By Allen                                              H.J.R. No. 57
       74R3922 ESH-F
                                  A 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, Texas Constitution, is amended by
    1-5  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;
   1-24              (2)  projected changes in average daily attendance;
    2-1              (3)  special needs that state or federal law requires
    2-2  school districts address and whose costs are not funded in funding
    2-3  the basic educational program of a school district; and
    2-4              (4)  any other factors the legislature by general law
    2-5  requires.
    2-6        (d)  Unless set at a lower amount as provided by Subsection
    2-7  (e) of this section, the amount determined to be placed in the
    2-8  education equalization excellence fund under Subsection (b) of this
    2-9  section is the minimum amount the legislature may appropriate to
   2-10  finance an efficient system of public free schools.
   2-11        (e)  The legislature, by a favorable vote of four-fifths of
   2-12  the membership of each house, may determine that a lesser amount
   2-13  than that recommended by the budget committee is sufficient to
   2-14  finance an efficient system of public free schools.
   2-15        (f)  For a system of public free schools to be considered
   2-16  efficient under Section 1 of this article:
   2-17              (1)  not more than 50 percent of all funds used to
   2-18  finance the system of public free schools, including the state's
   2-19  contribution to the Teacher Retirement System of Texas, may be
   2-20  derived from local property taxes;
   2-21              (2)  a school district may not be required to levy an
   2-22  ad valorem tax for maintenance and operation in excess of a rate
   2-23  that results in the application of the rate of $1.25 per $100
   2-24  valuation to the district's taxable property as determined by
   2-25  general law;
   2-26              (3)  the state must guarantee that each district
   2-27  receives an amount based on its average daily attendance that,
    3-1  after considering local tax effort and the distribution of the
    3-2  available school fund, is equal to the district's pro rata share of
    3-3  the amount determined by the budget committee under Subsection (b)
    3-4  of this section or by the legislature under Subsection (e) of this
    3-5  section;
    3-6              (4)  a school district that receives money from the
    3-7  education equalization excellence fund must be permitted to enrich
    3-8  its program by levying an ad valorem tax for maintenance and
    3-9  operation at a rate that results in the application of a rate that
   3-10  is more than $1.25 but not more than $1.50 per $100 valuation of
   3-11  taxable property; and
   3-12              (5)  a school district may not receive less in state
   3-13  funds per student in average daily attendance than the amount the
   3-14  district received for the 1994-1995 school year.
   3-15        (g)  The excellence in education trust fund is created in the
   3-16  state treasury.  The fund consists of money the legislature
   3-17  deposits to the credit of the fund and any other gifts accepted
   3-18  into the fund from any other source.
   3-19        (h)  Interest from investment of the fund and 50 percent or
   3-20  less of the other income of the fund, as provided by general law,
   3-21  adjusted to reflect changes in the cost of living as determined by
   3-22  the United States Department of Labor or other department of the
   3-23  federal government specified by general law, remain in the fund.
   3-24  The fund may be used for any purpose for which the education
   3-25  equalization excellence fund may be used.
   3-26        (i)  The legislature shall provide by general law for the
   3-27  management of the excellence in education trust fund.
    4-1        (j)  A system of public free schools financed as provided by
    4-2  this section is efficient for purposes of Section 1 of this
    4-3  article.
    4-4        SECTION 2.  This proposed constitutional amendment shall be
    4-5  submitted to the voters at an election to be held on November
    4-6  7, 1995.  The ballot shall be printed to provide for voting for or
    4-7  against the proposition:  "The constitutional amendment to provide
    4-8  for the support and maintenance of an efficient system of public
    4-9  free schools."