SRC-MKV S.B. 450 77(R)BILL ANALYSIS


Senate Research CenterS.B. 450
By: Duncan
Education
6/11/2001
Enrolled


DIGEST AND PURPOSE 

According to the Texas Education Agency, 525 school districts experienced a
decline in student enrollment between 1998-99 and 1999-2000.  Of these
school districts, 58 percent had declines of two percent or greater, and
each student that a district loses results in a reduction of state aid of
$5,000.  S.B. 450 allows districts that experience losses of enrollment
greater thantwo percent to receive funding based on 98 percent of their
previous year's actual average daily attendance which would provide school
districts with a safety net to make necessary budget adjustments in a
reasonable amount of time. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 42.005, Education Code, by amending Subsection
(b) and adding Subsections (e) and (f), as follows: 

(b) Requires a school district that experiences a decline of two percent or
more in average daily attendance to be funded on the basis of the actual
average daily attendance of the preceding school year, if the decline is
the result of the closing or reduction in personnel of a military base, or
an average daily attendance equal to 98 percent of the actual average daily
attendance of the preceding school year, if the decline is not the result
of the closing or reduction in personnel of a military base. 

(e) Requires the commissioner, for each school year, to adjust the average
daily attendance of school districts that are entitled to funding on the
basis of an adjusted average daily attendance under Subsection (b)(2) to
meet certain requirements. 

(f) Provides that an open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2). 

SECTION 2.  Effective date: September 1, 2001.