By Sadler                                             H.B. No. 2879
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to school finance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter E, Chapter 42, Section 42.302(a),
 1-5     Education Code, is amended to read as follows:
 1-6           Sec. 42.302.  Allotment. (a)  Each school district is
 1-7     guaranteed a specified amount per weighted student in state and
 1-8     local funds for each cent of tax effort over that required for the
 1-9     district's local fund assignment up to the maximum level specified
1-10     in this subchapter.  The amount of state support, subject only to
1-11     the maximum amount under Section 42.303, is determined by the
1-12     formula:
1-13                     GYA = (GL X WADA X DTR X 100) - LR
1-14     where:
1-15           "GYA" is the guaranteed yield amount of state funds to be
1-16     allocated to the district;
1-17           "GL" is the dollar amount guaranteed level of state and local
1-18     funds per weighted student per cent of tax effort, which is
1-19     [$24.99] $25.00 or a greater amount for any year provided by
1-20     appropriation;
1-21           "WADA" is the number of students in weighted average daily
1-22     attendance, which is calculated by dividing the sum of the school
1-23     district's allotments under Subchapters B and C, less any allotment
 2-1     to the district for transportation, any allotment under Section
 2-2     42.158, and 50 percent of the adjustment under Section 42.102, by
 2-3     the basic allotment for the applicable year;
 2-4           "DTR" is the district enrichment tax rate of the school
 2-5     district, which is determined by subtracting the amounts specified
 2-6     by Subsection (b) from the total amount of maintenance and
 2-7     operations taxes collected by the school district for the
 2-8     applicable school year and dividing the difference by the quotient
 2-9     of the district's taxable value of property as determined under
2-10     Subchapter M, Chapter 403, Government Code, or, if applicable,
2-11     under Section 42.2521, divided by 100; and
2-12           "LR" is the local revenue, which is determined by multiplying
2-13     "DTR" by the quotient of the district's taxable value of property
2-14     as determined under Subchapter M, Chapter 403, Government Code, or,
2-15     if applicable, under Section 42.2521, divided by 100.
2-16           SECTION 2.  Section 41.002(a), Education Code, is amended to
2-17     read as follows:
2-18           (a)  A school district may not have a wealth per student that
2-19     exceeds [$295,000] $295,001.
2-20           SECTION 3.  Subchapter E, Chapter 42, Education Code, is
2-21     amended by adding Section 42.2514 to read as follows:
2-22           Sec. 42.2514.  HOLD HARMLESS FOR OPERATIONS. The commissioner
2-23     shall develop an equitable formula for funding districts not
2-24     covered by increases created under Sections 41.002(a) or 42.302(a)
2-25     of this Code for the 2001-02 and 2002-03 school years.
2-26           SECTION 4.  This Act takes effect September 1, 2001.