By Armbrister S.B. No. 1387
77R7777 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the treatment under the public school finance system of
1-3 declining student enrollment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 42.001, Education Code, is amended by
1-6 adding Subsection (c) to read as follows:
1-7 (c) It is the policy of this state to recognize that a
1-8 district that experiences a decline in student enrollment from one
1-9 school year to the next does not necessarily experience a
1-10 corresponding decline in costs, as some costs are fixed and cannot
1-11 be reduced, while others represent contractual obligations a
1-12 district must meet. This state also recognizes that declining
1-13 enrollment may require the board of trustees to choose between
1-14 raising district ad valorem taxes or cutting educational programs,
1-15 either of which may be detrimental to the district and its students
1-16 and residents. In accordance with this policy, the average daily
1-17 attendance or the weighted average daily attendance of a school
1-18 district that experiences a decline in student enrollment shall be
1-19 adjusted as provided by Section 42.005 or 42.2523, as applicable.
1-20 SECTION 2. Section 42.005, Education Code, is amended by
1-21 amending Subsections (b)-(d) and adding Subsection (e) to read as
1-22 follows:
1-23 (b) The commissioner shall adjust the average daily
1-24 attendance of a [A] school district that experiences a decline [of
2-1 two percent or more] in average daily attendance to [as a result of
2-2 the closing or reduction in personnel of a military base shall be
2-3 funded on the basis of] the actual average daily attendance of the
2-4 preceding school year.
2-5 (c) Subsection (b) does not apply to a school district that
2-6 is required to take action under Chapter 41 to reduce its wealth
2-7 per student to the equalized wealth level.
2-8 (d) The commissioner shall adjust the average daily
2-9 attendance of a school district that has a significant percentage
2-10 of students who are migratory children as defined by 20 U.S.C.
2-11 Section 6399.
2-12 (e) [(d)] The commissioner may adjust the average daily
2-13 attendance of a school district in which a disaster, flood, extreme
2-14 weather condition, fuel curtailment, or other calamity has a
2-15 significant effect on the district's attendance.
2-16 SECTION 3. Subchapter E, Chapter 42, Education Code, is
2-17 amended by adding Section 42.2523 to read as follows:
2-18 Sec. 42.2523. ADJUSTMENT FOR DECLINE IN WEIGHTED AVERAGE
2-19 DAILY ATTENDANCE. (a) For purposes of this chapter and Chapter 41,
2-20 the commissioner shall adjust the weighted average daily attendance
2-21 of a school district that experiences a decline in weighted average
2-22 daily attendance to the actual weighted average daily attendance of
2-23 the preceding school year.
2-24 (b) The commissioner may not adjust both the weighted
2-25 average daily attendance of a school district under this section
2-26 and the average daily attendance of the district under Section
2-27 42.005, but shall use the adjustment that produces the greater
3-1 amount of state aid for the district.
3-2 (c) In this section, "weighted average daily attendance" has
3-3 the meaning assigned by Section 42.302.
3-4 SECTION 4. Sections 25.112(a) and (b), Education Code, are
3-5 amended to read as follows:
3-6 (a) Except as otherwise authorized by this section, a school
3-7 district may not enroll more than 22 students in a kindergarten,
3-8 first, second, third, or fourth grade class. That limitation does
3-9 not apply during:
3-10 (1) any 12-week period of the school year selected by
3-11 the district, in the case of a district whose average daily
3-12 attendance is adjusted under Section 42.005(d) [42.005(c)]; or
3-13 (2) the last 12 weeks of any school year in the case
3-14 of any other district.
3-15 (b) Not later than the 30th day after the first day of the
3-16 12-week period for which a district whose average daily attendance
3-17 is adjusted under Section 42.005(d) [42.005(c)] is claiming an
3-18 exemption under Subsection (a), the district shall notify the
3-19 commissioner in writing that the district is claiming an exemption
3-20 for the period stated in the notice.
3-21 SECTION 5. This Act takes effect September 1, 2001.