1-1                                   AN ACT
 1-2     relating to the small and mid-sized district adjustment under the
 1-3     public school finance system.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 42.103(d), Education Code, is amended to
 1-6     read as follows:
 1-7           (d)  The basic allotment of a school district that offers a
 1-8     kindergarten through grade 12 program and has less than 5,000
 1-9     students in average daily attendance is adjusted by applying the
1-10     formula, of the following formulas, that results in the greatest
1-11     adjusted allotment:
1-12                 (1)  the formula in Subsection (b) or (c) for which the
1-13     district is eligible; or
1-14                 (2)  [AA = 1 X ABA; or]
1-15                 [(3)  depending on the school year:]
1-16                       [(A)  for the 1996-1997 school year, AA = (1 +
1-17     ((5,000 - ADA) X .0000045)) X ABA;]
1-18                       [(B)  for the 1997-1998 school year, AA = (1 +
1-19     ((5,000 - ADA) X .0000090)) X ABA;]
1-20                       [(C)  for the 1998-1999 school year, AA = (1 +
1-21     ((5,000 - ADA) X .000015)) X ABA;]
1-22                       [(D)  for the 1999-2000 school year, AA = (1 +
1-23     ((5,000 - ADA) X .000020)) X ABA;]
1-24                       [(E)  for the 2000-2001 school year,] AA = (1 +
 2-1     ((5,000 - ADA) X .000025)) X ABA.
 2-2           SECTION 2. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2864 was passed by the House on April
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2864 was passed by the Senate on May
         15, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor