By: Bivins S.B. No. 1873
A BILL TO BE ENTITLED
AN ACT
1-1 relating to public school finance, including the abolition of the
1-2 foundation school fund budget committee.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The foundation school fund budget committee is
1-5 abolished, and Section 42.256, Education Code, is repealed.
1-6 SECTION 2. Section 42.007, Education Code, is amended to
1-7 read as follows:
1-8 Sec. 42.007. EQUALIZED FUNDING ELEMENTS. (a) The
1-9 Legislative Budget Board shall compute [adopt rules, subject to
1-10 appropriate notice and opportunity for public comment, for the
1-11 calculation] for each year of a biennium [of] the qualified funding
1-12 elements, in accordance with Subsection (c), [under Section
1-13 42.256(e)] necessary to achieve the state policy under Section
1-14 42.001.
1-15 (b) Before [Not later than October 1 preceding] each regular
1-16 session of the legislature, the board shall report the equalized
1-17 funding elements to [the foundation school fund budget committee,]
1-18 the commissioner[,] and the legislature.
1-19 (c) The funding elements may include:
1-20 (1) a basic allotment for the purposes of Section
1-21 42.101 that, when combined with the guaranteed yield component
1-22 provided by Subchapter F, represents the cost per student of a
1-23 regular education program that meets all mandates of law and
2-1 regulation;
2-2 (2) adjustments designed to reflect the variation in
2-3 known resource costs and costs of education beyond the control of
2-4 school districts;
2-5 (3) appropriate program cost differentials and other
2-6 funding elements for the programs authorized under Subchapter C,
2-7 with the program funding level expressed as dollar amounts and as
2-8 weights applied to the adjusted basic allotment for the appropriate
2-9 year;
2-10 (4) the maximum guaranteed level of qualified state
2-11 and local funds per student for the purposes of Subchapter F;
2-12 (5) the enrichment and facilities tax rate under
2-13 Subchapter F;
2-14 (6) the calculation of students in weighted average
2-15 daily attendance under Section 42.302; and
2-16 (7) the amount to be appropriated for the school
2-17 facilities assistance program under Subchapter H.
2-18 (d) The board may conduct a study on the funding elements
2-19 each biennium, as appropriate.
2-20 SECTION 3. Section 13.285, Education Code, is amended to
2-21 read as follows:
2-22 Sec. 13.285. COST. The cost of incentive aid payments
2-23 authorized by this subchapter shall be paid from the foundation
2-24 school fund. [The costs shall be considered and included by the
2-25 foundation school fund budget committee in estimating the funds
3-1 needed for purposes of the Foundation School Program.]
3-2 SECTION 4. Subsection (b), Section 19.007, Education Code,
3-3 is amended to read as follows:
3-4 (b) The costs for persons eligible under Section 19.005
3-5 shall be paid from the foundation school fund. [Those costs shall
3-6 be considered annually by the foundation school fund budget
3-7 committee and included in estimating the funds needed for purposes
3-8 of the Foundation School Program.]
3-9 SECTION 5. Subsection (c), Section 29.256, Education Code,
3-10 is amended to read as follows:
3-11 (c) The cost to the state shall be paid from the foundation
3-12 school fund. [The foundation school fund budget committee shall
3-13 consider that cost in estimating the funds needed for Foundation
3-14 School Program purposes.]
3-15 SECTION 6. Subsection (a), Section 29.257, Education Code,
3-16 is amended to read as follows:
3-17 (a) The legislature may appropriate money from the
3-18 foundation school fund to the agency for developing and
3-19 implementing community education projects. [The foundation school
3-20 fund budget committee shall consider the cost of community
3-21 education development projects in estimating the money needed for
3-22 foundation school fund purposes.] The agency shall actively seek
3-23 gifts, grants, or other donations for purposes related to community
3-24 education development projects, unless the acceptance is prohibited
3-25 by other law. Money received under this subsection shall be
4-1 deposited in the account established under Subsection (b) and may
4-2 be appropriated only for the purpose for which the money was given.
4-3 SECTION 7. Section 41.006, Education Code, is amended to
4-4 read as follows:
4-5 Sec. 41.006. MODIFICATION OF EFFECTIVE DATES AND TIME
4-6 PERIODS [RULES]. [(a) The commissioner may adopt rules
4-7 necessary for the implementation of this chapter. The rules may
4-8 provide for the commissioner to make necessary adjustments to the
4-9 provisions of Chapter 42, including providing for the commissioner,
4-10 with the approval of the foundation school fund budget committee,
4-11 to make an adjustment in the funding element established by Section
4-12 42.302, at the earliest date practicable, to the amount the
4-13 commissioner believes, taking into consideration options exercised
4-14 by school districts under this chapter and estimates of student
4-15 enrollments, will match appropriation levels.]
4-16 [(b)] As necessary for the effective and efficient
4-17 administration of this chapter, the commissioner may modify
4-18 effective dates and time periods for actions described by this
4-19 chapter.
4-20 SECTION 8. Subsection (a), Section 42.005, Education Code,
4-21 is amended to read as follows:
4-22 (a) In this chapter, average daily attendance is the
4-23 quotient of the sum of attendance for each day of the minimum
4-24 number of days of instruction as described under Section 25.081(a)
4-25 [and for each day approved by the commissioner for an extended year
5-1 program under Section 29.082] divided by the minimum number of days
5-2 of instruction.
5-3 SECTION 9. Section 42.101, Education Code, is amended to
5-4 read as follows:
5-5 Sec. 42.101. BASIC ALLOTMENT. For each student in average
5-6 daily attendance, not including the time students spend each day in
5-7 special education programs in an instructional arrangement other
5-8 than mainstream or career and technology education programs, for
5-9 which an additional allotment is made under Subchapter C, a
5-10 district is entitled to an allotment of $2,387 [or a greater amount
5-11 adopted by the foundation school fund budget committee under
5-12 Section 42.256]. A greater amount for any school year may be
5-13 provided by appropriation.
5-14 SECTION 10. Subsection (b), Section 42.102, Education Code,
5-15 is amended to read as follows:
5-16 (b) The Legislative Budget Board [foundation school fund
5-17 budget committee] shall determine the cost of education adjustment
5-18 under Section 42.007 [42.256].
5-19 SECTION 11. Subsection (c), Section 42.155, Education Code,
5-20 is amended to read as follows:
5-21 (c) Each district or county operating a regular
5-22 transportation system is entitled to an allotment based on the
5-23 daily cost per regular eligible student of operating and
5-24 maintaining the regular transportation system and the linear
5-25 density of that system. In determining the cost, the commissioner
6-1 shall give consideration to factors affecting the actual cost of
6-2 providing these transportation services in each district or county.
6-3 The average actual cost is to be computed by the commissioner and
6-4 included for consideration by [the foundation school fund budget
6-5 committee and] the legislature in the General Appropriations Act.
6-6 The allotment per mile of approved route may not exceed the amount
6-7 set by appropriation.
6-8 SECTION 12. Subsection (e), Section 42.252, Education Code,
6-9 is amended to read as follows:
6-10 (e) The commissioner shall hear appeals from school
6-11 districts that have experienced a rapid decline in tax base used in
6-12 calculating the local fund assignment, exceeding four percent of
6-13 the preceding year, that is beyond the control of the board of
6-14 trustees of the district. The commissioner, to the extent
6-15 appropriations for that purpose are available, may adjust the
6-16 district's taxable values for local fund assignment purposes for
6-17 such losses in value exceeding four percent and thereby adjust the
6-18 local fund assignment to reflect the local current year taxable
6-19 value. The decision of the commissioner is final. An adjustment
6-20 does not affect the local fund assignment of any other school
6-21 district. This subsection applies to determinations by the
6-22 commissioner in identifying districts with wealth per student
6-23 exceeding the equalized wealth level pursuant to Section 41.004.
6-24 SECTION 13. Subsections (b) and (f), Section 42.253,
6-25 Education Code, are amended to read as follows:
7-1 (b) Except as provided by this subsection, the commissioner
7-2 shall base the determinations under Subsection (a) on the estimates
7-3 provided to the legislature under Section 42.254, or, if the
7-4 General Appropriations Act provides estimates for that purpose, on
7-5 the estimates provided under that Act, for each school district for
7-6 each school year. The commissioner shall reduce the entitlement of
7-7 each district that has a final taxable value of property for the
7-8 second year of a state fiscal biennium that is higher than the
7-9 estimate under Section 42.254 or the General Appropriations Act, as
7-10 applicable. A reduction under this subsection may not reduce the
7-11 district's entitlement below the amount to which it is entitled at
7-12 its actual taxable value of property. The sum of the reductions
7-13 under this subsection may not be greater than the amount necessary
7-14 to fully fund the entitlement of each district.
7-15 (f) Amounts transferred to the reserve account under
7-16 Subsection (e) shall be used in the succeeding fiscal year to
7-17 finance increases in allocations to school districts under
7-18 Subsection (i). If the amount in the reserve account is less than
7-19 the amount of the increases under Subsection (i) for the second
7-20 year of a state fiscal biennium, the commissioner shall certify the
7-21 amount of the difference to the Legislative Budget Board
7-22 [foundation school fund budget committee] not later than January 1
7-23 of the second year of the state fiscal biennium. The Legislative
7-24 Budget Board [committee] shall propose to the legislature that the
7-25 certified amount be transferred to the foundation school fund from
8-1 the economic stabilization fund and appropriated for the purpose of
8-2 increases in allocations under Subsection (h).
8-3 SECTION 14. Section 42.254, Education Code, is amended by
8-4 amending Subsection (a) and adding Subsection (c) to read as
8-5 follows:
8-6 (a) Not later than October 1 of each even-numbered year:
8-7 (1) the agency shall submit to [the foundation school
8-8 fund budget committee and] the legislature an estimate of the tax
8-9 rate and student enrollment of each school district for the
8-10 following biennium; and
8-11 (2) the comptroller shall submit to [the foundation
8-12 school fund budget committee and] the legislature an estimate of
8-13 the total taxable value of all property in the state as determined
8-14 under Subchapter M, Chapter 403, Government Code, for the following
8-15 biennium.
8-16 (c) Not later than September 1 of each year, each school
8-17 district shall submit to the Legislative Budget Board an estimate
8-18 of the district's:
8-19 (1) tax rate that will be in effect for the following
8-20 fiscal year; and
8-21 (2) student enrollment for the following school year.
8-22 SECTION 15. Subsection (a), Section 42.302, Education Code,
8-23 is amended to read as follows:
8-24 (a) Each school district is guaranteed a specified amount
8-25 per weighted student in state and local funds for each cent of tax
9-1 effort over that required for the district's local fund assignment
9-2 up to the maximum level specified in this subchapter. The amount
9-3 of state support, subject only to the maximum amount under Section
9-4 42.303, is determined by the formula:
9-5 GYA = (GL X WADA X DTR X 100) - LR
9-6 where:
9-7 "GYA" is the guaranteed yield amount of state funds to be
9-8 allocated to the district;
9-9 "GL" is the dollar amount guaranteed level of state and local
9-10 funds per weighted student per cent of tax effort, which is $21
9-11 [$20.55] or a greater amount for any year provided by
9-12 appropriation[, or a greater amount adopted by the foundation
9-13 school fund budget committee under Section 42.256(d)];
9-14 "WADA" is the number of students in weighted average daily
9-15 attendance, which is calculated by dividing the sum of the school
9-16 district's allotments under Subchapters B and C, less any allotment
9-17 to the district for transportation and 50 percent of the adjustment
9-18 under Section 42.102, by the basic allotment for the applicable
9-19 year;
9-20 "DTR" is the district enrichment and facilities tax rate of
9-21 the school district, which is determined by subtracting the amounts
9-22 specified by Subsection (b) from the total amount of taxes
9-23 collected by the school district for the applicable school year and
9-24 dividing the difference by the quotient of the district's taxable
9-25 value of property as determined under Subchapter M, Chapter 403,
10-1 Government Code, divided by 100; and
10-2 "LR" is the local revenue, which is determined by multiplying
10-3 "DTR" by the quotient of the district's taxable value of property
10-4 as determined under Subchapter M, Chapter 403, Government Code,
10-5 divided by 100.
10-6 SECTION 16. Section 42.303, Education Code, is amended to
10-7 read as follows:
10-8 Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
10-9 RATE. The district enrichment and facilities tax rate ("DTR")
10-10 under Section 42.302 may not exceed $0.64 per $100 of valuation, or
10-11 a greater amount for any year provided by appropriation [adopted by
10-12 the foundation school fund budget committee under Section
10-13 42.256(d)].
10-14 SECTION 17. Subsection (b), Section 74.066, Education Code,
10-15 is amended to read as follows:
10-16 (b) State funds for the support of the special school and
10-17 the Moody State School shall be paid from the foundation school
10-18 fund [and shall be considered by the Foundation School Fund Budget
10-19 Committee in estimating the funds needed for Foundation School
10-20 Program purposes].
10-21 SECTION 18. Subsection (a), Section 316.002, Government
10-22 Code, is amended to read as follows:
10-23 (a) Before the Legislative Budget Board submits the budget
10-24 as prescribed by Section 322.008(c) [322.008(b)], the board shall
10-25 establish:
11-1 (1) the estimated rate of growth of the state's
11-2 economy from the current biennium to the next biennium;
11-3 (2) the level of appropriations for the current
11-4 biennium from state tax revenues not dedicated by the constitution;
11-5 and
11-6 (3) the amount of state tax revenues not dedicated by
11-7 the constitution that could be appropriated for the next biennium
11-8 within the limit established by the estimated rate of growth of the
11-9 state's economy.
11-10 SECTION 19. Subsection (b), Section 322.008, Government
11-11 Code, is amended to read as follows:
11-12 (b) The [Not later than the 1994-1995 school year, the]
11-13 general appropriations bill may [shall] include for purposes of
11-14 information the funding elements computed [adopted] by the
11-15 Legislative Budget Board [foundation school fund budget committee]
11-16 under Section 42.007 [16.256(e)], Education Code, excluding the
11-17 values for each school district calculated under Section
11-18 42.007(c)(2), Education Code [Subdivision (2) of that subsection].
11-19 If the funding elements are included, the [The] funding elements
11-20 under Section 42.007(c)(3) [16.256(e)(3)], Education Code, shall be
11-21 reported in dollar amounts per pupil.
11-22 SECTION 20. Subsection (d), Section 403.302, Government
11-23 Code, is amended to read as follows:
11-24 (d) For the purposes of this section, "taxable value" means
11-25 market value less:
12-1 (1) the total dollar amount of any exemptions of part
12-2 but not all of the value of taxable property required by the
12-3 constitution or a statute that a district lawfully granted in the
12-4 year that is the subject of the study;
12-5 (2) the total dollar amount of any exemptions granted
12-6 before May 31, 1993, within a reinvestment zone under agreements
12-7 authorized by Chapter 312, Tax Code;
12-8 (3) the total dollar amount of any captured appraised
12-9 value of property that is located in a reinvestment zone on
12-10 August 31, 1997, generates a tax increment paid into a tax
12-11 increment fund, and that is eligible for tax increment financing
12-12 under Chapter 311, Tax Code under a project plan or reinvestment
12-13 zone financing plan approved under Section 311.011(d), Tax Code,
12-14 before September 1, 1997;
12-15 (4) the total dollar amount of any exemptions granted
12-16 under Section 11.251, Tax Code;
12-17 (5) the difference between the market value and the
12-18 productivity value of land that qualifies for appraisal on the
12-19 basis of its productive capacity, except that the productivity
12-20 value may not exceed the fair market value of the land;
12-21 (6) the portion of the appraised value of residence
12-22 homesteads of the elderly on which school district taxes are not
12-23 imposed in the year that is the subject of the study, calculated as
12-24 if the residence homesteads were appraised at the full value
12-25 required by law;
13-1 (7) a portion of the market value of property not
13-2 otherwise fully taxable by the district at market value because of
13-3 action required by statute or the constitution of this state that,
13-4 if the tax rate adopted by the district is applied to it, produces
13-5 an amount equal to the difference between the tax that the district
13-6 would have imposed on the property if the property were fully
13-7 taxable at market value and the tax that the district is actually
13-8 authorized to impose on the property; and
13-9 (8) the market value of all tangible personal
13-10 property, other than manufactured homes, owned by a family or
13-11 individual and not held or used for the production of income.
13-12 SECTION 21. Subsection (d), Section 56.208, Education Code,
13-13 is repealed.
13-14 SECTION 22. This Act takes effect September 1, 1997.
13-15 SECTION 23. The importance of this legislation and the
13-16 crowded condition of the calendars in both houses create an
13-17 emergency and an imperative public necessity that the
13-18 constitutional rule requiring bills to be read on three several
13-19 days in each house be suspended, and this rule is hereby suspended.