By Luna S.B. No. 1916
75R8674 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school finance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 41.001(1) and (3), Education Code, are
1-5 amended to read as follows:
1-6 (1) "Equalized wealth level" means the wealth per
1-7 student for a school district provided by Section 41.002.
1-8 (3) "Weighted average daily attendance" has the
1-9 meaning assigned by Section 42.302[, except that:]
1-10 [(A) weighted average daily attendance is
1-11 computed using the estimate of average daily attendance under
1-12 Section 42.254; and]
1-13 [(B) the estimate under Section 42.254 is
1-14 modified by including a student residing in a school district but
1-15 attending school in another district in the estimate for the
1-16 district of the student's residence and not of the district in
1-17 which the student attends school].
1-18 SECTION 2. Section 41.002(a), Education Code, is amended to
1-19 read as follows:
1-20 (a) A school district may not have a wealth per student that
1-21 exceeds the wealth per student at which the district would not have
1-22 unequalized local revenue to share under Subchapter D [$280,000].
1-23 SECTION 3. Section 41.003, Education Code, is amended to
1-24 read as follows:
2-1 Sec. 41.003. OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL. A
2-2 district with a wealth per student that exceeds the equalized
2-3 wealth level may take any combination of the following actions to
2-4 achieve the equalized wealth level:
2-5 (1) consolidation with another district as provided by
2-6 Subchapter B;
2-7 (2) detachment of territory as provided by Subchapter
2-8 C;
2-9 (3) sharing of unequalized local revenue [purchase of
2-10 average daily attendance credit] as provided by Subchapter D; or
2-11 (4) [contracting for the education of nonresident
2-12 students as provided by Subchapter E; or]
2-13 [(5)] tax base consolidation with another district as
2-14 provided by Subchapter F.
2-15 SECTION 4. Section 41.004(b), Education Code, is amended to
2-16 read as follows:
2-17 (b) If, before the dates provided by this subsection, a
2-18 district notified under Subsection (a)(1) has not successfully
2-19 exercised one or more options under Section 41.003 that reduce the
2-20 district's wealth per student to a level equal to or less than the
2-21 equalized wealth level, the commissioner shall order the detachment
2-22 of property from that district as provided by Subchapter G. If
2-23 that detachment will not reduce the district's wealth per student
2-24 to a level equal to or less than the equalized wealth level, the
2-25 commissioner may not detach property under Subchapter G but shall
2-26 order the consolidation of the district with one or more other
2-27 districts as provided by Subchapter H. An agreement under Section
3-1 41.003(1) or (2) must be executed not later than September 1
3-2 immediately following the notice under Subsection (a). An election
3-3 for an option under Section 41.003(3) or [,] (4)[, or (5)] must be
3-4 ordered before September 1 immediately following the notice under
3-5 Subsection (a).
3-6 SECTION 5. Subchapter D, Chapter 41, Education Code, is
3-7 amended to read as follows:
3-8 SUBCHAPTER D. SHARING OF UNEQUALIZED LOCAL REVENUE [PURCHASE
3-9 OF ATTENDANCE CREDIT]
3-10 Sec. 41.091. AGREEMENT. A school district with a wealth per
3-11 student that exceeds the equalized wealth level may execute an
3-12 agreement with the commissioner to share unequalized local revenue
3-13 [purchase attendance credits] in the [an] amount required by
3-14 Section 41.092 that [sufficient], in combination with any other
3-15 actions taken under this chapter, reduces [to reduce] the
3-16 district's wealth per student to [a level that is equal to or less
3-17 than] the equalized wealth level.
3-18 Sec. 41.092. AMOUNT OF UNEQUALIZED LOCAL REVENUE TO BE
3-19 SHARED [CREDIT]. (a) The unequalized local revenue that a school
3-20 district must share is the sum of the unequalized local revenue in
3-21 tier one of the Foundation School Program, as computed under
3-22 Subsection (b), and the unequalized local revenue in tier two of
3-23 the Foundation School Program, as computed under Subsection (c).
3-24 (b) A school district's unequalized local revenue in tier
3-25 one is the amount by which the district's local share under Section
3-26 42.252(a) exceeds the difference between the district's equalized
3-27 tier one allotments and the amount allocated to the district from
4-1 the available school fund. For purposes of this subsection, a
4-2 district's equalized tier one allotments are the sum of the
4-3 district's tier one allotments under Section 42.251 and the
4-4 district's technology allotment under Section 31.021(b)(2).
4-5 (c) A school district's unequalized local revenue in tier
4-6 two is determined by the formula:
4-8 where:
4-9 "ULR" is the district's unequalized local revenue; and
4-10 "LR," "GL," "WADA," and "DTR" have the meanings assigned by
4-11 Section 42.302 [For each credit purchased, the weighted average
4-12 daily attendance of the purchasing school district is increased by
4-13 one student in weighted average daily attendance for purposes of
4-14 determining whether the district exceeds the equalized wealth
4-15 level].
4-16 [(b) A credit is not used in determining a school district's
4-17 scholastic population, average daily attendance, or weighted
4-18 average daily attendance for purposes of Chapter 42 or 43.]
4-19 Sec. 41.093. [COST. The cost of each credit is an amount
4-20 equal to the greater of:]
4-21 [(1) the amount of the district's total tax revenue
4-22 per student in weighted average daily attendance for the school
4-23 year for which the contract is executed; or]
4-24 [(2) the amount of the statewide district average of
4-25 total tax revenue per student in weighted average daily attendance
4-26 for the school year preceding the school year for which the
4-27 contract is executed.]
5-1 [Sec. 41.094.] PAYMENT. (a) A school district that enters
5-2 into an agreement under Section 41.091 shall pay its unequalized
5-3 local revenue [for credits purchased] in equal monthly payments as
5-4 determined by the commissioner beginning February 15 and ending
5-5 August 15 of the school year for which the agreement is in effect.
5-6 (b) Receipts shall be deposited in the state treasury and
5-7 may be used only for foundation school program purposes.
5-8 Sec. 41.094 [41.095]. DURATION. An agreement under this
5-9 section is valid for one school year and, subject to Section 41.095
5-10 [41.096], may be renewed annually.
5-11 Sec. 41.095 [41.096]. VOTER APPROVAL. (a) After first
5-12 executing an agreement under this section, the board of trustees
5-13 shall order and conduct an election, in the manner provided by
5-14 Sections 13.003(d)-(g), to obtain voter approval of the agreement.
5-15 (b) The ballot shall be printed to permit voting for or
5-16 against the proposition: "Authorizing the board of trustees of
5-17 ________ School District to share unequalized local tax revenues
5-18 with [purchase attendance credits from] the state [with local tax
5-19 revenues]."
5-20 (c) The proposition is approved if the proposition receives
5-21 a favorable vote of a majority of the votes cast. If the
5-22 proposition is approved, the agreement executed by the board is
5-23 ratified, and the board has continuing authority to execute
5-24 agreements under this subchapter on behalf of the district without
5-25 further voter approval.
5-26 (d) A school district in which the voters approved a
5-27 proposition authorizing the board of trustees to purchase
6-1 attendance credits under this subchapter as it existed on January
6-2 1, 1997, may share unequalized local revenue under an agreement
6-3 under this subchapter without conducting an election under this
6-4 section.
6-5 Sec. 41.096 [41.097]. CREDIT FOR APPRAISAL COSTS. (a) The
6-6 total amount of unequalized local revenue required under Section
6-7 41.092 to be shared with the state [41.093 for a district to
6-8 purchase attendance credits] under this subchapter for any school
6-9 year is reduced by an amount equal to the product of the district's
6-10 costs under Section 6.06, Tax Code, for the central appraisal
6-11 district in which it participates multiplied by a percentage that
6-12 is computed by dividing the total amount required under Section
6-13 41.092 [41.093] by the total amount of taxes imposed in the
6-14 district for that year.
6-15 (b) [A school district is entitled to a reduction under
6-16 Subsection (a) beginning with the 1996-1997 school year.] For the
6-17 1997-1998 [that] school year, the reduction to which a district is
6-18 entitled is the sum of the amount computed under Subsection (a)
6-19 for the 1997-1998 school year and any amounts computed under
6-20 Subsection (a) for the 1993-1994, 1994-1995, 1995-1996, and
6-21 1996-1997 school years that were not applied under former Section
6-22 41.097 for the 1996-1997 school year. If that amount exceeds the
6-23 total amount required under Section 41.092 [41.093] for the
6-24 1997-1998 [1996-1997] school year, the difference is carried
6-25 forward and the total amount required under Section 41.092
6-26 [41.093] is reduced each subsequent school year until the total
6-27 amount of the credit has been applied to such reductions.
7-1 Sec. 41.097 [41.098. EARLY AGREEMENT CREDIT. A district
7-2 that submits a signed agreement under this subchapter to the
7-3 commissioner before September 1 of the school year for which the
7-4 agreement is made may reduce the total amount required to be paid
7-5 for attendance credits under Section 41.093 by the lesser of four
7-6 percent or $80 per credit purchased.]
7-7 [Sec. 41.099]. LIMITATION. Sections 41.093 and 41.096
7-8 [41.002(e), 41.094, 41.097, and 41.098] apply only to a district
7-9 that[:]
7-10 [(1)] executes an agreement to share all unequalized
7-11 local revenue [purchase all attendance credits] necessary to
7-12 reduce the district's wealth per student to the equalized wealth
7-13 level[; or]
7-14 [(2) executes an agreement to purchase attendance
7-15 credits and an agreement under Subchapter E to contract for the
7-16 education of nonresident students who transfer to and are educated
7-17 in the district but who are not charged tuition].
7-18 SECTION 6. Section 7.024(a), Education Code, is amended to
7-19 read as follows:
7-20 (a) The investment capital fund consists of money
7-21 appropriated [transferred] to the fund [as provided by Section
7-22 42.152(l)]. The agency shall administer the fund. The purposes
7-23 of this fund are to assist eligible public schools to implement
7-24 practices and procedures consistent with deregulation and school
7-25 restructuring in order to improve student achievement and to help
7-26 schools identify and train parents and community leaders who will
7-27 hold the school and the school district accountable for achieving
8-1 high academic standards.
8-2 SECTION 7. Section 29.082, Education Code, is amended by
8-3 amending Subsection (a) and adding Subsections (a-1) and (a-2) to
8-4 read as follows:
8-5 (a) A school district may set aside an amount from the
8-6 district's allotment under Section 42.152 or may apply to the
8-7 commissioner [agency] for funding of an extended year program for a
8-8 period not to exceed 30 instructional days for students in
8-9 kindergarten through grade 8 who are identified as likely not to be
8-10 promoted to the next grade level for the succeeding school year.
8-11 Funding distributed by the commissioner under this subsection shall
8-12 be from amounts appropriated for extended year programs. The
8-13 commissioner shall:
8-14 (1) give consideration to a district's degree of
8-15 concentration of educationally disadvantaged students in
8-16 determining the number of students in the district who are eligible
8-17 for an extended year program under this section; and
8-18 (2) distribute state funds for extended year programs
8-19 so that a district's share of the cost of the district's extended
8-20 year program, as determined by the commissioner, is proportional to
8-21 the district's share of the cost of the district's tier one program
8-22 as determined under Chapter 42.
8-23 (a-1) The commissioner shall provide for phasing in a
8-24 district's share as determined under Subsection (a) if:
8-25 (1) the district has a wealth per student, as defined
8-26 by Section 41.001, that is less than one-half the statewide average
8-27 wealth per student; and
9-1 (2) the district's share would cause the district to
9-2 be eligible for a lesser amount of state funds per weighted student
9-3 for the 1997-1998 or 1998-1999 school year under this section than
9-4 the district received for the 1996-1997 school year under former
9-5 Section 42.152(p), as that section existed on January 1, 1997.
9-6 (a-2) Subsection (a-1) and this subsection expire
9-7 September 1, 2000.
9-8 SECTION 8. Section 33.001, Education Code, is amended to
9-9 read as follows:
9-10 Sec. 33.001. APPLICABILITY OF SUBCHAPTER; FUNDING. (a)
9-11 This subchapter applies only to a school district that receives
9-12 funds under this section [as provided by Section 42.152(i)].
9-13 (b) The commissioner shall, each fiscal year, distribute
9-14 funds appropriated for the purpose of programs under this
9-15 subchapter. In distributing those funds, preference shall be given
9-16 to a school district that received funds for a program under this
9-17 subsection for the preceding school year.
9-18 (c) The commissioner shall coordinate the funds distributed
9-19 under Subsection (b) with any other funds available for the
9-20 program. To receive funds for the program, a school district must
9-21 apply to the commissioner. The commissioner shall give a
9-22 preference to the districts that have the highest concentration of
9-23 at-risk students. For each school year that a school district
9-24 receives funds under this section, the district shall allocate an
9-25 amount of local funds for school guidance and counseling programs
9-26 that is equal to or greater than the amount of local funds that the
9-27 school district allocated for that purpose during the preceding
10-1 school year.
10-2 SECTION 9. Section 39.024(c), Education Code, is amended to
10-3 read as follows:
10-4 (c) The agency shall develop and distribute study guides to
10-5 assist parents in providing assistance during the period that
10-6 school is recessed for summer to students who do not perform
10-7 satisfactorily on one or more parts of an assessment instrument
10-8 administered under this subchapter. The commissioner shall use
10-9 funds appropriated for that purpose [retain a portion of the total
10-10 amount of funds allotted under Section 42.152(a) that the
10-11 commissioner considers appropriate] to finance the development and
10-12 distribution of the study guides [and shall reduce each district's
10-13 allotment proportionately].
10-14 SECTION 10. Section 39.031, Education Code, is amended to
10-15 read as follows:
10-16 Sec. 39.031. COST. [(a)] The cost of preparing,
10-17 administering, or grading the assessment instruments and the [shall
10-18 be paid from the funds allotted under Section 42.152, and each
10-19 district shall bear the cost in the same manner described for a
10-20 reduction in allotments under Section 42.253. If a district does
10-21 not receive an allotment under Section 42.152, the commissioner
10-22 shall subtract the cost from the district's other foundation school
10-23 fund allotments.]
10-24 [(b) The] cost of releasing the question and answer keys
10-25 under Section 39.023(d) shall be paid from amounts appropriated to
10-26 the agency for those purposes.
10-27 SECTION 11. Section 42.101, Education Code, is amended to
11-1 read as follows:
11-2 Sec. 42.101. BASIC ALLOTMENT. For each student in average
11-3 daily attendance, not including the time students spend each day in
11-4 special education programs in an instructional arrangement other
11-5 than mainstream or career and technology education programs, for
11-6 which an additional allotment is made under Subchapter C, a
11-7 district is entitled to an allotment of $2,190 [$2,387] or a
11-8 greater amount adopted by the foundation school fund budget
11-9 committee under Section 42.256. A greater amount for any school
11-10 year may be provided by appropriation.
11-11 SECTION 12. Section 42.151(l), Education Code, is
11-12 transferred to Section 29.014, Education Code, redesignated as
11-13 Subsection (e) of that section, and amended to read as follows:
11-14 (e) The [(l) From the total amount of funds appropriated
11-15 for special education under this section, the] commissioner shall
11-16 [withhold an amount specified in the General Appropriations Act,
11-17 and] distribute to school districts funds appropriated [that amount
11-18 to school districts] for programs under this section [Section
11-19 29.014]. The program established under this [that] section is
11-20 required only in school districts in which the program is financed
11-21 by funds distributed under this subsection and any other funds
11-22 available for the program. [After deducting the amount withheld
11-23 under this subsection from the total amount appropriated for
11-24 special education, the commissioner shall reduce each district's
11-25 allotment proportionately and shall allocate funds to each district
11-26 accordingly.]
11-27 SECTION 13. Sections 42.152(f) and (g), Education Code, are
12-1 transferred to Section 29.085, Education Code, redesignated as
12-2 Subsections (e) and (f) of that section, and amended to read as
12-3 follows:
12-4 (e) The [(f) From the total amount of funds appropriated
12-5 for allotments under this section, the] commissioner shall, each
12-6 fiscal year, [withhold an amount to be determined by the
12-7 commissioner, but not less than $10,000,000, and] distribute to
12-8 school districts funds appropriated [that amount] for programs
12-9 under this section [Section 29.085]. In distributing those funds,
12-10 preference shall be given to a school district that received funds
12-11 for a program under this section [Section 29.085] for the preceding
12-12 school year. The program established under this [that] section is
12-13 required only in school districts in which the program is financed
12-14 by funds distributed under this subsection [section] and any other
12-15 funds available for the program.
12-16 (f) [(g)] The commissioner shall coordinate the funds
12-17 distributed [withheld] under Subsection (e) with [(f) and] any
12-18 other funds available for the program [and shall distribute those
12-19 funds]. To receive funds for the program, a school district must
12-20 apply to the commissioner. The commissioner shall give a
12-21 preference to the districts that apply that have the highest
12-22 concentration of students who are pregnant or who are parents.
12-23 SECTION 14. Section 42.152(m), Education Code, is
12-24 transferred to Section 29.081, Education Code, redesignated as
12-25 Subsection (g) of that section, and amended to read as follows:
12-26 (g) The [(m) From the total amount of funds appropriated
12-27 for allotments under this section, the] commissioner shall [may
13-1 withhold an amount not exceeding $1 million each fiscal year and]
13-2 distribute [the] funds appropriated for that purpose to school
13-3 districts that incur unanticipated expenditures resulting from a
13-4 significant increase in the enrollment of students who do not have
13-5 disabilities and who reside in residential placement facilities.
13-6 SECTION 15. Section 42.156(f), Education Code, is
13-7 transferred to Subchapter D, Chapter 29, Education Code,
13-8 redesignated as Section 29.124, Education Code, and amended to read
13-9 as follows:
13-10 Sec. 29.124. FUNDING OF ADDITIONAL PROGRAMS. The
13-11 commissioner shall distribute to school districts funds
13-12 appropriated [(f) After each district has received allotted funds
13-13 for this program, the State Board of Education may use up to
13-14 $500,000 of the funds allocated under this section] for programs
13-15 such as MATHCOUNTS, Future Problem Solving, Odyssey of the Mind,
13-16 and Academic Decathlon, as long as these funds are used to train
13-17 personnel and provide program services. To be eligible for funding
13-18 under this section [subsection], a program must be determined by
13-19 the State Board of Education to provide services that are effective
13-20 and consistent with the state plan for gifted and talented
13-21 education.
13-22 SECTION 16. Section 42.302(a), Education Code, is amended to
13-23 read as follows:
13-24 (a) Each school district is guaranteed a specified amount
13-25 per weighted student in state and local funds for each cent of tax
13-26 effort over that required for the district's local fund assignment
13-27 up to the maximum level specified in this subchapter. The amount
14-1 of state support, subject only to the maximum amount under Section
14-2 42.303, is determined by the formula:
14-4 where:
14-5 "GYA" is the guaranteed yield amount of state funds to be
14-6 allocated to the district;
14-7 "GL" is the dollar amount guaranteed level of state and local
14-8 funds per weighted student per cent of tax effort, which is an
14-9 amount equal to the basic allotment under Section 42.101 divided by
14-10 the tax rate prescribed by Section 42.252(a) [$20.55] or a greater
14-11 amount for any year provided by appropriation[,] or [a greater
14-12 amount] adopted by the foundation school fund budget committee
14-13 under Section 42.256(d);
14-14 "WADA" is the number of students in weighted average daily
14-15 attendance, which is calculated by dividing the sum of the school
14-16 district's allotments under Subchapters B and C, less any allotment
14-17 to the district for transportation and 50 percent of the adjustment
14-18 under Section 42.102, by the basic allotment for the applicable
14-19 year;
14-20 "DTR" is the district enrichment and facilities tax rate of
14-21 the school district, which is determined by subtracting the amounts
14-22 specified by Subsection (b) from the total amount of taxes
14-23 collected by the school district for the applicable school year and
14-24 dividing the difference by the quotient of the district's taxable
14-25 value of property as determined under Subchapter M, Chapter 403,
14-26 Government Code, divided by 100; and
14-27 "LR" is the local revenue, which is determined by multiplying
15-1 "DTR" by the quotient of the district's taxable value of property
15-2 as determined under Subchapter M, Chapter 403, Government Code,
15-3 divided by 100.
15-4 SECTION 17. Section 42.303, Education Code, is amended to
15-5 read as follows:
15-6 Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
15-7 RATE. (a) To the extent that the [The] district enrichment and
15-8 facilities tax rate ("DTR") under Section 42.302 exceeds [may not
15-9 exceed] $0.64 per $100 of valuation, or a greater amount adopted by
15-10 the foundation school fund budget committee under Section
15-11 42.256(d), a school district is not entitled to receive state funds
15-12 based on a tax rate in excess of the rate necessary for the current
15-13 year, using state funds received under Section 42.302, to make
15-14 payments of principal and interest on bonds for which the tax is
15-15 pledged.
15-16 (b) For purposes of Subsection (a), the first $1.50 per $100
15-17 of valuation of a school district's total tax rate is considered to
15-18 be the rate of a tax levied for maintenance and operations
15-19 purposes.
15-20 SECTION 18. The following provisions of the Education Code
15-21 are repealed:
15-22 (1) Sections 41.002(e) and (f) and 42.152(e), (h)-(l),
15-23 and (n)-(p); and
15-24 (2) Subchapter E, Chapter 41.
15-25 SECTION 19. Notwithstanding Section 42.101, Education Code,
15-26 as amended by this Act, for the 1997-1998 and 1998-1999 school
15-27 years, the Legislative Budget Board shall determine the basic
16-1 allotment under the Foundation School Program for each school year.
16-2 The board shall determine the amount by computing the total amount
16-3 that would be necessary in state and local funds if the basic
16-4 allotment were $2,387 for the school year, subtracting the maximum
16-5 amounts for that school year for deductions from special allotments
16-6 as provided by Sections 39.024, 39.031, 42.152, and 42.156,
16-7 Education Code, as those sections existed before amendment by this
16-8 Act, and dividing the difference by the estimate of average daily
16-9 attendance for that school year.
16-10 SECTION 20. This Act takes effect September 1, 1997.
16-11 SECTION 21. The importance of this legislation and the
16-12 crowded condition of the calendars in both houses create an
16-13 emergency and an imperative public necessity that the
16-14 constitutional rule requiring bills to be read on three several
16-15 days in each house be suspended, and this rule is hereby suspended.