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78R3176 ESH-D

By:  Grusendorf                                                   H.B. No. 5  



A BILL TO BE ENTITLED

AN ACT

relating to public school finance.                                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 41.002(a), Education Code, is amended to 
read as follows:
	(a)  A school district may not have a wealth per student that 
exceeds $315,000 [$305,000].
	SECTION 2.  Section 42.101, Education Code, is amended to 
read as follows:   
	Sec. 42.101.  BASIC ALLOTMENT.  For each student in average 
daily attendance, not including the time students spend each day in 
special education programs in an instructional arrangement other 
than mainstream or career and technology education programs, for 
which an additional allotment is made under Subchapter C, a 
district is entitled to an allotment of $2,637 [$2,537].  A greater 
amount for any school year may be provided by appropriation.
	SECTION 3.  Subchapter E, Chapter 42, Education Code, is 
amended by adding Section 42.2532 to read as follows:
	Sec. 42.2532.  ALTERNATIVE MINIMUM STATE AID COMPUTATION.  
(a)  For the 2003-2004 or 2004-2005 school year, a school district 
is entitled to additional state aid or a reduction in the total 
amount required under Section 41.093 for the district to purchase 
attendance credits in an amount, as determined by the commissioner, 
equal to the difference, if any, between:
		(1)  an amount equal to 103 percent of the product of:                 
			(A)  the quotient of the district's total local 
and state funds for maintenance and operations for the 2002-2003 
school year, divided by the district's average daily attendance for 
that year; multiplied by
			(B)  the district's average daily attendance for 
the current school year; and
		(2)  if the following amount is less than the amount 
determined under Subdivision (1), the amount of additional funds to 
which the district is entitled because of the increases made by 
___.B. No. ___, Acts of the 78th Legislature, Regular Session, 
2003, to:
			(A)  the equalized wealth level under Section 
41.002;               
			(B)  the basic allotment under Section 42.101; and                    
			(C)  the guaranteed level of state and local funds 
per weighted student per cent of tax effort under Section 42.302.
	(b)  A determination by the commissioner under this section 
is final and may not be appealed.
	(c)  The commissioner may adopt rules to implement this 
section.      
	(d)  This section expires September 1, 2005.                            
	SECTION 4.  Section 42.302(a), Education Code, is amended to 
read as follows:
	(a)  Each school district is guaranteed a specified amount 
per weighted student in state and local funds for each cent of tax 
effort over that required for the district's local fund assignment 
up to the maximum level specified in this subchapter.  The amount of 
state support, subject only to the maximum amount under Section 
42.303, is determined by the formula:

GYA = (GL X WADA X DTR X 100) - LR

where:                                                                        
	"GYA" is the guaranteed yield amount of state funds to be 
allocated to the district;
	"GL" is the dollar amount guaranteed level of state and local 
funds per weighted student per cent of tax effort, which is $27.24
[$27.14] or a greater amount for any year provided by 
appropriation;
	"WADA" is the number of students in weighted average daily 
attendance, which is calculated by dividing the sum of the school 
district's allotments under Subchapters B and C, less any allotment 
to the district for transportation, any allotment under Section 
42.158, and 50 percent of the adjustment under Section 42.102, by 
the basic allotment for the applicable year;
	"DTR" is the district enrichment tax rate of the school 
district, which is determined by subtracting the amounts specified 
by Subsection (b) from the total amount of maintenance and 
operations taxes collected by the school district for the 
applicable school year and dividing the difference by the quotient 
of the district's taxable value of property as determined under 
Subchapter M, Chapter 403, Government Code, or, if applicable, 
under Section 42.2521, divided by 100; and
	"LR" is the local revenue, which is determined by multiplying 
"DTR" by the quotient of the district's taxable value of property as 
determined under Subchapter M, Chapter 403, Government Code, or, if 
applicable, under Section 42.2521, divided by 100.
	SECTION 5.  This Act takes effect September 1, 2003.