By Bivins                                       S.B. No. 1873

      75R6861 CAS-D                           

                                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 1-6     abolished, and Section 42.256, Education Code, is repealed.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 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

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.  Section 41.006, Education Code, is amended to

3-27     read as follows:

 4-1           Sec. 41.006.  MODIFICATION OF EFFECTIVE DATES AND TIME

 4-2     PERIODS [RULES].        [(a)  The commissioner may adopt rules

 4-3     necessary for the implementation of this chapter.  The rules may

 4-4     provide for the commissioner to make necessary adjustments to the

 4-5     provisions of Chapter 42, including providing for the commissioner,

 4-6     with the approval of the foundation school fund budget committee,

 4-7     to make an adjustment in the funding element established by Section

 4-8     42.302, at the earliest date practicable, to the amount the

 4-9     commissioner believes, taking into consideration options exercised

4-10     by school districts under this chapter and estimates of student

4-11     enrollments, will match appropriation levels.]

4-12           [(b)]  As necessary for the effective and efficient

4-13     administration of this chapter, the commissioner may modify

4-14     effective dates and time periods for actions described by this

4-15     chapter.

4-16           SECTION 8.  Section 42.005(a), Education Code, is amended to

4-17     read as follows:

4-18           (a)  In this chapter, average daily attendance is the

4-19     quotient of the sum of attendance for each day of the minimum

4-20     number of days of instruction as described under Section 25.081(a)

4-21     [and for each day approved by the commissioner for an extended year

4-22     program under Section 29.082] divided by the minimum number of days

4-23     of instruction.

4-24           SECTION 9.  Section 42.101, Education Code, is amended to

4-25     read as follows:

4-26           Sec. 42.101.  BASIC ALLOTMENT.  For each student in average

4-27     daily attendance, not including the time students spend each day in

 5-1     special education programs in an instructional arrangement other

 5-2     than mainstream or career and technology education programs, for

 5-3     which an additional allotment is made under Subchapter C, a

 5-4     district is entitled to an allotment of $2,387 [or a greater amount

 5-5     adopted by the foundation school fund budget committee under

 5-6     Section 42.256].  A greater amount for any school year may be

 5-7     provided by appropriation.

 5-8           SECTION 10.  Section 42.102(b), Education Code, is amended to

 5-9     read as follows:

5-10           (b)  The Legislative Budget Board [foundation school fund

5-11     budget committee] shall determine the cost of education adjustment

5-12     under Section 42.007 [42.256].

5-13           SECTION 11.  Section 42.155(c), Education Code, is amended to

5-14     read as follows:

5-15           (c)  Each district or county operating a regular

5-16     transportation system is entitled to an allotment based on the

5-17     daily cost per regular eligible student of operating and

5-18     maintaining the regular transportation system and the linear

5-19     density of that system.  In determining the cost, the commissioner

5-20     shall give consideration to factors affecting the actual cost of

5-21     providing these transportation services in each district or county.

5-22     The average actual cost is to be computed by the commissioner and

5-23     included for consideration by [the foundation school fund budget

5-24     committee and] the legislature in the General Appropriations Act.

5-25     The allotment per mile of approved route may not exceed the amount

5-26     set by appropriation.

5-27           SECTION 12.  Section 42.252(e), Education Code, is amended to

 6-1     read as follows:

 6-2           (e)  The commissioner shall hear appeals from school

 6-3     districts that have experienced a rapid decline in tax base used in

 6-4     calculating the local fund assignment, exceeding four percent of

 6-5     the preceding year, that is beyond the control of the board of

 6-6     trustees of the district.  The commissioner, to the extent

 6-7     appropriations for that purpose are available, may adjust the

 6-8     district's taxable values for local fund assignment purposes for

 6-9     such losses in value exceeding four percent and thereby adjust the

6-10     local fund assignment to reflect the local current year taxable

6-11     value.  The decision of the commissioner is final.  An adjustment

6-12     does not affect the local fund assignment of any other school

6-13     district.  This subsection applies to determinations by the

6-14     commissioner in identifying districts with wealth per student

6-15     exceeding the equalized wealth level pursuant to Section 41.004.

6-16           SECTION 13.  Sections 42.253(b) and (f), Education Code, are

6-17     amended to read as follows:

6-18           (b)  Except as provided by this subsection, the commissioner

6-19     shall base the determinations under Subsection (a) on the estimates

6-20     provided to the legislature under Section 42.254, or if the General

6-21     Appropriations Act provides estimates for that purpose, on the

6-22     estimates provided under that Act, for each school district for

6-23     each school year.  The commissioner shall reduce the entitlement of

6-24     each district that has a final taxable value of property for the

6-25     second year of a state fiscal biennium that is higher than the

6-26     estimate under Section 42.254 or the General Appropriations Act, as

6-27     applicable.  A reduction under this subsection may not reduce the

 7-1     district's entitlement below the amount to which it is entitled at

 7-2     its actual taxable value of property.  The sum of the reductions

 7-3     under this subsection may not be greater than the amount necessary

 7-4     to fully fund the entitlement of each district.

 7-5           (f)  Amounts transferred to the reserve account under

 7-6     Subsection (e) shall be used in the succeeding fiscal year to

 7-7     finance increases in allocations to school districts under

 7-8     Subsection (i).  If the amount in the reserve account is less than

 7-9     the amount of the increases under Subsection (i) for the second

7-10     year of a state fiscal biennium, the commissioner shall certify the

7-11     amount of the difference to the Legislative Budget Board

7-12     [foundation school fund budget committee] not later than January 1

7-13     of the second year of the state fiscal biennium.  The Legislative

7-14     Budget Board [committee] shall propose to the legislature that the

7-15     certified amount be transferred to the foundation school fund from

7-16     the economic stabilization fund and appropriated for the purpose of

7-17     increases in allocations under Subsection (h).

7-18           SECTION 14.  Section 42.254, Education Code, is amended by

7-19     amending Subsection (a) and adding Subsection (c) to read as

7-20     follows:

7-21           (a)  Not later than October 1 of each even-numbered year:

7-22                 (1)  the agency shall submit to [the foundation school

7-23     fund budget committee and] the legislature an estimate of the tax

7-24     rate and student enrollment of each school district for the

7-25     following biennium; and

7-26                 (2)  the comptroller shall submit to [the foundation

7-27     school fund budget committee and] the legislature an estimate of

 8-1     the total taxable value of all property in the state as determined

 8-2     under Subchapter M, Chapter 403, Government Code, for the following

 8-3     biennium.

 8-4           (c)  Not later than September 1 of each year, each school

 8-5     district shall submit to the Legislative Budget Board an estimate

 8-6     of the district's:

 8-7                 (1)  tax rate that will be in effect for the following

 8-8     fiscal year; and

 8-9                 (2)  student enrollment for the following school year.

8-10           SECTION 15.  Section 42.302(a), Education Code, is amended to

8-11     read as follows:

8-12           (a)  Each school district is guaranteed a specified amount

8-13     per weighted student in state and local funds for each cent of tax

8-14     effort over that required for the district's local fund assignment

8-15     up to the maximum level specified in this subchapter.  The amount

8-16     of state support, subject only to the maximum amount under Section

8-17     42.303, is determined by the formula:

8-19     where:

8-20           "GYA" is the guaranteed yield amount of state funds to be

8-21     allocated to the district;

8-22           "GL" is the dollar amount guaranteed level of state and local

8-23     funds per weighted student per cent of tax effort, which is $21

8-24     [$20.55] or a greater amount for any year provided by

8-25     appropriation[, or a greater amount adopted by the foundation

8-26     school fund budget committee under Section 42.256(d)];

8-27           "WADA" is the number of students in weighted average daily

 9-1     attendance, which is calculated by dividing the sum of the school

 9-2     district's allotments under Subchapters B and C, less any allotment

 9-3     to the district for transportation and 50 percent of the adjustment

 9-4     under Section 42.102, by the basic allotment for the applicable

 9-5     year;

 9-6           "DTR" is the district enrichment and facilities tax rate of

 9-7     the school district, which is determined by subtracting the amounts

 9-8     specified by Subsection (b) from the total amount of taxes

 9-9     collected by the school district for the applicable school year and

9-10     dividing the difference by the quotient of the district's taxable

9-11     value of property as determined under Subchapter M, Chapter 403,

9-12     Government Code, divided by 100; and

9-13           "LR" is the local revenue, which is determined by multiplying

9-14     "DTR" by the quotient of the district's taxable value of property

9-15     as determined under Subchapter M, Chapter 403, Government Code,

9-16     divided by 100.

9-17           SECTION 16.  Section 42.303, Education Code, is amended to

9-18     read as follows:

9-19           Sec. 42.303.  LIMITATION ON ENRICHMENT AND FACILITIES TAX

9-20     RATE.  The district enrichment and facilities tax rate ("DTR")

9-21     under Section 42.302 may not exceed $0.64 per $100 of valuation, or

9-22     a greater amount for any year provided by appropriation [adopted by

9-23     the foundation school fund budget committee under Section

9-24     42.256(d)].

9-25           SECTION 17.  Section 74.066(b), Education Code, is amended to

9-26     read as follows:

9-27           (b)  State funds for the support of the special school and

 10-1    the Moody State School shall be paid from the foundation school

 10-2    fund [and shall be considered by the Foundation School Fund Budget

 10-3    Committee in estimating the funds needed for Foundation School

 10-4    Program purposes].

 10-5          SECTION 18.  Section 316.002(a), Government Code, is amended

 10-6    to read as follows:

 10-7          (a)  Before the Legislative Budget Board submits the budget

 10-8    as prescribed by Section 322.008(c)[(b)], the board shall

 10-9    establish:

10-10                (1)  the estimated rate of growth of the state's

10-11    economy from the current biennium to the next biennium;

10-12                (2)  the level of appropriations for the current

10-13    biennium from state tax revenues not dedicated by the constitution;

10-14    and

10-15                (3)  the amount of state tax revenues not dedicated by

10-16    the constitution that could be appropriated for the next biennium

10-17    within the limit established by the estimated rate of growth of the

10-18    state's economy.

10-19          SECTION 19.  Section 322.008(b), Government Code, is amended

10-20    to read as follows:

10-21          (b)  The [Not later than the 1994-1995 school year, the]

10-22    general appropriations bill may [shall] include for purposes of

10-23    information the funding elements computed [adopted] by the

10-24    Legislative Budget Board [foundation school fund budget committee]

10-25    under Section 42.007 [16.256(e)], Education Code, excluding the

10-26    values for each school district calculated under Section

10-27    42.007(c)(2), Education Code [Subdivision (2) of that subsection].

 11-1    If the funding elements are included, the [The] funding elements

 11-2    under Section 42.007(c)(3) [16.256(e)(3)], Education Code, shall be

 11-3    reported in dollar amounts per pupil.

 11-4          SECTION 20.  Section 56.208(d), Education Code, is repealed.

 11-5          SECTION 21.  This Act takes effect September 1, 1997.

 11-6          SECTION 22.  The importance of this legislation and the

 11-7    crowded condition of the calendars in both houses create an

 11-8    emergency and an imperative public necessity that the

 11-9    constitutional rule requiring bills to be read on three several

11-10    days in each house be suspended, and this rule is hereby suspended.