By Shapiro                                             S.B. No. 562
         77R3274 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to computation and reporting of the ratios of a school
 1-3     district's expenditures and personnel relating to direct student
 1-4     instruction.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter A, Chapter 44, Education Code, is
 1-7     amended by adding Section 44.0071 to read as follows:
 1-8           Sec. 44.0071.  COMPUTATION OF INSTRUCTIONAL EXPENDITURES
 1-9     RATIO AND INSTRUCTIONAL EMPLOYEES RATIO. (a)  Each fiscal year, a
1-10     school district shall compute and report to the commissioner:
1-11                 (1)  the percentage of the district's total
1-12     expenditures for the preceding fiscal year that were used to fund
1-13     direct instructional activities; and
1-14                 (2)  the percentage of the district's full-time
1-15     equivalent employees during the preceding fiscal year whose only
1-16     job function was to directly provide classroom instruction to
1-17     students.
1-18           (b)  At least annually a school district shall provide
1-19     educators employed by the district with a list of district
1-20     employees determined by the district for purposes of this section
1-21     to be engaged only in  providing classroom instruction to students.
1-22           (c)  For purposes of this section:
1-23                 (1)  a district's total expenditures include amounts
1-24     spent on physical plant construction or operation; and
 2-1                 (2)  the computation of a district's expenditures used
 2-2     to fund direct instructional activities may include the salary,
 2-3     including any associated employment taxes, and value of any
 2-4     benefits provided to a district employee only if the employee's
 2-5     only job function was to provide classroom instruction to students.
 2-6           (d)  The commissioner shall adopt rules as necessary to
 2-7     implement this section.
 2-8           SECTION 2. Section 39.052(b), Education Code, as amended by
 2-9     Chapters 396 and 1514, Acts of the 76th Legislature, Regular
2-10     Session, 1999, is reenacted and amended to read as follows:
2-11           (b)  The report card shall include the following information
2-12     [where applicable]:
2-13                 (1)  where applicable, the academic excellence
2-14     indicators adopted under Sections 39.051(b)(1) through (9);
2-15                 (2)  average class size by grade level and subject;
2-16     [and]
2-17                 (3)  the administrative and instructional costs per
2-18     student, computed in a manner consistent with Section 44.0071; and
2-19                 (4)  the district's instructional expenditures ratio
2-20     and instructional employees ratio computed under Section 44.0071,
2-21     and the statewide average of those ratios, as determined by the
2-22     commissioner.
2-23           SECTION 3. Section 39.052(c), Education Code, is amended to
2-24     read as follows:
2-25           (c)  The commissioner shall adopt rules [for] requiring
2-26     dissemination of the information required under Subsection (b)(4)
2-27     and appropriate class size and student performance portions of
 3-1     campus report cards annually to the parent, guardian, conservator,
 3-2     or other person having lawful control of each student at the
 3-3     campus.  On written request, the school district shall provide a
 3-4     copy of a campus report card to any other party.
 3-5           SECTION 4. Section 39.182(a), Education Code, is amended to
 3-6     read as follows:
 3-7           (a)  The agency shall prepare and deliver to the governor,
 3-8     the lieutenant governor, the speaker of the house of
 3-9     representatives, each member of the legislature, the Legislative
3-10     Budget Board, and the clerks of the standing committees of the
3-11     senate and house of representatives with primary jurisdiction over
3-12     the public school system a comprehensive report covering the
3-13     preceding two school years and containing:
3-14                 (1)  an evaluation of the achievements of the state
3-15     educational program in relation to the statutory goals for the
3-16     public education system under Section 4.002;
3-17                 (2)  an evaluation of the status of education in the
3-18     state as reflected by the academic excellence indicators adopted
3-19     under Section 39.051;
3-20                 (3)  a summary compilation of overall student
3-21     performance on academic skills assessment instruments required by
3-22     Section 39.023, aggregated by grade level, subject area, campus,
3-23     and district, with appropriate interpretations and analysis and
3-24     disaggregated by race, ethnicity, sex, and socioeconomic status;
3-25                 (4)  an evaluation of the correlation between student
3-26     grades and student performance on academic skills assessment
3-27     instruments required by Section 39.023;
 4-1                 (5)  a statement of the dropout rate of students in
 4-2     grade levels 7 through 12, expressed in the aggregate and by grade
 4-3     level;
 4-4                 (6)  a statement of the projected cross-sectional and
 4-5     longitudinal dropout rates for grade levels 7 through 12 for the
 4-6     next five years, assuming no state action is taken to reduce the
 4-7     dropout rate;
 4-8                 (7)  a description of a systematic plan for reducing
 4-9     the projected cross-sectional and longitudinal dropout rates to
4-10     five percent or less for the 1997-1998 school year;
4-11                 (8)  a summary of the information required by Section
4-12     29.083 regarding grade level retention of students;
4-13                 (9)  a list of each school district or campus that does
4-14     not satisfy performance standards, with an explanation of the
4-15     actions taken by the commissioner to improve student performance in
4-16     the district or campus and an evaluation of the results of those
4-17     actions;
4-18                 (10)  an evaluation of the status of the curriculum
4-19     taught in public schools, with recommendations for legislative
4-20     changes necessary to improve or modify the curriculum required by
4-21     Section 28.002;
4-22                 (11)  a description of all funds received by and each
4-23     activity and expenditure of the agency;
4-24                 (12)  a summary and analysis of the instructional
4-25     expenditures ratios and instructional employees ratios [compliance]
4-26     of school districts computed [with administrative cost ratios set
4-27     by the commissioner] under Section 44.0071 [42.201, including any
 5-1     improvements and cost savings achieved by school districts];
 5-2                 (13)  a summary of the effect of deregulation,
 5-3     including exemptions and waivers granted under Section 7.056 or
 5-4     39.112;
 5-5                 (14)  a statement of the total number and length of
 5-6     reports that school districts and school district employees must
 5-7     submit to the agency, identifying which reports are required by
 5-8     federal statute or rule, state statute, or agency rule, and a
 5-9     summary of the agency's efforts to reduce overall reporting
5-10     requirements;
5-11                 (15)  a list of each school district that is not in
5-12     compliance with state special education requirements, including:
5-13                       (A)  the period for which the district has not
5-14     been in compliance;
5-15                       (B)  the manner in which the agency considered
5-16     the district's failure to comply in determining the district's
5-17     accreditation status; and
5-18                       (C)  an explanation of the actions taken by the
5-19     commissioner to ensure compliance and an evaluation of the results
5-20     of those actions; and
5-21                 (16)  any additional information considered important
5-22     by the commissioner or the State Board of Education.
5-23           SECTION 5. Subchapter D, Chapter 42, Education Code, is
5-24     repealed.
5-25           SECTION 6. This Act takes effect September 1, 2001.
5-26           SECTION 7. The repeal of Subchapter D, Chapter 42, Education
5-27     Code, by this Act does not affect the liability of a school
 6-1     district for excess administrative costs during the 2000-2001
 6-2     school year that the commissioner of education is entitled to
 6-3     recover during the 2001-2002 school year under Section 42.201(d),
 6-4     Education Code, as that section existed on January 1, 2001, and the
 6-5     former law is continued in effect for that purpose.