Floor Packet Page No. 5
      Amend CSHB 4 as follows:
      (1)  On page 1, strike lines 11-13 and substitute the
following:
            (1)  Chapter 41;
            (2)  Subchapters C, F, G, and H, Chapter 42; and
            (3)  Sections 7.055(a)(34), 12.107, 31.021(c), 42.007,
42.102, 42.103(c)-(e), 42.104, 42.253(l), 42.256, and 56.208(d).
      (2)  Strike page 1, line 14, through page 72, line 6, and
substitute the following:
      SECTION 1.02.  Section 42.101, Education Code, is amended to
read as follows:
      Sec. 42.101.  BASIC ALLOTMENT.  For each student in average
daily attendance, <not including the time students spend each day
in special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C,> a
district is entitled to an allotment of $_______ <$2,387 or a
greater  amount adopted by the foundation school fund budget
committee under Section 42.256>.  A greater amount for any school
year may be provided by appropriation.
      SECTION 1.03.  Sections 42.103(a) and (b), Education Code,
are amended to read as follows:
      (a)  The basic allotment for certain small and mid-sized
districts is adjusted in accordance with this section.  In this
section:
            (1)  "AA" is the district's adjusted allotment per
student;
            (2)  "ADA" is the number of students in average daily
attendance for which the district is entitled to an allotment under
Section 42.101; and
            (3)  "BA" <"ABA"> is the <adjusted> basic allotment
<determined> under Section 42.101 <42.102>.
      (b)  The basic allotment of a school district that contains
at least ______ <300> square miles and has not more than ______
<1,600> students in average daily attendance is adjusted by
applying the formula:
      SECTION 1.04.  Section 42.105, Education Code, is amended to
read as follows:
      Sec. 42.105.  SPARSITY ADJUSTMENT.  Notwithstanding Sections
42.101<, 42.102,> and 42.103, a school district that has fewer than
______ <130> students in average daily attendance shall be
provided an adjusted basic allotment on the basis of _____ <130>
students in average daily attendance if it offers a kindergarten
through grade 12 program and has preceding or current year's
average daily attendance of at least ____ <90> students or is ____
<30> miles or more by bus route from the nearest high school
district.  <A district offering a kindergarten through grade 8
program whose preceding or current year's average daily attendance
was at least 50 students or which is 30 miles or more by bus route
from the nearest high school district shall be provided an adjusted
basic allotment on the basis of 75 students in average daily
attendance.  An average daily attendance of 60 students shall be
the basis of providing the adjusted basic allotment if a district
offers a kindergarten through grade 6 program and has preceding or
current year's average daily attendance of at least 40 students or
is 30 miles or more by bus route from the nearest high school
district.>
      SECTION 1.05.  Sections 42.251(a) and (b), Education Code,
are amended to read as follows:
      (a)  The sum of the basic allotments for each school district
<allotment> under Subchapter B <and the special allotments under
Subchapter C>, computed in accordance with this chapter, constitute
the <tier one allotments.  The sum of the tier one allotments, the
guaranteed yield allotments under Subchapter F, and assistance
provided under the school facilities assistance program under
Subchapter H, computed in accordance with this chapter, constitute
the> total cost of the Foundation School Program.
      (b)  The program shall be financed by:
            (1)  ad valorem tax revenue generated by an equalized
<uniform> school district effort;
            (2)  <ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;>
            <(3)>  state available school funds distributed in
accordance with law; and
            (3) <(4)>  state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
      SECTION 1.06.  Section 42.252(a), Education Code, is amended
to read as follows:
      (a)  Each school district's share of the Foundation School
Program is determined by the following formula:
where:
      "LFA" is the school district's local share;
      "TR" is a tax rate which for each hundred dollars of
valuation is an effective tax rate of $_____ <$0.86>; and
      "DPV" is the taxable value of property in the school district
for the current <preceding> tax year for purposes of maintenance
and operations determined under Section 403.302(d) <Subchapter M,
Chapter 403>, Government Code.
      SECTION 1.07.  Sections 42.253(a) and (c), Education Code,
are amended to read as follows:
      (a)  For each school year the commissioner shall determine:
            (1)  the amount of money to which a school district is
entitled under Subchapter B <Subchapters B and C>;
            (2)  <the amount of money to which a school district is
entitled under Subchapter F;>
            <(3)>  the amount of money allocated to the district
from the available school fund; and
            (3) <(4)>  the amount of each district's <tier one>
local share under Section 42.252<; and>
            <(5)  the amount of each district's tier two local
share under Section 42.302>.
      (c)  Each school district is entitled to an amount equal to
the difference for that district between the amount of Subsection
<sum of Subsections> (a)(1) <and (a)(2)> and the sum of Subsections
(a)(2) and (a)(3)<, (a)(4), and (a)(5)>.
      SECTION 1.08.  Section 42.254(a), Education Code, is amended
to read as follows:
      (a)  Not later than October 1 of each even-numbered year:
            (1)  the agency shall submit to <the foundation school
fund budget committee and> the legislature an estimate of the tax
rate and student enrollment of each school district for the
following biennium; and
            (2)  the comptroller shall submit to <the foundation
school fund budget committee and> the legislature an estimate of
the total taxable value of all property in the state as determined
under Subchapter M, Chapter 403, Government Code, for the following
biennium.
      (3)  Strike page 77, line 24, through page 82, line 17.
      (4)  Renumber the sections of the bill appropriately.