By Junell, Hochberg                                    H.B. No. 927
       74R3034 ESH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to state assistance in financing public school facilities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  The heading to Subchapter I, Chapter 16,
    1-5  Education Code, is amended to read as follows:
    1-6                SUBCHAPTER I.  SCHOOL FACILITY PROGRAM
    1-7                   <CAPITAL OUTLAY AND DEBT SERVICE>
    1-8        SECTION 2.  Subchapter I, Chapter 16, Education Code, is
    1-9  amended by adding Section 16.403 to read as follows:
   1-10        Sec. 16.403.  BASIC FACILITIES ALLOTMENT.  (a)  Each school
   1-11  district is entitled to an annual basic facilities allotment as
   1-12  provided by this section.  In this section:
   1-13              (1)  "BFA" is the district's basic facilities
   1-14  allotment.
   1-15              (2)  "FAPS" is the facilities allotment per student for
   1-16  the school year, which is $47 or a greater amount for any year
   1-17  provided by appropriation.
   1-18              (3)  "ADA" is the district's average daily attendance.
   1-19              (4)  "DPVS" is the district's taxable value of property
   1-20  as determined under Section 11.86, divided by the district's
   1-21  unmodified average daily attendance.
   1-22              (5)  "EWL" is the equalized wealth level provided by
   1-23  Section 36.002.
   1-24        (b)  Except as modified by Subsection (c) or (d), the amount
    2-1  of a district's basic facilities allotment is determined by the
    2-2  formula:
    2-3        (c)  For purposes of Subsection (b), the average daily
    2-4  attendance of a school district that has 1,600 or fewer students in
    2-5  average daily attendance is modified as follows:
    2-6        (d)  For purposes of Subsection (b), the average daily
    2-7  attendance of a school district that has more than 1,600 but not
    2-8  more than 2,000 students in average daily attendance is modified by
    2-9  the diseconomies of scale component of the cost of education
   2-10  adjustment provided by Section 16.102.
   2-11        (e)  Not later than November 15 before each regular session
   2-12  of the legislature, the Legislative Budget Board shall recommend to
   2-13  the foundation school fund budget committee an amount to be
   2-14  appropriated for basic school facilities.  The amount must be based
   2-15  on the board's determination of school district needs concerning
   2-16  basic school facilities.
   2-17        (f)  Funds allotted under this section may be used only to:
   2-18              (1)  acquire, construct, maintain, or improve school
   2-19  facilities; or
   2-20              (2)  pay principal and interest on bonds issued for the
   2-21  purpose of acquiring, constructing, maintaining, or improving
   2-22  school facilities, including bonds issued before the funds were
   2-23  allotted.
   2-24        (g)  A school district may invest or deposit funds allotted
   2-25  under this section for use in a school year other than the school
   2-26  year in which the funds were allotted.
   2-27        SECTION 3.  Section 16.002(b), Education Code, is amended to
    3-1  read as follows:
    3-2        (b)  The Foundation School Program consists of two tiers to
    3-3  provide for the purposes specified by Subsection (a) of this
    3-4  section.  The first tier guarantees sufficient financing for all
    3-5  school districts to provide a basic program of education that meets
    3-6  accreditation and other legal standards.  The second tier provides
    3-7  a guaranteed yield system of financing to provide all school
    3-8  districts with substantially equal access to funds to provide an
    3-9  enriched program and additional funds for facilities.  The
   3-10  Foundation School Program includes an additional equalized
   3-11  allotment to provide all school districts with substantially equal
   3-12  access to funds for basic school facilities.
   3-13        SECTION 4.  Section 16.251(a), Education Code, is amended to
   3-14  read as follows:
   3-15        (a)  The sum of the basic allotment under Subchapter C  and
   3-16  the special allotments under Subchapter D, computed in accordance
   3-17  with this chapter, constitute the tier one allotments.  The sum of
   3-18  the tier one allotments, <and> the guaranteed yield allotments
   3-19  under Subchapter H, and the basic facilities allotment under
   3-20  Subchapter I, computed in accordance with this chapter, constitute
   3-21  the total cost of the Foundation School Program.
   3-22        SECTION 5.  Sections 16.254(a) and (c), Education Code, are
   3-23  amended to read as follows:
   3-24        (a)  For each school year the commissioner of education shall
   3-25  determine:
   3-26              (1)  the amount of money to which a school district is
   3-27  entitled under Subchapters C and D;
    4-1              (2)  the amount of money to which a school district is
    4-2  entitled under Subchapter H;
    4-3              (3)  the amount of money to which a school district is
    4-4  entitled under Subchapter I;
    4-5              (4)  the amount of money allocated to the district from
    4-6  the available school fund;
    4-7              (5) <(4)>  the amount of each district's tier one local
    4-8  share under Section 16.252; and
    4-9              (6) <(5)>  the amount of each district's tier two local
   4-10  share under Section 16.302 <16.303>.
   4-11        (c)  Each school district is entitled to an amount equal to
   4-12  the difference for that district between the sum of Subsections
   4-13  (a)(1), <and> (a)(2), and (a)(3) and the sum of Subsections
   4-14  <(a)(3),> (a)(4), <and> (a)(5), and (a)(6).
   4-15        SECTION 6.  Section 16.256(e), Education Code, is amended to
   4-16  read as follows:
   4-17        (e)  The funding elements shall include:
   4-18              (1)  a basic allotment for the purposes of Section
   4-19  16.101 of this code that represents the cost per student of a
   4-20  regular education program that meets the basic criteria for an
   4-21  accredited program including all mandates of law and regulation;
   4-22              (2)  adjustments designed to reflect the variation in
   4-23  known resource costs and costs of education beyond the control of
   4-24  school districts;
   4-25              (3)  appropriate program cost differentials and other
   4-26  funding elements for the programs authorized under Subchapter D of
   4-27  this chapter, with the program funding level expressed as dollar
    5-1  amounts and as weights applied to the adjusted basic allotment for
    5-2  the appropriate year;
    5-3              (4)  the maximum guaranteed level of qualified state
    5-4  and local funds per student for the purposes of Subchapter H of
    5-5  this chapter;
    5-6              (5)  the enrichment and facilities tax rate under
    5-7  Subchapter H of this chapter;
    5-8              (6)  the basic facilities allotment per student
    5-9  <formula elements for the funding formulas for capital outlay and
   5-10  debt service> under <the provision of> Subchapter I of this
   5-11  chapter; and
   5-12              (7)  the calculation of weighted students in average
   5-13  daily attendance under Section 16.302 of this code.
   5-14        SECTION 7.  This Act takes effect September 1, 1995.
   5-15        SECTION 8.  The importance of this legislation and the
   5-16  crowded condition of the calendars in both houses create an
   5-17  emergency and an imperative public necessity that the
   5-18  constitutional rule requiring bills to be read on three several
   5-19  days in each house be suspended, and this rule is hereby suspended.