By Sadler H.B. No. 2879
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school finance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Effective September 1, 2001, Section 41.002(a),
1-5 Education Code, is amended to read as follows:
1-6 (a) A school district may not have a wealth per student that
1-7 exceeds $298,000 [$295,000].
1-8 SECTION 2. Effective September 1, 2002, Section 41.002(a),
1-9 Education Code, is amended to read as follows:
1-10 (a) A school district may not have a wealth per student that
1-11 exceeds $303,000 [$295,000].
1-12 SECTION 3. Subchapter A, Chapter 41, Education Code, is
1-13 amended by adding Section 41.0021 to read as follows:
1-14 Sec. 41.0021. WEALTH PER STUDENT IN CERTAIN DISTRICTS NOT
1-15 SERVING ALL GRADES. (a) Notwithstanding Section 41.002, for the
1-16 2001-2002, 2002-2003, and 2003-2004 school years, a school district
1-17 that in the 1999-2000 school year did not offer each grade level
1-18 from kindergarten through 12 may elect to have its wealth per
1-19 student determined under this section.
1-20 (b) In accordance with a determination of the commissioner,
1-21 the wealth per student that a school district to which this section
1-22 applies may have after exercising an option under Section 41.003(2)
1-23 or (3) is the amount needed to maintain state and local revenue in
1-24 an amount equal to state and local revenue per weighted student for
2-1 maintenance and operation of the district for the 1999-2000 school
2-2 year less the district's current year distribution per weighted
2-3 student from the available school fund, other than amounts
2-4 distributed under Chapter 31, if the district imposes an effective
2-5 tax rate for maintenance and operation of the district equal to the
2-6 district's tax rate for maintenance and operation for the 1999-2000
2-7 school year. For purposes of this subsection, a district's
2-8 effective tax rate is determined as provided by Section 41.002(f).
2-9 (c) The commissioner shall:
2-10 (1) compute the wealth per student levels under this
2-11 section using weighted average daily attendance as defined by
2-12 Section 42.302;
2-13 (2) notify each school district that is eligible to
2-14 have its wealth per student computed under this section; and
2-15 (3) establish a date by which a district must elect to
2-16 have its wealth per student computed under this section.
2-17 (d) A school district that elects to have its wealth per
2-18 student computed under this section:
2-19 (1) is not entitled to state aid to achieve the
2-20 funding levels permitted by Subsection (b);
2-21 (2) is not subject to a limitation on tuition under
2-22 Section 25.039;
2-23 (3) is not eligible for credit for tuition payments
2-24 under Section 41.124(b); and
2-25 (4) is not eligible for an adjustment to the
2-26 district's taxable value of property under Section 42.106.
2-27 (e) This section expires September 1, 2004.
3-1 SECTION 4. Section 42.152(b), Education Code, is amended to
3-2 read as follows:
3-3 (b) For purposes of this section, the number of
3-4 educationally disadvantaged students is determined:
3-5 (1) by averaging the best six months' enrollment in
3-6 the national school lunch program of free or reduced-price lunches
3-7 for the preceding school year; or
3-8 (2) in the manner provided by commissioner rule, if no
3-9 campus in the district participated in the national school lunch
3-10 program of free or reduced-price lunches during the preceding
3-11 school year.
3-12 SECTION 5. Section 42.2512, Education Code, is amended to
3-13 read as follows:
3-14 Sec. 42.2512. ADDITIONAL STATE AID FOR PROFESSIONAL STAFF
3-15 SALARIES. (a) This section applies only to a school district that
3-16 received state aid under this section for the 1999-2000 or
3-17 2000-2001 school year.
3-18 (b) A school district to which this section applies,
3-19 including a school district that is otherwise ineligible for state
3-20 aid under this chapter, is entitled to state aid in an amount, as
3-21 determined by the commissioner, equal to the difference, if any,
3-22 between:
3-23 (1) the sum of:
3-24 (A) an amount equal to the product of $3,000
3-25 multiplied by the number of classroom teachers, full-time
3-26 librarians, full-time counselors certified under Subchapter B,
3-27 Chapter 21, and full-time school nurses employed by the district
4-1 and entitled to a minimum salary under Section 21.402; and
4-2 (B) the amount of additional salary cost the
4-3 district experiences that results from the increase made by H.B.
4-4 No. 2879, Acts of the 77th Legislature, Regular Session, 2001, to
4-5 the guaranteed level of state and local funds per weighted student
4-6 per cent of tax effort under Section 42.302; and
4-7 (2) the sum of:
4-8 (A) an amount equal to 80 percent of the amount
4-9 of additional funds to which the district is entitled due to the
4-10 increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
4-11 Session, 1999, to:
4-12 (i) [(A)] the equalized wealth level under
4-13 Section 41.002;
4-14 (ii) [(B)] the basic allotment under
4-15 Section 42.101; and
4-16 (iii) [(C)] the guaranteed level of state
4-17 and local funds per weighted student per cent of tax effort under
4-18 Section 42.302; and
4-19 (B) an amount equal to 80 percent of the amount
4-20 of additional funds to which the district is entitled due to the
4-21 increase made by H.B. No. 2879, Acts of the 77th Legislature,
4-22 Regular Session, 2001, to the guaranteed level of state and local
4-23 funds per weighted student per cent of tax effort under Section
4-24 42.302.
4-25 (c) [(b)] A determination by the commissioner under this
4-26 section is final and may not be appealed.
4-27 (d) [(c)] The commissioner may adopt rules to implement this
5-1 section.
5-2 SECTION 6. Effective September 1, 2001, Section 42.302(a),
5-3 Education Code, is amended to read as follows:
5-4 (a) Each school district is guaranteed a specified amount
5-5 per weighted student in state and local funds for each cent of tax
5-6 effort over that required for the district's local fund assignment
5-7 up to the maximum level specified in this subchapter. The amount
5-8 of state support, subject only to the maximum amount under Section
5-9 42.303, is determined by the formula:
5-10 GYA = (GL X WADA X DTR X 100) - LR
5-11 where:
5-12 "GYA" is the guaranteed yield amount of state funds to be
5-13 allocated to the district;
5-14 "GL" is the dollar amount guaranteed level of state and local
5-15 funds per weighted student per cent of tax effort, which is $25.75
5-16 [$24.99] or a greater amount for any year provided by
5-17 appropriation;
5-18 "WADA" is the number of students in weighted average daily
5-19 attendance, which is calculated by dividing the sum of the school
5-20 district's allotments under Subchapters B and C, less any allotment
5-21 to the district for transportation, any allotment under Section
5-22 42.158, and 50 percent of the adjustment under Section 42.102, by
5-23 the basic allotment for the applicable year;
5-24 "DTR" is the district enrichment tax rate of the school
5-25 district, which is determined by subtracting the amounts specified
5-26 by Subsection (b) from the total amount of maintenance and
5-27 operations taxes collected by the school district for the
6-1 applicable school year and dividing the difference by the quotient
6-2 of the district's taxable value of property as determined under
6-3 Subchapter M, Chapter 403, Government Code, or, if applicable,
6-4 under Section 42.2521, divided by 100; and
6-5 "LR" is the local revenue, which is determined by multiplying
6-6 "DTR" by the quotient of the district's taxable value of property
6-7 as determined under Subchapter M, Chapter 403, Government Code, or,
6-8 if applicable, under Section 42.2521, divided by 100.
6-9 SECTION 7. Effective September 1, 2002, Section 42.302(a),
6-10 Education Code, is amended to read as follows:
6-11 (a) Each school district is guaranteed a specified amount
6-12 per weighted student in state and local funds for each cent of tax
6-13 effort over that required for the district's local fund assignment
6-14 up to the maximum level specified in this subchapter. The amount
6-15 of state support, subject only to the maximum amount under Section
6-16 42.303, is determined by the formula:
6-17 GYA = (GL X WADA X DTR X 100) - LR
6-18 where:
6-19 "GYA" is the guaranteed yield amount of state funds to be
6-20 allocated to the district;
6-21 "GL" is the dollar amount guaranteed level of state and local
6-22 funds per weighted student per cent of tax effort, which is $27.14
6-23 [$24.99] or a greater amount for any year provided by
6-24 appropriation;
6-25 "WADA" is the number of students in weighted average daily
6-26 attendance, which is calculated by dividing the sum of the school
6-27 district's allotments under Subchapters B and C, less any allotment
7-1 to the district for transportation, any allotment under Section
7-2 42.158, and 50 percent of the adjustment under Section 42.102, by
7-3 the basic allotment for the applicable year;
7-4 "DTR" is the district enrichment tax rate of the school
7-5 district, which is determined by subtracting the amounts specified
7-6 by Subsection (b) from the total amount of maintenance and
7-7 operations taxes collected by the school district for the
7-8 applicable school year and dividing the difference by the quotient
7-9 of the district's taxable value of property as determined under
7-10 Subchapter M, Chapter 403, Government Code, or, if applicable,
7-11 under Section 42.2521, divided by 100; and
7-12 "LR" is the local revenue, which is determined by multiplying
7-13 "DTR" by the quotient of the district's taxable value of property
7-14 as determined under Subchapter M, Chapter 403, Government Code, or,
7-15 if applicable, under Section 42.2521, divided by 100.
7-16 SECTION 8. Section 46.003, Education Code, is amended by
7-17 amending Subsections (a) and (d)-(g) and adding Subsection (h) to
7-18 read as follows:
7-19 (a) For each year, except as provided by Sections 46.005 and
7-20 46.006, a school district is guaranteed a specified amount per
7-21 student in state and local funds for each cent of tax effort, up to
7-22 the maximum rate under Subsection (b), to pay the principal of and
7-23 interest on eligible bonds issued to construct, acquire, renovate,
7-24 or improve an instructional facility. The amount of state support
7-25 is determined by the formula:
7-26 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
7-27 where:
8-1 "FYA" is the guaranteed facilities yield amount of state
8-2 funds allocated to the district for the year;
8-3 "FYL" is the dollar amount guaranteed level of state and
8-4 local funds per student per cent of tax effort, which is:
8-5 (1) $35 or a greater amount for any year provided by
8-6 appropriation for eligible bonds for which the district first
8-7 received state assistance under this subchapter before September 1,
8-8 2001; and
8-9 (2) $25 or a greater amount for any year provided by
8-10 appropriation for eligible bonds for which the district first
8-11 received state assistance under this subchapter on or after
8-12 September 1, 2001;
8-13 "ADA" is the greater of the number of students in average
8-14 daily attendance, as determined under Section 42.005, in the
8-15 district or 400;
8-16 "BTR" is the district's bond tax rate for the current year,
8-17 which is determined by dividing the amount [of taxes] budgeted [to
8-18 be collected] by the district for payment of eligible bonds by the
8-19 quotient of the district's taxable value of property as determined
8-20 under Subchapter M, Chapter 403, Government Code, or, if
8-21 applicable, Section 42.2521, divided by 100; and
8-22 "DPV" is the district's taxable value of property as
8-23 determined under Subchapter M, Chapter 403, Government Code, or, if
8-24 applicable, Section 42.2521.
8-25 (d) The amount budgeted by a district for payment of
8-26 eligible bonds may include:
8-27 (1) bond taxes collected in the current school year;
9-1 (2) bond taxes collected in a preceding school year in
9-2 excess of the amount necessary to pay the district's share of
9-3 actual debt service on bonds in that year, provided that the taxes
9-4 were not used to generate other state financial assistance for the
9-5 district; or
9-6 (3) maintenance and operations taxes collected in the
9-7 current school year or a preceding school year in excess of the
9-8 amount eligible to be used to generate other state financial
9-9 assistance for the district.
9-10 (e) Bonds are eligible to be paid with state and local funds
9-11 under this section if:
9-12 (1) taxes to pay the principal of and interest on the
9-13 bonds were first levied in the 1997-1998 school year or a later
9-14 school year; and
9-15 (2) the bonds do not have a weighted average maturity
9-16 of less than eight years.
9-17 (f) [(e)] A district may use state funds received under this
9-18 section only to pay the principal of and interest on the bonds for
9-19 which the district received the funds.
9-20 (g) [(f)] The board of trustees and voters of a school
9-21 district shall determine district needs concerning construction,
9-22 acquisition, renovation, or improvement of instructional
9-23 facilities.
9-24 (h) [(g)] To receive state assistance under this subchapter,
9-25 a school district must apply to the commissioner in accordance with
9-26 rules adopted by the commissioner before issuing bonds that will be
9-27 paid with state assistance. Until the bonds are fully paid or the
10-1 instructional facility is sold:
10-2 (1) a school district is entitled to continue
10-3 receiving state assistance without reapplying to the commissioner;
10-4 and
10-5 (2) the guaranteed level of state and local funds per
10-6 student per cent of tax effort applicable to the bonds may not be
10-7 reduced below the level provided for the year in which the bonds
10-8 were issued.
10-9 SECTION 9. Subchapter A, Chapter 46, Education Code, is
10-10 amended by adding Section 46.012 to read as follows:
10-11 Sec. 46.012. MULTIPLE ALLOTMENTS PROHIBITED. A school
10-12 district is not entitled to state assistance under this subchapter
10-13 based on taxes with respect to which the district receives state
10-14 assistance under Subchapter F, Chapter 42.
10-15 SECTION 10. Section 46.032, Education Code, is amended by
10-16 amending Subsection (a) and adding Subsection (c) to read as
10-17 follows:
10-18 (a) Each school district is guaranteed a specified amount
10-19 per student in state and local funds for each cent of tax effort to
10-20 pay the principal of and interest on eligible bonds. The amount of
10-21 state support, subject only to the maximum amount under Section
10-22 46.034, is determined by the formula:
10-23 EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
10-24 where:
10-25 "EDA" is the amount of state funds to be allocated to the
10-26 district for assistance with existing debt;
10-27 "EDGL" is the dollar amount guaranteed level of state and
11-1 local funds per student per cent of tax effort, which is $35 or a
11-2 greater amount for any year provided by appropriation;
11-3 "ADA" is the number of students in average daily attendance,
11-4 as determined under Section 42.005, in the district;
11-5 "EDTR" is the existing debt tax rate of the district, which
11-6 is determined by dividing the amount [of taxes] budgeted [to be
11-7 collected] by the district for payment of eligible bonds by the
11-8 quotient of the district's taxable value of property as determined
11-9 under Subchapter M, Chapter 403, Government Code, or, if
11-10 applicable, under Section 42.2521, divided by 100; and
11-11 "DPV" is the district's taxable value of property as
11-12 determined under Subchapter M, Chapter 403, Government Code, or, if
11-13 applicable, under Section 42.2521.
11-14 (c) The amount budgeted by a district for payment of
11-15 eligible bonds may include:
11-16 (1) bond taxes collected in the current school year;
11-17 (2) bond taxes collected in a preceding school year in
11-18 excess of the amount necessary to pay the district's share of
11-19 actual debt service on bonds in that year, provided that the taxes
11-20 were not used to generate other state financial assistance for the
11-21 district; or
11-22 (3) maintenance and operations taxes collected in the
11-23 current school year or a preceding school year in excess of the
11-24 amount eligible to be used to generate other state financial
11-25 assistance for the district.
11-26 SECTION 11. Section 46.033, Education Code, is amended to
11-27 read as follows:
12-1 Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
12-2 under Section 45.006, are eligible to be paid with state and local
12-3 funds under this subchapter if:
12-4 (1) the district made payments on the bonds during the
12-5 1998-1999 school year or taxes levied to pay the principal of and
12-6 interest on the bonds were included in the district's audited debt
12-7 service collections for that [the 1998-1999] school year; and
12-8 (2) the district does not receive state assistance
12-9 under Subchapter A for payment of the principal and interest on the
12-10 bonds.
12-11 SECTION 12. Sections 46.034(a) and (c), Education Code, are
12-12 amended to read as follows:
12-13 (a) The existing debt tax rate ("EDTR") under Section 46.032
12-14 may not exceed $0.29 [$0.12] per $100 of valuation, or a greater
12-15 amount for any year provided by appropriation.
12-16 (c) If the amount required to pay the principal of and
12-17 interest on eligible bonds in a school year is less than the amount
12-18 of payments made by the district on the bonds during the 1998-1999
12-19 school year or the district's audited debt service collections for
12-20 that [the 1998-1999] school year, the district may not receive aid
12-21 in excess of the amount that, when added to the district's local
12-22 revenue for the school year, equals the amount required to pay the
12-23 principal of and interest on the bonds.
12-24 SECTION 13. Subchapter B, Chapter 46, Education Code, is
12-25 amended by adding Section 46.036 to read as follows:
12-26 Sec. 46.036. MULTIPLE ALLOTMENTS PROHIBITED. A school
12-27 district is not entitled to state assistance under this subchapter
13-1 based on taxes with respect to which the district receives state
13-2 assistance under Subchapter F, Chapter 42.
13-3 SECTION 14. Sections 42.152(t) and 46.034(d), Education
13-4 Code, are repealed.
13-5 SECTION 15. Except as otherwise provided by this Act, this
13-6 Act takes effect September 1, 2001.