By:  Leedom                                           S.J.R. No. 16
                                SENATE JOINT RESOLUTION
    1-1  proposing a constitutional amendment relating to public school
    1-2  finance.
    1-3        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article VII of the Texas Constitution is amended
    1-5  by adding Section 1a to read as follows:
    1-6        Sec. 1a.  (a)  The Education Equalization Excellence Fund
    1-7  Budget Committee is established.  The committee is composed of the
    1-8  governor, the lieutenant governor, the attorney general, the
    1-9  comptroller of public accounts, and the chairman of the State Board
   1-10  of Education.
   1-11        (b)  The education equalization excellence fund is created in
   1-12  the state treasury.  Not later than July 1 of each even-numbered
   1-13  year, the budget committee shall determine and certify to the
   1-14  comptroller of public accounts the amount of money to be placed in
   1-15  the education equalization excellence fund for the succeeding
   1-16  biennium to finance an efficient system of public free schools.
   1-17  The comptroller shall deposit that amount into the fund from
   1-18  revenue sources as provided by the legislature by general law.
   1-19        (c)  In determining the amount necessary to finance an
   1-20  efficient system of public free schools, the budget committee shall
   1-21  consider:
   1-22              (1)  salaries and other benefits for teachers and other
   1-23  academic personnel required by law;
    2-1              (2)  projected changes in average daily attendance;
    2-2              (3)  special needs that state or federal law requires
    2-3  school districts address and whose costs are not funded in funding
    2-4  the basic educational program of a school district; and
    2-5              (4)  any other factors the legislature by general law
    2-6  requires.
    2-7        (d)  Unless set at a lower amount as provided by Subsection
    2-8  (e) of this section, the amount determined to be placed in the
    2-9  education equalization excellence fund under Subsection (b) of this
   2-10  section is the minimum amount the legislature may appropriate to
   2-11  finance an efficient system of public free schools.
   2-12        (e)  The legislature, by a favorable vote of four-fifths of
   2-13  the membership of each house, may determine that a lesser amount
   2-14  than that recommended by the budget committee is sufficient to
   2-15  finance an efficient system of public free schools.
   2-16        (f)  For a system of public free schools to be considered
   2-17  efficient under Section 1 of this article:
   2-18              (1)  not more than 50 percent of all funds used to
   2-19  finance the system of public free schools, including the state's
   2-20  contribution to the Teacher Retirement System of Texas, may be
   2-21  derived from local property taxes;
   2-22              (2)  a school district may not be required to levy an
   2-23  ad valorem tax for maintenance and operation in excess of a rate
   2-24  that results in the application of the rate of $1.25 per $100
   2-25  valuation to the district's taxable property as determined by
    3-1  general law;
    3-2              (3)  the state must guarantee that each district
    3-3  receives an amount based on its average daily attendance that,
    3-4  after considering local tax effort and the distribution of the
    3-5  available school fund, is equal to the district's pro rata share of
    3-6  the amount determined by the budget committee under Subsection (b)
    3-7  of this section or by the legislature under Subsection (e) of this
    3-8  section;
    3-9              (4)  a school district that receives money from the
   3-10  education equalization excellence fund must be permitted to enrich
   3-11  its program by levying an ad valorem tax for maintenance and
   3-12  operation at a rate that results in the application of a rate that
   3-13  is more than $1.25 but not more than $1.50 per $100 valuation of
   3-14  taxable property; and
   3-15              (5)  a school district may not receive less in state
   3-16  funds per student in average daily attendance than the amount the
   3-17  district received for the 1992-1993 school year.
   3-18        (g)  The excellence in education trust fund is created in the
   3-19  state treasury.  The fund consists of money the legislature
   3-20  deposits to the credit of the fund and any other gifts accepted
   3-21  into the fund from any other source.
   3-22        (h)  Interest from investment of the fund and 50 percent or
   3-23  less of the other income of the fund, as provided by general law,
   3-24  adjusted to reflect changes in the cost of living as determined by
   3-25  the U.S. Department of Labor or other department of the federal
    4-1  government specified by general law remain in the fund.  The fund
    4-2  may be used for any purpose for which the education equalization
    4-3  excellence fund may be used.
    4-4        (i)  The legislature shall provide by general law for the
    4-5  management of the excellence in education trust fund.
    4-6        (j)  A system of public free schools financed as provided by
    4-7  this section is efficient for purposes of Section 1 of this
    4-8  article.
    4-9        SECTION 2.  This proposed constitutional amendment shall be
   4-10  submitted to the voters at an election to be held on
   4-11  November 2, 1993.  The ballot shall be printed to provide for
   4-12  voting for or against the proposition:  "The constitutional
   4-13  amendment to provide for the support and maintenance of an
   4-14  efficient system of public free schools."