SRC-DPW S.B. 1489 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1489
By: Duncan
Education
4/6/1999
As Filed


DIGEST 

Currently, many Texas school districts are experiencing significant
declines in property valuations due to recent declines in oil prices.
These declines will have a significant, negative financial impact on the
districts in the next biennium.  The comptroller has estimated there will
be a 1999 statewide levy loss of $154,183,966.  Section 42.252(e),
Education Code, provides the commissioner of education with a tool to
mitigate some of the levy losses associated with such declines.  School
districts under this provision are required to bear the first 4 percent of
any levy loss.  These Chapter 42 provisions do not provide for a full Tier
II adjustment.  This bill would ensure that school districts experiencing
rapid declines in property values receive the fullest adjustments in public
funding.  

PURPOSE

As proposed, S.B. 1489 sets forth procedures for adjusting public funding
for school districts that experience a decline in district property values.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 42.252(e), Education Code, to require the
commissioner of education (commissioner) to adjust the "DPV," the taxable
value of property in the school district for the preceding tax year
determined under Subchapter M, Chapter 403, Government Code, as described
by Subsection (a), of a school district by the amount of a decline the
school district experienced from the preceding year in its taxable value
used to calculate its local fund assignment.  Authorizes the adjustment to
only be paid from funds specifically appropriated for that purpose.
Provides that such an adjustment does not affect the local fund assignment
of any other district.   

SECTION 2. Amends Section 42.302, Education Code, by adding Subsection (c),
to require commissioner to adjust, by the amount of a decline, the taxable
value of a district that experiences a decline from the preceding year in
its taxable value of property, in determining a school district's "DTR,"
the district enrichment and facilities tax rate of the school district, and
"LR," the local revenue, under Subsection (a).  Authorizes this adjustment
to only be paid from funds specifically appropriated for that purpose.
Provides that such an adjustment does not affect the GYA, the guaranteed
yield amount of state funds to be allocated to the district, of any other
district. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.