By Sadler H.B. No. 2879
Substitute the following for H.B. No. 2879:
By Hochberg C.S.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. Subchapter A, Chapter 41, Education Code, is
1-5 amended by adding Section 41.0021 to read as follows:
1-6 Sec. 41.0021. WEALTH PER STUDENT IN CERTAIN DISTRICTS NOT
1-7 SERVING ALL GRADES. (a) Notwithstanding Section 41.002, for the
1-8 2001-2002, 2002-2003, and 2003-2004 school years, a school district
1-9 that in the 1999-2000 school year did not offer each grade level
1-10 from kindergarten through 12 may elect to have its wealth per
1-11 student determined under this section.
1-12 (b) In accordance with a determination of the commissioner,
1-13 the wealth per student that a school district to which this section
1-14 applies may have after exercising an option under Section 41.003(2)
1-15 or (3) is the amount needed to maintain state and local revenue in
1-16 an amount equal to state and local revenue per weighted student for
1-17 maintenance and operation of the district for the 1999-2000 school
1-18 year less the district's current year distribution per weighted
1-19 student from the available school fund, other than amounts
1-20 distributed under Chapter 31, if the district imposes an effective
1-21 tax rate for maintenance and operation of the district equal to the
1-22 district's tax rate for maintenance and operation for the 1999-2000
1-23 school year. For purposes of this subsection, a district's
1-24 effective tax rate is determined as provided by Section 41.002(f).
2-1 (c) The commissioner shall:
2-2 (1) compute the wealth per student levels under this
2-3 section using weighted average daily attendance as defined by
2-4 Section 42.302;
2-5 (2) notify each school district that is eligible to
2-6 have its wealth per student computed under this section; and
2-7 (3) establish a date by which a district must elect to
2-8 have its wealth per student computed under this section.
2-9 (d) A school district that elects to have its wealth per
2-10 student computed under this section:
2-11 (1) is not entitled to state aid to achieve the
2-12 funding levels permitted by Subsection (b);
2-13 (2) is not subject to a limitation on tuition under
2-14 Section 25.039;
2-15 (3) is not eligible for credit for tuition payments
2-16 under Section 41.124(b); and
2-17 (4) is not eligible for an adjustment to the
2-18 district's taxable value of property under Section 42.106.
2-19 (e) This section expires September 1, 2004.
2-20 SECTION 2. Section 42.2512, Education Code, is amended to
2-21 read as follows:
2-22 Sec. 42.2512. ADDITIONAL STATE AID FOR PROFESSIONAL STAFF
2-23 SALARIES. (a) This section applies only to a school district that
2-24 received state aid under this section for the 1999-2000 and
2-25 2000-2001 school years.
2-26 (b) A school district to which this section applies,
2-27 including a school district that is otherwise ineligible for state
3-1 aid under this chapter, is entitled to state aid in an amount, as
3-2 determined by the commissioner, equal to the difference, if any,
3-3 between:
3-4 (1) the sum of:
3-5 (A) an amount equal to the product of $3,000
3-6 multiplied by the number of classroom teachers, full-time
3-7 librarians, full-time counselors certified under Subchapter B,
3-8 Chapter 21, and full-time school nurses employed by the district
3-9 and entitled to a minimum salary under Section 21.402; and
3-10 (B) the amount of additional salary cost the
3-11 district experiences that results from the increase made by H.B.
3-12 No. 2879, Acts of the 77th Legislature, Regular Session, 2001, to
3-13 the guaranteed level of state and local funds per weighted student
3-14 per cent of tax effort under Section 42.302; and
3-15 (2) the sum of:
3-16 (A) an amount equal to 80 percent of the amount
3-17 of additional funds to which the district is entitled due to the
3-18 increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
3-19 Session, 1999, to:
3-20 (i) [(A)] the equalized wealth level under
3-21 Section 41.002;
3-22 (ii) [(B)] the basic allotment under
3-23 Section 42.101; and
3-24 (iii) [(C)] the guaranteed level of state
3-25 and local funds per weighted student per cent of tax effort under
3-26 Section 42.302; and
3-27 (B) an amount equal to 80 percent of the amount
4-1 of additional funds to which the district is entitled due to the
4-2 increase made by H.B. No. 2879, Acts of the 77th Legislature,
4-3 Regular Session, 2001, to the guaranteed level of state and local
4-4 funds per weighted student per cent of tax effort under Section
4-5 42.302.
4-6 (c) [(b)] A determination by the commissioner under this
4-7 section is final and may not be appealed.
4-8 (d) [(c)] The commissioner may adopt rules to implement this
4-9 section.
4-10 SECTION 3. Effective September 1, 2001, Section 42.302(a),
4-11 Education Code, is amended to read as follows:
4-12 (a) Each school district is guaranteed a specified amount
4-13 per weighted student in state and local funds for each cent of tax
4-14 effort over that required for the district's local fund assignment
4-15 up to the maximum level specified in this subchapter. The amount
4-16 of state support, subject only to the maximum amount under Section
4-17 42.303, is determined by the formula:
4-18 GYA = (GL X WADA X DTR X 100) - LR
4-19 where:
4-20 "GYA" is the guaranteed yield amount of state funds to be
4-21 allocated to the district;
4-22 "GL" is the dollar amount guaranteed level of state and local
4-23 funds per weighted student per cent of tax effort, which is $25.96
4-24 [$24.99] or a greater amount for any year provided by
4-25 appropriation;
4-26 "WADA" is the number of students in weighted average daily
4-27 attendance, which is calculated by dividing the sum of the school
5-1 district's allotments under Subchapters B and C, less any allotment
5-2 to the district for transportation, any allotment under Section
5-3 42.158, and 50 percent of the adjustment under Section 42.102, by
5-4 the basic allotment for the applicable year;
5-5 "DTR" is the district enrichment tax rate of the school
5-6 district, which is determined by subtracting the amounts specified
5-7 by Subsection (b) from the total amount of maintenance and
5-8 operations taxes collected by the school district for the
5-9 applicable school year and dividing the difference by the quotient
5-10 of the district's taxable value of property as determined under
5-11 Subchapter M, Chapter 403, Government Code, or, if applicable,
5-12 under Section 42.2521, divided by 100; and
5-13 "LR" is the local revenue, which is determined by multiplying
5-14 "DTR" by the quotient of the district's taxable value of property
5-15 as determined under Subchapter M, Chapter 403, Government Code, or,
5-16 if applicable, under Section 42.2521, divided by 100.
5-17 SECTION 4. Effective September 1, 2002, Section 42.302(a),
5-18 Education Code, is amended to read as follows:
5-19 (a) Each school district is guaranteed a specified amount
5-20 per weighted student in state and local funds for each cent of tax
5-21 effort over that required for the district's local fund assignment
5-22 up to the maximum level specified in this subchapter. The amount
5-23 of state support, subject only to the maximum amount under Section
5-24 42.303, is determined by the formula:
5-25 GYA = (GL X WADA X DTR X 100) - LR
5-26 where:
5-27 "GYA" is the guaranteed yield amount of state funds to be
6-1 allocated to the district;
6-2 "GL" is the dollar amount guaranteed level of state and local
6-3 funds per weighted student per cent of tax effort, which is $27.30
6-4 [$24.99] or a greater amount for any year provided by
6-5 appropriation;
6-6 "WADA" is the number of students in weighted average daily
6-7 attendance, which is calculated by dividing the sum of the school
6-8 district's allotments under Subchapters B and C, less any allotment
6-9 to the district for transportation, any allotment under Section
6-10 42.158, and 50 percent of the adjustment under Section 42.102, by
6-11 the basic allotment for the applicable year;
6-12 "DTR" is the district enrichment tax rate of the school
6-13 district, which is determined by subtracting the amounts specified
6-14 by Subsection (b) from the total amount of maintenance and
6-15 operations taxes collected by the school district for the
6-16 applicable school year and dividing the difference by the quotient
6-17 of the district's taxable value of property as determined under
6-18 Subchapter M, Chapter 403, Government Code, or, if applicable,
6-19 under Section 42.2521, divided by 100; and
6-20 "LR" is the local revenue, which is determined by multiplying
6-21 "DTR" by the quotient of the district's taxable value of property
6-22 as determined under Subchapter M, Chapter 403, Government Code, or,
6-23 if applicable, under Section 42.2521, divided by 100.
6-24 SECTION 5. Section 46.003, Education Code, is amended by
6-25 amending Subsections (a) and (d)-(g) and adding Subsection (h) to
6-26 read as follows:
6-27 (a) For each year, except as provided by Sections 46.005 and
7-1 46.006, a school district is guaranteed a specified amount per
7-2 student in state and local funds for each cent of tax effort, up to
7-3 the maximum rate under Subsection (b), to pay the principal of and
7-4 interest on eligible bonds issued to construct, acquire, renovate,
7-5 or improve an instructional facility. The amount of state support
7-6 is determined by the formula:
7-7 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
7-8 where:
7-9 "FYA" is the guaranteed facilities yield amount of state
7-10 funds allocated to the district for the year;
7-11 "FYL" is the dollar amount guaranteed level of state and
7-12 local funds per student per cent of tax effort, which is:
7-13 (1) $35 or a greater amount for any year provided by
7-14 appropriation for eligible bonds for which the district first
7-15 received state assistance under this subchapter before September 1,
7-16 2001; and
7-17 (2) $25 or a greater amount for any year provided by
7-18 appropriation for eligible bonds for which the district first
7-19 received state assistance under this subchapter on or after
7-20 September 1, 2001;
7-21 "ADA" is the greater of the number of students in average
7-22 daily attendance, as determined under Section 42.005, in the
7-23 district or 400;
7-24 "BTR" is the district's bond tax rate for the current year,
7-25 which is determined by dividing the amount [of taxes] budgeted [to
7-26 be collected] by the district for payment of eligible bonds by the
7-27 quotient of the district's taxable value of property as determined
8-1 under Subchapter M, Chapter 403, Government Code, or, if
8-2 applicable, Section 42.2521, divided by 100; and
8-3 "DPV" is the district's taxable value of property as
8-4 determined under Subchapter M, Chapter 403, Government Code, or, if
8-5 applicable, Section 42.2521.
8-6 (d) The amount budgeted by a district for payment of
8-7 eligible bonds may include:
8-8 (1) bond taxes collected in the current school year;
8-9 (2) bond taxes collected in a preceding school year in
8-10 excess of the amount necessary to pay the district's share of
8-11 actual debt service on bonds in that year, provided that the taxes
8-12 were not used to generate other state financial assistance for the
8-13 district; or
8-14 (3) maintenance and operations taxes collected in the
8-15 current school year or a preceding school year in excess of the
8-16 amount eligible to be used to generate other state financial
8-17 assistance for the district.
8-18 (e) Bonds are eligible to be paid with state and local funds
8-19 under this section if:
8-20 (1) taxes to pay the principal of and interest on the
8-21 bonds were first levied in the 1997-1998 school year or a later
8-22 school year; and
8-23 (2) the bonds do not have a weighted average maturity
8-24 of less than eight years.
8-25 (f) [(e)] A district may use state funds received under this
8-26 section only to pay the principal of and interest on the bonds for
8-27 which the district received the funds.
9-1 (g) [(f)] The board of trustees and voters of a school
9-2 district shall determine district needs concerning construction,
9-3 acquisition, renovation, or improvement of instructional
9-4 facilities.
9-5 (h) [(g)] To receive state assistance under this subchapter,
9-6 a school district must apply to the commissioner in accordance with
9-7 rules adopted by the commissioner before issuing bonds that will be
9-8 paid with state assistance. Until the bonds are fully paid or the
9-9 instructional facility is sold:
9-10 (1) a school district is entitled to continue
9-11 receiving state assistance without reapplying to the commissioner;
9-12 and
9-13 (2) the guaranteed level of state and local funds per
9-14 student per cent of tax effort applicable to the bonds may not be
9-15 reduced below the level provided for the year in which the bonds
9-16 were issued.
9-17 SECTION 6. Subchapter A, Chapter 46, Education Code, is
9-18 amended by adding Section 46.012 to read as follows:
9-19 Sec. 46.012. MULTIPLE ALLOTMENTS PROHIBITED. A school
9-20 district is not entitled to state assistance under this subchapter
9-21 based on taxes with respect to which the district receives state
9-22 assistance under Subchapter F, Chapter 42.
9-23 SECTION 7. Section 46.032, Education Code, is amended by
9-24 amending Subsection (a) and adding Subsection (c) to read as
9-25 follows:
9-26 (a) Each school district is guaranteed a specified amount
9-27 per student in state and local funds for each cent of tax effort to
10-1 pay the principal of and interest on eligible bonds. The amount of
10-2 state support, subject only to the maximum amount under Section
10-3 46.034, is determined by the formula:
10-4 EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
10-5 where:
10-6 "EDA" is the amount of state funds to be allocated to the
10-7 district for assistance with existing debt;
10-8 "EDGL" is the dollar amount guaranteed level of state and
10-9 local funds per student per cent of tax effort, which is $35 or a
10-10 greater amount for any year provided by appropriation;
10-11 "ADA" is the number of students in average daily attendance,
10-12 as determined under Section 42.005, in the district;
10-13 "EDTR" is the existing debt tax rate of the district, which
10-14 is determined by dividing the amount [of taxes] budgeted [to be
10-15 collected] by the district for payment of eligible bonds by the
10-16 quotient of the district's taxable value of property as determined
10-17 under Subchapter M, Chapter 403, Government Code, or, if
10-18 applicable, under Section 42.2521, divided by 100; and
10-19 "DPV" is the district's taxable value of property as
10-20 determined under Subchapter M, Chapter 403, Government Code, or, if
10-21 applicable, under Section 42.2521.
10-22 (c) The amount budgeted by a district for payment of
10-23 eligible bonds may include:
10-24 (1) bond taxes collected in the current school year;
10-25 (2) bond taxes collected in a preceding school year in
10-26 excess of the amount necessary to pay the district's share of
10-27 actual debt service on bonds in that year, provided that the taxes
11-1 were not used to generate other state financial assistance for the
11-2 district; or
11-3 (3) maintenance and operations taxes collected in the
11-4 current school year or a preceding school year in excess of the
11-5 amount eligible to be used to generate other state financial
11-6 assistance for the district.
11-7 SECTION 8. Section 46.033, Education Code, is amended to
11-8 read as follows:
11-9 Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
11-10 under Section 45.006, are eligible to be paid with state and local
11-11 funds under this subchapter if:
11-12 (1) the district made payments on the bonds during the
11-13 1998-1999 school year or taxes levied to pay the principal of and
11-14 interest on the bonds were included in the district's audited debt
11-15 service collections for that [the 1998-1999] school year; and
11-16 (2) the district does not receive state assistance
11-17 under Subchapter A for payment of the principal and interest on the
11-18 bonds.
11-19 SECTION 9. Sections 46.034(a) and (c), Education Code, are
11-20 amended to read as follows:
11-21 (a) The existing debt tax rate ("EDTR") under Section 46.032
11-22 may not exceed $0.29 [$0.12] per $100 of valuation, or a greater
11-23 amount for any year provided by appropriation.
11-24 (c) If the amount required to pay the principal of and
11-25 interest on eligible bonds in a school year is less than the amount
11-26 of payments made by the district on the bonds during the 1998-1999
11-27 school year or the district's audited debt service collections for
12-1 that [the 1998-1999] school year, the district may not receive aid
12-2 in excess of the amount that, when added to the district's local
12-3 revenue for the school year, equals the amount required to pay the
12-4 principal of and interest on the bonds.
12-5 SECTION 10. Subchapter B, Chapter 46, Education Code, is
12-6 amended by adding Section 46.036 to read as follows:
12-7 Sec. 46.036. MULTIPLE ALLOTMENTS PROHIBITED. A school
12-8 district is not entitled to state assistance under this subchapter
12-9 based on taxes with respect to which the district receives state
12-10 assistance under Subchapter F, Chapter 42.
12-11 SECTION 11. Sections 42.152(t) and 46.034(d), Education
12-12 Code, are repealed.
12-13 SECTION 12. Except as otherwise provided by this Act, this
12-14 Act takes effect September 1, 2001.