SRC-MKV S.B. 450 77(R) BILL ANALYSIS Senate Research Center S.B. 450 77R3077 KKA-DBy: Duncan Education 2/28/2001 As Filed 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 (b), Education Code, to require 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. SECTION 2. Effective date: September 1, 2001.