SRC-MWN S.B. 1785 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1785
77R4748 ESH-FBy: Nelson
Education
4/3/2001
As Filed


DIGEST AND PURPOSE 

Currently, the commissioner of education is authorized to increase the
Existing Debt Allotment (EDA) tax rate on an annual basis if the
commissioner finds that there are excess appropriated Foundation School
Funds. Accordingly, the rate limit for the 2000-2001 school year has been
set at 29 cents. However, without a change in the statutory rate limit, the
rate will automatically revert to 12 cents after the current school year,
resulting in an increase in local debt service costs and higher property
taxes in 2001-2002 and thereafter, along with fluctuating rates that
contribute to school district planning difficulties and taxpayer confusion.
As proposed, S.B. 1785 raises the current 12 cent statutory limit on the
EDA tax rate. 

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 46.034(a), Education Code, to prohibit the
existing debt tax rate ("EDTR") under Section 46.032 from exceeding $0.29,
rather than $0.12, per $100 of valuation, or a greater amount for any year
provided by appropriation. 

SECTION 2. Effective date: September 1, 2001.