SRC-SLL, ARR C.S.S.B. 4 76(R)BILL ANALYSIS
Senate Research CenterC.S.S.B. 4
76R13551 ESH -DBy: Bivins
Education
4/23/1999
Committee Report (Substituted)
DIGEST
Currently, Texas law regulates public school finance. C.S.S.B. 4 is a
comprehensive school finance, property tax relief, teacher pay raise,
omnibus package. C.S.S.B. 4 and the corresponding appropriations would
provide funds for children, teachers, local school districts, and
taxpayers.
PURPOSE
As proposed, C.S.S.B. 4 regulates public school finance and public
education.
RULEMAKING AUTHORITY
Rulemaking is granted to the commissioner of education in SECTIONS 7, 20,
and 21 (Sections 42.158(e), 21.410(m), and 25.039(b), Education Code) and
SECTION 19, and to the State Board of Educator Certification in SECTION 33
of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 41.002(a), Education Code, effective September 1,
1999, to prohibit a school district from having a wealth per student that
exceeds $290,000, rather than $280,000.
SECTION 2. Amends Section 41.002(a), Education Code, effective September 1,
2000, to prohibit a school district from having a wealth per student that
exceeds $300,000, rather than $280,000.
SECTION 3. Amends Sections 41.002(b)-(e), Education Code, to require the
commissioner of education (commissioner) to adjust, in accordance with
Section 42.2521, the taxable value of a school district that, due to
factors beyond the control of the board of trustees, experiences a rapid
decline in the tax base used in calculating taxable values in excess of
four percent of the tax base used in the preceding year. Prohibits the
wealth per student that a school district may have after exercising an
option under Section 41.003(2) or (3) from being less than the amount
needed to maintain state and local revenue in an amount equal to state and
local revenue per weighted student for maintenance and operation of the
district for the 19992-1993 school year adjusted in accordance with
Subsection (d), less the district's current year distribution per weighted
student from the available school fund, other than amounts distributed
under Chapter 31, if the district actually levies a tax for maintenance and
operation of the district at a rate of $1.50 on the $100 valuation of
taxable property, notwithstanding Subsection (a), in accordance with a
determination of the commissioner. Requires the commissioner to adjust the
amount of a school district's state and local revenue per weighted student
for maintenance and operation of the district for the 1992-1993 school year
by multiplying the amount by the quotient of the equalized wealth level
divided by 280,000. Deletes text regarding amount of decline and money
necessary to replace funds. Makes conforming changes.
SECTION 4. Amends Section 42.101, Education Code, effective September 1,
1999, to provide that for each student in average daily attendance a
district is entitled to an allotment of $2,426, rather than $2,387.
SECTION 5. Amends Section 42.101, Education Code, effective September 1,
2000, to provide that for each student in average daily attendance a
district is entitled to an allotment of $2,435, rather than $2,387.
SECTION 6. Amends Chapter 42B, Education Code, by adding Section 42.106,
as follows:
Sec. 42.106. ADJUSTMENT PROPERTY VALUE FOR DISTRICTS NOT OFFERING ALL GRADE
LEVELS. Provides that the taxable value of property of a school district
that contracts for students residing in the district to be educated in
another district under Section 25.039(a) is adjusted by applying a certain
formula.
SECTION 7. Amends Chapter 42C, Education Code, by adding Section 42.158,
effective September 1, 2000, as follows:
Sec. 42.158. NEW INSTRUCTIONAL FACILITY ALLOTMENT. Provides that a school
district is entitled to an additional allotment as provided by this section
for operational expenses associated with opening a new instructional
facility. Sets forth the amount of allotment for each year a student
attends a new instructional facility. Provides that the number of
additional students in average daily attendance at a facility is the
difference between the number of students in average daily attendance in
the current year at that facility and the number of students in average
daily attendance at that facility in the preceding year. Prohibits the
amount appropriated for allotments under this section from exceeding $50
million in a school year. Requires the commissioner to reduce each
district's allotment under this section in the manner provided by Section
42.253(h), if the total amount of allotments to which districts are
entitled under this section for a school year exceeds the amount
appropriated for allotments under this section. Authorizes the commissioner
to adopt rules necessary to implement this section. Defines "instructional
facility."
SECTION 8. Amends Section 42.251(a), Education Code, to provide that the
sum of the tier one allotments and the assistance provided under the school
facilities tier, rather than assistance program, under Subchapter I, rather
than Subchapter H, computed in accordance with this chapter, constitute
the total cost of the Foundation School Program.
SECTION 9. Amends Section 42.2511, Education Code, as follows:
Sec. 42.2511. New heading: ADDITIONAL STATE AID FOR 1999-2000 AND
2000-2001 SCHOOL YEARS. Provides that, notwithstanding any other provision
of this chapter, for the 1999-2000 and 2000-2001 school years, a school
district is entitled to a certain amount of additional state aid.
Provides that this section expires September 1, 2001, rather than 1999.
Deletes text regarding the computation of state aid.
SECTION 10. Amends Chapter 42E, Education Code, by adding Section 42.2521,
as follows:
Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE OF PROPERTY.
Authorizes the commissioner to adjust the taxable value of property in a
school district that experiences a rapid decline in the tax base.
Authorizes the commissioner, to the extent money specifically authorized to
be used for that purpose is available, to adjust the district's taxable
value for such losses in value exceeding four percent to reflect the local
current year taxable value. Requires the commissioner to reduce adjustments
in the manner provided by Section 42.253(h) so that the total amount of
adjustments equals the amount of money available to fund the adjustment.
Provides that a decision of the commissioner made under this section is
final.
SECTION 11. Amends Section 42.253, Education Code, by amending Subsections
(a) and (c), to require the commissioner to determine the amount of money
to which a school district is entitled under Subchapter I. Provides that
each school district is entitled to an amount equal to the difference for
that district between the sum of Subsections (a)(1), (a)(2), and (a)(3) and
the sum of Subsections (a)(4), (a) (5), and (a)(6).
SECTION 12. Amends Section 42.302, Education Code, effective date September
1, 1999, to redefine "GL," and "RL." Provides that the total amount of
taxes collected by the school district does not include taxes collected to
pay the local share of debt service for which the district receives state
aid. Makes conforming changes.
SECTION 13. Amends Section 42.302(a), Education Code, effective September
1, 2000, to redefine "GL," "WADA," "DTR," and "LR."
SECTION 14. Amends Chapter 42, Education Code, by adding Subchapter I, as
follows:
SUBCHAPTER I. SCHOOL FACILITIES TIER
Sec. 42.501. ALLOTMENT. Provides that each school district is guaranteed a
specific amount per student in state and local funds for each cent of tax
effort to pay the principal of and interest on eligible bonds. Provides
that the amount of state support, subject only to the maximum amount under
Section 42.502, is determined by a certain formula. Prohibits the district
facilities tax rate under Subsection (a) from exceeding the rate that would
be necessary for the current year, using state funds under Subsection (a),
to make payments of principal and interest on the bonds for which the tax
is pledged. Authorizes a district to levy a facilities tax at a rate higher
than the maximum rate for which it may receive state assistance under this
subchapter, to enable the district to collect local funds sufficient to pay
the district's share of debt service. Provides that bonds are eligible to
be paid with state and local funds under this subchapter if certain
conditions exist. Prohibits the district from receiving aid in excess of
the amount that, when added to the district's local revenue for the school
year, equals the amount required to pay the principal of and interest on
the bonds. Sets forth the requirements under which the commissioner shall
distribute to each district the amount of state assistance.
Sec. 42.502. LIMITATION ON FACILITIES TAX RATE. Prohibits the district
facilities tax rate under Section 42.501, from exceeding $0.06 per $100 of
valuation or a greater amount for any year provided by appropriation.
SECTION 15. Amends Section 46.003(a), Education Code, to redefine "FYL,"
"BRT," and "DPV."
SECTION 16. Amends Section 46.006, Education Code, to provide that a
district's wealth per student is reduced for purposes of this section if a
district has had substantial student enrollment in the preceding five-year
period. Provides that the reduction is in addition to any reduction under
Subsection (a). Provides that a district's wealth per student is reduced by
certain amounts. Requires the commissioner to annually determine the rate
of growth in average daily attendance for each school district in the state
over the three preceding years. Requires the commissioner to rank each
school district according to the district's rate of growth, beginning with
the district with the highest rate. Provides that each district that is
placed in the top quarter of that ranking is considered a fastgrowth
district for purposes of Subsection (a). Redefines "wealth per student."
Makes conforming changes.
SECTION 17. Amends Chapter 21B, Education Code, by adding Section 21.0481,
as follows:
Sec. 21.0481. MASTER READING TEACHER CERTIFICATION. Sets forth the
requirements for a master reading teacher certification.
SECTION 18. Amends Section 21.401, Education Code, to require an educator
employed under a 10-month contract to provide a minimum of 187 days of
service. Deletes text regarding a certain formula. Makes conforming
changes.
SECTION 19. Amends Sections 21.402(a), (b), and (c), Education Code,
effective September 1, 1999, to set forth a certain formula for teacher and
full-time librarian pay. Redefines "FS." Requires the commissioner to
determine the amount of state and local funds per weighted student
available, for purposes of Subsection (a), to a district described by that
subsection for the following school year. Sets forth certain salary factors
per student. Deletes text regarding FSD, ADA, and requiring the
commissioner to exclude certain amounts.
SECTION 20. Requires the commissioner to notify each school district of
certain information. Requires the commissioner, to the extent possible, to
adjust the 2000-2001 amount to take into consideration any adjustments
found necessary pursuant to Section 42.253(i), to the extent necessary to
accurately reflect the amount of additional funds available to the
district. Provides that a determination by the commissioner under this
section is final and may not be appealed. Requires each school district to
use at least 60 percent of the full amounts certified under this section to
increase the salaries of classroom teachers or full-time librarians to a
certain amount. Requires compliance with the requirements of this
subsection to examined and audited as part of the district annual audit
under Section 44.008, Education Code. Authorizes the commissioner to make
rules for the implementation of this section.
SECTION 21. Amends Chapter 21I, Education Code, by adding Section 21.410,
as follows:
Sec. 21.410. MASTER READING TEACHER GRANT PROGRAM. Sets forth requirements
for implementing a master reading teacher grant program. Authorizes the
commissioner to adopt rules to implement the section.
SECTION 22. Amends Section 25.039(b), Education Code, to prohibit the
amount of the institution paid from exceeding the lesser of the amount
provided for by Section 25.038 or an amount specified by commissioner rule.
SECTION 23. Amends Section 44.004, Education Code, as follows:
Sec. 44.004. New heading: NOTICE OF BUDGET AND TAX RATE MEETING; BUDGET
ADOPTION. Requires the president to provide for the publication of notice
of the budget and proposed tax rate. Set forth requirements for the size of
the notice in the publication. Provides an example of notice.
SECTION 24. Amends Section 822.201(b), Government Code, to redefine "salary
and wages."
SECTION 25. Amends Sections 824.203(a) and (e), Government Code, to provide
that the standard service retirement annuity is an amount computed on the
basis of the member's average annual compensation for the years of service,
whether or not consecutive, in which the member received the highest annual
compensation, times 2.2 percent, rather than two percent, for each year of
service credit in the Teacher Retirement System of Texas (TRS). Makes a
conforming change.
SECTION 26. Amends Section 824.602(a), Government Code, to prohibit a
retirement system from withholding a monthly benefit payment if the retiree
is employed in a certain public institution Delete text regarding retiree
benefits. Makes conforming changes.
SECTION 27. Amends Section 824.804(a), Government Code, to require the TRS
to transfer certain funds monthly if the member had retired on the
effective date of plan participation under the multiplier currently in
effect.
SECTION 28. Amends Section 26.04(c), Tax Code, to redefine "effective tax
rate," and "rollback tax rate."
SECTION 29. Amends Section 26.05(d), Tax Code, to prohibit the governing
body from adopting a certain tax rate if certain conditions exist.
SECTION 30. Amends Section 26.06, Tax Code, by adding Subsection (g), to
provide that this section, other than Subsection (a), does not apply to a
school district. Requires a school district to provide notice of a public
hearing on a tax increase as required by Section 44.004, Education Code.
SECTION 31. Amends Section 26.08, Tax Code, by amending Subsection (i) and
adding Subsections (j) and (k), to set forth the rollback tax rate of a
school district. Sets forth the rollback tax rate for the 1999 tax year.
Provides that Subsections (j) and (k) expire on September 1, 2000.
SECTION 32. Repealer: Sections 42.251(c), Education Code (requiring the
commissioner to compute and certify certain amounts); Section 42.252(e),
Education Code (requiring the commissioner to hear appeals from school
districts). Section 26.08(f), Tax Code (Election to Ratify School Taxes).
SECTION 33. Provides that the monthly payments of a death or retirement
benefit annuity by the TRS are increased beginning with the payment due at
the end of September 1999. Provides that the increase does not apply to
certain sections of the Government Code. Sets forth a table to compute
monthly benefits
SECTION 34. Requires the State Board for Educator Certification to propose
rules establishing requirements and prescribing an examination for master
reading teacher certification not later than January 1, 2001.
SECTION 35. Effective date: September 1, 1999, except as otherwise provided
by this Act.
SECTION 36. Emergency clause.
SUMMARY OF COMMITTEE CHANGES
SECTION 1.
Adds new SECTION 1 by amending Section 41.002(a), Education Code, to
prohibit a school district from having a wealth per student that exceeds
$290,000, rather than 280,000.
SECTION 2.
Adds new SECTION by amending Section 41.002(a), Education Code, to prohibit
a school district from having a wealth per student that exceeds $300,000,
rather than $290,000. Redesignates existing SECTIONS accordingly.
SECTION 3.
Amends Sections 41.002(b) - (e), Education Code, to prohibit a certain
wealth per student that a school district may have after exercising an
option under Section 41.003(2) or (3). Deletes text prohibiting a school
district from having a wealth per student that exceeds $300,000.
SECTION 4.
Amends Section 42.101, Education Code, to provide that for each student in
average daily attendance a district is entitled to an allotment of $2,426,
rather than $2,387, effective September 1, 1999.
SECTION 5.
Amends Section 42.101, Education Code, to provide that for each student in
average daily attendance a district is entitled to an allotment of $2,435,
rather than $2,387, effective September 1, 2000.
SECTION 6.
Amends Chapter 42B, Education Code, by adding Section 42.106, regarding
adjusted property value for districts not offering all grade levels.
SECTION 7.
Amends Chapter 42C, Education Code, by adding Section 42.158, regarding new
instructional facilities allotment.
SECTION 8.
Amends Section 42.251(a), Education Code, to provide that the sum of the
tier one allotments and the assistance provided under the school facilities
tier, rather than assistance program, under Subchapter I, rather than
Subchapter H, computed in accordance with this chapter, constitute the
total cost of the Foundation School Program.
SECTION 9.
Amends Section 42.2511, Education Code, to set forth provisions regarding
additional state aid to school districts. Deletes text regarding the
computation of state aid.
SECTION 11.
Amends Section 42.253, Education Code, by amending Subsections (a) and (c),
to require the commissioner to determine the amount of money to which a
school district is entitled under Subchapter I. Provides that each school
district is entitled to an amount equal to the difference for that district
between the sum of Subsections (a)(1), (a)(2), and (a)(3) and the sum of
Subsections (a)(4), (a) (5), and (a)(6). Deletes text prohibiting the
amount to which a district is entitled under this section from exceeding a
certain amount to which the district would be entitled at a certain tax
rate. Provides that this subsection expires September 1, 2001.
SECTION 12.
Amend Section 42.302, Education Code, effective September 1, 1999, to
redefine "GL."
SECTION 13.
Amends Section 42.302(a), Education Code, to redefine "GL," "WADA," "DTR,"
and "LR."
SECTION 14.
Amends Chapter 42, Education Code, by adding Subchapter I, regarding
school facilities tier.
SECTION 15.
Amends Section 46.003(a), Education Code, to redefine "BRT," and "DPV."
SECTION 16.
Amends Section 46.006, Education Code, to set forth reductions in the
districts wealth per student.
SECTION 17.
Amends Chapter 21B, Education Code, by adding Section 21.0481, to set forth
the requirements for a master reading teacher certification.
SECTION 19.
Amends Sections 21.402(a), (b) and (c), Education Code, effective
September 1, 1999, to set forth certain salary factors per student.
SECTION 20.
Sets forth provisions regarding additional state funds provided to school
districts.
SECTION 21.
Amends Chapter 21I, Education Code, by adding Section 21.410, regarding a
master reading teacher grant program.
SECTION 22.
Amends Section 25.039(b), Education Code, to prohibit the amount of the
institution paid from exceeding the lesser of the amount provided for by
Section 25..038 or an amount specified by commissioner rule.
SECTION 23.
Adds Section 44.04, Education Code, regarding notice of budget and tax rate
meeting and budget adoption.
SECTION 24.
Amends Section 822.201(b), Government Code, to redefine "salary and wages."
SECTION 25.
Amends Sections 824.203(a) and (e), Government Code, to provide that the
standard service retirement annuity is an amount computed on the basis of
the member's average annual compensation for the years of service, whether
or not consecutive, in which the member received the highest annual
compensation, times 2.2 percent, rather than two percent, for each year of
service credit in the TRS.
SECTION 26.
Deletes proposed changes to Section 824.602(a), Government Code, to
prohibit a retirement system from withholding a monthly benefit payment if
the retiree is employed in a certain public institution. Deletes text
regarding retiree. Makes conforming changes.
SECTION 27.
Deletes proposed changes to Chapter 825E, Government Code, regarding rate
of member contributions to be certified public school employees. Amends
Section 824.804(a), Government Code, to require the TRS to transfer
monthly if the member had retired on the effective date of plan
participation under the multiplier currently in effect.
SECTION 29.
Amends Section 26.05(d), Tax Code, to prohibit the governing body from
adopting a certain tax rate.
SECTION 30.
Amends Section 26.06, Tax Code, by adding Subsection (g), to provide that
this section, other than Subsection (a), does not apply to a school
district. Requires a school district to provide notice of a public hearing
on tax increase as required by Section 44.004, Education Code.
SECTION 31.
Deletes proposed changes to Section 26.08, Tax Code, amending Subsection
(i) and adding Subsections (j) and (k), to set forth the rollback tax rate
of a school district. Sets forth the rollback tax rate for the 1999 tax
year.
SECTION 33.
Provides that the monthly payments of a death or retirement benefit annuity
by the TRS are increased beginning with the payment due at the end of
September 1999. Provides that the increase does not apply to certain
sections of the Government Code. Sets forth a table to compute monthly
benefits.
SECTION 34.
Requires the State Board for Educator Certification to propose rules
establishing requirements and prescribing an examination for master reading
teacher certification not later than January 1, 2001.