16 shall be approved only in extreme hardship cases.
34-17 (h) The allocation for eligible regular students transported
34-18 by the regular transportation system shall be increased by five
34-19 percent for any district or county school board which has complied
34-20 with the provisions of Section 21.173 of this code in accordance
34-21 with rules adopted by the State Board of Education.
34-22 (i) Funds allotted under this section must be used in
34-23 providing transportation services.
34-24 (j) In the case of a district belonging to a county
34-25 transportation system, the district's transportation allotment for
34-26 purposes of determining a district's foundation school program
34-27 allocations shall be determined on the basis of the number of
35-1 approved daily route miles in the district multiplied by the
35-2 allotment per mile to which the county transportation system is
35-3 entitled.
35-4 Sec. 16.158. Career Ladder Allotment. (a) Each district is
35-5 entitled to an allotment for support of the career ladder equal to
35-6 its unadjusted average daily attendance multiplied by $90.
35-7 (b) An allotment under this section may be used only for the
35-8 purposes of career ladder supplements.
35-9 (c) From the funds designated for that purpose, the district
35-10 shall supplement the salary of each teacher above level one on the
35-11 career ladder. The district shall decide the amount of supplement
35-12 to be provided at each career ladder level.
35-13 (d) Money received under this section may not be used to
35-14 supplement the salary of an employee for directing cocurricular or
35-15 extracurricular activities.
35-16 (e) The commissioner shall reduce the basic allotment under
35-17 Section 16.101 of this code by an amount that would result in a
35-18 reduction of the state's share of the basic allotment sufficient to
35-19 fund the career ladder allotment under this section.
35-20 Sec. 16.159. Gifted and Talented Student Allotment.
35-21 (a) For each student a school district serves in a Central
35-22 Education Agency approved program for gifted and talented students
35-23 under Subchapter Q, Chapter 21, of this code or, in the case of a
35-24 district that is developing a program in accordance with standards
35-25 established by the commissioner of education, for each student the
35-26 district identifies as gifted and talented under State Board of
35-27 Education criteria, a district is entitled to an annual allotment
36-1 equal to the district's adjusted basic allotment as determined
36-2 under Section 16.102 or Section 16.103 of this code, as applicable,
36-3 multiplied by .12 for each school year or a greater amount provided
36-4 by appropriation.
36-5 (b) Funds allocated under this section, other than the
36-6 amount that represents the program's share of general
36-7 administrative costs, must be used in providing approved programs
36-8 for gifted and talented students under Subchapter Q, Chapter 21, of
36-9 this code or, in the case of a district that has not yet
36-10 established a program, in developing programs for gifted and
36-11 talented students. Each district must account for the expenditure
36-12 of state funds as provided by rule of the State Board of Education.
36-13 If by the end of the 12th month after receiving an allotment for
36-14 developing a program a district has failed to implement an approved
36-15 program, the district must refund the amount of the allotment to
36-16 the agency within 30 days.
36-17 (c) Not more than five percent of a district's students in
36-18 average daily attendance are eligible for funding under this
36-19 section.
36-20 (d) If the amount of state funds for which school districts
36-21 are eligible under this section exceeds the amount of state funds
36-22 appropriated in any year for the programs, the commissioner of
36-23 education shall reduce each district's allotment on a pro rata
36-24 basis.
36-25 (e) If the total amount of funds allotted under this section
36-26 before a date set by rule of the State Board of Education is less
36-27 than the total amount appropriated for a school year, the
37-1 commissioner shall distribute the remainder proportionately to the
37-2 districts that have received an allotment, and no other districts
37-3 are eligible for an allotment for that school year.
37-4 (f) After each district has received allotted funds for this
37-5 program, the State Board of Education may use up to $500,000 of the
37-6 funds allocated under this section for programs such as Future
37-7 Problem Solving Olympics of the Mind, and Academic Decathlon, as
37-8 long as these funds are used to train personnel and provide program
37-9 services. To be eligible for funding under this section, a program
37-10 must be determined by the State Board of Education to provide
37-11 services that are effective and consistent with the state plan for
37-12 gifted and talented education.
37-13 Sec. 16.160. TECHNOLOGY FUNDS. (a) Developmental and
37-14 technology allotment allocations under the provisions of Chapter 14
37-15 are included in the Foundation School Program.
37-16 (b) Each district shall be allotted the amount specified in
37-17 Section 14.063 of this code after deductions by the commissioner of
37-18 education for the purposes of financing programs authorized under
37-19 Subchapter C, Chapter 14, of this code.
37-20 SUBCHAPTER F. ACCOUNTABLE COSTS OF EDUCATION
37-21 Sec. 16.201. Purpose. The accountable costs of education
37-22 studies are designed to support the development of the equalized
37-23 funding elements necessary to provide an efficient state and local
37-24 public school finance system which meets the state policy
37-25 established in Section 16.001 of this code and provides the
37-26 research basis for the equalized funding elements under the
37-27 provisions of Section 16.256 of this code.
38-1 Sec. 16.202. STUDIES. On a biennial basis, the Legislative
38-2 Education Board and the Legislative Budget Board, with the
38-3 assistance of the Educational Economic Policy Center and the
38-4 Central Education Agency, shall complete each of the following
38-5 studies and develop recommended amounts where appropriate for each
38-6 year of the next biennium:
38-7 (1) a study of the fiscal neutrality of the system to
38-8 determine the status of the state and local finance system with
38-9 regard to the policies established under the provisions of Section
38-10 16.001 of this code, including recommendations for adjustments
38-11 necessary to maintain fiscal neutrality;
38-12 (2) the accountable costs per student to school
38-13 districts of providing educational programs, personnel, and other
38-14 operating costs that meet accreditation criteria and the provisions
38-15 of law and regulation;
38-16 (3) program cost differentials designed by program to
38-17 provide support for the added expense of high-cost courses or
38-18 programs for students participating in such courses or programs,
38-19 with the program funding level expressed as dollar amounts and as
38-20 weights applied to the adjusted basic allotment for the appropriate
38-21 year;
38-22 (4) transportation and career ladder allotments;
38-23 (5) the levels of tax effort necessary for each tier
38-24 of the Foundation School Program necessary to fulfill the
38-25 requirements of Sections 16.001 and 16.008 of this code; and
38-26 (6) capital outlay and debt service requirements and
38-27 formula elements for the requirements of Subchapter I of this
39-1 chapter or other provisions of this chapter.
39-2 Sec. 16.203. Procedures. (a) The program cost
39-3 differentials developed jointly by the Legislative Education Board
39-4 and the Legislative Budget Board shall be submitted to the
39-5 foundation school fund budget committee for adoption beginning with
39-6 the 1993-1994 school year. If the foundation school fund budget
39-7 committee fails to adopt by April 1 the program cost differentials
39-8 for the following school year, the commissioner of education, after
39-9 considering the recommendations developed by those boards, shall
39-10 adopt program cost differentials.
39-11 (b) The commissioner of education shall provide appropriate
39-12 assistance to the boards for the calculation of the various funding
39-13 elements. Subject to review by the Legislative Education Board,
39-14 the commissioner of education shall retain from the allotments
39-15 under Sections 16.102 and 16.103 of this code and Subchapter D of
39-16 this chapter amounts appropriate to finance necessary additional
39-17 costs for the studies required under this subchapter.
39-18 (c) The boards may appoint advisory committees to assist in
39-19 the development of the various funding elements and studies
39-20 required under this subchapter. Advisory committee members serve
39-21 without compensation but are entitled to reimbursement for actual
39-22 and necessary expenses incurred in the performance of their duties.
39-23 Reimbursement shall be from funds available under Subsection (b) of
39-24 this section or from other funds available to the boards.
39-25 (d) In the studies relating to program cost differentials
39-26 the boards shall give special consideration to cost factors
39-27 associated with class size, laboratory expenses, materials,
40-1 equipment, teacher training, necessary salary supplementation, and
40-2 special services related to individual courses or groups of
40-3 courses.
40-4 <Sec. 16.204. NAVAL MILITARY FACILITY IMPACT. (a) The
40-5 model on which a cost of education index is based must specifically
40-6 consider the impact of a significant new naval military facility on
40-7 each district in an impacted region.>
40-8 <(b) If the construction or operation of a significant new
40-9 naval military facility begins during a school year, the
40-10 Legislative Education Board and the Legislative Budget Board shall
40-11 recommend the adjustment of the basic allotment during that school
40-12 year to consider any impact of the facility on the cost of
40-13 education index of the districts in the impacted region.>
40-14 <(c) In this section, "significant new naval military
40-15 facility" and "impacted region" have the meanings assigned by
40-16 Section 4, Article 1, National Defense Impacted Region Assistance
40-17 Act of 1985 (Article 689a-4d, Vernon's Texas Civil Statutes).>
40-18 <(d) This section expires September 1, 1993.>
40-19 Sec. 16.205. LIMIT ON ADMINISTRATIVE COSTS. (a) The
40-20 commissioner of education by rule shall determine annually:
40-21 (1) an administrative cost ratio for school districts
40-22 with fewer than 500 students in average daily attendance;
40-23 (2) an administrative cost ratio for school districts
40-24 with 500 to 999 students in average daily attendance;
40-25 (3) an administrative cost ratio for school districts
40-26 with 1,000 to 4,999 students in average daily attendance;
40-27 (4) an administrative cost ratio for school districts
41-1 with 5,000 to 9,999 students in average daily attendance; and
41-2 (5) an administrative cost ratio for school districts
41-3 with more than 10,000 students in average daily attendance.
41-4 (b) The commissioner of education may adjust the
41-5 administrative cost ratio of a district to allow for additional
41-6 administrative costs required by:
41-7 (1) the sparsity of the district; or
41-8 (2) students with special needs.
41-9 (c) Not later than February 1 of each year, the commissioner
41-10 of education shall notify all districts of the requirements and
41-11 standards for determining administrative cost ratios for the
41-12 following year. Not later than March 1 of each year, Central
41-13 Education Agency staff shall conduct a desk audit of prior-year
41-14 expenditure data available through the Public Education Information
41-15 Management System (PEIMS) to identify those districts whose
41-16 administrative cost ratio in the prior year exceeded their adjusted
41-17 group standard. Districts with an administrative cost ratio in
41-18 excess of their adjusted group standard shall be notified by March
41-19 15 that they have excessive administrative costs and that they are
41-20 required to reduce these costs to the level of the adjusted group
41-21 standard for the following school year. Within 60 days of such
41-22 notification, a district shall respond to the commissioner of
41-23 education by submitting a description of the district's plan to
41-24 comply with the standard for the following year or request a waiver
41-25 from the commissioner of education explaining why the district
41-26 cannot comply with the standard. Not later than June 30, the
41-27 commissioner of education shall notify responding districts if
42-1 further action is needed.
42-2 (d) If a school district fails to reduce administrative
42-3 costs to the level required by this section, the commissioner of
42-4 education shall deduct from a school district's tier one allotments
42-5 an amount equal to the amount by which the district's
42-6 administrative costs exceed the amount permitted by its
42-7 administrative cost ratio, unless the commissioner has granted a
42-8 waiver in response to the district's request. The commissioner
42-9 shall make a deduction under this subsection from the foundation
42-10 school fund payments to the district in the school year following
42-11 the school year in which the plan to reduce costs was to be
42-12 implemented. If a school district does not receive a tier one
42-13 allotment, the district shall remit an amount equal to the excess
42-14 to the comptroller for deposit to the credit of the foundation
42-15 school fund.
42-16 (e) The commissioner of education may grant a waiver to a
42-17 school district that exceeds its administrative cost ratio if the
42-18 excess is justified by unusual circumstances.
42-19 (f) A school district shall include a statement of any
42-20 amount withheld or remitted under Subsection (d) of this section in
42-21 the district report card required by Section 21.258 of this code.
42-22 (g) In this section:
42-23 (1) "Administrative cost ratio" means a school
42-24 district's administrative costs divided by its instructional costs,
42-25 expressed as a percentage.
42-26 (2) "Administrative costs" are defined as operating
42-27 expenses made from funds other than federal funds associated with
43-1 managing, planning, directing, coordinating, and evaluating a
43-2 school district in accordance with Accounting functions 21 -
43-3 Instructional Administration, and 41 - General Administration as
43-4 described in the Financial Accounting Manual Bulletin 679 for
43-5 Budgeting, Accounting, and Auditing in Texas Public Schools, Ninth
43-6 Edition, published by the Central Education Agency.
43-7 (3) "Instructional costs" are defined as operating
43-8 expenses made from funds other than federal funds associated with
43-9 teacher-student instruction in accordance with Accounting functions
43-10 11 - Instruction, 22 - Instructional Resources and Media Services,
43-11 25 - Curriculum and Instructional Staff Development, and 31 -
43-12 Guidance and Counseling Services as described in the Financial
43-13 Accounting Manual Bulletin 679 for Budgeting, Accounting, and
43-14 Auditing in Texas Public Schools, Ninth Edition, published by the
43-15 Central Education Agency.
43-16 (4) "Adjusted group standard" is the acceptable
43-17 administrative cost ratio for each district as determined in
43-18 accordance with Subsections (a) and (b) of this section.
43-19 <EFFICIENCY IN ADMINISTRATION REPORT. (a) The commissioner of
43-20 education shall conduct a study to determine the most appropriate
43-21 and efficient method for reporting and monitoring the allocation of
43-22 resources by school districts.>
43-23 <(b) The study shall identify the most effective means for
43-24 calculating, monitoring, and reporting the proportion of resources
43-25 that school districts allocate for their administrative costs and
43-26 shall include administrator-teacher ratios.>
43-27 <(c) The study shall include a description of average
44-1 efficient administrative expenditures by districts with
44-2 consideration of district size and demographics.>
44-3 <(d) Prior to the beginning of each regular session of the
44-4 legislature, the agency shall provide a report with recommendations
44-5 to the Legislative Education Board and the legislature.>
44-6 <(e) The study is an element of the study of accountable
44-7 costs of education under this subchapter.>
44-8 <Sec. 16.206. COST ADJUSTMENTS. (a) The lieutenant
44-9 governor shall appoint five members of the senate and the speaker
44-10 of the house of representatives shall appoint five members of the
44-11 house to a committee to conduct a study of certain costs of
44-12 providing public education as provided by this section. The
44-13 lieutenant governor and the speaker shall make the appointments not
44-14 later than September 1, 1991.>
44-15 <(b) The committee shall examine methods of adjusting for
44-16 specific resource cost variations caused by factors beyond the
44-17 control of school districts. The committee shall recommend
44-18 adjustments for these factors that will provide the most efficient
44-19 service delivery considering optimum district size, enrollment
44-20 growth, and other cost factors. For the purpose of the study, the
44-21 committee shall divide districts and campuses into a variety of
44-22 categories that may include region, size, area, density,
44-23 educational characteristics, and economic conditions.>
44-24 <(c) The committee may appoint one or more advisory panels
44-25 to assist the committee in conducting the study. Advisory panel
44-26 members serve without compensation but are entitled to
44-27 reimbursement for actual and necessary expenses incurred in the
45-1 performance of their duties.>
45-2 <(d) The committee shall recommend adjustments to the
45-3 Foundation School Program for resource cost variations caused by
45-4 factors beyond the control of school districts to the foundation
45-5 school fund budget committee not later than June 1, 1992. The
45-6 adjustments shall include:>
45-7 <(1) an adjustment to account for fast enrollment
45-8 growth and other factors relevant to a district's need for
45-9 facilities; and>
45-10 <(2) appropriate treatment of the calculation of
45-11 weighted students under Section 16.302 of this code.>
45-12 <(e) The foundation school fund budget committee by rule
45-13 shall adopt adjustments to the Foundation School Program for
45-14 resource cost variations beyond the control of school districts to
45-15 apply beginning with the 1993-1994 school year. The foundation
45-16 school fund budget committee shall report the adjustments adopted
45-17 to the legislature and the commissioner of education. If the
45-18 foundation school fund budget committee fails to adopt the
45-19 adjustments by November 1, 1992, the commissioner of education by
45-20 rule shall adopt adjustments not later than December 1,
45-21 1992.>
45-22 <(f) The rules adopted under this section apply beginning
45-23 with the 1993-1994 school year. If no rules are adopted under this
45-24 section, the basic allotment calculated under Sections 16.008 and
45-25 16.256(e) of this code shall be increased to reflect the costs
45-26 associated with the adjustments made by the cost of education index
45-27 and formula for the 1992-1993 school year.>
46-1 SUBCHAPTER G. FINANCING THE PROGRAM
46-2 Sec. 16.251. FINANCING; GENERAL RULE. (a) The sum of the
46-3 basic allotment under Subchapter C, the special allotments under
46-4 Subchapter D, and the guaranteed yield allotments under Subchapter
46-5 H, computed in accordance with the provisions of this chapter,
46-6 constitute the total cost of the Foundation School Program.
46-7 (b) The program shall be financed by:
46-8 (1) ad valorem tax revenue generated by an equalized
46-9 uniform school <county education> district effort;
46-10 (2) ad valorem tax revenue generated by local school
46-11 district effort in excess of the equalized uniform school <county
46-12 education> district effort;
46-13 (3) state available school funds distributed in
46-14 accordance with law; and
46-15 (4) state funds appropriated for the purposes of
46-16 public school education and allocated to each district in an amount
46-17 sufficient to finance the cost of each district's Foundation School
46-18 Program not covered by other funds specified in this
46-19 subsection.
46-20 (c) The commissioner of education shall compute for each
46-21 school district the total amount, if any, by which the district's
46-22 total revenue is reduced from one school year to the next because
46-23 of a change in the method of finance under this chapter. The
46-24 commissioner shall certify the amount of the reduction to the
46-25 school district for use in determining the school district's
46-26 rollback rate under Section 26.08, Tax Code.
46-27 Sec. 16.252. LOCAL SHARE OF PROGRAM COST (TIER ONE).
47-1 (a) Each school <county education> district's share of the
47-2 Foundation School Program shall be an amount determined by the
47-3 following formula:
47-4 where:
47-5 "LFA" is the <county education> district's tier one local
47-6 share;
47-7 "TR" is a tax rate which for each hundred dollars of
47-8 valuation is $0.90 <$0.72 for the 1991-1992 school year, $0.82 for
47-9 the 1992-1993 school year, $0.92 for the 1993-1994 school year, and
47-10 $1.00 for each school year thereafter>; and
47-11 "DPV" is the taxable value of property in the <county
47-12 education> district for the prior tax year determined under Section
47-13 11.86 of this code.
47-14 (b) The commissioner of education shall adjust the values
47-15 reported in the official report of the comptroller as required by
47-16 Section 5.09(a), <Property> Tax Code, to reflect reductions in
47-17 taxable value of property resulting from natural or economic
47-18 disaster after January 1 in the year in which the valuations are
47-19 determined. The decision of the commissioner of education shall be
47-20 final. An adjustment does not affect the local fund assignment of
47-21 any other school <county education> district.
47-22 (c) Appeals of district values shall be held pursuant to
47-23 Subsection (e) of Section 11.86 of this code.
47-24 (d) A school <county education> district shall raise its
47-25 total local share of the foundation school program. <The funds
47-26 shall be reallocated to the school districts in the county
47-27 education district in the manner prescribed by Subchapter J of this
48-1 chapter.>
48-2 (e) The commissioner of education shall hear appeals from
48-3 school <county education> districts which have experienced a rapid
48-4 decline in tax base used in calculating the local fund assignment,
48-5 exceeding eight percent of prior year, that is beyond the control
48-6 of the board of trustees of the school <county education> district.
48-7 The commissioner of education may adjust the school <county
48-8 education> district's taxable values for local fund assignment
48-9 purposes for such losses in value exceeding eight percent and
48-10 thereby adjust the local fund assignment to reflect the local
48-11 current year taxable value. The decision of the commissioner of
48-12 education shall be final. An adjustment does not affect the local
48-13 fund assignment of any other school <county education>
48-14 district.
48-15 Sec. 16.254. DISTRIBUTION OF FOUNDATION SCHOOL FUND.
48-16 (a) For each school year the commissioner of education shall
48-17 determine:
48-18 (1) the amount of money to which a school district is
48-19 entitled under Subchapters C and D of this chapter;
48-20 (2) the amount of money to which a school district is
48-21 entitled under Subchapter H of this chapter;
48-22 (3) the amount of money allocated to the district from
48-23 the available school fund;
48-24 (4) the amount of each district's tier one local share
48-25 under Section 16.252 of this code; and
48-26 (5) the amount of each district's tier two local share
48-27 under Section 16.303 of this code.
49-1 (b) The commissioner shall base the determinations under
49-2 Subsection (a) of this section on the estimates provided to the
49-3 legislature under Section 16.2541 of this code for each school
49-4 district for each school year or different estimates provided by
49-5 the General Appropriations Act.
49-6 (c) Each school district is entitled to an amount equal to
49-7 the difference for that district between the sum of Subsections
49-8 (a)(1) and (a)(2) of this section and the sum of Subsections
49-9 (a)(3), (a)(4), and (a)(5) of this section.
49-10 (d) The commissioner shall approve warrants to each school
49-11 district equaling the amount of its entitlement except as provided
49-12 by this section. Warrants for all money expended according to this
49-13 chapter shall be approved and transmitted to treasurers or
49-14 depositories of school districts in the same manner that warrants
49-15 for state payments are transmitted.
49-16 (e) The commissioner shall recompute the amount to which the
49-17 district is entitled under Subsection (c) of this section if a
49-18 school district's tax rate is less than the limit authorized under
49-19 this subsection. For a district with a taxable value of property
49-20 per weighted student in average daily attendance that is equal to
49-21 or greater than the average value for a school district in this
49-22 state, as determined under Section 11.86 of this code, the amount
49-23 to which the district is entitled under this section may not exceed
49-24 the amount to which the district would be entitled at the
49-25 district's tax rate for the final year of the preceding biennium,
49-26 or a different tax rate provided by appropriation. For a district
49-27 with a taxable value of property per weighted student in average
50-1 daily attendance of zero, the amount to which the district is
50-2 entitled under this section may not exceed the amount to which the
50-3 district is entitled at the district's tax rate for the current
50-4 year up to the limit of a rate that is a $0.10 increase in rate
50-5 over the last year of the preceding biennium. For other districts
50-6 with a taxable value of property per weighted student in average
50-7 daily attendance that is lower than the state average, the
50-8 commissioner of education shall provide for a proportionately lower
50-9 limit under this section based on each district's taxable value of
50-10 property so that the closer a district's taxable value of property
50-11 per weighted student in average daily attendance is to the state
50-12 average, the lower the limit. The commissioner annually shall
50-13 certify to districts with a taxable value of property per weighted
50-14 student in average daily attendance that is lower than the state
50-15 average the amount of district revenue within the limit prescribed
50-16 under this section. The commissioner shall recompute the amount to
50-17 which a district is entitled to the extent necessary under this
50-18 section. The commissioner shall approve warrants to the school in
50-19 the amount that results from the new computation. An amount equal
50-20 to the difference between the initial allocation and the amount of
50-21 the warrants shall be transferred to a special account in the
50-22 foundation school fund known as the reserve account.
50-23 (f) Amounts transferred to the reserve account under
50-24 Subsection (e) of this section shall be used in the succeeding
50-25 fiscal year to finance increases in allocations to school districts
50-26 under Subsection (i) of this section. If the amount in the reserve
50-27 account is less than the amount of the increases under Subsection
51-1 (i) of this section for the second year of a state fiscal biennium,
51-2 the commissioner shall certify the amount of the difference to the
51-3 foundation school fund budget committee not later than January 1 of
51-4 the second year of the state fiscal biennium. The committee shall
51-5 propose to the legislature that the certified amount be transferred
51-6 to the foundation school fund from the economic stabilization fund
51-7 and appropriated for the purpose of increases in allocations under
51-8 Subsection (h) of this section.
51-9 (g) If a school district demonstrates to the satisfaction of
51-10 the commissioner that the estimate of the district's tax rate,
51-11 student enrollment, or taxable value of property used in
51-12 determining the amount of state funds to which the district is
51-13 entitled are so inaccurate as to result in undue financial hardship
51-14 to the district, the commissioner may adjust funding to that
51-15 district in that school year to the extent that funds are available
51-16 for that year, including funds in the reserve account. Funds in
51-17 the reserve account may not be used under this subsection until any
51-18 reserve funds have been used for purposes of Subsection (f) of this
51-19 section.
51-20 (h) If the legislature fails during the regular session to
51-21 enact the transfer and appropriation proposed under Subsection (f)
51-22 of this section and there are not funds available under Subsection
51-23 (j) of this section, the commissioner shall reduce the total amount
51-24 of state funds allocated to each district by an amount determined
51-25 by a method under which the application of the same number of cents
51-26 of increase in tax rate in all districts applied to the taxable
51-27 value of property of each district, as determined under Section
52-1 11.86 of this code, results in a total levy equal to the total
52-2 reduction. The following fiscal year, a district's entitlement
52-3 under this section is increased by an amount equal to the reduction
52-4 made under this subsection.
52-5 (i) Not later than March 1 each year, the commissioner shall
52-6 determine the actual amount of state funds to which each school
52-7 district is entitled under the allocation formulas in this chapter
52-8 for the current school year and shall compare that amount with the
52-9 amount of the warrants issued to each district for that year. If
52-10 the amount of the warrants differs from the amount to which a
52-11 district is entitled because of variations in the district's tax
52-12 rate, student enrollment, or taxable value of property, the
52-13 commissioner shall adjust the district's entitlement for the next
52-14 fiscal year accordingly.
52-15 (j) The legislature may appropriate funds necessary for
52-16 increases under Subsection (i) of this section from funds that the
52-17 comptroller, at any time during the fiscal year, finds are
52-18 available.
52-19 (k) The commissioner shall compute for each school district
52-20 the total amount by which the district's allocation of state funds
52-21 is increased or reduced under Subsection (i) of this section and
52-22 shall certify that amount to the district.
52-23 (l) The commissioner shall compute for each school district
52-24 the total amount, if any, by which the district's total revenue is
52-25 reduced from one school year to the next because of a change in the
52-26 method of finance under this chapter. The commissioner shall
52-27 certify the amount of the reduction to the school district for use
53-1 in determining the school district's rollback rate under Section
53-2 26.08, Tax Code.
53-3 (m) In this section, the number of weighted students in
53-4 average daily attendance is calculated in the manner provided by
53-5 Section 16.302 of this code.
53-6 Sec. 16.2541. ESTIMATES REQUIRED. (a) Not later than
53-7 October 1 of each even-numbered year:
53-8 (1) the Central Education Agency shall submit to the
53-9 foundation school fund budget committee and the legislature an
53-10 estimate of the tax rate and student enrollment of each school
53-11 district for the following biennium; and
53-12 (2) the comptroller shall submit to the foundation
53-13 school fund budget committee and the legislature an estimate of the
53-14 total taxable value of all property in the state as determined
53-15 under Section 11.86 of this code for the following biennium.
53-16 (b) The Central Education Agency and the comptroller shall
53-17 update the information provided to the legislature under Subsection
53-18 (a) of this section not later than March 1 of each odd-numbered
53-19 year. <The commissioner of education shall determine annually:>
53-20 <(1) the amount of money necessary to operate a
53-21 Foundation School Program in each school district;>
53-22 <(2) the amount of local funds due the school district
53-23 from the local fund assignment of the county education district;
53-24 and>
53-25 <(3) the amount of state available school funds
53-26 distributed to each school district.>
53-27 <(b) The commissioner of education shall then grant to each
54-1 school district from the Foundation School Program appropriation
54-2 the amount of funds necessary to provide the difference between
54-3 Subdivision (1) and the sum of Subdivisions (2) and (3) of
54-4 Subsection (a) of this section.>
54-5 <(c) The commissioner shall approve warrants to each school
54-6 district equaling the amount of its grant. Warrants for all money
54-7 expended according to the provisions of this chapter shall be
54-8 approved and transmitted to treasurers or depositories of school
54-9 districts in the same manner as warrants for state apportionment
54-10 are transmitted.>
54-11 <(d) Notwithstanding any other provision of this chapter, if
54-12 for any year the total state's share of the Foundation School
54-13 Program, as determined under this chapter, exceeds the total amount
54-14 appropriated for that year, the commissioner shall reduce the total
54-15 amount of state funds allocated to each district by an amount
54-16 determined by a method under which the application of the same
54-17 number of cents of increase in tax rate applied to the taxable
54-18 value of property of each district, as determined under Section
54-19 11.86 of this code, results in a levy for each district equal to
54-20 the amount deducted from that district's allocation.>
54-21 <(e) The commissioner of education shall compute for each
54-22 school district the total amount by which the district's allocation
54-23 of state funds is reduced under Subsection (d) of this section and
54-24 shall certify that amount to the district.>
54-25 Sec. 16.255. Falsification of Records; Report. (a) When,
54-26 in the opinion of the director of school audits of the Central
54-27 Education Agency, audits or reviews of accounting, enrollment, or
55-1 other records of a school district reveal deliberate falsification
55-2 of the records, or violation of the provisions of this chapter,
55-3 whereby the district's share of state funds allocated under the
55-4 authority of this chapter would be, or has been, illegally
55-5 increased, the director shall promptly and fully report the fact to
55-6 the State Board of Education and the state auditor.
55-7 (b) In the event of overallocation of state funds, as
55-8 determined by the State Board of Education or the state auditor by
55-9 reference to the director's report, the Central Education Agency
55-10 shall, by withholding from subsequent allocations of state funds,
55-11 recover from the district an amount, or amounts, equal to the
55-12 overallocation.
55-13 Sec. 16.256. FOUNDATION SCHOOL FUND BUDGET COMMITTEE.
55-14 (a) The foundation school fund budget committee is composed of the
55-15 governor, the lieutenant governor, and the comptroller <of public
55-16 accounts>.
55-17 (b) On or before December <November> 1 before each regular
55-18 session of the legislature, the budget committee shall determine
55-19 and certify to the comptroller <of public accounts> an amount of
55-20 money to be placed in the foundation school fund for the succeeding
55-21 biennium for the purpose of financing the Foundation School Program
55-22 as described in this code.
55-23 (c) The budget committee may, during the biennium, change
55-24 the estimate of money necessary to finance the Foundation School
55-25 Program.
55-26 (d) The foundation school fund budget committee shall adopt
55-27 rules for the calculation for each year of a biennium of the
56-1 qualified funding elements necessary to achieve the state funding
56-2 policy under Section 16.001 of this code not later than the
56-3 1994-1995 school year and for each year thereafter. In the
56-4 calculation of these funding elements, the committee shall consider
56-5 the report of the Legislative Education Board prescribed under
56-6 Section 16.008 of this code.
56-7 (e) The funding elements shall include:
56-8 (1) a basic allotment for the purposes of Section
56-9 16.101 of this code that represents the cost per student of a
56-10 regular education program that meets the basic criteria for an
56-11 accredited program including all mandates of law and regulation;
56-12 (2) adjustments designed to reflect the variation in
56-13 known resource costs and costs of education beyond the control of
56-14 school districts;
56-15 (3) appropriate program cost differentials and other
56-16 funding elements for the programs authorized under Subchapter D of
56-17 this chapter, with the program funding level expressed as dollar
56-18 amounts and as weights applied to the adjusted basic allotment for
56-19 the appropriate year;
56-20 (4) the maximum guaranteed level of qualified state
56-21 and local funds per student for the purposes of Subchapter H of
56-22 this chapter;
56-23 (5) the enrichment and facilities tax rate under
56-24 Subchapter H of this chapter;
56-25 (6) the formula elements for the funding formulas for
56-26 capital outlay and debt service under the provision of Subchapter I
56-27 of this chapter; and
57-1 (7) the calculation of weighted students in average
57-2 daily attendance under Section 16.302 of this code.
57-3 (f) Not <Beginning in 1992, not> later than December
57-4 <November> 1 preceding each regular session of the legislature, the
57-5 foundation school fund budget committee by rule shall adopt and
57-6 report the equalized funding elements calculated under this section
57-7 to the commissioner of education and the legislature. Before the
57-8 committee adopts the elements, the committee or the committee's
57-9 designees shall hold a public hearing on the recommendations of the
57-10 Legislative Education Board.
57-11 <(g) Notwithstanding other provisions of this section, the
57-12 funding elements adopted by the foundation school fund budget
57-13 committee for the 1993-1994 school year and the 1994-1995 school
57-14 year shall provide for appropriate transition from the program in
57-15 effect for the 1992-1993 school year.>
57-16 Sec. 16.258. Effect Of Appraisal Appeal. (a) If the final
57-17 determination of an appeal under Chapter 42, Tax Code, results in a
57-18 reduction in the taxable value of property that exceeds five
57-19 percent of the total taxable value of property in the school
57-20 district for the same tax year determined under Section 11.86 of
57-21 this code, the commissioner of education shall request the
57-22 comptroller to adjust its taxable property value findings for that
57-23 year consistent with the final determination of the appraisal
57-24 appeal.
57-25 (b) If the district would have received a greater amount
57-26 from the foundation school fund for the applicable school year
57-27 using the adjusted value, the commissioner shall add the difference
58-1 to subsequent distributions to the district from the foundation
58-2 school fund. An adjustment does not affect the local fund
58-3 assignment of any other district.
58-4 Sec. 16.260. FOUNDATION SCHOOL FUND TRANSFERS. (a) In this
58-5 section:
58-6 (1) "Category 1 school district" means a school
58-7 district having a wealth of less than one-half of the statewide
58-8 average wealth.
58-9 (2) "Category 2 school district" means a school
58-10 district having a wealth of at least one-half of the statewide
58-11 average wealth per pupil but not more than the statewide average
58-12 wealth.
58-13 (3) "Category 3 school district" means a school
58-14 district having a wealth of more than the statewide average wealth.
58-15 (4) "Wealth" means the taxable property values
58-16 reported by the comptroller to the commissioner of education under
58-17 Section 16.252 of this code divided by the number of students in
58-18 average daily attendance.
58-19 (b) Payments from the foundation school fund to each
58-20 category 1 school district shall be made as follows:
58-21 (1) 21 percent of the yearly entitlement of the
58-22 district shall be paid in two equal installments to be made on or
58-23 before the 25th day of September and October of a fiscal year;
58-24 (2) 57 percent of the yearly entitlement of the
58-25 district shall be paid in six equal installments to be made on or
58-26 before the 25th day of November, December, January, February,
58-27 March, and July; and
59-1 (3) 22 percent of the yearly entitlement of the
59-2 district shall be paid in two equal installments to be made on or
59-3 before the 25th day of April and May.
59-4 (c) Payments from the foundation school fund to each
59-5 category 2 school district shall be made as follows:
59-6 (1) 21 percent of the yearly entitlement of the
59-7 district shall be paid in two equal installments to be made on or
59-8 before the 25th day of September and October of a fiscal year;
59-9 (2) 38 percent of the yearly entitlement of the
59-10 district shall be paid in four equal installments to be made on or
59-11 before the 25th day of November, December, March, and July;
59-12 (3) seven percent of the yearly entitlement of the
59-13 <school> district shall be paid in two equal installments to be
59-14 made on or before the 25th day of January and February;
59-15 (4) 22 percent of the yearly entitlement of the
59-16 <school> district shall be paid in two equal installments to be
59-17 made on or before the 25th day of April and May; and
59-18 (5) 12 percent of the yearly entitlement of the
59-19 <school> district shall be paid in two equal installments to be
59-20 made on or before the 25th day of June and August.
59-21 (d) Payments from the foundation school fund to each
59-22 category 3 school district shall be made as follows:
59-23 (1) 21 percent of the yearly entitlement of the
59-24 district <school> shall be paid in two equal installments to be
59-25 made on or before the 25th day of September and October of a fiscal
59-26 year;
59-27 (2) 57 percent of the yearly entitlement of the
60-1 district <school> shall be paid in six equal installments to be
60-2 made on or before the 25th day of November, December, March, June,
60-3 July, and August; and
60-4 (3) 22 percent of the yearly entitlement of the
60-5 <school> district shall be paid in two equal installments to be
60-6 made on or before the 25th day of April and May.
60-7 (e) The amount of any installment required by this section
60-8 may be modified to provide a school district with the proper amount
60-9 to which the district may be entitled by law and to correct errors
60-10 in the allocation or distribution of funds. If an installment
60-11 under this section is required to be equal to other installments,
60-12 the amount of other installments may be adjusted to provide for
60-13 that equality. A payment under this section is not invalid because
60-14 it is not equal to other installments.
60-15 SUBCHAPTER H. GUARANTEED YIELD PROGRAM (TIER TWO)
60-16 Sec. 16.301. PURPOSE. The purpose of the guaranteed yield
60-17 component of the Foundation School Program is to provide each
60-18 school district with the opportunity to supplement the basic
60-19 program at a level of its own choice and with access to additional
60-20 funds for facilities. An allotment under this subchapter may be
60-21 used for any legal purpose, including capital outlay and debt
60-22 service.
60-23 Sec. 16.302. ALLOTMENT. (a) For each weighted student in
60-24 average daily attendance, each <Each> school district is guaranteed
60-25 a specified amount <per weighted student> in state and local funds
60-26 for each cent of tax effort over the tax effort <that> required for
60-27 the tier one local fund assignment under Section 16.252 of this
61-1 code <of the county education district in which the school district
61-2 is located> up to the maximum level specified in this subchapter.
61-3 For each cent of tax effort under this section up to 30 cents, a
61-4 district is entitled to an amount equal to $20 per weighted student
61-5 in average daily attendance. For each incremental cent of that tax
61-6 effort greater than 30 cents and up to 60 cents, a district is
61-7 entitled to an amount per weighted student in average daily
61-8 attendance based on the following formula:
61-9 where:
61-10 "GY" is the amount guaranteed per weighted student in average
61-11 daily attendance for each incremental cent of tax effort greater
61-12 than 30 cents, up to 60 cents; and
61-13 "DTR" is the incremental cent of tax effort greater than 30
61-14 cents that applies to the given guaranteed yield amount. <The
61-15 amount of state support, subject only to the maximum amount under
61-16 Section 16.303 of this code, is determined by the formula:>
61-17 <where:>
61-18 <"GYA" is the guaranteed yield amount of state funds to be
61-19 allocated to the district;>
61-20 <"GL" is the dollar amount guaranteed level of state and
61-21 local funds per weighted student per cent of tax effort, which is
61-22 $21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
61-23 school year, $26 for the 1993-1994 school year, and $28 for each
61-24 school year thereafter, or a greater amount for any year provided
61-25 by appropriation, or a greater amount adopted by the foundation
61-26 school fund budget committee under Section 16.256(d) of this code
61-27 for the 1993-1994 or 1994-1995 school year or thereafter;>
62-1 (b) In this section, <"WADA", except as provided by Section
62-2 16.206 of this code, is> the number of weighted students in average
62-3 daily attendance<, which> is calculated by dividing the sum of the
62-4 school district's allotments under Subchapters C and D of this
62-5 chapter, less any allotments to the district for transportation,
62-6 career ladder supplements, or technology and 50 percent of the
62-7 adjustment under Section 16.102 of this code, by the basic
62-8 allotment for the applicable year.
62-9 (c) The funding elements provided by this section may be
62-10 increased by the foundation school fund budget committee or
62-11 modified by appropriation.<;>
62-12 <"DTR" is the district enrichment and facilities tax rate of
62-13 the school district, which is determined by dividing the total
62-14 amount of taxes collected by the school district for the applicable
62-15 school year by the quotient of the district's taxable value of
62-16 property as determined under Section 11.86 of this code divided by
62-17 100; and>
62-18 <"LR" is the local revenue, which is determined by
62-19 multiplying "DTR" by the quotient of the district's taxable value
62-20 of property as determined under Section 11.86 of this code divided
62-21 by 100.>
62-22 <(b) Beginning with the 1993-1994 school year, if the
62-23 program cost differentials developed jointly by the Legislative
62-24 Education Board and the Legislative Budget Board under Section
62-25 16.203 of this code and the adjustments studied under Section
62-26 16.206 of this code are not adopted by the foundation school fund
62-27 budget committee or the commissioner of education, the amount
63-1 guaranteed under this section is an amount per student rather than
63-2 per weighted student and a school district's average daily
63-3 attendance ("ADA") under Section 16.006 of this code is substituted
63-4 for "WADA" in the formula under Subsection (a) of this section.>
63-5 Sec. 16.303. LOCAL SHARE OF PROGRAM COST (TIER TWO). Each
63-6 school district's share of program costs under this subchapter
63-7 shall be an amount determined by the following formula:
63-8 where:
63-9 "LFA" is the district's tier two local share;
63-10 "TR" is the district's tax rate under Section 16.302 of this
63-11 code; and
63-12 "DPV" is the taxable value of property in the district for
63-13 the prior tax year determined under Section 11.86 of this code.
63-14 <LIMITATION ON ENRICHMENT AND FACILITIES TAX RATE. The district
63-15 enrichment and facilities tax rate ("DTR") under Section 16.302 of
63-16 this code may not exceed $0.45 or a greater amount for 1993-1994
63-17 and 1994-1995 school years or thereafter as adopted by the
63-18 foundation school fund budget committee under Section 16.256(d) of
63-19 this code.>
63-20 Sec. 16.304. COMPUTATION OF AID FOR DISTRICT ON MILITARY
63-21 RESERVATION OR AT STATE SCHOOL. State assistance under this
63-22 subchapter for a school district located on a federal military
63-23 installation or at Moody State School is computed using the average
63-24 tax rate and property value per student of school districts in the
63-25 county, as determined by the commissioner of education.
63-26 SUBCHAPTER I. CAPITAL OUTLAY AND DEBT SERVICE
63-27 Sec. 16.401. Inventory of School Facilities. (a) The State
64-1 Board of Education shall establish a statewide inventory of school
64-2 facilities and shall update the inventory on a periodic basis.
64-3 (b) The inventory shall include information on the
64-4 condition, use, type, and replacement cost of public school
64-5 facilities in this state.
64-6 Sec. 16.402. Standards. The State Board of Education shall
64-7 establish standards for adequacy of school facilities. The
64-8 standards shall include requirements related to space, educational
64-9 adequacy, and construction quality. All facilities constructed
64-10 after September 1, 1992, must meet the standards in order to be
64-11 financed with state or local tax funds.
64-12 Sec. 16.403. Advisory Committee. The State Board of
64-13 Education shall appoint a committee composed of 15 persons
64-14 knowledgeable of various aspects of school facility planning,
64-15 construction, renovation, and financing. The advisory committee
64-16 shall provide the board and the commissioner with assistance on the
64-17 development of the inventory system, the creation of facility
64-18 standards, and the conduct of facility research related to current
64-19 and future roles of the state in the provision of financial and
64-20 technical assistance to school districts. The members of the
64-21 committee shall serve without compensation but may be reimbursed
64-22 for actual and necessary expenses.
64-23 <SUBCHAPTER J. COUNTY EDUCATION DISTRICT DISTRIBUTIONS>
64-24 <Sec. 16.501. TIER ONE. (a) The commissioner of education
64-25 shall notify each county education district of the total amount of
64-26 funds that each school district in the county education district is
64-27 entitled to receive under tier one of the Foundation School
65-1 Program.>
65-2 <(b) For tier one, the board of trustees of each county
65-3 education district shall distribute the funds collected from the
65-4 tax levied by the county education district under Section 20.945 of
65-5 this code to the school districts in the county on the basis of the
65-6 component districts' share of the taxable value of property of the
65-7 county education district with the provision that no component
65-8 district shall receive funds in excess of the cost of tier one less
65-9 the distribution of the available school fund.>
65-10 <(c)(1) Notwithstanding Subsection (b) of this section, for
65-11 the 1991-1992, 1992-1993, and 1993-1994 school years, for tier one
65-12 the board of trustees of each county education district shall
65-13 distribute the funds collected from the tax levied by the county
65-14 education district under Section 20.945 of this code to the school
65-15 districts in the county education district as follows:>
65-16 <(A) to those school districts that did not
65-17 receive foundation school funds for the 1990-1991 school year in
65-18 which the amount of revenue per weighted student from local funds
65-19 and the available school fund for the 1990-1991 school year exceeds
65-20 the total amount of revenue per weighted student to which the
65-21 district is entitled under the Foundation School Program at a tax
65-22 rate equal to the maximum tax rate authorized under Section 20.09
65-23 of this code, the county education district shall distribute an
65-24 amount equal to the difference between the amount of revenue per
65-25 weighted student in the district in the 1990-1991 school year from
65-26 local funds and the available school fund and the levy that results
65-27 from the application of the maximum rate authorized under Section
66-1 20.09 of this code to the district's taxable value of property; and>
66-2 <(B) the county education district shall
66-3 apportion the remaining funds collected from the tax levy to each
66-4 school district in the county education district on the basis of
66-5 the component districts' share of the taxable value of property of
66-6 the county education district with the provision that no component
66-7 district shall receive funds in excess of the cost of tier one less
66-8 the distribution of the available school fund.>
66-9 <(2) This subsection expires September 1, 1994.>
66-10 <(d) If the total amount available for distribution by the
66-11 county education district exceeds the county education district's
66-12 local share under Section 16.252 of this code, the county education
66-13 district shall retain the excess amount for distribution in
66-14 succeeding years.>
66-15 <(e) If the total amount available for distribution by the
66-16 county education district is less than the county education
66-17 district's local share under Section 16.252 of this code, the
66-18 distributions shall be made under rules adopted by the commissioner
66-19 of education.>
66-20 <Sec. 16.502. COLLECTION AND DISTRIBUTION SCHEDULES. The
66-21 commissioner of education shall establish a schedule for the
66-22 distribution of funds to each school district under this
66-23 subchapter.>
66-24 <Sec. 16.503. DEFINITION. In this subchapter, "taxable
66-25 value of property" is the value determined under Section 11.86 of
66-26 this code.>
66-27 SECTION 2. Subsection (a), Section 11.86, Education Code, is
67-1 amended to read as follows:
67-2 (a) The comptroller shall conduct an annual study using
67-3 comparable sales and generally accepted auditing and sampling
67-4 techniques to determine the total value of all taxable property in
67-5 each <county education> school district <and each of its component
67-6 school districts>. The study shall determine the taxable value of
67-7 all property and of each category of property within the district
67-8 and the productivity value of all land that qualifies for appraisal
67-9 on the basis of its productive capacity and for which the owner has
67-10 applied for and received a productivity appraisal. In conducting
67-11 the study, the comptroller shall review the appraisal standards,
67-12 procedures, and methodology used by each appraisal district to
67-13 determine the taxable value of property in each school district.
67-14 The review must test the validity of the taxable values assigned to
67-15 each category of property by the appraisal district:
67-16 (1) using, if appropriate, samples selected through
67-17 generally accepted sampling techniques; and
67-18 (2) according to generally accepted standard
67-19 valuation, statistical compilation, and analysis techniques. If
67-20 the comptroller finds in the annual study that generally accepted
67-21 appraisal standards and practices were used by the appraisal
67-22 district in valuing a particular category of property, and that the
67-23 taxable values assigned to each category of property by the
67-24 appraisal district are valid, the appraisal roll value of that
67-25 category of property is presumed to represent taxable value. In
67-26 the absence of such a presumption, the comptroller shall estimate
67-27 the taxable value of that category of property using generally
68-1 accepted standard valuation, statistical compilation, and analysis
68-2 techniques. For the purposes of this section, "taxable value"
68-3 means market value less:
68-4 (1) the total dollar amount of any exemptions of part
68-5 but not all of the value of taxable property required by the
68-6 constitution or a statute that a district lawfully granted in the
68-7 year that is the subject of the study;
68-8 (2) the total dollar amount of any exemptions granted
68-9 within a reinvestment zone under agreements authorized by the
68-10 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
68-11 Code);
68-12 (3) the total dollar amount of any captured appraised
68-13 value of property that is located in a reinvestment zone and that
68-14 is eligible for tax increment financing under the Tax Increment
68-15 Financing Act (Chapter 311, Tax Code);
68-16 (4) the total dollar amount of any exemptions granted
68-17 under Section 11.251, Tax Code;
68-18 (5) the difference between the market value and the
68-19 productivity value of land that qualifies for appraisal on the
68-20 basis of its productive capacity, except that the productivity
68-21 value may not exceed the fair market value of the land;
68-22 (6) the portion of the appraised value of residence
68-23 homesteads of the elderly on which school district taxes are not
68-24 imposed in the year that is the subject of the study, calculated as
68-25 if the residence homesteads were appraised at the full value
68-26 required by law;
68-27 (7) a portion of the market value of property not
69-1 otherwise fully taxable by the district at market value because of
69-2 action required by statute or the Texas Constitution that, if the
69-3 tax rate adopted by the district is applied to it, produces an
69-4 amount equal to the difference between the tax that the district
69-5 would have imposed on the property if the property were fully
69-6 taxable at market value and the tax that the district is actually
69-7 authorized to impose on the property; and
69-8 (8) the market value of all tangible personal
69-9 property, other than manufactured homes, owned by a family or
69-10 individual and not held or used for the production of income.
69-11 SECTION 3. Subsections (b) and (e), Section 14.063,
69-12 Education Code, are amended to read as follows:
69-13 (b) Each school district is entitled to an annual allotment
69-14 for the purposes provided under Section 14.064 of this code equal
69-15 to its unadjusted average daily attendance multiplied by<:>
69-16 <(1)> $30 <for the 1992-1993 school year, or a greater
69-17 amount provided by appropriation;>
69-18 <(2) $35 for the 1993-1994 school year, or a greater
69-19 amount provided by appropriation;>
69-20 <(3) $40 for the 1994-1995 school year, or a greater
69-21 amount provided by appropriation;>
69-22 <(4) $45 for the 1995-1996 school year, or a greater
69-23 amount provided by appropriation; and>
69-24 <(5) $50 for the 1996-1997 school year and for each
69-25 school year thereafter>, or a greater amount provided by
69-26 appropriation.
69-27 (e) If an insufficient amount is available in the fund for
70-1 the state's share of the allotments under Subsection (b) of this
70-2 section, the agency shall reduce each district's allotment by
70-3 application of the formula adopted under Section 16.254 <16.254(d)>
70-4 of this code.
70-5 SECTION 4. Subchapter B, Chapter 19, Education Code, is
70-6 amended by adding Section 19.028 to read as follows:
70-7 Sec. 19.028. DETACHMENT AND ANNEXATION TO REDUCE VARIATIONS
70-8 IN PROPERTY VALUE. (a) To the extent necessary to reduce
70-9 variations in property value per student among school districts,
70-10 for each school year, the commissioner of education, with the
70-11 approval of the foundation school fund budget committee as provided
70-12 by this section, shall order the detachment of all or a portion of
70-13 property from a district and the annexation of the property to one
70-14 or more other districts as provided by this section, without regard
70-15 to whether the property is contiguous to the district to which the
70-16 property is annexed. A detachment and annexation of real property
70-17 applies to the taxable personal property having taxable situs in
70-18 the same location as the real property. To the greatest extent
70-19 possible, the commissioner shall provide for the detachment or
70-20 annexation of whole parcels of property. However, the commissioner
70-21 may detach or annex a portion of a parcel of property separately
70-22 from the remainder of the parcel if necessary to carry out the
70-23 purposes of this section, and for that purpose may partition a
70-24 parcel of property for ad valorem taxation. If portions of a
70-25 parcel or other item of property are located in different school
70-26 districts as the result of a detachment or annexation, the parcel
70-27 or other item of property shall be appraised for taxation as a
71-1 unit, and the foundation school fund budget committee, on the
71-2 recommendation of the commissioner, shall determine the portion of
71-3 the taxable value of the property that is located in each of those
71-4 school districts.
71-5 (b) The commissioner may detach and annex property under
71-6 this section only if:
71-7 (1) the primary use of the property is not
71-8 residential, as determined under rules adopted by the commissioner;
71-9 (2) the school district from which the property is
71-10 being detached, before detachment, has a taxable value of property
71-11 per weighted student in average daily attendance greater than
71-12 $280,000 per weighted student in average daily attendance;
71-13 (3) the annexation does not result in taxable value of
71-14 property per weighted student in average daily attendance in the
71-15 district to which property is being annexed greater than the lowest
71-16 level for which funds are provided under Subchapter H, Chapter 16,
71-17 of this code;
71-18 (4) the property is not exempt from ad valorem
71-19 taxation under Section 11.20 or 11.21, Tax Code;
71-20 (5) the property is not a building or structure owned
71-21 by the United States, this state, or a political subdivision of
71-22 this state that is exempt from ad valorem taxation under law;
71-23 (6) the property is not currently devoted to
71-24 agricultural purposes and in the preceding tax year was not
71-25 appraised for ad valorem taxation under Subchapter C or D, Chapter
71-26 23, Tax Code, unless detachment and annexation of that land is a
71-27 necessary incident to the detachment and annexation of a mineral
72-1 interest; and
72-2 (7) the detachment and annexation would not subject
72-3 the property to the debt tax rates of more than two districts in
72-4 the same tax year as a result of multiple detachments and
72-5 annexations of the property.
72-6 (c) Property may be detached from a school district under
72-7 this section only to the extent that, in accordance with a
72-8 determination of the commissioner, permits the district, by
72-9 imposing an effective tax rate of $1.50 on the $100 valuation of
72-10 taxable property to the district's taxable value of property, to
72-11 have available the same amount of revenue per weighted student in
72-12 average daily attendance for maintenance and operation of the
72-13 district, excluding reserves for facilities but including amounts
72-14 necessary to pay contracted obligations on the lease purchase of
72-15 permanent improvements to real property entered into on or before
72-16 May 12, 1993, and excluding costs of contributions under this
72-17 section, that the district spent in the 1992-1993 school year.
72-18 (d) In making a determination under this section, the
72-19 commissioner shall consider the likelihood that the property would
72-20 need to be transferred again, so that further detachment and
72-21 annexation of that property may be minimized.
72-22 (e) In making a selection among school districts eligible to
72-23 have property annexed under this section, the commissioner shall
72-24 give priority to school districts in the following order:
72-25 (1) first, to a district contiguous to the detached
72-26 property;
72-27 (2) second, to the district nearest to the detached
73-1 property and located in the same county;
73-2 (3) third, to another district located in the same
73-3 county as the detached property;
73-4 (4) fourth, to a district in which the property would
73-5 be subject to a tax burden in an amount close to the amount to
73-6 which the property was subject before detachment; and
73-7 (5) fifth, to the nearest district in proximity to the
73-8 detached property.
73-9 (f) The commissioner shall report to the foundation school
73-10 fund budget committee a determination of any detachments and
73-11 annexations of property to be made under this section not later
73-12 than July 15 of each year. Not later than July 30, the committee
73-13 shall approve the commissioner's determination or shall specify to
73-14 the commissioner its objections. Not later than the 10th day after
73-15 the date on which the commissioner receives any objections from the
73-16 committee, the commissioner shall submit a revised determination to
73-17 the committee, and, not later than the 10th day after the date on
73-18 which the committee receives the revised determination, the
73-19 committee shall respond to the revised determination. The
73-20 commissioner and the committee shall continue on that schedule
73-21 until the committee approves a determination. As soon as
73-22 practicable after approval, the commissioner shall notify each
73-23 affected school district and property owner and the appraisal
73-24 district in which the affected property is located of the
73-25 determination.
73-26 (g) A decision or determination of the commissioner or the
73-27 foundation school fund budget committee under this section is final
74-1 and not appealable. A detachment or annexation action taken under
74-2 this chapter does not affect a decision of the commissioner under
74-3 this section. The Administrative Procedure and Texas Register Act
74-4 (Article 6252-13a, Vernon's Texas Civil Statutes) does not apply to
74-5 a decision of the commissioner or the foundation school fund budget
74-6 committee under this section.
74-7 (h) If, as a result of detachment of property under this
74-8 section, the taxable value of property per weighted student in
74-9 average daily attendance in a school district is below $260,000 per
74-10 weighted student in average daily attendance, the next time the
74-11 commissioner of education and the foundation school fund budget
74-12 committee act under Subsection (f) of this section, property shall
74-13 be annexed to the district to the extent that, after annexation,
74-14 the taxable value of property per weighted student in average daily
74-15 attendance does not exceed $280,000.
74-16 (i) For foundation school program funding purposes,
74-17 detachment and annexation under this section takes effect beginning
74-18 with the school year that begins in the calendar year in which the
74-19 detachment and annexation determination is made. A detachment and
74-20 annexation of property applies to the ad valorem taxation of the
74-21 property beginning with the tax year in which the detachment and
74-22 annexation is made. In that tax year, the property is taxable by
74-23 the school district to which it is annexed and is not taxable by
74-24 the school district from which it is detached.
74-25 (j) A student who is a resident of the area in which the
74-26 property being detached from a school district is located may
74-27 choose to attend school in that district or in the district to
75-1 which the property is being annexed. For purposes of determining
75-2 average daily attendance under Section 16.006 of this code, the
75-3 student shall be counted in the district to which the property is
75-4 being annexed. If the student chooses to attend school in the
75-5 district from which the property is being detached, the state shall
75-6 withhold any foundation school funds from the district to which the
75-7 property is being annexed and shall allocate to the district in
75-8 which the student is attending school those funds and the amount of
75-9 funds equal to the difference between the state funds the district
75-10 is receiving for the student and the district's cost in educating
75-11 the student.
75-12 (k) If before detachment the school district from which
75-13 property is detached has authorized the levy of a tax to pay
75-14 principal and interest on bonds, the district shall continue to
75-15 levy that tax on the detached property until the bonds, or
75-16 refinancing bonds for those bonds, have been retired in accordance
75-17 with Article VII, Section 3-b, of the Texas Constitution. The
75-18 district to which the property is annexed may not levy on that
75-19 property a tax to pay principal and interest on bonds issued before
75-20 the property was annexed or to refinance bonds issued before the
75-21 property was annexed. In determining to which district to annex
75-22 property detached under this section, the commissioner shall
75-23 consider the extent to which the district from which the property
75-24 is detached is levying a tax on that property to pay principal and
75-25 interest on bonds.
75-26 (l) The chief appraiser of each appraisal district and the
75-27 comptroller shall cooperate with the commissioner in implementing
76-1 this section.
76-2 (m) At the request of a person who owns property in the
76-3 school district to which property is annexed under this section,
76-4 the district shall send to the person a statement that specifies
76-5 the portion of the district's tax rate attributable to maintenance
76-6 and operation of the district and the portion attributable to debt
76-7 service for the most recent year following annexation and for the
76-8 last year preceding annexation.
76-9 (n) A tax abatement agreement executed by a school district
76-10 from which property is detached under this section that applies to
76-11 the detached property applies to the taxation of the property by
76-12 each school district to which the property is annexed under this
76-13 section as if executed by that school district.
76-14 (o) For purposes of this section:
76-15 (1) the number of weighted students in average daily
76-16 attendance, calculated in the manner provided by Section 16.302 of
76-17 this code, is the number estimated by the commissioner for the
76-18 succeeding school year; and
76-19 (2) the taxable value of property is determined as
76-20 provided by Section 11.86 of this code.
76-21 SECTION 5. Subchapter I, Chapter 19, Education Code, is
76-22 amended by adding Section 19.202 to read as follows:
76-23 Sec. 19.202. BOUNDARY ADJUSTMENTS TO ACHIEVE FINANCIAL
76-24 EQUITY. (a) Any two or more school districts may adjust their
76-25 boundaries by agreement if at the time the agreement is executed:
76-26 (1) the agreement has been approved by the board of
76-27 trustees of each of the affected school districts;
77-1 (2) all districts from which property is detached have
77-2 a wealth per weighted student greater than $280,000 before
77-3 adjustment;
77-4 (3) the agreement results in all districts to which
77-5 property is attached having wealth per weighted student equal to or
77-6 less than $170,000 per weighted student as recognized by the
77-7 commissioner of education after adjustment; and
77-8 (4) the agreement provides a metes and bounds
77-9 description of the new district boundaries.
77-10 (b) Any agreement made between school districts under
77-11 Subsection (a) of this section must be approved by the commissioner
77-12 of education.
77-13 (c) If the commissioner approves the agreement, the
77-14 commissioner shall determine the effective date of the transfer of
77-15 the property of the districts.
77-16 (d) In this section:
77-17 (1) "Wealth per student" means the taxable value of
77-18 property, as determined under Section 11.86 of this code, per
77-19 student in weighted average daily attendance.
77-20 (2) "Weighted students in average daily attendance"
77-21 has the meaning assigned by Section 16.302 of this code.
77-22 SECTION 6. Section 20.09, Education Code, is amended to read
77-23 as follows:
77-24 Sec. 20.09. Tax Limitations. (a) A <Except as provided by
77-25 Subsections (c) and (d) of this section, a> school district may not
77-26 impose a <total> tax rate on the $100 valuation of taxable property
77-27 that results in a levy for maintenance and operation of the
78-1 district that exceeds $1.50. <the levy that results from applying
78-2 the following rate to the district's taxable value of property as
78-3 determined under Section 11.86 of this code:>
78-4 <(1) $0.78 for the 1991 tax year;>
78-5 <(2) $0.68 for the 1992 tax year;>
78-6 <(3) $0.58 for the 1993 tax year; and>
78-7 <(4) $0.50 for each subsequent tax year.>
78-8 (b) A district may impose taxes under this chapter on the
78-9 residence homestead of a person whose taxes for general elementary
78-10 and secondary public school purposes are limited under Article
78-11 VIII, Section 1-b(d), of the Texas Constitution, only to the extent
78-12 that the imposition, when added to the taxes imposed on the
78-13 homestead by the school <county education> district for the tier
78-14 one local fund assignment under Section 16.252 of this code, does
78-15 not increase the person's tax liability for those purposes in
78-16 violation of the constitutional limit.
78-17 <(c) The portion of the total tax rate required to collect
78-18 the taxes pledged and levied for the payment of principal and
78-19 interest on debt authorized to be issued by an election held on or
78-20 before April 1, 1991, and issued before September 1, 1992, is not
78-21 subject to the tax limitation under Subsection (a) of this section.>
78-22 <(d) Prior to the issuance of bonds other than bonds exempt
78-23 under Subsection (c) of this section, a district shall demonstrate
78-24 to the attorney general with respect to the proposed bond issue a
78-25 projected ability to pay the principal of and interest on the
78-26 proposed bonds and all previously issued bonds, other than bonds
78-27 exempt under Subsection (c) of this section, from a tax at a debt
79-1 rate not to exceed $0.50 per $100 valuation and a total tax rate
79-2 not to exceed the maximum rate under Subsection (a) of this
79-3 section. On approval of the bonds by the attorney general and
79-4 issuance by the district, the district may levy a tax exceeding the
79-5 limits established in Subsection (a) of this section if necessary
79-6 to pay the principal of and interest on the bonds without reducing
79-7 maintenance and operations expenditures for the district.>
79-8 SECTION 7. Subsection (b), Section 20.86, Education Code, is
79-9 amended to read as follows:
79-10 (b) If the agency determines by audit or otherwise that a
79-11 district has received a greater payment under this subchapter than
79-12 it was entitled to receive because it improperly granted residence
79-13 homestead exemptions, improperly granted eligibility pursuant to
79-14 Article 7174A or 7174B, assigned excessive value to property
79-15 affected by Article 7150.5, 7174A, or 7174B, or otherwise
79-16 overstated the amount it was entitled to receive, the agency shall
79-17 notify the district of its determination and the reasons for it and
79-18 shall reduce the amount of the next and, if necessary, subsequent
79-19 certifications under Section 20.85 of this code or payments of
79-20 state aid under Section <Sections> 16.254<(b) and 16.254(c)> of
79-21 this code until the amount of the overpayment is recovered.
79-22 SECTION 8. Section 20.88, Education Code, is amended to read
79-23 as follows:
79-24 Sec. 20.88. Effect of Land Use Change. Prior to April 1,
79-25 each school district shall notify the Central Education Agency of
79-26 the amount of payments received during the prior 12 months under
79-27 the provisions of Section 5 of Article 7174A, Revised Civil
80-1 Statutes of Texas, 1925, Section 6 of Article 7174B, and Section
80-2 1-d(f) of Article VIII of the Texas Constitution. Fifty percent of
80-3 this amount shall be deducted from either current or subsequent
80-4 payments under this subchapter or payments of state aid under
80-5 Section <Sections> 16.254<(b) and (c)>.
80-6 SECTION 9. Subsection (c), Section 21.032, Education Code,
80-7 is amended to read as follows:
80-8 (c) Unless specifically exempted by Section 21.033 of this
80-9 code, a student enrolled in a public school district must attend an
80-10 extended year program provided by a school district for which the
80-11 student is eligible or tutorial classes required by the district
80-12 under Section 21.103(b) of this code. A district shall provide
80-13 transportation services to students required to attend an extended
80-14 year program provided by a school district in the same manner as
80-15 during the regular school year. A school district is not required
80-16 to provide transportation services to accommodate <such> students
80-17 required to attend tutorial classes under Section 21.103(b) of this
80-18 code. A student who attends at least 85 percent of the program
80-19 days of a program under this section shall be promoted to the next
80-20 grade level at the beginning of the next school year unless a
80-21 parent of the student presents a written request to the school
80-22 principal that the student not be promoted to the next grade level.
80-23 As soon as practicable after receiving the request from a parent,
80-24 the principal shall hold a formal meeting with the student's
80-25 parent, extended year program teacher, and counselor. During the
80-26 meeting, the principal, teacher, or counselor shall explain the
80-27 longitudinal statistics on the academic performance of students who
81-1 are not promoted to the next grade level and provide information on
81-2 the effect of retention on a student's self-esteem and on the
81-3 likelihood of a student dropping out of school. After the meeting,
81-4 the parent may withdraw the request that the student not be
81-5 promoted to the next grade level. If the parent of a student
81-6 eligible for promotion under this subsection withdraws the request,
81-7 the student will be promoted. If a student is promoted under this
81-8 subsection, the school district shall continue to use innovative
81-9 practices to ensure that the student is successful in school in
81-10 succeeding years. A school district that provides a program under
81-11 this section shall adopt a policy designed to lead to immediate
81-12 reduction and ultimate elimination of student retention.
81-13 SECTION 10. Section 21.502, Education Code, is amended to
81-14 read as follows:
81-15 Sec. 21.502. Definitions. As used in this subchapter,
81-16 "special services" means:
81-17 (1) "special teaching," which may be provided by
81-18 professional and paraprofessional personnel in the following
81-19 instructional settings:
81-20 (A) resource room;
81-21 (B) self-contained classroom, regular or special
81-22 campus;
81-23 (C) hospital or community class;
81-24 (D) homebound or bedside;
81-25 (E) speech or hearing therapy class; or
81-26 (F) mainstream; or
81-27 (2) "related services," which are developmental,
82-1 corrective, supportive, or evaluative services, not instructional
82-2 in nature, that may be required for the proper development and
82-3 implementation of a handicapped student's individualized
82-4 educational plan, including but not limited to special
82-5 transportation, school health services, counseling with students or
82-6 families, psychological services, audiological services, visual
82-7 training, medical or psychiatric diagnostic services, occupational
82-8 therapy, physical therapy, recreational therapy, social work
82-9 services, parent counseling and training, adaptive equipment,
82-10 special seating, orientation and mobility training, speech therapy,
82-11 music therapy, and corrective therapy.
82-12 SECTION 11. Subsection (b), Section 21.506, Education Code,
82-13 is amended to read as follows:
82-14 (b) Except as provided by Subsection (c) of this section,
82-15 contracts for residential placements when approved may be paid for
82-16 from a combination of federal, state, and local funds. The local
82-17 share of the total contract cost per pupil is that portion of the
82-18 local tax effort (total dollars generated by debt service and
82-19 maintenance taxes) which exceeds the district's local fund
82-20 assignment under Section 16.252 of this code, divided by the
82-21 average daily attendance in the district. If the contract involves
82-22 a private facility, the state share of the total contract cost is
82-23 that which remains after subtracting the local share. If the
82-24 contract involves a public facility other than a program or
82-25 facility administered by the Central Education Agency, the state
82-26 share is that which remains after subtracting the local share from
82-27 that portion of the contract which involves the costs of
83-1 instructional and related services. If the contract involves a
83-2 program or facility administered by the Central Education Agency,
83-3 there is no state share paid from this program.
83-4 SECTION 12. Subchapter N, Chapter 21, Education Code, is
83-5 amended by adding Section 21.513 to read as follows:
83-6 Sec. 21.513. PILOT PROGRAM FOR INCLUSION. The Central
83-7 Education Agency shall establish procedures and criteria for the
83-8 allocation of funds appropriated under Section 16.151(m) of this
83-9 code to school districts selected by the agency to establish a
83-10 pilot program for the inclusion of students with disabilities in
83-11 the regular classroom so that those students may receive an
83-12 appropriate free public education in the least restrictive
83-13 environment.
83-14 SECTION 13. Subchapter O, Chapter 21, Education Code, is
83-15 amended by adding Section 21.562 to read as follows:
83-16 Sec. 21.562. OPTIONAL EXTENDED YEAR PROGRAM. (a) A school
83-17 district may apply to the commissioner of education for approval to
83-18 provide an extended year program for a period not to exceed 30 days
83-19 for students in kindergarten through grade level eight who are
83-20 identified as likely not to be promoted to the next grade level for
83-21 the succeeding school year.
83-22 (b) The commissioner may adopt rules for the administration
83-23 of programs provided under this section.
83-24 (c) A school district may not enroll more than 12 students
83-25 in a class provided under this section.
83-26 (d) Each class provided under this section shall be taught
83-27 by a teacher who has completed successfully a program that provides
84-1 training to teach a class under this section and that satisfies
84-2 standards the commissioner establishes.
84-3 (e) A student who attends at least 85 percent of the program
84-4 days of a program under this section shall be promoted to the next
84-5 grade level at the beginning of the next school year unless a
84-6 parent of the student presents a written request to the school
84-7 principal that the student not be promoted to the next grade level.
84-8 As soon as practicable after receiving the request from a parent,
84-9 the principal shall hold a formal meeting with the student's
84-10 parent, extended year program teacher, and counselor. During the
84-11 meeting, the principal, teacher, or counselor shall explain the
84-12 longitudinal statistics on the academic performance of students who
84-13 are not promoted to the next grade level and provide information on
84-14 the effect of retention on a student's self-esteem and on the
84-15 likelihood of a student dropping out of school. After the meeting,
84-16 the parent may withdraw the request that the student not be
84-17 promoted to the next grade level. If the parent of a student
84-18 eligible for promotion under this subsection withdraws the request,
84-19 the student shall be promoted. If a student is promoted under this
84-20 subsection, the school district shall continue to use innovative
84-21 practices to ensure that the student is successful in school in
84-22 succeeding years.
84-23 (f) A school district that provides a program under this
84-24 section shall adopt a policy designed to lead to immediate
84-25 reduction and ultimate elimination of student retention.
84-26 (g) A school district may apply for approval under this
84-27 section only for a pilot program for students in grade level one
85-1 for the 1993-1994 school year and only for a pilot program for
85-2 students in grade levels one and two for the 1994-1995 school year.
85-3 The state's share of a pilot program under this section may not
85-4 exceed the amount appropriated for program purposes. Funds
85-5 provided to a pilot program may be used for transportation of
85-6 eligible students. This subsection expires September 1, 1995.
85-7 SECTION 14. Subdivision (12), Section 1.04, Tax Code, is
85-8 amended to read as follows:
85-9 (12) "Taxing unit" means a county, an incorporated
85-10 city or town (including a home-rule city), a school district, <a
85-11 county education district,> a special district or authority
85-12 (including a junior college district, a hospital district, a
85-13 district created by or pursuant to the Water Code, a mosquito
85-14 control district, a fire prevention district, or a noxious weed
85-15 control district), or any other political unit of this state,
85-16 whether created by or pursuant to the constitution or a local,
85-17 special, or general law, that is authorized to impose and is
85-18 imposing ad valorem taxes on property even if the governing body of
85-19 another political unit determines the tax rate for the unit or
85-20 otherwise governs its affairs.
85-21 SECTION 15. Section 6.02, Tax Code, is amended by amending
85-22 Subsections (b) and (f) and adding Subsection (g) to read as
85-23 follows:
85-24 (b) A taxing unit <other than a county education district>
85-25 that has boundaries extending into two or more counties may choose
85-26 to participate in only one of the appraisal districts. In that
85-27 event, the boundaries of the district chosen extend outside the
86-1 county to the extent of the unit's boundaries. To be effective,
86-2 the choice must be approved by resolution of the board of directors
86-3 of the district chosen. The choice of a school district to
86-4 participate in a single appraisal district does not apply to
86-5 property annexed to the school district under Section 19.028,
86-6 Education Code, unless:
86-7 (1) the school district taxes property other than
86-8 property annexed to the district under Section 19.028, Education
86-9 Code, in the same county as the annexed property; or
86-10 (2) the annexed property is contiguous to property in
86-11 the school district other than property annexed to the district
86-12 under Section 19.028, Education Code. <A county education district
86-13 that has boundaries extending into two or more counties must
86-14 participate in each appraisal district in which one of its
86-15 component school districts participates for purposes of appraisal
86-16 of the component school district's territory.>
86-17 (f) All costs of operating an appraisal district in
86-18 territory outside the county for which the appraisal district is
86-19 established are allocated to the taxing unit for which the
86-20 appraisal district appraises property in <that chooses to add> that
86-21 territory <to the district>. If the appraisal district appraises
86-22 property in the same territory for two or more taxing units <add
86-23 the same territory to an appraisal district>, costs of operating
86-24 the district in that territory are allocated to the units in the
86-25 proportion the total dollar amount of taxes each unit imposes in
86-26 that territory bears to the total dollar amount of taxes all taxing
86-27 units participating in the appraisal district impose in that
87-1 territory.
87-2 (g) If property is annexed to a school district under
87-3 Section 19.028, Education Code, the appraisal district established
87-4 for that county shall appraise the property for the school
87-5 district, and the school district participates in that appraisal
87-6 district for purposes of the appraisal of that property, except as
87-7 otherwise permitted by Subsection (b).
87-8 SECTION 16. Section 6.03, Tax Code, is amended by amending
87-9 Subsections (c) through (e) and adding Subsection (m) to read as
87-10 follows:
87-11 (c) Members of the board of directors are appointed by vote
87-12 of the governing bodies of the incorporated cities and towns, the
87-13 school districts <other than the county education district>, and,
87-14 if entitled to vote, the conservation and reclamation districts
87-15 that participate in the district and of the county. A governing
87-16 body may cast all its votes for one candidate or distribute them
87-17 among candidates for any number of directorships. Conservation and
87-18 reclamation districts are not entitled to vote unless at least one
87-19 conservation and reclamation district in the district delivers to
87-20 the chief appraiser a written request to nominate and vote on the
87-21 board of directors by June 1 of each odd-numbered year. On receipt
87-22 of a request, the chief appraiser shall certify a list by June 15
87-23 of all eligible conservation and reclamation districts that are
87-24 imposing taxes and that participate in the district.
87-25 (d) The voting entitlement of a taxing unit that is entitled
87-26 to vote for directors is determined by dividing the total dollar
87-27 amount of property taxes imposed in the district by the taxing unit
88-1 for the preceding tax year by the sum of the total dollar amount of
88-2 property taxes imposed in the district for that year by each taxing
88-3 unit that is entitled to vote, by multiplying the quotient by
88-4 1,000, and by rounding the product to the nearest whole number.
88-5 That number is multiplied by the number of directorships to be
88-6 filled. <For a school district, the total dollar amount of
88-7 property taxes imposed in the district by the unit is considered to
88-8 be the sum of the taxes imposed by the district and the revenue
88-9 received by the district from the county education district.> A
88-10 taxing unit participating in two or more districts is entitled to
88-11 vote in each district in which it participates, but only the taxes
88-12 imposed in a district are used to calculate voting entitlement in
88-13 that district.
88-14 (e) The chief appraiser shall calculate the number of votes
88-15 to which each taxing unit other than a conservation and reclamation
88-16 district is entitled and shall deliver written notice to each of
88-17 those units of its voting entitlement before October 1 of each
88-18 odd-numbered year. The chief appraiser shall deliver the notice:
88-19 (1) to the county judge and each commissioner of the
88-20 county served by the appraisal district;
88-21 (2) to the presiding officer of the governing body of
88-22 each city or town participating in the appraisal district, to the
88-23 city manager of each city or town having a city manager, and to the
88-24 city secretary or clerk, if there is one, of each city or town that
88-25 does not have a city manager; and
88-26 (3) to the presiding officer of the governing body of
88-27 each school district<, other than the county education district,>
89-1 participating in the district and to the superintendent of those
89-2 school districts.
89-3 (m) If a school district participates in an appraisal
89-4 district in which the only property of the school district located
89-5 in the appraisal district is property annexed to the school
89-6 district under Section 19.028, Education Code, an individual who
89-7 does not meet the residency requirements of Subsection (a) is
89-8 eligible to be appointed to the board of directors of the appraisal
89-9 district if:
89-10 (1) the individual is a resident of the school
89-11 district; and
89-12 (2) the individual is nominated as a candidate for the
89-13 board of directors by the school district or, if the taxing units
89-14 have adopted a change in the method of appointing board members
89-15 that does not require a nomination, the school district appoints or
89-16 participates in the appointment of the individual.
89-17 SECTION 17. Subsections (d) and (h), Section 6.06, Tax Code,
89-18 are amended to read as follows:
89-19 (d) Each taxing unit participating in the district<, other
89-20 than a county education district,> is allocated a portion of the
89-21 amount of the budget equal to the proportion that the total dollar
89-22 amount of property taxes imposed in the district by the unit for
89-23 the tax year in which the budget proposal is prepared bears to the
89-24 sum of the total dollar amount of property taxes imposed in the
89-25 district by each participating unit for that year. <For a school
89-26 district, other than a county education district, the total dollar
89-27 amount of property taxes imposed in the district by the unit is
90-1 considered to be the sum of the taxes imposed by the district and
90-2 the revenue received by the district from the county education
90-3 district.> If a taxing unit participates in two or more districts,
90-4 only the taxes imposed in a district are used to calculate the
90-5 unit's cost allocations in that district. If the number of real
90-6 property parcels in a taxing unit is less than 5 percent of the
90-7 total number of real property parcels in the district and the
90-8 taxing unit imposes in excess of 25 percent of the total amount of
90-9 the property taxes imposed in the district by all of the
90-10 participating taxing units for a year, the unit's allocation may
90-11 not exceed a percentage of the appraisal district's budget equal to
90-12 three times the unit's percentage of the total number of real
90-13 property parcels appraised by the district.
90-14 (h) If a newly formed taxing unit or a taxing unit that did
90-15 not impose taxes in the preceding year<, other than a county
90-16 education district,> imposes taxes in any tax year, that unit is
90-17 allocated a portion of the amount budgeted to operate the district
90-18 as if it had imposed taxes in the preceding year, except that the
90-19 amount of taxes the unit imposes in the current year is used to
90-20 calculate its allocation. Before the amount of taxes to be imposed
90-21 for the current year is known, the allocation may be based on an
90-22 estimate to which the district board of directors and the governing
90-23 body of the unit agree, and the payments made after that amount is
90-24 known shall be adjusted to reflect the amount imposed. The
90-25 payments of a newly formed taxing unit that has no source of funds
90-26 are postponed until the unit has received adequate tax or other
90-27 revenues.
91-1 SECTION 18. Subsections (d), (e), (m), and (n), Section
91-2 11.13, Tax Code, are amended to read as follows:
91-3 (d) In addition to the exemptions provided by Subsections
91-4 (b) and (c) of this section, an individual who is disabled or is 65
91-5 or older is entitled to an exemption from taxation by a taxing unit
91-6 of a portion (the amount of which is fixed as provided by
91-7 Subsection (e) of this section) of the appraised value of his
91-8 residence homestead if the exemption is adopted either:
91-9 (1) by the governing body of the taxing unit <other
91-10 than a county education district>; or
91-11 (2) by a favorable vote of a majority of the qualified
91-12 voters of the taxing unit at an election called by the governing
91-13 body of a taxing unit <other than a county education district>, and
91-14 the governing body shall call the election on the petition of at
91-15 least 20 percent of the number of qualified voters who voted in the
91-16 preceding election of the taxing unit<; or>
91-17 <(3) by a favorable vote of a majority of the
91-18 qualified voters of a county education district at an election held
91-19 under Section 20.950, Education Code>.
91-20 (e) The amount of an exemption adopted as provided by
91-21 Subsection (d) of this section is $3,000 of the appraised value of
91-22 the residence homestead unless a larger amount is specified by:
91-23 (1) the governing body authorizing the exemption if
91-24 the exemption is authorized as provided by Subdivision (1) of
91-25 Subsection (d) of this section; or
91-26 (2) the petition for the election if the exemption is
91-27 authorized as provided by Subdivision (2) of Subsection (d) of this
92-1 section<; or>
92-2 <(3) the proposition approved at an election held
92-3 under Section 20.950, Education Code>.
92-4 (m) In this section:
92-5 (1) "Disabled" means under a disability for purposes
92-6 of payment of disability insurance benefits under Federal Old-Age,
92-7 Survivors, and Disability Insurance.
92-8 (2) "School district" means a political subdivision
92-9 organized to provide general elementary and secondary public
92-10 education. <"School district" includes a county education district
92-11 established by the consolidation of the local school districts in
92-12 its boundaries for the limited purpose of exercising a portion of
92-13 the taxing power previously authorized by the voters in those
92-14 school districts.> "School district" does not include a junior
92-15 college district or a political subdivision organized to provide
92-16 special education services.
92-17 (n) In addition to any other exemptions provided by this
92-18 section, an individual is entitled to an exemption from taxation by
92-19 a taxing unit <other than a county education district> of a
92-20 percentage of the appraised value of his residence homestead if the
92-21 exemption is adopted by the governing body of the taxing unit
92-22 before May 1 in the manner provided by law for official action by
92-23 the body. If the percentage set by the taxing unit produces an
92-24 exemption in a tax year of less than $5,000 when applied to a
92-25 particular residence homestead, the individual is entitled to an
92-26 exemption of $5,000 of the appraised value. The percentage adopted
92-27 by the taxing unit may not exceed 20 percent. <In addition to any
93-1 other exemptions provided by this section, an individual is
93-2 entitled to an exemption from taxation by a county education
93-3 district of a percentage of the appraised value of his residence
93-4 homestead if the exemption is adopted by the voters of the district
93-5 at an election held in the district for that purpose under Section
93-6 20.946, Education Code.> If the percentage set by the voters
93-7 produces an exemption in a tax year of less than $5,000 when
93-8 applied to a particular residence homestead, the individual is
93-9 entitled to an exemption of $5,000 of the appraised value. The
93-10 percentage adopted by the voters may not exceed 20 percent.
93-11 SECTION 19. Subsections (c) and (e), Section 11.14, Tax
93-12 Code, are amended to read as follows:
93-13 (c) The governing body of a taxing unit, <other than a
93-14 county education district,> by resolution or order, depending upon
93-15 the method prescribed by law for official action by that governing
93-16 body, may provide for taxation of tangible personal property
93-17 exempted under Subsection (a). <The voters of a county education
93-18 district, by an election held under Section 20.951, Education Code,
93-19 may provide for taxation of tangible personal property exempted
93-20 under Subsection (a).> If a taxing unit provides for taxation of
93-21 tangible personal property as provided by this subsection, the
93-22 exemption prescribed by Subsection (a) does not apply to that unit.
93-23 (e) A political subdivision <other than a county education
93-24 district> choosing to tax property otherwise made exempt by this
93-25 section, pursuant to Article VIII, Section 1(e), of the Texas
93-26 Constitution, may not do so until the governing body of the
93-27 political subdivision has held a public hearing on the matter,
94-1 after having given notice of the hearing at the times and in the
94-2 manner required by this subsection, and has found that the action
94-3 will be in the public interest of all the residents of that
94-4 political subdivision. At the hearing, all interested persons are
94-5 entitled to speak and present evidence for or against taxing the
94-6 property. Not later than the 30th day prior to the date of a
94-7 hearing held under this subsection, notice of the hearing must be:
94-8 (1) published in a newspaper having general
94-9 circulation in the political subdivision and in a section of the
94-10 newspaper other than the advertisement section;
94-11 (2) not less than one-half of one page in size; and
94-12 (3) republished on not less than three separate days
94-13 during the period beginning with the 10th day prior to the hearing
94-14 and ending with the actual date of the hearing.
94-15 SECTION 20. Section 21.01, Tax Code, is amended to read as
94-16 follows:
94-17 Sec. 21.01. Real Property. Real property is taxable by a
94-18 taxing unit if located in the unit on January 1, except as provided
94-19 by Section 19.028, Education Code.
94-20 SECTION 21. Section 21.02, Tax Code, is amended to read as
94-21 follows:
94-22 Sec. 21.02. Tangible Personal Property Generally.
94-23 (a) Except as provided by Subsection (b) and Sections 21.021,
94-24 21.04, and 21.05 <of this code>, tangible personal property is
94-25 taxable by a taxing unit if:
94-26 (1) it is located in the unit on January 1 for more
94-27 than a temporary period;
95-1 (2) it normally is located in the unit, even though it
95-2 is outside the unit on January 1, if it is outside the unit only
95-3 temporarily;
95-4 (3) it normally is returned to the unit between uses
95-5 elsewhere and is not located in any one place for more than a
95-6 temporary period; or
95-7 (4) the owner resides (for property not used for
95-8 business purposes) or maintains his principal place of business in
95-9 this state (for property used for business purposes) in the unit
95-10 and the property is taxable in this state but does not have a
95-11 taxable situs pursuant to Subdivisions (1) through (3) of this
95-12 section.
95-13 (b) Personal property having taxable situs at the same
95-14 location as real property detached from a school district and
95-15 annexed to another school district under Section 19.028, Education
95-16 Code, is taxable in the tax year in which the detachment and
95-17 annexation is made by the same school district by which the real
95-18 property is taxable in that tax year under Section 19.028,
95-19 Education Code.
95-20 SECTION 22. Section 25.25, Tax Code, is amended by adding
95-21 Subsection (h) to read as follows:
95-22 (h) The chief appraiser shall change the appraisal records
95-23 and school district appraisal rolls promptly to reflect the
95-24 detachment and annexation of property among school districts under
95-25 Section 19.028, Education Code.
95-26 SECTION 23. Section 26.08, Tax Code, is amended by adding
95-27 Subsections (k), (l), and (m) to read as follows:
96-1 (k) Notwithstanding Subsection (a) of this section, the
96-2 voters of a school district may not petition for an election to
96-3 limit taxes under this section for the 1993 tax year unless the
96-4 governing body of the school district adopts a tax rate that
96-5 exceeds the sum of:
96-6 (1) the district's effective maintenance rate;
96-7 (2) the rate of $0.08;
96-8 (3) the district's current debt rate; and
96-9 (4) the rate that, applied to the district's current
96-10 total value, would impose taxes in an amount equal to the amount of
96-11 central education district taxes received by the school district
96-12 for the 1992-1993 school year.
96-13 (l) For the 1993 tax year, the rollback tax rate of a school
96-14 district calculated under Subsection (e) of this section is
96-15 increased by the rate that, applied to the district's current total
96-16 value, would impose taxes in an amount equal to the amount of
96-17 central education district taxes received by the school district
96-18 for the 1992-1993 school year.
96-19 (m) This subsection and Subsections (k) and (l) of this
96-20 section expire January 1, 1995.
96-21 SECTION 24. Subsection (f), Section 317.005, Government
96-22 Code, is amended to read as follows:
96-23 (f) The governor or board may adopt an order under this
96-24 section withholding or transferring any portion of the total amount
96-25 appropriated to finance the foundation school program for a fiscal
96-26 year. The governor or board may not adopt such an order if it
96-27 would result in an allocation of money between particular programs
97-1 or statutory allotments under the foundation school program
97-2 contrary to the statutory proration formula provided by Section
97-3 16.254(h) <16.254(d)>, Education Code. The governor or board may
97-4 transfer an amount to the total amount appropriated to finance the
97-5 foundation school program for a fiscal year and may increase the
97-6 basic allotment. The governor or board may adjust allocations of
97-7 amounts between particular programs or statutory allotments under
97-8 the foundation school program only for the purpose of conforming
97-9 the allocations to actual pupil enrollments or attendance.
97-10 SECTION 25. Subchapter E, Chapter 825, Government Code, is
97-11 amended by adding Section 825.4051 to read as follows:
97-12 Sec. 825.4051. CONTRIBUTIONS BY CERTAIN SCHOOL DISTRICTS.
97-13 (a) If a school district's taxable value of property determined as
97-14 provided by Section 11.86, Education Code, is greater than $280,000
97-15 per weighted student in average daily attendance, as determined by
97-16 the commissioner of education, the school district shall pay the
97-17 state contributions to the retirement system for each employee of
97-18 the district who is a member of the retirement system under rules
97-19 adopted by the comptroller.
97-20 (b) The state guarantees a district's full and timely
97-21 payment of the district's obligation to the retirement system under
97-22 this section and may take action to enforce that obligation.
97-23 (c) The amount a school district may be required to pay
97-24 under this section is limited to the lesser of:
97-25 (1) the greatest amount that, if subtracted from the
97-26 amount of revenue generated by the district's current tax rate for
97-27 maintenance and operation of the district, would provide the
98-1 district with an amount of revenue equal to the amount that that
98-2 tax rate would generate if applied to a taxable value of property
98-3 of $280,000 per weighted student in average daily attendance; or
98-4 (2) the amount that permits the district, by imposing
98-5 an effective tax rate for maintenance and operation of the district
98-6 of $1.50 on the $100 valuation of taxable property to the
98-7 district's taxable value of property determined as provided by
98-8 Section 11.86, Education Code, to have available the same amount of
98-9 revenue per weighted student in average daily attendance for
98-10 maintenance and operation of the district, excluding reserves for
98-11 facilities and costs of contributions under this section, that the
98-12 district spent in the 1992-1993 school year.
98-13 (d) A determination of the commissioner of education under
98-14 this section is final and not appealable. The Administrative
98-15 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
98-16 Civil Statutes) does not apply to a determination of the
98-17 commissioner under this section.
98-18 (e) In this section, the number of weighted students in
98-19 average daily attendance is calculated in the manner provided by
98-20 Section 16.302, Education Code.
98-21 SECTION 26. The following provisions are repealed:
98-22 (1) Section 1.05 and Subchapter G, Chapter 20,
98-23 Education Code; and
98-24 (2) Sections 6.061(f), 26.12(e), and 312.002(e) and
98-25 (f), Tax Code.
98-26 SECTION 27. Notwithstanding Subsection (c), Section 19.028,
98-27 Education Code, as added by this Act, in the case of detachment and
99-1 annexation of property for the 1993-1994 school year, the
99-2 commissioner of education shall make determinations and notify each
99-3 affected school district, property owner, and appraisal district
99-4 not later than July 15, 1993, or the day following the effective
99-5 date of this Act, whichever is later.
99-6 SECTION 28. It is the intent of the 73rd Legislature that,
99-7 in case of a conflict, the funding provisions for an optional
99-8 extended year program as provided by Section 21.562, Education
99-9 Code, as added by this Act, control over any other funding
99-10 provisions for the program enacted by the 73rd Legislature during
99-11 its regular session.
99-12 SECTION 29. Notwithstanding the requirement in Section
99-13 16.254, Education Code, as amended by this Act, requiring
99-14 determinations under that section to be based on estimates provided
99-15 under Section 16.2541, Education Code, as added by this Act, or on
99-16 different estimates provided by the General Appropriations Act, for
99-17 the biennium ending August 31, 1995, determinations required under
99-18 Section 16.254 shall be based on estimates provided by the
99-19 Legislative Budget Board model run, number ____.
99-20 SECTION 30. Effective September 1, 1993, each county
99-21 education district created under Section 2, Chapter 20, Acts of the
99-22 72nd Legislature, Regular Session, 1991, is abolished.
99-23 SECTION 31. (a) On August 31, 1993, each county education
99-24 district shall transfer its funds to its component school districts
99-25 in the manner provided by rule of the commissioner of education.
99-26 (b) On September 1, 1993, any assets of a county education
99-27 district other than funds are transferred to its component school
100-1 districts in the manner and amounts provided by rule of the
100-2 commissioner of education.
100-3 (c) On September 1, 1993, the contracts and other
100-4 liabilities of a county education district are transferred to its
100-5 component school districts in the manner and amounts, including
100-6 joint obligations, provided by rule of the commissioner of
100-7 education.
100-8 (d) The records of the board of a county education district
100-9 shall be maintained as provided by rule of the commissioner of
100-10 education.
100-11 (e) The component school districts of a county education
100-12 district abolished by this Act may collect and use or distribute
100-13 taxes imposed by the county education district that are delinquent
100-14 in the manner provided by rule of the commissioner of education.
100-15 SECTION 32. (a) This Act applies to taxes imposed on or
100-16 after January 1, 1993.
100-17 (b) Changes in the funding of special education under
100-18 Section 16.151, Education Code, as amended by this Act, apply
100-19 beginning with the 1994-1995 school year. Any other change in the
100-20 funding of public schools and changes in the compensation of school
100-21 district personnel made by this Act apply beginning with the
100-22 1993-1994 school year.
100-23 SECTION 33. Notwithstanding Subsection (c), Section 19.028,
100-24 Education Code, as added by this Act, property may be detached from
100-25 a school district under that section only to the extent that, in
100-26 accordance with a determination of the commissioner of education,
100-27 the total amount of taxes per weighted student in average daily
101-1 attendance that the district can impose for maintenance and
101-2 operation of the district at an effective tax rate of $1.25 on the
101-3 $100 valuation of taxable property applied to the taxable value of
101-4 property in the district after detachment is not less than the
101-5 amount of taxes per weighted student in average daily attendance
101-6 spent by the district in the 1992-1993 school year for maintenance
101-7 and operation, excluding reserves for facilities. This section
101-8 expires August 31, 1994.
101-9 SECTION 34. The importance of this legislation and the
101-10 crowded condition of the calendars in both houses create an
101-11 emergency and an imperative public necessity that the
101-12 constitutional rule requiring bills to be read on three several
101-13 days in each house be suspended, and this rule is hereby suspended,
101-14 and that this Act take effect and be in force from and after its
101-15 passage, and it is so enacted.