SR C.S.H.B. 318 75(R) BILL ANALYSIS PUBLIC EDUCATION C.S.H.B. 318 By: Cuellar 4-21-97 Committee Report (Substituted) BACKGROUND The Public Education Grant (PEG) Program, established by Senate Bill 1, 1995, allows parents of students at low performing schools to apply for the transfer of that child to the campus or district of their choice. Chosen districts, however, have resisted accepting PEG applications contending that ambiguity in the statute causes liability concerns over discrimination that are best avoided by not participating in the program. School districts may also reap greater financial rewards by accepting children on a tuition basis, rather than through the grant, and therefore, may be reserving any available space within the district for tuition based transfers. PURPOSE This bill alters the current eligibility requirements for participation in the program, making it easier for students to become eligible for the grant. The bill also provides financial incentives to districts that participate in the Public Education Grant program by educating PEG transfer students. RULEMAKING AUTHORITY It is the committee's opinion that this bill does grant additional rulemaking authority to the commissioner of education in Section 1. SECTION BY SECTION ANALYSIS Section 1: Amends Section 29.202 to state that a student may receive a public education grant if he or she is assigned to a school where: 1) 50 percent or more of the students have failed state-required tests at any time in the preceding three years; or 2) was, at any time in the preceding three years, identified as low performing by the commissioner. Adds subsection(b) stating that after a public education grant has been granted for a student to attend a school other than the district in which the student resides: 1) the student does not become ineligible for the grant if the school on which the student's initial eligibility is based no longer meets the criteria under Subsection (a); and 2) the student becomes ineligible for the grant if the student is assigned to attend a school that does not meet the criteria under Subsection (a). Amends Section 29.203(a) by establishing student attendance for ADA purposes in the school district in which the student attends school. Amends Sections 29.203(b), (c), (e) and (g): b) Defines school district's entitlement for a student's public education grant. If a school district has a wealth per student greater than the guaranteed wealth level but less than the equalized wealth level, a school district is entitled to additional state aid in an amount equal to the difference between the cost to the district of providing services to a student using a public education grant and the sum of the state aid received because of the allotment under Section 42.157 and money from the available school fund attributable to the student. c) Defines a school district is entitled to additional facilities assistance under Section 42.4101 if the district agrees to: 1) accept a number of students using public education grants at least one percent of the district's average daily attendance for the preceding year; and 2) provide services to each student until the student either voluntarily decides to attend a school in a different district or graduates from high school. e) States that a school district chosen by a student's parent under Section 29.201 may not charge the student tuition. g) Defines "Equalized wealth level" , "Guaranteed wealth level", and "Wealth per student". Section 2: Amends Subchapter C, Chapter 42, Education Code, by adding Section 42.157 to grant the receiving school district an annual allotment equal to the adjusted basic allotment multiplied by a weight of 0.1. Adds subsection (b) stating that the total number of allotments under this section to which a district is entitled may not exceed the number by which the number of students using public education grants to attend school in the district exceeds the number of students who reside in the district and use public education grants to attend school in another district. Section 3: Amends Subchapter H, Chapter 42, Education Code, by adding Section 42.4101: a) A district is entitled to additional assistance under this section as provided by Section 29.203(c). b) The amount of additional assistance is computed by subtracting the number of students residing in the district and using public education grants to attend school in another district for the year in which the assistance is granted from the number of students using public education grants to attend school in the district for that year and multiplying the difference by $266. c) If the district to which this section applies is entitled to the maximum amount of assistance under Section 42.406, the maximum is increased by the amount of additional assistance to which the district is entitled under this section. Section 4: Effective date. Section 5: Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute to HB 318 increases the number of campuses that meet the eligibility requirements of the Public Education Grant program by granting students within these schools eligibility into the program if, at any time within the preceding three years, 50 percent or more of the student population did not perform satisfactorily on the TAAS test. HB 318 also required a satisfactory student performance level of 50 percent, however, this was dependent upon assessment instruments administered in the preceding year, rather than any of the preceding three years. Furthermore, CSHB 318 provides clarifying language as to when a student becomes ineligible to participate in the program whereas HB 318 contains no equivalent provision. CSHB 318 also alters the funding mechanism introduced in HB 318. HB 318 provides that the amount of the PEG transfer is equal to the total state and local funding per student in the district in which the student resides. This bill also provides additional funds from the foundation school program to receiving districts with higher per student expenditures than the amount received through the grant. These additional funds are equal to the difference between the per student expenditures and the amount of the grant. CSHB 318, however, bases the amount of the grant on the Foundation School formulas for the receiving district and provides additional state assistance to receiving districts that have both a higher per student expenditure than the amount received through the grant, and a wealth level higher than the guaranteed level and below the equalized level. CSHB 318 also provides an allotment weight based on PEG transfer students, additional facilities assistance for schools with one percent or more enrollment of PEG transfer students, and additional tier two funding assistance to districts that do not receive tier two monies, but have a per student educational cost higher than the amount received through the grant.