By Hardcastle                                         H.B. No. 2954
         77R8545 KKA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state funding for school districts that have not more
 1-3     than 400 students in average daily attendance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 42.103, Education Code, is amended to read
 1-6     as follows:
 1-7           Sec. 42.103.  SMALL AND MID-SIZED DISTRICT ADJUSTMENTS
 1-8     [ADJUSTMENT]. (a)  The basic allotment for certain small and
 1-9     mid-sized districts is adjusted in accordance with this section.
1-10     In this section:
1-11                 (1)  "AA" is the district's adjusted allotment per
1-12     student;
1-13                 (2)  "ADA" is the number of students in average daily
1-14     attendance for which the district is entitled to an allotment under
1-15     Section 42.101; and
1-16                 (3)  "ABA" is the adjusted basic allotment determined
1-17     under Section 42.102.
1-18           (b)  The basic allotment of a school district that has not
1-19     more than 400 students in average daily attendance is adjusted by
1-20     applying the formula that, of the following formulas, results in
1-21     the greatest adjusted allotment:
1-22                 (1)  the formula in Subsection (c), (d), or (e) for
1-23     which the district is eligible; or
1-24                 (2)  the formula:
 2-1                   AA = (1 + ((400 - ADA) X .0025)) X ABA
 2-2           (c)  The basic allotment of a school district that contains
 2-3     at least 300 square miles and has not more than 1,600 students in
 2-4     average daily attendance is adjusted by applying the formula:
 2-5                  AA = (1 + ((1,600 - ADA) X .0004)) X ABA
 2-6           (d) [(c)]  The basic allotment of a school district that
 2-7     contains less than 300 square miles and has not more than 1,600
 2-8     students in average daily attendance is adjusted by applying the
 2-9     formula:
2-10                  AA = (1 + ((1,600 - ADA) X .00025)) X ABA
2-11           (e) [(d)]  The basic allotment of a school district that
2-12     offers a kindergarten through grade 12 program and has less than
2-13     5,000 students in average daily attendance is adjusted by applying
2-14     the formula that, of the following formulas, [that] results in the
2-15     greatest adjusted allotment:
2-16                 (1)  the formula in Subsection (b), [or] (c), or (d)
2-17     for which the district is eligible; or
2-18                 (2)  the formula: [AA = 1 X ABA; or]
2-19                 [(3)  depending on the school year:]
2-20                       [(A)  for the 1996-1997 school year,]
2-21                [AA = (1 + ((5,000 - ADA) X .0000045)) X ABA;]
2-22                       [(B)  for the 1997-1998 school year,]
2-23                [AA = (1 + ((5,000 - ADA) X .0000090)) X ABA;]
2-24                       [(C)  for the 1998-1999 school year,]
2-25                [AA = (1 + ((5,000 - ADA) X .000015)) X ABA;]
2-26                       [(D)  for the 1999-2000 school year,]
2-27                [AA = (1 + ((5,000 - ADA) X .000020)) X ABA;]
 3-1                       [(E)  for the 2000-2001 school year,]
 3-2                AA = (1 + ((5,000 - ADA) X .000025)) X ABA[.]
 3-3           (f) [(e)]  The commissioner may make the adjustment
 3-4     authorized by Subsection (e)(2) [(d)(3)] only if the district's
 3-5     wealth per student does not exceed the equalized wealth level under
 3-6     Section 41.002.  For purposes of this subsection, a district's
 3-7     wealth per student is determined in the manner provided by Section
 3-8     41.001, except that the adjustment provided by Subsection (e)(2)
 3-9     [(d)(3)] is not used in computing the number of students in
3-10     weighted average daily attendance.
3-11           SECTION 2.  This Act takes effect September 1, 2001.