By Shapleigh S.B. No. 1447
77R1081 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to school finance issues involving amounts withheld from
1-3 special allotments under the Foundation School Program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 42.151(l), Education Code, is amended to
1-6 read as follows:
1-7 (l) From the total amount of funds appropriated for special
1-8 education under this section, the commissioner shall withhold an
1-9 amount specified in the General Appropriations Act, and distribute
1-10 that amount to school districts for programs under Section 29.014.
1-11 The program established under that section is required only in
1-12 school districts in which the program is financed by funds
1-13 distributed under this subsection and any other funds available for
1-14 the program. [After deducting the amount withheld under this
1-15 subsection from the total amount appropriated for special
1-16 education, the commissioner shall reduce each district's allotment
1-17 proportionately and shall allocate funds to each district
1-18 accordingly.]
1-19 SECTION 2. Sections 42.152(e) and (h)-(t), Education Code,
1-20 are amended to read as follows:
1-21 (e) From the total amount of funds appropriated for
1-22 allotments under this section, the commissioner shall withhold [The
1-23 commissioner may:]
1-24 [(1) retain a portion of] the [total] amount [allotted
2-1 under Subsection (a)] that the commissioner considers appropriate
2-2 to finance intensive accelerated instruction programs and study
2-3 guides provided under Sections 39.024(b) and (c)[; and]
2-4 [(2) reduce each district's tier one allotments in the
2-5 same manner described for a reduction in allotments under Section
2-6 42.253].
2-7 (h) [After deducting the amount withheld under Subsection
2-8 (f) from the total amount appropriated for the allotment under
2-9 Subsection (a), the commissioner shall reduce each district's tier
2-10 one allotments in the same manner described for a reduction in
2-11 allotments under Section 42.253 and shall allocate funds to each
2-12 district accordingly.]
2-13 [(i)] From the total amount of funds appropriated for
2-14 allotments under this section, the commissioner shall, each fiscal
2-15 year, withhold $7,500,000 or a greater amount as determined in the
2-16 General Appropriations Act and distribute that amount for programs
2-17 under Subchapter A, Chapter 33. A program established under that
2-18 subchapter is required only in school districts in which the
2-19 program is financed by funds distributed under this section or
2-20 other funds distributed by the commissioner for a program under
2-21 that subchapter. In distributing those funds, preference shall be
2-22 given to a school district that received funds for a program under
2-23 this subsection for the preceding school year.
2-24 (i) [(j)] The commissioner shall coordinate the funds
2-25 withheld under Subsection (h) [(i)] and any other funds available
2-26 for the program and shall distribute those funds. To receive funds
2-27 for the program, a school district must apply to the commissioner.
3-1 The commissioner shall give a preference to the districts that
3-2 apply that have the highest concentration of at-risk students. For
3-3 each school year that a school district receives funds under this
3-4 section, the district shall allocate an amount of local funds for
3-5 school guidance and counseling programs that is equal to or greater
3-6 than the amount of local funds that the school district allocated
3-7 for that purpose during the preceding school year.
3-8 (j) [(k) After deducting the amount withheld under
3-9 Subsection (i) from the total amount appropriated for the allotment
3-10 under Subsection (a), the commissioner shall reduce each district's
3-11 tier one allotments in the same manner described for a reduction in
3-12 allotments under Section 42.253.]
3-13 [(l)] From the total amount of funds appropriated for
3-14 allotments under this section, the commissioner shall, each fiscal
3-15 year, withhold the amount of $2.5 million for transfer to the
3-16 investment capital fund under Section 7.024.
3-17 (k) [(m)] From the total amount of funds appropriated for
3-18 allotments under this section, the commissioner may withhold an
3-19 amount not exceeding $1 million each fiscal year and distribute the
3-20 funds to school districts that incur unanticipated expenditures
3-21 resulting from a significant increase in the enrollment of students
3-22 who do not have disabilities and who reside in residential
3-23 placement facilities.
3-24 (l) [(n) After deducting the amount withheld under
3-25 Subsection (l) from the total amount appropriated for the allotment
3-26 under Subsection (a), the commissioner shall reduce each district's
3-27 allotment under Subsection (a) proportionately and shall allocate
4-1 funds to each district accordingly.]
4-2 [(o) After deducting the amount withheld under Subsection
4-3 (m) from the total amount appropriated for the allotment under
4-4 Subsection (a), the commissioner shall reduce each district's
4-5 allotment under Subsection (a) proportionately.]
4-6 [(p)] The commissioner shall:
4-7 (1) withhold, from the total amount of funds
4-8 appropriated for allotments under this section, an amount
4-9 sufficient to finance extended year programs under Section 29.082
4-10 not to exceed five percent of the amounts allocated under this
4-11 section; and
4-12 (2) give priority to applications for extended year
4-13 programs to districts with high concentrations of educationally
4-14 disadvantaged students.
4-15 (m) [(q)] The State Board of Education, with the assistance
4-16 of the state auditor and the comptroller, shall develop and
4-17 implement by rule a reporting and auditing system for district and
4-18 campus expenditures of compensatory education funds to ensure that
4-19 compensatory education funds, other than the indirect cost
4-20 allotment, are spent only to supplement the regular program. The
4-21 commissioner, in the year following an audit of compensatory
4-22 education expenditures, shall withhold from a district's foundation
4-23 school fund payment an amount equal to the amount of compensatory
4-24 education funds the agency determines were not used in compliance
4-25 with Subsection (c). The commissioner shall release to a district
4-26 funds withheld under this subsection when the district provides to
4-27 the commissioner a detailed plan to spend those funds in compliance
5-1 with Subsection (c).
5-2 (n) [(s)] A reduction made under this section or the General
5-3 Appropriations Act in the allotment under this section does not
5-4 affect the computation of students in weighted average daily
5-5 attendance for purposes of Subchapter F.
5-6 (o) [(t)] For each year of a state fiscal biennium, the
5-7 commissioner shall reduce the guaranteed level of state and local
5-8 funds per weighted student per cent of tax effort under Section
5-9 42.302 by an amount sufficient to reduce state costs in an amount
5-10 equal to the increase in state costs due to the application of
5-11 Subsection (n) [(s)]. The commissioner shall determine the same
5-12 reduction for each year and shall announce the determination as
5-13 soon as practicable after August 1 preceding the beginning of the
5-14 biennium. A determination by the commissioner under this section
5-15 is final and may not be appealed.
5-16 SECTION 3. Section 42.154(e), Education Code, is amended to
5-17 read as follows:
5-18 (e) Out of the total statewide allotment for career and
5-19 technology education under this section, the commissioner shall set
5-20 aside an amount specified in the General Appropriations Act, which
5-21 may not exceed an amount equal to one percent of the total amount
5-22 appropriated, to support regional career and technology education
5-23 planning. [After deducting the amount set aside under this
5-24 subsection from the total amount appropriated for career and
5-25 technology education under this section, the commissioner shall
5-26 reduce each district's tier one allotments in the same manner
5-27 described for a reduction in allotments under Section 42.253.]
6-1 SECTION 4. Subchapter C, Chapter 42, Education Code, is
6-2 amended by adding Sections 42.159 and 42.160 to read as follows:
6-3 Sec. 42.159. AMOUNTS WITHHELD FROM SPECIAL ALLOTMENTS.
6-4 (a) The commissioner shall:
6-5 (1) compute the total amount withheld, under this
6-6 subchapter or the General Appropriations Act, from the total amount
6-7 of special allotments under this subchapter to which school
6-8 districts are entitled; and
6-9 (2) reduce each district's total entitlement under
6-10 this chapter by an amount determined by a method under which the
6-11 application of the same number of cents of increase in tax rate in
6-12 all districts applied to the adjusted taxable value of property of
6-13 each district results in a total levy equal to the total reduction.
6-14 (b) For purposes of this section, the adjusted taxable value
6-15 of property of a district is:
6-16 (1) for a district that is not required to take action
6-17 under Chapter 41 to reduce its wealth per student to the equalized
6-18 wealth level, the district's taxable value of property as
6-19 determined under Subchapter M, Chapter 403, Government Code, or, if
6-20 applicable, under Section 42.2521; or
6-21 (2) for a district that is required to take action
6-22 under Chapter 41 to reduce its wealth per student to the equalized
6-23 wealth level, the amount determined by the formula:
6-24 ADPV = WPS X WADA
6-25 where:
6-26 "ADPV" is the district's adjusted taxable value of property;
6-27 "WPS" is the equalized wealth level under Chapter 41 or, if
7-1 applicable, the district's wealth per student determined under
7-2 Section 41.002(e); and
7-3 "WADA" is the district's weighted average daily attendance,
7-4 computed as provided by Section 42.302.
7-5 Sec. 42.160. PAYMENT FOR REDUCTION IN TOTAL ENTITLEMENT. (a)
7-6 A school district that is required to take action under Chapter 41
7-7 to reduce its wealth per student to the equalized wealth level
7-8 shall remit to the commissioner an amount equal to the total amount
7-9 by which the district's total entitlement under this chapter is
7-10 reduced under Section 42.159.
7-11 (b) A school district whose total entitlement under this
7-12 chapter is less than the amount by which that entitlement is
7-13 reduced under Section 42.159 shall remit to the commissioner the
7-14 amount by which the reduction exceeds the amount of the
7-15 entitlement.
7-16 (c) The commissioner shall adopt rules to administer this
7-17 section, including rules specifying the time by which a school
7-18 district must remit funds under this section.
7-19 (d) The commissioner may use funds received under this
7-20 section only for a purpose for which amounts are withheld under
7-21 this subchapter or the General Appropriations Act.
7-22 (e) If a school district does not remit funds as required by
7-23 this section, the commissioner may take any action permitted by
7-24 Section 42.258.
7-25 SECTION 5. Section 7.024(a), Education Code, is amended to
7-26 read as follows:
7-27 (a) The investment capital fund consists of money
8-1 transferred to the fund as provided by Section 42.152(j)
8-2 [42.152(l)]. The agency shall administer the fund. The purposes
8-3 of this fund are to assist eligible public schools to implement
8-4 practices and procedures consistent with deregulation and school
8-5 restructuring in order to improve student achievement and to help
8-6 schools identify and train parents and community leaders who will
8-7 hold the school and the school district accountable for achieving
8-8 high academic standards.
8-9 SECTION 6. Section 33.001, Education Code, is amended to
8-10 read as follows:
8-11 Sec. 33.001. APPLICABILITY OF SUBCHAPTER. This subchapter
8-12 applies only to a school district that receives funds as provided
8-13 by Section 42.152(h) [42.152(i)].
8-14 SECTION 7. Section 39.024(c), Education Code, is amended to
8-15 read as follows:
8-16 (c) The agency shall develop study guides for the assessment
8-17 instruments administered under Sections 39.023(a) and (c). To
8-18 assist parents in providing assistance during the period that
8-19 school is recessed for summer, each school district shall
8-20 distribute the study guides to parents of students who do not
8-21 perform satisfactorily on one or more parts of an assessment
8-22 instrument administered under this subchapter. [The commissioner
8-23 shall retain a portion of the total amount of funds allotted under
8-24 Section 42.152(a) that the commissioner considers appropriate to
8-25 finance the development and distribution of the study guides and
8-26 shall reduce each district's allotment proportionately.]
8-27 SECTION 8. Section 42.156(d), Education Code, is repealed.
9-1 SECTION 9. This Act takes effect September 1, 2001.