By Bivins S.B. No. 1873
Substitute the following for S.B. No. 1873:
By Hochberg C.S.S.B. No. 1873
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school finance, including the abolition of the
1-3 foundation school fund budget committee.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The foundation school fund budget committee is
1-6 abolished, and Section 42.256, Education Code, is repealed.
1-7 SECTION 2. Section 42.007, Education Code, is amended to
1-8 read as follows:
1-9 Sec. 42.007. EQUALIZED FUNDING ELEMENTS. (a) The
1-10 Legislative Budget Board shall compute [adopt rules, subject to
1-11 appropriate notice and opportunity for public comment, for the
1-12 calculation] for each year of a biennium [of] the qualified funding
1-13 elements, in accordance with Subsection (c), [under Section
1-14 42.256(e)] necessary to achieve the state policy under Section
1-15 42.001.
1-16 (b) Before [Not later than October 1 preceding] each regular
1-17 session of the legislature, the board shall report the equalized
1-18 funding elements to [the foundation school fund budget committee,]
1-19 the commissioner[,] and the legislature.
1-20 (c) The funding elements may include:
1-21 (1) a basic allotment for the purposes of Section
1-22 42.101 that, when combined with the guaranteed yield component
1-23 provided by Subchapter F, represents the cost per student of a
1-24 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 computation 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 shall 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
2-26 needed for purposes of the Foundation School Program.]
2-27 SECTION 4. Section 19.007(b), Education Code, is amended to
3-1 read as follows:
3-2 (b) The costs for persons eligible under Section 19.005
3-3 shall be paid from the foundation school fund. [Those costs shall
3-4 be considered annually by the foundation school fund budget
3-5 committee and included in estimating the funds needed for purposes
3-6 of the Foundation School Program.]
3-7 SECTION 5. Section 29.256(c), Education Code, is amended to
3-8 read as follows:
3-9 (c) The cost to the state shall be paid from the foundation
3-10 school fund. [The foundation school fund budget committee shall
3-11 consider that cost in estimating the funds needed for Foundation
3-12 School Program purposes.]
3-13 SECTION 6. Section 29.257(a), Education Code, is amended to
3-14 read as follows:
3-15 (a) The legislature may appropriate money from the
3-16 foundation school fund to the agency for developing and
3-17 implementing community education projects. [The foundation school
3-18 fund budget committee shall consider the cost of community
3-19 education development projects in estimating the money needed for
3-20 foundation school fund purposes.] The agency shall actively seek
3-21 gifts, grants, or other donations for purposes related to community
3-22 education development projects, unless the acceptance is prohibited
3-23 by other law. Money received under this subsection shall be
3-24 deposited in the account established under Subsection (b) and may
3-25 be appropriated only for the purpose for which the money was given.
3-26 SECTION 7. Sections 41.002(e) and (f), Education Code, are
3-27 amended to read as follows:
4-1 (e) Notwithstanding Subsection (a), for the [1996-1997 and]
4-2 1997-1998, 1998-1999, and 1999-2000 school years, in accordance
4-3 with a determination of the commissioner, the wealth per student
4-4 that a school district may have after exercising an option under
4-5 Section 41.003(2) or (3) may not be less than the amount needed to
4-6 maintain state and local revenue in an amount equal to state and
4-7 local revenue per weighted student for maintenance and operation of
4-8 the district for the 1992-1993 school year less the district's
4-9 current year distribution per weighted student from the available
4-10 school fund, other than amounts distributed under Chapter 31, if
4-11 the district imposes an effective tax rate for maintenance and
4-12 operation of the district equal to the greater of the district's
4-13 current tax rate or $1.50 on the $100 valuation of taxable
4-14 property. This subsection expires September 1, 2000 [1998].
4-15 (f) For purposes of Subsection [Subsections (d) and] (e), a
4-16 school district's effective tax rate is determined by dividing the
4-17 total amount of taxes collected by the district for the applicable
4-18 school year by the quotient of the district's taxable value of
4-19 property, as determined under Subchapter M, Chapter 403, Government
4-20 Code, divided by 100. This subsection expires September 1, 2000
4-21 [1998].
4-22 SECTION 8. Section 41.006, Education Code, is amended to
4-23 read as follows:
4-24 Sec. 41.006. Rules. (a) The commissioner may adopt rules
4-25 necessary for the implementation of this chapter. The rules may
4-26 provide for the commissioner to make necessary adjustments to the
4-27 provisions of Chapter 42, including providing for the
5-1 commissioner[, with the approval of the foundation school fund
5-2 budget committee,] to make an adjustment in the funding element
5-3 established by Section 42.302, at the earliest date practicable, to
5-4 the amount the commissioner believes, taking into consideration
5-5 options exercised by school districts under this chapter and
5-6 estimates of student enrollments, will match appropriation levels.
5-7 (b) As necessary for the effective and efficient
5-8 administration of this chapter, the commissioner may modify
5-9 effective dates and time periods for actions described by this
5-10 chapter.
5-11 SECTION 9. Section 42.005(a), Education Code, is amended to
5-12 read as follows:
5-13 (a) In this chapter, average daily attendance is the
5-14 quotient of the sum of attendance for each day of the minimum
5-15 number of days of instruction as described under Section 25.081(a)
5-16 [and for each day approved by the commissioner for an extended year
5-17 program under Section 29.082] divided by the minimum number of days
5-18 of instruction.
5-19 SECTION 10. Section 42.101, Education Code, is amended to
5-20 read as follows:
5-21 Sec. 42.101. Basic Allotment. For each student in average
5-22 daily attendance, not including the time students spend each day in
5-23 special education programs in an instructional arrangement other
5-24 than mainstream or career and technology education programs, for
5-25 which an additional allotment is made under Subchapter C, a
5-26 district is entitled to an allotment of $2,387 [or a greater amount
5-27 adopted by the foundation school fund budget committee under
6-1 Section 42.256]. A greater amount for any school year may be
6-2 provided by appropriation.
6-3 SECTION 11. Section 42.102(b), Education Code, is amended to
6-4 read as follows:
6-5 (b) The [foundation school fund budget committee shall
6-6 determine the] cost of education adjustment is the cost of
6-7 education index adjustment adopted by the foundation school fund
6-8 budget committee and contained in Chapter 203, Title 19, Texas
6-9 Administrative Code, as that chapter existed on January 1, 1997
6-10 [under Section 42.256].
6-11 SECTION 12. Section 42.155(c), Education Code, is amended to
6-12 read as follows:
6-13 (c) Each district or county operating a regular
6-14 transportation system is entitled to an allotment based on the
6-15 daily cost per regular eligible student of operating and
6-16 maintaining the regular transportation system and the linear
6-17 density of that system. In determining the cost, the commissioner
6-18 shall give consideration to factors affecting the actual cost of
6-19 providing these transportation services in each district or county.
6-20 The average actual cost is to be computed by the commissioner and
6-21 included for consideration by [the foundation school fund budget
6-22 committee and] the legislature in the General Appropriations Act.
6-23 The allotment per mile of approved route may not exceed the amount
6-24 set by appropriation.
6-25 SECTION 13. Section 42.252(e), Education Code, is amended to
6-26 read as follows:
6-27 (e) The commissioner shall hear appeals from school
7-1 districts that have experienced a rapid decline in tax base used in
7-2 calculating the local fund assignment, exceeding four percent of
7-3 the preceding year, that is beyond the control of the board of
7-4 trustees of the district. The commissioner, to the extent
7-5 appropriations for that purpose are available, may adjust the
7-6 district's taxable values for local fund assignment purposes for
7-7 such losses in value exceeding four percent and thereby adjust the
7-8 local fund assignment to reflect the local current year taxable
7-9 value. The decision of the commissioner is final. An adjustment
7-10 does not affect the local fund assignment of any other school
7-11 district. This subsection applies to determinations by the
7-12 commissioner in identifying districts with wealth per student
7-13 exceeding the equalized wealth level pursuant to Section 41.004.
7-14 SECTION 14. Sections 42.253(b) and (f), Education Code, are
7-15 amended to read as follows:
7-16 (b) Except as provided by this subsection, the commissioner
7-17 shall base the determinations under Subsection (a) on the estimates
7-18 provided to the legislature under Section 42.254, or, if the
7-19 General Appropriations Act provides estimates for that purpose, on
7-20 the estimates provided under that Act, for each school district for
7-21 each school year. The commissioner shall reduce the entitlement of
7-22 each district that has a final taxable value of property for the
7-23 second year of a state fiscal biennium that is higher than the
7-24 estimate under Section 42.254 or the General Appropriations Act, as
7-25 applicable. A reduction under this subsection may not reduce the
7-26 district's entitlement below the amount to which it is entitled at
7-27 its actual taxable value of property. The sum of the reductions
8-1 under this subsection may not be greater than the amount necessary
8-2 to fully fund the entitlement of each district.
8-3 (f) Amounts transferred to the reserve account under
8-4 Subsection (e) shall be used in the succeeding fiscal year to
8-5 finance increases in allocations to school districts under
8-6 Subsection (i). If the amount in the reserve account is less than
8-7 the amount of the increases under Subsection (i) for the second
8-8 year of a state fiscal biennium, the commissioner shall certify the
8-9 amount of the difference to the Legislative Budget Board
8-10 [foundation school fund budget committee] not later than January 1
8-11 of the second year of the state fiscal biennium. The Legislative
8-12 Budget Board [committee] shall propose to the legislature that the
8-13 certified amount be transferred to the foundation school fund from
8-14 the economic stabilization fund and appropriated for the purpose of
8-15 increases in allocations under Subsection (h).
8-16 SECTION 15. Section 42.254(a), Education Code, is amended to
8-17 read as follows:
8-18 (a) Not later than October 1 of each even-numbered year:
8-19 (1) the agency shall submit to [the foundation school
8-20 fund budget committee and] the legislature an estimate of the tax
8-21 rate and student enrollment of each school district for the
8-22 following biennium; and
8-23 (2) the comptroller shall submit to [the foundation
8-24 school fund budget committee and] the legislature an estimate of
8-25 the total taxable value of all property in the state as determined
8-26 under Subchapter M, Chapter 403, Government Code, for the following
8-27 biennium.
9-1 SECTION 16. Section 42.302(a), Education Code, is amended to
9-2 read as follows:
9-3 (a) Each school district is guaranteed a specified amount
9-4 per weighted student in state and local funds for each cent of tax
9-5 effort over that required for the district's local fund assignment
9-6 up to the maximum level specified in this subchapter. The amount
9-7 of state support, subject only to the maximum amount under Section
9-8 42.303, is determined by the formula:
9-9 GYA = (GL X WADA X DTR X 100) - LR
9-10 where:
9-11 "GYA" is the guaranteed yield amount of state funds to be
9-12 allocated to the district;
9-13 "GL" is the dollar amount guaranteed level of state and local
9-14 funds per weighted student per cent of tax effort, which is $21
9-15 [$20.55] or a greater amount for any year provided by
9-16 appropriation[, or a greater amount adopted by the foundation
9-17 school fund budget committee under Section 42.256(d)];
9-18 "WADA" is the number of students in weighted average daily
9-19 attendance, which is calculated by dividing the sum of the school
9-20 district's allotments under Subchapters B and C, less any allotment
9-21 to the district for transportation and 50 percent of the adjustment
9-22 under Section 42.102, by the basic allotment for the applicable
9-23 year;
9-24 "DTR" is the district enrichment and facilities tax rate of
9-25 the school district, which is determined by subtracting the amounts
9-26 specified by Subsection (b) from the total amount of taxes
9-27 collected by the school district for the applicable school year and
10-1 dividing the difference by the quotient of the district's taxable
10-2 value of property as determined under Subchapter M, Chapter 403,
10-3 Government Code, divided by 100; and
10-4 "LR" is the local revenue, which is determined by multiplying
10-5 "DTR" by the quotient of the district's taxable value of property
10-6 as determined under Subchapter M, Chapter 403, Government Code,
10-7 divided by 100.
10-8 SECTION 17. Section 42.303, Education Code, is amended to
10-9 read as follows:
10-10 Sec. 42.303. Limitation on Enrichment and Facilities Tax
10-11 Rate. The district enrichment and facilities tax rate ("DTR")
10-12 under Section 42.302 may not exceed $0.64 per $100 of valuation, or
10-13 a greater amount for any year provided by appropriation [adopted by
10-14 the foundation school fund budget committee under Section
10-15 42.256(d)].
10-16 SECTION 18. Section 45.003(e), Education Code, is amended to
10-17 read as follows:
10-18 (e) Before issuing bonds, a district must demonstrate to the
10-19 attorney general with respect to the proposed issuance that the
10-20 district has a projected ability to pay the principal of and
10-21 interest on the proposed bonds and all previously issued bonds
10-22 other than bonds authorized to be issued at an election held on or
10-23 before April 1, 1991, and issued before September 1, 1992, from a
10-24 tax at a rate not to exceed $0.50 per $100 of valuation. A
10-25 district may not adopt a tax rate to pay the principal of and
10-26 interest on the bonds that exceeds the rate stated in the documents
10-27 filed with the attorney general under this subsection except as
11-1 necessary to compensate for a decline in the taxable value of
11-2 property or in state aid that results in a value of property or
11-3 state aid below that on which the rate stated in the documents
11-4 filed under this subsection is based.
11-5 SECTION 19. Section 45.105(c), Education Code, is amended to
11-6 read as follows:
11-7 (c) Local school funds from district taxes, tuition fees of
11-8 students not entitled to a free education, [and] other local
11-9 sources, and state funds not designated for a specific purpose may
11-10 be used for the purposes listed for state and county available
11-11 funds and for purchasing appliances and supplies, paying insurance
11-12 premiums, paying janitors and other employees, buying school sites,
11-13 buying, building, repairing, and renting school buildings,
11-14 including acquiring school buildings and sites by leasing through
11-15 annual payments with an ultimate option to purchase, and [paying]
11-16 for other purposes [goods and services] necessary in the conduct of
11-17 the public schools determined by the board of trustees. The
11-18 accounts and vouchers for county districts must be approved by the
11-19 county superintendent. If the state available school fund in any
11-20 municipality or district is sufficient to maintain the schools in
11-21 any year for at least eight months and leave a surplus, the surplus
11-22 may be spent for the purposes listed in this subsection.
11-23 SECTION 20. Section 74.066(b), Education Code, is amended to
11-24 read as follows:
11-25 (b) State funds for the support of the special school and
11-26 the Moody State School shall be paid from the foundation school
11-27 fund [and shall be considered by the Foundation School Fund Budget
12-1 Committee in estimating the funds needed for Foundation School
12-2 Program purposes].
12-3 SECTION 21. Section 322.008(b), Government Code, is amended
12-4 to read as follows:
12-5 (b) The [Not later than the 1994-1995 school year, the]
12-6 general appropriations bill may [shall] include for purposes of
12-7 information the funding elements computed [adopted] by the
12-8 Legislative Budget Board [foundation school fund budget committee]
12-9 under Section 42.007 [16.256(e)], Education Code, excluding the
12-10 values for each school district calculated under Section
12-11 42.007(c)(2), Education Code [Subdivision (2) of that subsection].
12-12 If the funding elements are included, the [The] funding elements
12-13 under Section 42.007(c)(3) [16.256(e)(3)], Education Code, shall be
12-14 reported in dollar amounts per pupil.
12-15 SECTION 22. Sections 26.08(a) and (f), Tax Code, are amended
12-16 to read as follows:
12-17 (a) If the governing body of a school district adopts a rate
12-18 that exceeds the [sum of the] district's rollback tax [effective
12-19 maintenance] rate as computed as provided by Subsection (c), [the
12-20 rate of $0.08, and the district's current debt rate,] the
12-21 registered voters of the district at an election held for that
12-22 purpose must determine whether to limit the tax rate the governing
12-23 body may adopt for the current year to the school district rollback
12-24 tax rate. When increased expenditure of money by a school district
12-25 is necessary to respond to a disaster, including a tornado,
12-26 hurricane, flood, or other calamity, but not including a drought,
12-27 that has impacted a school district and the governor has requested
13-1 federal disaster assistance for the area in which the school
13-2 district is located, an election is not required under this section
13-3 to limit the tax rate the governing body may adopt for the year
13-4 following the year in which the disaster occurs.
13-5 (f) In a school district that received distributions from an
13-6 equalization tax imposed under former Chapter 18, Education Code,
13-7 the effective rate of that tax as of the date of the county unit
13-8 system's abolition is added to the district's effective maintenance
13-9 and operations rate under Subsection [Subsections (a) and] (c) [of
13-10 this section] in the calculation of the district's rollback tax
13-11 rate.
13-12 SECTION 23. Sections 42.102(c) and 56.208(d), Education
13-13 Code, are repealed.
13-14 SECTION 24. This Act takes effect September 1, 1997.
13-15 SECTION 25. 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.