SRC-MSY S.B. 900 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 900
78R2630 KKA-DBy: Shapiro
Education
3/13/2003
As Filed


DIGEST AND PURPOSE 

Under current law, school districts must report their administrative cost
ratio--that is, the ratio of administrative to instructional costs.
However, there has been disagreement over precisely what constitutes an
administrative cost and what constitutes an instructional cost.  As
proposed, S.B. 900 amends the Education Code to specify what costs should
be reported as administrative and which costs may be considered
instructional. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of education
in SECTION 1 (Section 44.0071(d), Education Code) and SECTION 2 (Section
39.052(c), Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 44A, Education Code, by adding Section 44.0071,
as follows: 

Sec.  44.0071.  COMPUTATION OF INSTRUCTIONAL EXPENDITURES RATIO AND
INSTRUCTIONAL EMPLOYEES RATIO.  (a)  Requires a school district to compute
and report to the commissioner of education (commissioner) each fiscal
year the percentage of expenditures used to directly fund instructional
activities and the percentage of the district's fulltime employees whose
sole function was to directly provide classroom instruction. 

(b)  Requires a school district to provide educators at least annually
with a list of employees determined by the district under this section to
be engaged only in providing classroom instruction. 

(c)  Provides that, for the purposes of this section, certain expenditures
are to be considered as part of a district's total expenditures and that
the computation of a district's expenditures used to fund direct
instructional activities may include certain items. 

(d)  Requires the commissioner to adopt rules as necessary to implement
this section. 

SECTION 2.  Amends Sections 39.052(b) and (c), Education Code, as follows:

(b)  Requires the report card to include the following information, rather
than the following information where applicable: 

(1)  where applicable, certain academic excellence indicators;

(2)  (makes a conforming change)

(3)  the administrative and instructional costs per student computed in
accordance with Section 44.0071; and 
 
(4)  the district's instructional expenditures ratio and instructional
employees ratio computed under Section 44.0071, and the statewide average
of those ratios as determined by the commissioner. 

(c)  Requires the commissioner to adopt rules requiring dissemination of
the information required under Subsection (b)(4), in addition to other
information.  Makes conforming changes. 

SECTION 3.  Amends Section 39.182(a), Education Code, to require a report
that the Texas Education Agency (TEA) must prepare and deliver to certain
officials to include a summary and analysis of the instructional
expenditures ratios and instructional employees ratios of school districts
computed  under Section 44.0071, rather than compliance with cost ratios
set by the commissioner. 

SECTION 4.  Repealer:  Chapter 42D, Education Code (Administrative Costs).

SECTION 5.  Effective date: September 1, 2003.

SECTION 6.  Provides that the repeal of Chapter 42D, Education Code, does
not affect the liability of a school district for excess administrative
costs during the 2002-2003 school year that the commissioner is entitled
to recover during the 2003-2004 school year under Section 42.201(d),
Education Code, as that Section existed on January 1, 2003, and continues
the former law in effect for that purpose.