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1-6 abolished, and Section 42.256, Education Code, is repealed.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