By Williamson                                   H.B. No. 2938

      75R5852 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to public school finance.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 42.101, Education Code, is amended to

 1-5     read as follows:

 1-6           Sec. 42.101.  BASIC ALLOTMENT.  For each student in average

 1-7     daily attendance, not including the time students spend each day in

 1-8     special education programs in an instructional arrangement other

 1-9     than mainstream or career and technology education programs, for

1-10     which an additional allotment is made under Subchapter C, a

1-11     district is entitled to an allotment of $3,000 [$2,387] or a

1-12     greater amount adopted by the foundation school fund budget

1-13     committee under Section 42.256. A greater amount for any school

1-14     year may be provided by appropriation.

1-15           SECTION 2.  Section 42.103(d), Education Code, is amended to

1-16     read as follows:

1-17           (d)  The basic allotment of a school district that offers a

1-18     kindergarten through grade 12 program and has less than 5,000

1-19     students in average daily attendance is adjusted by applying the

1-20     formula, of the following formulas, that results in the greatest

1-21     adjusted allotment:

1-22                 (1)  the formula in Subsection (b) or (c) for which the

1-23     district is eligible;

 2-1                 (3)  depending on the school year:

 2-2                       (A)  [for the 1996-1997 school year,]

 2-4                       [(B)]  for the 1997-1998 school year,

 2-6                       (B) ([(C)]  for the 1998-1999 school year,

 2-8                       (C) [(D)]  for the 1999-2000 school year,

2-10                       (D) [(E)]  for the 2000-2001 school year,

2-12           SECTION 3.  Section 42.151(a), Education Code, is amended to

2-13     read as follows:

2-14           (a)  For each student in average daily attendance in a

2-15     special education program under Subchapter A, Chapter 29, [in a

2-16     mainstream instructional arrangement,] a school district is

2-17     entitled to an annual allotment equal to the adjusted basic

2-18     allotment multiplied by 2.5 [1.1].  [For each full-time equivalent

2-19     student in average daily attendance in a special education program

2-20     under Subchapter A, Chapter 29, in an instructional arrangement

2-21     other than a mainstream instructional arrangement, a district is

2-22     entitled to an annual allotment equal to the adjusted basic

2-23     allotment multiplied by a weight determined according to

2-24     instructional arrangement as follows:]

2-25         [Homebound .......................................... 5.0]

2-26         [Hospital class ..................................... 3.0]

2-27         [Speech therapy ..................................... 5.0]

 3-1         [Resource room ...................................... 3.0]

 3-2         [Self-contained, mild and moderate, regular campus .. 3.0]

 3-3         [Self-contained, severe, regular campus ............. 3.0]

 3-4         [Off home campus .................................... 2.7]

 3-5         [Nonpublic day school ............................... 1.7]

 3-6         [Vocational adjustment class ........................ 2.3]

 3-7           SECTION 4.  Section 42.152(a), Education Code, is amended to

 3-8     read as follows:

 3-9           (a)  For each student who is educationally disadvantaged,

3-10     [or] who is a student who does not have a disability and resides

3-11     in a residential placement facility in a district in which the

3-12     student's parent or legal guardian does not reside, or who is in a

3-13     remedial and support program under Section 29.081 because the

3-14     student is pregnant, a district is entitled to an annual allotment

3-15     equal to the adjusted basic allotment multiplied by 0.2[, and by

3-16     2.41 for each  full-time equivalent student who is in a remedial

3-17     and support program under Section 29.081 because the student is

3-18     pregnant].

3-19           SECTION 5.  Section 42.154(a), Education Code, is amended to

3-20     read as follows:

3-21           (a)  For each full-time equivalent student in average daily

3-22     attendance in an approved career and technology education program

3-23     in grades nine through 12 or in career and technology education

3-24     programs for students with disabilities in grades seven through 12,

3-25     a district is entitled to an annual allotment equal to the adjusted

3-26     basic allotment multiplied by a weight of 0.5 [1.37].

3-27           SECTION 6.  Section 42.251(b), Education Code, is amended to

 4-1     read as follows:

 4-2           (b)  The program shall be financed by:

 4-3                 (1)  [ad valorem tax revenue generated by an equalized

 4-4     uniform school district effort;]

 4-5                 [(2)]  ad valorem tax revenue generated by local school

 4-6     district effort to receive state support under Section 42.302 [in

 4-7     excess of the equalized uniform school district effort];

 4-8                 (2) [(3)]  state available school funds distributed in

 4-9     accordance with law; and

4-10                 (3) [(4)]  state funds appropriated in compliance with

4-11     Section 1A, Article VII, Texas Constitution, for the  purposes of

4-12     public school education and allocated to each district in an amount

4-13     sufficient to finance the cost of each district's Foundation School

4-14     Program not covered by other funds specified in this subsection.

4-15           SECTION 7.  Sections 42.253(a) and (c), Education Code, are

4-16     amended to read as follows:

4-17           (a)  For each school year the commissioner shall determine:

4-18                 (1)  the amount of money to which a school district is

4-19     entitled under Subchapters B and C;

4-20                 (2)  the amount of money to which a school district is

4-21     entitled under Subchapter F;

4-22                 (3)  the amount of money allocated to the district from

4-23     the available school fund; and

4-24                 (4)  [the amount of each district's tier one local

4-25     share under Section 42.252; and]

4-26                 [(5)]  the amount of each district's tier two local

4-27     share under Section 42.302.

 5-1           (c)  Each school district is entitled to an amount equal to

 5-2     the difference for that district between the sum of Subsections

 5-3     (a)(1) and (a)(2) and the sum of Subsections (a)(3) and[,] (a)(4)[,

 5-4     and (a)(5)].

 5-5           SECTION 8.  Sections 42.302 and 42.303, Education Code, are

 5-6     amended to read as follows:

 5-7           Sec. 42.302.  ALLOTMENT.  (a)  Each school district is

 5-8     guaranteed a specified amount per weighted student in state and

 5-9     local funds for each cent of tax effort [over that required for the

5-10     district's local fund assignment] up to the maximum level specified

5-11     in this  subchapter.  The amount of state support, subject only to

5-12     the maximum amount under Section 42.303, is determined by the

5-13     formula:

5-15     where:

5-16           "GYA" is the guaranteed yield amount of state funds to be

5-17     allocated to the district;

5-18           "GL" is the dollar amount guaranteed level of state and local

5-19     funds per weighted student per cent of tax effort, which is $50

5-20     [$20.55] or a greater amount for any year provided by

5-21     appropriation, or  a greater amount adopted by the foundation

5-22     school fund budget committee under Section 42.256(d);

5-23           "WADA" is the number of students in weighted average daily

5-24     attendance, which is calculated by dividing the sum of the school

5-25     district's allotments under Subchapters B and C, less [any

5-26     allotment to the district for transportation and] 50 percent of the

5-27     adjustment under  Section 42.102, by the basic allotment for the

 6-1     applicable year;

 6-2           "DTR" is the district enrichment and facilities tax rate of

 6-3     the school district, which is determined by subtracting the amounts

 6-4     specified by Subsection (b) from the total amount of taxes

 6-5     collected by the school district for the applicable school year and

 6-6     dividing the difference by the quotient of the district's taxable

 6-7     value of property as determined under Subchapter M, Chapter 403,

 6-8     Government Code, divided by 100; and

 6-9           "LR" is the local revenue, which is determined by multiplying

6-10     "DTR" by the quotient of the district's taxable value of property

6-11     as determined under Subchapter M, Chapter 403, Government Code,

6-12     divided by 100.

6-13           (b)  In computing the district enrichment and facilities tax

6-14     rate of a school district, the total amount of taxes collected by

6-15     the school district does not include the amount of[:]

6-16                 [(1)  the district's local fund assignment under

6-17     Section 42.252; or]

6-18                 [(2)]  taxes collected to pay the local share of the

6-19     cost of an instructional facility for which the district receives

6-20     state assistance under Subchapter H.

6-21           Sec. 42.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX

6-22     RATE.  The district enrichment and facilities tax rate ("DTR")

6-23     under Section 42.302 may not exceed $0.50 [$0.64] per $100 of

6-24     valuation[, or a greater amount adopted by the foundation school

6-25     fund  budget committee under Section 42.256(d)].

6-26           SECTION 9.  Section 42.402, Education Code, is amended to

6-27     read as follows:

 7-1           Sec. 42.402.  DISTRICT ELIGIBILITY.  A school district is

 7-2     eligible for state assistance under this subchapter if the district

 7-3     has:

 7-4                 (1)  a wealth per student less than the guaranteed

 7-5     wealth level; and

 7-6                 (2)  a total effective tax rate that is at least $0.40

 7-7     [$1.30] per $100 of valuation of taxable property or an effective

 7-8     tax rate for the payment of principal of and interest on bonds that

 7-9     is at least $0.20 per $100 of valuation of taxable property.

7-10           SECTION 10.  Section 42.406(a), Education Code, is amended to

7-11     read as follows:

7-12           (a)  The cost of a project for which a district may receive

7-13     assistance under this subchapter may not exceed the greater of:

7-14                 (1)  $650,000 [$500,000]; or

7-15                 (2)  the product of the number of students in average

7-16     daily attendance in the district multiplied by $280 [$266].

7-17           SECTION 11.  Section 45.003(d), Education Code, is amended to

7-18     read as follows:

7-19           (d)  A proposition submitted to authorize the levy of

7-20     maintenance taxes must include the question of whether the

7-21     governing board or commissioners court may levy, assess, and

7-22     collect annual ad valorem taxes for the support [further

7-23     maintenance] of public schools, at a rate not to exceed the rate,

7-24     which may be  not more than $0.50 [$1.50] on the $100 valuation of

7-25     taxable property in the district, stated in the proposition.

7-26           SECTION 12.  The following provisions of the Education Code

7-27     are repealed:

 8-1                 (1)  Sections 42.151(b)-(e) and (j), 42.155, 42.156,

 8-2     42.252, and 45.003(e); and

 8-3                 (2)  Chapter 41.

 8-4           SECTION 13.  This Act takes effect September 1, 1997, but

 8-5     only if the constitutional amendment proposed by ___J.R. No. ____,

 8-6     75th Legislature, Regular Session, 1997, is approved by the voters.

 8-7     If the proposed constitutional amendment is not approved by the

 8-8     voters, this Act has no effect.

 8-9           SECTION 14.  The importance of this legislation and the

8-10     crowded condition of the calendars in both houses create an

8-11     emergency and an imperative public necessity that the

8-12     constitutional rule requiring bills to be read on three several

8-13     days in each house be suspended, and this rule is hereby suspended.