1-1 By: Bivins S.B. No. 1873
1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read
1-3 first time and referred to Committee on Finance; May 5, 1997,
1-4 reported favorably by the following vote: Yeas 10, Nays 0;
1-5 May 5, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to public school finance, including the abolition of the
1-9 foundation school fund budget committee.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. The foundation school fund budget committee is
1-12 abolished, and Section 42.256, Education Code, is repealed.
1-13 SECTION 2. Section 42.007, Education Code, is amended to
1-14 read as follows:
1-15 Sec. 42.007. EQUALIZED FUNDING ELEMENTS. (a) The
1-16 Legislative Budget Board shall compute [adopt rules, subject to
1-17 appropriate notice and opportunity for public comment, for the
1-18 calculation] for each year of a biennium [of] the qualified funding
1-19 elements, in accordance with Subsection (c), [under Section
1-20 42.256(e)] necessary to achieve the state policy under Section
1-21 42.001.
1-22 (b) Before [Not later than October 1 preceding] each regular
1-23 session of the legislature, the board shall report the equalized
1-24 funding elements to [the foundation school fund budget committee,]
1-25 the commissioner[,] and the legislature.
1-26 (c) The funding elements may include:
1-27 (1) a basic allotment for the purposes of Section
1-28 42.101 that, when combined with the guaranteed yield component
1-29 provided by Subchapter F, represents the cost per student of a
1-30 regular education program that meets all mandates of law and
1-31 regulation;
1-32 (2) adjustments designed to reflect the variation in
1-33 known resource costs and costs of education beyond the control of
1-34 school districts;
1-35 (3) appropriate program cost differentials and other
1-36 funding elements for the programs authorized under Subchapter C,
1-37 with the program funding level expressed as dollar amounts and as
1-38 weights applied to the adjusted basic allotment for the appropriate
1-39 year;
1-40 (4) the maximum guaranteed level of qualified state
1-41 and local funds per student for the purposes of Subchapter F;
1-42 (5) the enrichment and facilities tax rate under
1-43 Subchapter F;
1-44 (6) the calculation of students in weighted average
1-45 daily attendance under Section 42.302; and
1-46 (7) the amount to be appropriated for the school
1-47 facilities assistance program under Subchapter H.
1-48 (d) The board may conduct a study on the funding elements
1-49 each biennium, as appropriate.
1-50 SECTION 3. Section 13.285, Education Code, is amended to
1-51 read as follows:
1-52 Sec. 13.285. COST. The cost of incentive aid payments
1-53 authorized by this subchapter shall be paid from the foundation
1-54 school fund. [The costs shall be considered and included by the
1-55 foundation school fund budget committee in estimating the funds
1-56 needed for purposes of the Foundation School Program.]
1-57 SECTION 4. Subsection (b), Section 19.007, Education Code,
1-58 is amended to read as follows:
1-59 (b) The costs for persons eligible under Section 19.005
1-60 shall be paid from the foundation school fund. [Those costs shall
1-61 be considered annually by the foundation school fund budget
1-62 committee and included in estimating the funds needed for purposes
1-63 of the Foundation School Program.]
1-64 SECTION 5. Subsection (c), Section 29.256, Education Code,
2-1 is amended to read as follows:
2-2 (c) The cost to the state shall be paid from the foundation
2-3 school fund. [The foundation school fund budget committee shall
2-4 consider that cost in estimating the funds needed for Foundation
2-5 School Program purposes.]
2-6 SECTION 6. Subsection (a), Section 29.257, Education Code,
2-7 is amended to read as follows:
2-8 (a) The legislature may appropriate money from the
2-9 foundation school fund to the agency for developing and
2-10 implementing community education projects. [The foundation school
2-11 fund budget committee shall consider the cost of community
2-12 education development projects in estimating the money needed for
2-13 foundation school fund purposes.] The agency shall actively seek
2-14 gifts, grants, or other donations for purposes related to community
2-15 education development projects, unless the acceptance is prohibited
2-16 by other law. Money received under this subsection shall be
2-17 deposited in the account established under Subsection (b) and may
2-18 be appropriated only for the purpose for which the money was given.
2-19 SECTION 7. Section 41.006, Education Code, is amended to
2-20 read as follows:
2-21 Sec. 41.006. MODIFICATION OF EFFECTIVE DATES AND TIME
2-22 PERIODS [RULES]. [(a) The commissioner may adopt rules necessary
2-23 for the implementation of this chapter. The rules may provide for
2-24 the commissioner to make necessary adjustments to the provisions of
2-25 Chapter 42, including providing for the commissioner, with the
2-26 approval of the foundation school fund budget committee, to make an
2-27 adjustment in the funding element established by Section 42.302, at
2-28 the earliest date practicable, to the amount the commissioner
2-29 believes, taking into consideration options exercised by school
2-30 districts under this chapter and estimates of student enrollments,
2-31 will match appropriation levels.]
2-32 [(b)] As necessary for the effective and efficient
2-33 administration of this chapter, the commissioner may modify
2-34 effective dates and time periods for actions described by this
2-35 chapter.
2-36 SECTION 8. Subsection (a), Section 42.005, Education Code,
2-37 is amended to read as follows:
2-38 (a) In this chapter, average daily attendance is the
2-39 quotient of the sum of attendance for each day of the minimum
2-40 number of days of instruction as described under Section 25.081(a)
2-41 [and for each day approved by the commissioner for an extended year
2-42 program under Section 29.082] divided by the minimum number of days
2-43 of instruction.
2-44 SECTION 9. Section 42.101, Education Code, is amended to
2-45 read as follows:
2-46 Sec. 42.101. BASIC ALLOTMENT. For each student in average
2-47 daily attendance, not including the time students spend each day in
2-48 special education programs in an instructional arrangement other
2-49 than mainstream or career and technology education programs, for
2-50 which an additional allotment is made under Subchapter C, a
2-51 district is entitled to an allotment of $2,387 [or a greater amount
2-52 adopted by the foundation school fund budget committee under
2-53 Section 42.256]. A greater amount for any school year may be
2-54 provided by appropriation.
2-55 SECTION 10. Subsection (b), Section 42.102, Education Code,
2-56 is amended to read as follows:
2-57 (b) The Legislative Budget Board [foundation school fund
2-58 budget committee] shall determine the cost of education adjustment
2-59 under Section 42.007 [42.256].
2-60 SECTION 11. Subsection (c), Section 42.155, Education Code,
2-61 is amended to read as follows:
2-62 (c) Each district or county operating a regular
2-63 transportation system is entitled to an allotment based on the
2-64 daily cost per regular eligible student of operating and
2-65 maintaining the regular transportation system and the linear
2-66 density of that system. In determining the cost, the commissioner
2-67 shall give consideration to factors affecting the actual cost of
2-68 providing these transportation services in each district or county.
2-69 The average actual cost is to be computed by the commissioner and
3-1 included for consideration by [the foundation school fund budget
3-2 committee and] the legislature in the General Appropriations Act.
3-3 The allotment per mile of approved route may not exceed the amount
3-4 set by appropriation.
3-5 SECTION 12. Subsection (e), Section 42.252, Education Code,
3-6 is amended to read as follows:
3-7 (e) The commissioner shall hear appeals from school
3-8 districts that have experienced a rapid decline in tax base used in
3-9 calculating the local fund assignment, exceeding four percent of
3-10 the preceding year, that is beyond the control of the board of
3-11 trustees of the district. The commissioner, to the extent
3-12 appropriations for that purpose are available, may adjust the
3-13 district's taxable values for local fund assignment purposes for
3-14 such losses in value exceeding four percent and thereby adjust the
3-15 local fund assignment to reflect the local current year taxable
3-16 value. The decision of the commissioner is final. An adjustment
3-17 does not affect the local fund assignment of any other school
3-18 district. This subsection applies to determinations by the
3-19 commissioner in identifying districts with wealth per student
3-20 exceeding the equalized wealth level pursuant to Section 41.004.
3-21 SECTION 13. Subsections (b), and (f), Section 42.253,
3-22 Education Code, are amended to read as follows:
3-23 (b) Except as provided by this subsection, the commissioner
3-24 shall base the determinations under Subsection (a) on the estimates
3-25 provided to the legislature under Section 42.254, or, if the
3-26 General Appropriations Act provides estimates for that purpose, on
3-27 the estimates provided under that Act, for each school district for
3-28 each school year. The commissioner shall reduce the entitlement of
3-29 each district that has a final taxable value of property for the
3-30 second year of a state fiscal biennium that is higher than the
3-31 estimate under Section 42.254 or the General Appropriations Act, as
3-32 applicable. A reduction under this subsection may not reduce the
3-33 district's entitlement below the amount to which it is entitled at
3-34 its actual taxable value of property. The sum of the reductions
3-35 under this subsection may not be greater than the amount necessary
3-36 to fully fund the entitlement of each district.
3-37 (f) Amounts transferred to the reserve account under
3-38 Subsection (e) shall be used in the succeeding fiscal year to
3-39 finance increases in allocations to school districts under
3-40 Subsection (i). If the amount in the reserve account is less than
3-41 the amount of the increases under Subsection (i) for the second
3-42 year of a state fiscal biennium, the commissioner shall certify the
3-43 amount of the difference to the Legislative Budget Board
3-44 [foundation school fund budget committee] not later than January 1
3-45 of the second year of the state fiscal biennium. The Legislative
3-46 Budget Board [committee] shall propose to the legislature that the
3-47 certified amount be transferred to the foundation school fund from
3-48 the economic stabilization fund and appropriated for the purpose of
3-49 increases in allocations under Subsection (h).
3-50 SECTION 14. Section 42.254, Education Code, is amended by
3-51 amending Subsection (a) and adding Subsection (c) to read as
3-52 follows:
3-53 (a) Not later than October 1 of each even-numbered year:
3-54 (1) the agency shall submit to [the foundation school
3-55 fund budget committee and] the legislature an estimate of the tax
3-56 rate and student enrollment of each school district for the
3-57 following biennium; and
3-58 (2) the comptroller shall submit to [the foundation
3-59 school fund budget committee and] the legislature an estimate of
3-60 the total taxable value of all property in the state as determined
3-61 under Subchapter M, Chapter 403, Government Code, for the following
3-62 biennium.
3-63 (c) Not later than September 1 of each year, each school
3-64 district shall submit to the Legislative Budget Board an estimate
3-65 of the district's:
3-66 (1) tax rate that will be in effect for the following
3-67 fiscal year; and
3-68 (2) student enrollment for the following school year.
3-69 SECTION 15. Subsection (a), Section 42.302, Education Code,
4-1 is amended to read as follows:
4-2 (a) Each school district is guaranteed a specified amount
4-3 per weighted student in state and local funds for each cent of tax
4-4 effort over that required for the district's local fund assignment
4-5 up to the maximum level specified in this subchapter. The amount
4-6 of state support, subject only to the maximum amount under Section
4-7 42.303, is determined by the formula:
4-8 GYA = (GL X WADA X DTR X 100) - LR
4-9 where:
4-10 "GYA" is the guaranteed yield amount of state funds to be
4-11 allocated to the district;
4-12 "GL" is the dollar amount guaranteed level of state and local
4-13 funds per weighted student per cent of tax effort, which is $21
4-14 [$20.55] or a greater amount for any year provided by
4-15 appropriation[, or a greater amount adopted by the foundation
4-16 school fund budget committee under Section 42.256(d)];
4-17 "WADA" is the number of students in weighted average daily
4-18 attendance, which is calculated by dividing the sum of the school
4-19 district's allotments under Subchapters B and C, less any allotment
4-20 to the district for transportation and 50 percent of the adjustment
4-21 under Section 42.102, by the basic allotment for the applicable
4-22 year;
4-23 "DTR" is the district enrichment and facilities tax rate of
4-24 the school district, which is determined by subtracting the amounts
4-25 specified by Subsection (b) from the total amount of taxes
4-26 collected by the school district for the applicable school year and
4-27 dividing the difference by the quotient of the district's taxable
4-28 value of property as determined under Subchapter M, Chapter 403,
4-29 Government Code, divided by 100; and
4-30 "LR" is the local revenue, which is determined by multiplying
4-31 "DTR" by the quotient of the district's taxable value of property
4-32 as determined under Subchapter M, Chapter 403, Government Code,
4-33 divided by 100.
4-34 SECTION 16. Section 42.303, Education Code, is amended to
4-35 read as follows:
4-36 Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
4-37 RATE. The district enrichment and facilities tax rate ("DTR") under
4-38 Section 42.302 may not exceed $0.64 per $100 of valuation, or a
4-39 greater amount for any year provided by appropriation [adopted by
4-40 the foundation school fund budget committee under Section
4-41 42.256(d)].
4-42 SECTION 17. Subsection (b), Section 74.066, Education Code,
4-43 is amended to read as follows:
4-44 (b) State funds for the support of the special school and
4-45 the Moody State School shall be paid from the foundation school
4-46 fund [and shall be considered by the Foundation School Fund Budget
4-47 Committee in estimating the funds needed for Foundation School
4-48 Program purposes].
4-49 SECTION 18. Subsection (a), Section 316.002, Government
4-50 Code, is amended to read as follows:
4-51 (a) Before the Legislative Budget Board submits the budget
4-52 as prescribed by Section 322.008(c) [322.008(b)], the board shall
4-53 establish:
4-54 (1) the estimated rate of growth of the state's
4-55 economy from the current biennium to the next biennium;
4-56 (2) the level of appropriations for the current
4-57 biennium from state tax revenues not dedicated by the constitution;
4-58 and
4-59 (3) the amount of state tax revenues not dedicated by
4-60 the constitution that could be appropriated for the next biennium
4-61 within the limit established by the estimated rate of growth of the
4-62 state's economy.
4-63 SECTION 19. Subsection (b), Section 322.008, Government
4-64 Code, is amended to read as follows:
4-65 (b) The [Not later than the 1994-1995 school year, the]
4-66 general appropriations bill may [shall] include for purposes of
4-67 information the funding elements computed [adopted] by the
4-68 Legislative Budget Board [foundation school fund budget committee]
4-69 under Section 42.007 [16.256(e)], Education Code, excluding the
5-1 values for each school district calculated under Section
5-2 42.007(c)(2), Education Code [Subdivision (2) of that subsection].
5-3 If the funding elements are included, the [The] funding elements
5-4 under Section 42.007(c)(3) [16.256(e)(3)], Education Code, shall be
5-5 reported in dollar amounts per pupil.
5-6 SECTION 20. Subsection (d), Section 56.208, Education Code,
5-7 is repealed.
5-8 SECTION 21. This Act takes effect September 1, 1997.
5-9 SECTION 22. The importance of this legislation and the
5-10 crowded condition of the calendars in both houses create an
5-11 emergency and an imperative public necessity that the
5-12 constitutional rule requiring bills to be read on three several
5-13 days in each house be suspended, and this rule is hereby suspended.
5-14 * * * * *