By: Madden H.B. No. 2755
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 41.001(3), Education Code, is amended
to read as follows:
(3) "Weighted average daily attendance" has the
meaning assigned by Section 41.0011 [42.302].
SECTION 2. Subchapter A, Chapter 41, Education Code, is
amended by adding Section 41.0011 to read as follows:
Sec. 41.0011. COMPUTATION OF WEIGHTED AVERAGE DAILY
ATTENDANCE. For purposes of this chapter, weighted average daily
attendance is computed by dividing the amount of the district's
estimated adjusted basic program under Subchapter B, Chapter 42,
using the estimate of enrollment under Section 42.254, by the
guaranteed level of state and local funds per weighted student per
cent of tax effort provided by Section 42.101.
SECTION 3. Section 41.0021(c), Education Code, is amended
to read as follows:
(c) The commissioner shall:
(1) [compute the wealth per student levels under this
section using weighted average daily attendance as defined by
Section 42.302;
[(2)] notify each school district that is eligible to
have its wealth per student computed under this section; and
(2) [(3)] establish a date by which a district must
elect to have its wealth per student computed under this section.
SECTION 4. Section 41.006(a), Education Code, is amended
to read as follows:
(a) The commissioner may adopt rules necessary for the
implementation of this chapter. The rules may provide for the
commissioner to make necessary adjustments to the provisions of
Chapter 42, including providing for the commissioner to make an
adjustment in the guaranteed yield amount under Section 42.101 or
the limitation on the district tax rate under Section 42.102(a)
[funding element established by Section 42.302], at the earliest
date practicable, to the amount the commissioner believes, taking
into consideration options exercised by school districts under this
chapter and estimates of student enrollments, will match
appropriation levels.
SECTION 5. Section 41.034(a), Education Code, is amended
to read as follows:
(a) For the first and second school years after creation of
a consolidated district under this subchapter, the commissioner
shall adjust allotments to the consolidated district to the extent
necessary to preserve the effects of an adjustment under Section
[42.102,] 42.103, 42.104, or 42.105 to which either of the
consolidating districts would have been entitled but for the
consolidation.
SECTION 6. Section 41.061, Education Code, is amended to
read as follows:
Sec. 41.061. AGREEMENT. (a) By agreement of the governing
boards of two school districts, territory may be detached from one
of the districts and annexed to the other district if, after the
action,[:
[(1)] the wealth per student of each [the] district
[from which territory is detached] is equal to or less than the
equalized wealth level[; and
[(2) the wealth per student of the district to which
territory is annexed is not greater than the greatest level for
which funds are provided under Subchapter F, Chapter 42].
(b) The agreement is not effective unless the commissioner
certifies that, after all actions taken under this chapter, the
wealth per student of each district involved will be equal to or
less than the equalized wealth [applicable] level [permitted by
Subsection (a)].
SECTION 7. Section 41.093(b), Education Code, is amended
to read as follows:
(b) For purposes of this section, a school district's
maintenance and operations tax revenue does not include:
(1) any revenue generated by a maintenance and
operations tax rate greater than $____ for each $100 of valuation of
taxable property; or
(2) any amounts paid into a tax increment fund under
Chapter 311, Tax Code.
SECTION 8. Section 41.097(a), Education Code, is amended
to read as follows:
(a) The total amount required under Section 41.093 for a
district to purchase attendance credits under this subchapter for
any school year is reduced by an amount equal to the product of the
district's costs under Section 6.06, Tax Code, for the central
appraisal district in which it participates multiplied by a
percentage that is computed by dividing the total amount required
under Section 41.093 by the total amount of taxes imposed in the
district for that year less:
(1) any revenue generated by a maintenance and
operations tax rate greater than $____ for each $100 valuation of
taxable property; or
(2) any amounts paid into a tax increment fund under
Chapter 311, Tax Code.
SECTION 9. Section 41.157(d), Education Code, is amended
to read as follows:
(d) Notwithstanding Section 45.003, the consolidated taxing
district may levy, assess, and collect a maintenance tax for the
benefit of the component districts at a rate that exceeds $____
[$1.50] per $100 valuation of taxable property to the extent
necessary to pay contracted obligations on the lease purchase of
permanent improvements to real property entered into on or before
May 12, 1993. The proposition to impose taxes at the necessary rate
must be submitted to the voters in the manner provided by Section
45.003.
SECTION 10. Section 41.159(b), Education Code, is amended
to read as follows:
(b) A component district levying an ad valorem tax under
this section or Section 41.160(b)(1) is entitled to the guaranteed
yield provided by Subchapter B or G [F], Chapter 42, as applicable,
for that portion of its tax rate that, when added to the maintenance
tax levied by the consolidated taxing unit, does not exceed the
limitation provided by Section 42.102 or 42.353 [42.303].
SECTION 11. Sections 41.206(a), (f), (g), and (i),
Education Code, are amended to read as follows:
(a) The commissioner shall annex property detached under
Section 41.205 to school districts eligible for annexation in
accordance with this section. A school district is eligible for
annexation of property to it under this subchapter only if, before
any detachments or annexations are made in a year, the district's
wealth per student is less than the equalized wealth level
[greatest level for which funds are provided under Subchapter F,
Chapter 42].
(f) If only one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
annex property to that district until it reaches the equalized
wealth level [a wealth per student equal] as nearly as possible [to
the greatest level for which funds are provided under Subchapter F,
Chapter 42,] by annexing whole parcels or items of property. Any
remaining detached property shall be annexed to eligible school
districts in the next priority group as provided by this section.
(g) If more than one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
first annex property to the district within the priority group to
which could be annexed the most taxable value of property without
increasing its wealth per student above the equalized wealth level
[greatest level for which funds are provided under Subchapter F,
Chapter 42], until that district reaches the equalized wealth level
[a wealth per student equal] as nearly as possible [to the greatest
level for which funds are provided under Subchapter F, Chapter 42,]
by annexing whole parcels or items of property. Then any additional
detached property shall be annexed in the same manner to other
eligible school districts in the same priority group in descending
order of capacity to receive taxable value of annexed property
without increasing the district's wealth per student above the
equalized wealth [greatest] level [for which funds are provided
under Subchapter F, Chapter 42]. If every school district in a
priority group reaches the equalized wealth level [a wealth per
student equal to the greatest level for which funds are provided
under Subchapter F, Chapter 42,] as nearly as possible, the
remaining detached property shall be annexed to school districts in
the next priority group in the manner provided by this section.
(i) The commissioner may order the annexation of a portion
of a parcel or item of property, including a portion of property
treated as a whole parcel or item under Subsection (h), if:
(1) the annexation of the whole parcel or item would
result in the district eligible to receive it in the appropriate
priority order provided by this section having a wealth per student
greater than the equalized wealth level [$10,000 more than the
greatest level for which funds are provided under Subchapter F,
Chapter 42]; or
(2) the commissioner determines that annexation of
portions of the parcel or item would reduce disparities in district
wealth per student more efficiently than would be possible if the
parcel or item were annexed as a whole.
SECTION 12. Section 41.257, Education Code, is amended to
read as follows:
Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
AND TRANSPORTATION ALLOTMENT. The budget of the consolidated
district must apply the benefit of the adjustment or allotment to
the schools of the consolidating district to which Section 42.104
or [42.103,] 42.105[,] or Subchapter H, Chapter 42, [42.155] would
have applied in the event that the consolidated district still
qualifies as a small or sparse district.
SECTION 13. Section 42.002, Education Code, is amended to
read as follows:
Sec. 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM. (a)
The purposes of the Foundation School Program set forth in this
chapter are to guarantee that each school district in the state has:
(1) adequate resources to provide each eligible
student an [a basic] instructional program and facilities suitable
to the student's educational needs; and
(2) access to a substantially equalized program of
financing [in excess of basic costs] for certain services, as
provided by this chapter.
(b) The Foundation School Program consists of:
(1) a basic program tier [two tiers] that provides [in
combination provide] for [:
[(A)] sufficient financing for all school
districts to provide a basic program of education that is rated
recognized [academically acceptable] or higher under Section
39.072 and meets other applicable legal standards; [and]
(2) an enrichment tier to guarantee
[(B)] substantially equal access to funds to provide an enriched
program; and
(3) [(2)] a facilities component as provided by
Chapter 46.
SECTION 14. Section 42.007(c), Education Code, is amended
to read as follows:
(c) The funding elements must include:
(1) an amount [a basic allotment] for the purposes of
Section 42.101 that[, when combined with the guaranteed yield
component provided by Subchapter F,] represents the cost per
student of a regular education program that is rated recognized or
higher under Section 39.072 and meets all other mandates of law and
regulation;
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts;
(3) appropriate program cost differentials and other
funding elements for the programs required by Subchapters A-D, F,
and G, Chapter 29 [authorized under Subchapter C], with the program
funding level expressed as dollar amounts and as weights applied to
the guaranteed level of state and local funds per student [adjusted
basic allotment] for the appropriate year;
(4) the maximum guaranteed level of qualified state
and local funds per student for the purposes of Subchapter G [F];
(5) the enrichment [and facilities] tax rate under
Subchapter G [F]; and
(6) [the computation of students in weighted average
daily attendance under Section 42.302; and
[(7)] the amount to be appropriated for the school
facilities assistance program under Chapter 46.
SECTION 15. The heading to Subchapter B, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER B. BASIC PROGRAM (TIER ONE) [ENTITLEMENT]
SECTION 16. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC PROGRAM. (a) Each school district is
guaranteed a specified amount per weighted student in state and
local funds for each cent of tax effort up to the maximum level
specified in this subchapter. Except as provided by Subchapter C,
funds allocated under this section may be used for any legal
purpose. The amount of state and local funds for each educational
program is determined by the formula:
GYA = GL X S X W X DTR X 100
where:
"GYA" is the guaranteed yield amount of state and local 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 $____ or
a greater amount for any year provided by appropriation;
"S" is the number of students in average daily attendance,
number of full-time equivalent students, or number of students
enrolled, as appropriate, in the educational program for which the
computation is made;
"W" is the weight for the educational program, as provided by
Subsection (b); and
"DTR" is the district tax rate of the school district, which
is determined by dividing the total amount of taxes collected by the
school district for the applicable school year, determined as
provided by Section 42.102, by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 42.2521, divided
by 100.
(b) The weights are:
(1) 1.0 for a student in average daily attendance, not
including time the student spends each day in a special education
program in an instructional arrangement other than mainstream or in
a career and technology education program;
(2) 1.1 for a student in a special education program in
a mainstream instructional arrangement;
(3) 5.0 for a full-time equivalent student in a
special education program in a homebound instructional
arrangement;
(4) 3.0 for a full-time equivalent student in a
special education program in a hospital class instructional
arrangement;
(5) 5.0 for a full-time equivalent student in a
special education program in a speech therapy instructional
arrangement;
(6) 3.0 for a full-time equivalent student in a
special education program in a resource room instructional
arrangement;
(7) 3.0 for a full-time equivalent student in a
special education program in a self-contained, mild and moderate,
regular campus instructional arrangement;
(8) 3.0 for a full-time equivalent student in a
special education program in a self-contained, severe, regular
campus instructional arrangement;
(9) 2.7 for a full-time equivalent student in a
special education program in an off home campus instructional
arrangement;
(10) 1.7 for a full-time equivalent student in a
special education program in a nonpublic day school;
(11) 2.3 for a full-time equivalent student in a
special education program vocational adjustment class;
(12) 4.0 for a student in a special education program
who resides in a residential care and treatment facility, other
than a state school, whose parent or guardian does not reside in the
district and who receives educational services from a local school
district;
(13) 2.8 for a student in a special education program
who resides in a state school;
(14) 0.2 for a student who is educationally
disadvantaged or who is a student who does not have a disability and
resides in a residential placement facility in a district in which
the student's parent or guardian does not reside;
(15) 2.41 for a full-time equivalent student who is in
a remedial and support program under Section 29.081 because the
student is pregnant;
(16) 0.1 for a student who is in a bilingual education
or special language program under Subchapter B, Chapter 29;
(17) 1.37 for a full-time equivalent student in an
approved career and technology education program in grades nine
through 12 or in a career and technology program for students with
disabilities in grades seven through 12;
(18) 0.12 for a student in a program for gifted and
talented students that the district certifies to the commissioner
as complying with Subchapter D, Chapter 29; and
(19) except as provided by Subsection (d), 0.1 for a
student in average daily attendance who is using a public education
grant under Subchapter G, Chapter 29, to attend school in a district
other than the district in which the student resides.
(c) A district's basic program is equal to the sum of the
guaranteed yield amounts for each educational program for which the
district receives an allocation.
(d) The total number of weights under Subsection (b)(19) to
which a district is entitled may not exceed the number by which the
number of students using public education grants to attend school
in the district exceeds the number of students who reside in the
district and use public education grants to attend school in
another district.
(e) In this section:
(1) "Career and technology education program" means a
program under Subchapter F, Chapter 29.
(2) "Full-time equivalent student" means 30 hours of
contact a week between a student and program personnel.
(3) "Special education program" means a program under
Subchapter A, Chapter 29.
Sec. 42.102. DISTRICT TAX RATE. (a) The district tax rate
("DTR") under Section 42.101 may not:
(1) be less than $____ per $100 taxable value of
property; or
(2) be greater than $____ per $100 taxable value of
property or a greater amount provided for any year by
appropriation.
(b) In computing the district tax rate of a school district,
the total amount of maintenance and operations taxes collected by
the school district does not include the amount of:
(1) taxes with respect to which the district receives
state assistance under Subchapter G or Chapter 46; or
(2) taxes paid into a tax increment fund under Chapter
311, Tax Code.
(c) For purposes of this section:
(1) school district taxes for which credit is granted
under Section 31.035, 31.036, or 31.037, Tax Code, or under
Subchapter D, Chapter 313, Tax Code, are considered taxes collected
by the school district as if the taxes were paid when the credit for
the taxes was granted; and
(2) the total amount of taxes collected for an
applicable school year by a school district with alternate tax
dates, as authorized by Section 26.135, Tax Code, is the amount of
taxes collected on or after January 1 of the year in which the
school year begins and not later than December 31 of the same year
[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 $2,537. A greater amount for any school year may be
provided by appropriation].
SECTION 17. Sections 42.102 and 42.103, Education Code, are
renumbered as Sections 42.103 and 42.104, respectively, and amended
to read as follows:
Sec. 42.103 [42.102]. COST OF EDUCATION ADJUSTMENT. (a)
The basic program [allotment] for each district is adjusted to
reflect the geographic variation in known resource costs and costs
of education due to factors beyond the control of the school
district.
(b) The commissioner shall determine the cost of education
adjustment for each school district based on a statistical analysis
conducted by an organization independent from the agency and the
Legislative Budget Board that:
(1) isolates the independent effects of
uncontrollable factors on the compensation that school districts
must pay, including teachers' salaries, benefits paid under Article
3.50-7, Insurance Code, and other benefits, but excluding benefits
paid by the state; and
(2) includes variations, determined using the average
value for the preceding three years for uncontrollable cost
factors, in the characteristics of teachers, teachers' working
environments, and the economic and social conditions of the
communities in which teachers reside [is the cost of education
index adjustment adopted by the foundation school fund budget
committee and contained in Chapter 203, Title 19, Texas
Administrative Code, as that chapter existed on March 26, 1997].
(c) Not later than July 15 of each year, the commissioner
shall notify each school district of the district's cost of
education adjustment for the following school year.
(d) Notwithstanding Subsection (c), in accordance with a
determination of the commissioner, a school district's cost of
education adjustment may not be less than the district's cost of
education adjustment for the 2002-2003 school year.
(e) The commissioner shall use the cost of education
adjustment determined under Subsection (b) for the 2003-2004,
2004-2005, and 2005-2006 school years. Not later than January 1,
2005, and each four years thereafter, the commissioner shall
contract with an organization independent from the agency and the
Legislative Budget Board to conduct an analysis of variations in
known resource costs and costs of education beyond the control of a
school district and to make recommendations to the commissioner as
to methods of adjusting funding under this chapter to reflect
variations in resource costs and costs of education. The analysis
must include the factors specified by Subsections (b)(1) and (2).
The commissioner shall review the recommendations and determine
cost of education adjustments as provided by Subsection (b).
Sec. 42.104 [42.103]. SMALL AND MID-SIZED DISTRICT
ADJUSTMENT. (a) The basic program [allotment] for certain small
and mid-sized districts is adjusted in accordance with this
section. In this section:
(1) "AP" ["AA"] is the district's adjusted program
[allotment per student];
(2) "ADA" is the number of students in average daily
attendance for which the district is entitled to state funds [an
allotment] under Section 42.101; and
(3) "ABP" ["ABA"] is the adjusted basic program
[allotment] determined under Section 42.103 [42.102].
(b) The basic program [allotment] of a school district that
contains at least 300 square miles and has not more than 1,600
students in average daily attendance is adjusted by applying the
formula:
AP [AA] = (1 + ((1,600 - ADA) X .0004)) X ABP [ABA]
(c) The basic program [allotment] of a school district that
contains less than 300 square miles and has not more than 1,600
students in average daily attendance is adjusted by applying the
formula:
AP [AA] = (1 + ((1,600 - ADA) X .00025)) X ABP [ABA]
(d) The basic program [allotment] of a school district that
offers a kindergarten through grade 12 program and has less than
5,000 students in average daily attendance is adjusted by applying
the formula, of the following formulas, that results in the
greatest adjusted allotment:
(1) the formula in Subsection (b) or (c) for which the
district is eligible; or
(2) AP [AA] = (1 + ((5,000 - ADA) X .000025)) X ABP
[ABA].
(e) The commissioner may make the adjustment authorized by
Subsection (d)(2) [(d)(3)] only if the district's wealth per
student does not exceed the equalized wealth level under Section
41.002. For purposes of this subsection, a district's wealth per
student is determined in the manner provided by Section 41.001,
except that the adjustment provided by Subsection (d)(2) [(d)(3)]
is not used in computing the number of students in weighted average
daily attendance.
SECTION 18. Section 42.105, Education Code, is amended to
read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, [42.102, and] 42.103, and 42.104, a school
district that has fewer than 130 students in average daily
attendance shall be provided an adjusted basic program [allotment]
on the basis of 130 students in average daily attendance if it
offers a kindergarten through grade 12 program and has preceding or
current year's average daily attendance of at least 90 students or
is 30 miles or more by bus route from the nearest high school
district. A district offering a kindergarten through grade 8
program whose preceding or current year's average daily attendance
was at least 50 students or which is 30 miles or more by bus route
from the nearest high school district shall be provided an adjusted
basic program [allotment] on the basis of 75 students in average
daily attendance. An average daily attendance of 60 students shall
be the basis of providing the adjusted basic program [allotment] if
a district offers a kindergarten through grade 6 program and has
preceding or current year's average daily attendance of at least 40
students or is 30 miles or more by bus route from the nearest high
school district.
SECTION 19. Subchapter B, Chapter 42, Education Code, is
amended by adding Section 42.107 to read as follows:
Sec. 42.107. COMPUTATION OF AID FOR CERTAIN DISTRICTS OR AT
STATE SCHOOL. State assistance under this chapter for a school
district located on a federal military installation or at Moody
State School is computed using the average maintenance and
operations tax rate of school districts in the county, as
determined by the commissioner.
SECTION 20. The heading to Subchapter C, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER C. CONDITIONS APPLICABLE TO FUNDING BASED ON
WEIGHTS [SPECIAL ALLOTMENTS]
SECTION 21. The heading to Section 42.151, Education Code,
is amended to read as follows:
Sec. 42.151. SPECIAL EDUCATION PROGRAMS.
SECTION 22. Sections 42.151(c)-(e), (h), and (j)-(l) are
amended to read as follows:
(c) For funding purposes, the number of contact hours
credited per day for each special education student in the off home
campus instructional arrangement may not exceed the contact hours
credited per day for the multidistrict class instructional
arrangement in the 1992-1993 school year.
(d) For funding purposes, the number of contact hours
credited per day for each special education student in the resource
room; self-contained, mild and moderate; and self-contained,
severe, instructional arrangements may not exceed the average of
the statewide total contact hours credited per day for those three
instructional arrangements in the 1992-1993 school year.
(e) The State Board of Education by rule shall prescribe the
qualifications a special education [an] instructional arrangement
must meet in order to be funded as a particular instructional
arrangement under this chapter [section]. In prescribing the
qualifications that a mainstream instructional arrangement must
meet, the board shall establish requirements that students with
disabilities and their teachers receive the direct, indirect, and
support services that are necessary to enrich the regular classroom
and enable student success.
(h) Funds allocated under this chapter for special
education programs [section], other than an indirect cost allotment
established under State Board of Education rule, must be used in the
special education program under Subchapter A, Chapter 29.
(j) A school district that maintains for two successive
years a ratio of full-time equivalent special education students
placed in partially or totally self-contained classrooms to the
number of full-time equivalent students placed in resource room or
mainstream instructional arrangements that is 25 percent higher
than the statewide average ratio shall be reviewed by the agency to
determine the appropriateness of student placement. The
commissioner may reduce the guaranteed yield amounts for special
education [allotment the district receives] to the level to which
the district would be entitled if the district's ratio was not more
than 25 percent higher than the statewide average ratio.
(k) A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the dollar amount guaranteed level of state and local funds per
student per cent of tax effort [adjusted basic allotment or
adjusted allotment, as applicable], for each full-time equivalent
student in average daily attendance, multiplied by the amount
designated for the student's instructional arrangement under
Section 42.101(b) [this section], for each day the program is
provided divided by the number of days in the minimum school year.
For purposes of this subsection, the dollar amount guaranteed level
of state and local funds per student per cent of tax effort is
adjusted in the same manner as a district's basic program under
Sections 42.103-42.105. The total amount of state funding for
extended year services under this section may not exceed $10
million per year. A school district may use funds received under
this section only in providing an extended year program.
(l) From the total amount of funds appropriated for special
education under this chapter [section], the commissioner shall
withhold an amount specified in the General Appropriations Act, and
distribute that amount to school districts for programs under
Section 29.014. The program established under that section is
required only in school districts in which the program is financed
by funds distributed under this subsection and any other funds
available for the program. After deducting the amount withheld
under this subsection from the total amount appropriated for
special education, the commissioner shall reduce each district's
allocation [allotment] proportionately [and shall allocate funds
to each district accordingly].
SECTION 23. The heading to Section 42.152, Education Code,
is amended to read as follows:
Sec. 42.152. COMPENSATORY EDUCATION PROGRAMS [ALLOTMENT].
SECTION 24. Sections 42.152(b), (c), (e), (f), (h), (i),
(k)-(r), and (t), Education Code, are amended to read as follows:
(b) For purposes of Section 42.101(b)(14) [this section],
the number of educationally disadvantaged students is determined:
(1) by averaging the best six months' enrollment in the
national school lunch program of free or reduced-price lunches for
the preceding school year; or
(2) in the manner provided by commissioner rule, if no
campus in the district participated in the national school lunch
program of free or reduced-price lunches during the preceding
school year.
(c) Funds allocated under Sections 42.101(b)(14) and (15)
[this section] shall be used only to fund supplemental programs and
services designed to eliminate any disparity in performance on
assessment instruments administered under Subchapter B, Chapter
39, or disparity in the rates of high school completion between
students at risk of dropping out of school, as defined by Section
29.081, and all other students. Specifically, the funds, other
than an indirect cost allotment established under State Board of
Education rule, which may not exceed 15 percent, may be used only to
meet the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29.081 or an
alternative education program established under Section 37.008 or
to support a program eligible under Title I of the Elementary and
Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
and its subsequent amendments, and by federal regulations
implementing that Act, at a campus at which at least 50 percent of
the students are educationally disadvantaged. In meeting the costs
of providing a compensatory, intensive, or accelerated instruction
program under Section 29.081, funds allocated under Sections
42.101(b)(14) and (15) [a district's compensatory education
allotment] may be used only for costs supplementary to the regular
education program, such as costs for program and student
evaluation, instructional materials and equipment and other
supplies required for quality instruction, supplemental staff
expenses, salary for teachers of at-risk students, smaller class
size, and individualized instruction. A home-rule school district
or an open-enrollment charter school must use funds allocated under
Sections 42.101(b)(14) and (15) [Subsection (a)] for a purpose
authorized in this subsection but is not otherwise subject to
Subchapter C, Chapter 29. Notwithstanding any other provisions of
this section:
(1) to ensure that a sufficient amount of the funds
allocated [allotted] under Sections 42.101(b)(14) and (15) [this
section] are available to supplement instructional programs and
services, no more than 18 percent of the funds allocated [allotted]
under Sections 42.101(b)(14) and (15) [this section] may be used to
fund disciplinary alternative education programs established under
Section 37.008; and
(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district's board and a
district's site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008. The district shall in its petition report the number of
students in each grade level, by demographic subgroup, not making
satisfactory progress under the state's assessment system. The
commissioner will make this waiver request information available
annually to the public on the agency's website.
(e) The commissioner may:
(1) retain a portion of the total amount allocated
[allotted] under Sections 42.101(b)(14) and (15) [Subsection (a)]
that the commissioner considers appropriate to finance intensive
accelerated instruction programs and study guides provided under
Sections 39.024(b) and (c); and
(2) reduce each district's allocations under Sections
42.101(b)(14) and (15) [tier one allotments] in the same manner
described for a reduction [in allotments] under Section 42.253.
(f) From the total amount of funds appropriated for
allocations [allotments] under Sections 42.101(b)(14) and (15)
[this section], the commissioner shall, each fiscal year, withhold
an amount to be determined by the commissioner, but not less than
$10,000,000, and distribute that amount for programs under Section
29.085. In distributing those funds, preference shall be given to a
school district that received funds for a program under Section
29.085 for the preceding school year. The program established
under that section is required only in school districts in which the
program is financed by funds distributed under this section and any
other funds available for the program.
(h) After deducting the amount withheld under Subsection
(f) from the total amount appropriated for allocations [the
allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)],
the commissioner shall reduce each district's allocations under
Sections 42.101(b)(14) and (15) [tier one allotments] in the same
manner described for a reduction [in allotments] under Section
42.253 [and shall allocate funds to each district accordingly].
(i) From the total amount of funds appropriated for
allocations [allotments] under Sections 42.101(b)(14) and (15)
[this section], the commissioner shall, each fiscal year, withhold
$7,500,000 or a greater amount as determined in the General
Appropriations Act and distribute that amount for programs under
Subchapter A, Chapter 33. A program established under that
subchapter is required only in school districts in which the
program is financed by funds distributed under this section or
other funds distributed by the commissioner for a program under
that subchapter. In distributing those funds, preference shall be
given to a school district that received funds for a program under
this subsection for the preceding school year.
(k) After deducting the amount withheld under Subsection
(i) from the total amount appropriated for allocations [the
allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)],
the commissioner shall reduce each district's allocations under
Sections 42.101(b)(14) and (15) [tier one allotments] in the same
manner described for a reduction [in allotments] under Section
42.253.
(l) From the total amount of funds appropriated for
allocations [allotments] under Sections 42.101(b)(14) and (15)
[this section], the commissioner shall, each fiscal year, withhold
the amount of $2.5 million for transfer to the investment capital
fund under Section 7.024.
(m) From the total amount of funds appropriated for
allocations [allotments] under Sections 42.101(b)(14) and (15)
[this section], the commissioner may withhold an amount not
exceeding $1 million each fiscal year and distribute the funds to
school districts that incur unanticipated expenditures resulting
from a significant increase in the enrollment of students who do not
have disabilities and who reside in residential placement
facilities.
(n) After deducting the amount withheld under Subsection
(l) from the total amount appropriated for allocations [the
allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)],
the commissioner shall reduce each district's allocation
[allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)]
proportionately [and shall allocate funds to each district
accordingly].
(o) After deducting the amount withheld under Subsection
(m) from the total amount appropriated for allocations [the
allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)],
the commissioner shall reduce each district's allocation
[allotment] under Sections 42.101(b)(14) and (15) [Subsection (a)]
proportionately.
(p) The commissioner shall:
(1) withhold, from the total amount of funds
appropriated for allocations [allotments] under Sections
42.101(b)(14) and (15) [this section], an amount sufficient to
finance extended year programs under Section 29.082 not to exceed
five percent of the amounts allocated under this section; and
(2) give priority to applications for extended year
programs to districts with high concentrations of educationally
disadvantaged students.
(q) The State Board of Education, with the assistance of the
state auditor and the comptroller, shall develop and implement by
rule a reporting and auditing system for district and campus
expenditures of [compensatory education] funds allocated under
Sections 42.101(b)(14) and (15) to ensure that those [compensatory
education] funds, other than the indirect cost allotment, are spent
only to supplement the regular program. The commissioner, in the
year following an audit of compensatory education expenditures,
shall withhold from a district's foundation school fund payment an
amount equal to the amount of [compensatory education] funds
allocated under Sections 42.101(b)(14) and (15) the agency
determines were not used in compliance with Subsection (c). The
commissioner shall release to a district funds withheld under this
subsection when the district provides to the commissioner a
detailed plan to spend those funds in compliance with Subsection
(c).
(r) The commissioner shall grant a one-year exemption from
the requirements of Subsection (q) [(g)] to a school district in
which the group of students who have failed to perform
satisfactorily in the preceding school year on an assessment
instrument required under Section 39.023(a), (c), or (l)
subsequently performs on those assessment instruments at a level
that meets or exceeds a level prescribed by commissioner rule. Each
year the commissioner, based on the most recent information
available, shall determine if a school district is entitled to an
exemption for the following school year and notify the district of
that determination.
(t) A reduction made under this section or the General
Appropriations Act in the allocation [allotment] under Sections
42.101(b)(14) and (15) [this section] does not affect the
computation of students in weighted average daily attendance under
Section 41.0011 [for purposes of Subchapter F].
SECTION 25. The heading to Section 42.153, Education Code,
is amended to read as follows:
Sec. 42.153. BILINGUAL EDUCATION PROGRAMS [ALLOTMENT].
SECTION 26. Section 42.153(b), Education Code, is amended
to read as follows:
(b) Funds allocated under this chapter for bilingual
education or special language programs [section], other than an
indirect cost allotment established under State Board of Education
rule, must be used in providing bilingual education or special
language programs under Subchapter B, Chapter 29, and must be
accounted for under existing agency reporting and auditing
procedures.
SECTION 27. The heading to Section 42.154, Education Code,
is amended to read as follows:
Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION PROGRAMS
[ALLOTMENT].
SECTION 28. Sections 42.154(c) and (e), Education Code, are
amended to read as follows:
(c) Funds allocated under this chapter for career and
technology education [section], other than an indirect cost
allotment established under State Board of Education rule, must be
used in providing career and technology education programs in
grades nine through 12 or career and technology education programs
for students with disabilities in grades seven through 12 under
Sections 29.182, 29.183, and 29.184.
(e) Out of the total amount appropriated for allocations
[statewide allotment] for career and technology education under
Section 42.101(b)(17) [this section], the commissioner shall set
aside an amount specified in the General Appropriations Act, which
may not exceed [an amount equal to] one percent of the total amount
appropriated, to support regional career and technology education
planning. After deducting the amount set aside under this
subsection from the total amount appropriated for allocations for
career and technology education under Section 42.101(b)(17) [this
section], the commissioner shall reduce each district's
allocations under Section 42.101(b)(17) [tier one allotments] in
the same manner described for a reduction [in allotments] under
Section 42.253.
SECTION 29. Section 42.155, Education Code, is
redesignated as Subchapter H, Chapter 42, Education Code, and
amended to read as follows:
SUBCHAPTER H. TRANSPORTATION ALLOTMENT
Sec. 42.401 [42.155]. TRANSPORTATION ALLOTMENT.
(a) Except as provided by Subsection (b), each [Each] district or
county operating a transportation system is entitled to allotments
for transportation costs as provided by this subchapter [section].
(b) A district with a wealth per student that exceeds the
equalized wealth level is not entitled to an allotment under this
subchapter. In this subsection, "equalized wealth level" and
"wealth per student" have the meanings assigned by Section 41.001.
Sec. 42.402. DEFINITIONS. In [(b) As used in] this
subchapter [section]:
(1) "Regular eligible student" means a student who
resides two or more miles from the student's campus of regular
attendance, measured along the shortest route that may be traveled
on public roads, and who is not classified as a student eligible for
special education services.
(2) "Eligible special education student" means a
student who is eligible for special education services under
Section 29.003 and who would be unable to attend classes without
special transportation services.
(3) "Linear density" means the average number of
regular eligible students transported daily, divided by the
approved daily route miles traveled by the respective
transportation system.
Sec. 42.403. REGULAR TRANSPORTATION ALLOTMENT.
(a) [(c)] Each district or county operating a regular
transportation system is entitled to an allotment based on the
daily cost per regular eligible student of operating and
maintaining the regular transportation system and the linear
density of that system.
(b) In determining the cost, the commissioner shall give
consideration to factors affecting the actual cost of providing
these transportation services in each district or county. The
average actual cost is to be computed by the commissioner and
included for consideration by the legislature in the General
Appropriations Act.
(c) The allotment per mile of approved route may not exceed
the amount set by appropriation.
Sec. 42.404. HAZARDOUS CONDITIONS TRANSPORTATION
ALLOTMENT. (a) [(d)] A district or county may apply for and on
approval of the commissioner receive an additional amount of up to
10 percent of its regular transportation allotment to be used for
the transportation of children living within two miles of the
school they attend who would be subject to hazardous traffic
conditions if they walked to school.
(b) Each board of trustees shall provide to the commissioner
the definition of hazardous conditions applicable to that district
and shall identify the specific hazardous areas for which the
allotment [allocation] is requested. A hazardous condition exists
where no walkway is provided and children must walk along or cross a
freeway or expressway, an underpass, an overpass or a bridge, an
uncontrolled major traffic artery, an industrial or commercial
area, or another comparable condition.
Sec. 42.405. PRIVATE OR COMMERCIAL TRANSPORTATION
ALLOTMENT. (a) [(e)] The commissioner may grant an amount set by
appropriation for private or commercial transportation for
eligible students from isolated areas. The need for this type of
transportation grant shall be determined on an individual basis and
the amount granted shall not exceed the actual cost.
(b) The grants may be made only in extreme hardship cases. A
grant may not be made if the students live within two miles of an
approved school bus route.
Sec. 42.406. TRANSPORTATION OF CAREER AND TECHNOLOGY
EDUCATION STUDENTS. [(f)] The cost of transporting career and
technology education students from one campus to another inside a
district or from a sending district to another secondary public
school for a career and technology program or an area career and
technology school or to an approved post-secondary institution
under a contract for instruction approved by the agency shall be
reimbursed based on the number of actual miles traveled times the
district's official extracurricular travel per mile rate as set by
the board of trustees and approved by the agency.
Sec. 42.407. TRANSPORTATION OF SPECIAL EDUCATION STUDENTS.
(a) [(g)] A school district or county that provides special
transportation services for eligible special education students is
entitled to a state allotment [allocation] paid on a previous
year's cost-per-mile basis. The maximum rate per mile allowable
shall be set by appropriation based on data gathered from the first
year of each preceding biennium.
(b) Districts may use a portion of their support allocation
to pay transportation costs, if necessary. The commissioner may
grant an amount set by appropriation for private transportation to
reimburse parents or their agents for transporting eligible special
education students. The mileage allowed shall be computed along
the shortest public road from the student's home to school and back,
morning and afternoon. The need for this type transportation shall
be determined on an individual basis and shall be approved only in
extreme hardship cases.
Sec. 42.408. USE OF TRANSPORTATION ALLOTMENTS.
[(h)] Funds allotted under this subchapter [section] must be used
in providing transportation services.
Sec. 42.409. DETERMINATION OF TRANSPORTATION ALLOTMENTS OF
DISTRICT BELONGING TO COUNTY TRANSPORTATION SYSTEM. [(i)] In the
case of a district belonging to a county transportation system, the
district's transportation allotment for purposes of determining a
district's foundation school program allocations is determined on
the basis of the number of approved daily route miles in the
district multiplied by the allotment per mile to which the county
transportation system is entitled.
Sec. 42.410. TRANSPORTATION ALLOTMENT FOR TEXAS SCHOOL FOR
THE DEAF. [(j)] The Texas School for the Deaf is entitled to an
allotment under this subchapter [section]. The commissioner shall
determine the appropriate allotment.
Sec. 42.411. TRANSPORTATION TO CHILD-CARE FACILITIES.
[(k)] Notwithstanding any other provision of this subchapter
[section], the commissioner may not reduce the allotment to which a
district or county is entitled under this subchapter [section]
because the district or county provides transportation for an
eligible student to and from a child-care facility, as defined by
Section 42.002, Human Resources Code, instead of the student's
residence, as authorized by Section 34.007, if the transportation
is provided within the approved routes of the district or county for
the school the student attends.
SECTION 30. The heading to Section 42.156, Education Code,
is amended to read as follows:
Sec. 42.156. GIFTED AND TALENTED STUDENT PROGRAMS
[ALLOTMENT].
SECTION 31. Sections 42.156(b), (c), and (f), Education
Code, are amended to read as follows:
(b) Funds allocated under this chapter for gifted and
talented student programs [section], other than the amount that
represents the program's share of general administrative costs,
must be used in providing programs for gifted and talented students
under Subchapter D, Chapter 29, including programs sanctioned by
International Baccalaureate and Advanced Placement, or in
developing programs for gifted and talented students. Each
district must account for the expenditure of state funds as
provided by rule of the State Board of Education. If by the end of
the 12th month after receiving an allocation [allotment] for
developing a program a district has failed to implement a program,
the district must refund the amount of the allocation [allotment]
to the agency within 30 days.
(c) Not more than five percent of a district's students in
average daily attendance are eligible for funding under this
chapter for attendance in a gifted and talented student program
[section].
(f) After each district has received allocated [allotted]
funds for this program, the State Board of Education may use up to
$500,000 of the funds allocated under Section 42.101(b)(18) [this
section] for programs such as MATHCOUNTS, Future Problem Solving,
Odyssey of the Mind, and Academic Decathlon, as long as these funds
are used to train personnel and provide program services. To be
eligible for funding under this subsection, a program must be
determined by the State Board of Education to provide services that
are effective and consistent with the state plan for gifted and
talented education.
SECTION 32. Section 42.158, Education Code, is redesignated
as Subchapter I, Chapter 42, Education Code, and amended to read as
follows:
SUBCHAPTER I. NEW INSTRUCTIONAL FACILITY ALLOTMENT
Sec. 42.451. DEFINITION. In this subchapter,
"instructional facility" has the meaning assigned by Section
46.001.
Sec. 42.452 [42.158]. NEW INSTRUCTIONAL FACILITY ALLOTMENT.
(a) A school district is entitled to an additional allotment as
provided by this subchapter [section] for operational expenses
associated with opening a new instructional facility.
(b) For the first school year in which students attend a new
instructional facility, a school district is entitled to an
allotment of $250 for each student in average daily attendance at
the facility. For the second school year in which students attend
that instructional facility, a school district is entitled to an
allotment of $250 for each additional student in average daily
attendance at the facility.
Sec. 42.453. COMPUTATION OF ADDITIONAL STUDENTS. [(c)]
For purposes of this subchapter [section], the number of additional
students in average daily attendance at a facility is the
difference between the number of students in average daily
attendance in the current year at that facility and the number of
students in average daily attendance at that facility in the
preceding year.
Sec. 42.454. LIMITATION ON ALLOTMENTS. (a) [(d)] The
amount appropriated for allotments under this subchapter [section]
may not exceed $25 million in a school year.
(b) If the total amount of allotments to which districts are
entitled under this subchapter [section] for a school year exceeds
the amount appropriated for allotments under this subchapter
[section], the commissioner shall reduce each district's allotment
under this subchapter [section] in the manner provided by Section
42.253(h).
Sec. 42.455. ELIGIBILITY FOR ALLOTMENT; REDUCTION IN COST
OF ATTENDANCE CREDITS. (a) A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this subchapter.
(b) [(e)] A school district that is required to take action
under Chapter 41 to reduce its wealth per student to the equalized
wealth level is entitled to a credit, in the amount of the
allotments to which the district is entitled under this subchapter
[section], against the total amount required under Section 41.093
for the district to purchase attendance credits.
Sec. 42.456. RULES. [A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
[(f)] The commissioner may adopt rules necessary to
implement this subchapter [section].
[(g) In this section, "instructional facility" has the
meaning assigned by Section 46.001.]
SECTION 33. Section 42.251, Education Code, is amended to
read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of the
adjusted basic program [allotment] under Subchapter B and the
transportation and new instructional facility [special] allotments
under Subchapters H and I [Subchapter C], computed in accordance
with this chapter, constitute the tier one allotments. The sum of
the tier one allotments and the enrichment tier [guaranteed yield]
allotments under Subchapter G [F], computed in accordance with this
chapter, constitute the total cost of the Foundation School
Program.
(b) The program shall be financed by:
(1) ad valorem tax revenue generated by an equalized
[uniform] school district effort;
(2) [ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;
[(3)] state available school funds distributed in
accordance with law; [and]
(3) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection;
and
(4) federal funds for purposes of primary and
secondary education other than funds that must be used for a
specific program or purpose.
SECTION 34. Section 42.2512(a), Education Code, is amended
to read as follows:
(a) A school district, including a school district that is
otherwise ineligible for state aid under this chapter, is entitled
to state aid in an amount, as determined by the commissioner, equal
to the difference, if any, between:
(1) an amount equal to the product of $3,000
multiplied by the number of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B,
Chapter 21, and full-time school nurses employed by the district
and entitled to a minimum salary under Section 21.402; and
(2) an amount equal to 80 percent of the sum of:
(A) the amount of additional funds to which the
district is entitled due to the increase [increases] made by
Chapter 396 [S.B. No. 4], Acts of the 76th Legislature, Regular
Session, 1999, to[:
[(A)] the equalized wealth level under Section
41.002; and
(B) the amount the district would have been
entitled to due to the increases made by Chapter 396, Acts of the
76th Legislature, Regular Session, 1999, to the basic allotment
under former Section 42.101[;] and
[(C)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under former
Section 42.302, if those funding elements were still in effect.
SECTION 35. Section 42.2514(b), Education Code, is amended
to read as follows:
(b) For each school year, a school district, including a
school district that is otherwise ineligible for state aid under
this chapter, or a participating charter school is entitled to
state aid in an amount, as determined by the commissioner, equal to
the difference, if any, between:
(1) the amount determined by multiplying the amount of
$900 or the amount specified in the General Appropriations Act for
that year for purposes of the state contribution under Section 9,
Article 3.50-7, Insurance Code, by the number of district or school
employees who participate in a group health coverage plan provided
by or through the district or school; and
(2) an amount equal to 75 percent of the sum of:
(A) the amount of [:
[(A)] additional funds to which the district [or
school] is entitled due to the increase made by Chapter 1187 [H.B.
No. 3343], Acts of the 77th Legislature, Regular Session, 2001, to
[:
[(i)] the equalized wealth level under
Section 41.002; and
(B) the amount the district or school would have
been entitled to due to the increase made by Chapter 1187, Acts of
the 77th Legislature, Regular Session, 2001, to
[(ii)] the guaranteed level of state and
local funds per weighted student per cent of tax effort under former
Section 42.302, if that funding element were still in effect[; or
[(B) additional state aid to which the district
is entitled under Section 42.2513].
SECTION 36. Sections 42.252(a) and (b), Education Code,
are amended to read as follows:
(a) Each school district's local share of the Foundation
School Program is determined by the following formula:
LS [LFA] = DTR [TR] X DPV
where:
"LS" ["LFA"] is the school district's tier one local share;
"DTR" ["TR"] is the district's [a] tax rate used in computing
the district's basic program under Section 42.101 [which for each
hundred dollars of valuation is an effective tax rate of $0.86]; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code, divided by 100.
(b) The commissioner shall adjust the values reported in the
official report of the comptroller as required by Section 5.09(a),
Tax Code, to reflect reductions in taxable value of property
resulting from natural or economic disaster after January 1 in the
year in which the valuations are determined. The decision of the
commissioner is final. An adjustment does not affect the local
share [fund assignment] of any other school district.
SECTION 37. Sections 42.253(a) and (c), Education Code,
are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B, H, and I [C];
(2) [the amount of money to which a school district is
entitled under Subchapter F;
[(3)] the amount of money allocated to the district
from the available school fund;
(3) [(4)] the amount of each district's tier one local
share under Section 42.252; and
(4) the amount of federal funds for purposes of
primary and secondary education to which a school district is
entitled, other than funds that must be used for a specific program
or purpose [(5) the amount of each district's tier two local share
under Section 42.302].
(c) Each school district is entitled to an amount equal to
the difference for that district between the amount determined
under Subsection [sum of Subsections] (a)(1) [and (a)(2)] and the
sum of Subsections (a)(2), (a)(3), and (a)(4)[, and (a)(5)].
SECTION 38. Section 42.257(b), Education Code, is amended
to read as follows:
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. An adjustment does not affect the local share [fund
assignment] of any other district.
SECTION 39. Section 42.260(b), Education Code, is amended
to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of:
(1) additional funds to which the district or school
is entitled due to the increase made by Chapter 1187 [H.B. No.
3343], Acts of the 77th Legislature, Regular Session, 2001, to[:
[(A)] the equalized wealth level under Section
41.002; and
(2) additional funds to which the district would have
been entitled due to the increase made by Chapter 1187, Acts of the
77th Legislature, Regular Session, 2001, to [or
[(B)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under former
Section 42.302, if that funding element were still in effect[; or
[(2) additional state aid to which the district or
school is entitled under Section 42.2513].
SECTION 40. Chapter 42, Education Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. ENRICHMENT GUARANTEED YIELD
Sec. 42.351. PURPOSE. The purpose of the enrichment
guaranteed yield component of the Foundation School Program is to
provide each school district with the opportunity to supplement the
basic program at a level of its own choice. An allotment under this
subchapter may be used for any legal purpose, including capital
outlay and debt service.
Sec. 42.352. ALLOTMENT. Each school district is guaranteed
a specified amount per student in state and local funds for each
cent of tax effort over the maximum rate for which a district is
guaranteed state and local funds under Section 42.101 up to the
maximum level specified in this subchapter. The amount of state
support, subject only to the maximum amount under Section 42.353,
is determined by the formula:
EGYA = (EGL X ADA X DETR X 100) - LR
where:
"EGYA" is the guaranteed yield amount of state enrichment
funds to be allocated to the district;
"EGL" is the dollar amount guaranteed level of state and
local enrichment funds per student per cent of tax effort, which is
$____ or a greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance;
"DETR" is the district enrichment tax rate of the school
district, which is determined by dividing the total amount of
enrichment taxes collected by the school district for the
applicable school year, determined as provided by Section 42.353,
by 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
"DETR" 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.
Sec. 42.353. DISTRICT ENRICHMENT TAX RATE. (a) The
district enrichment tax rate ("DETR") under Section 42.352 may not
exceed $____ per $100 of valuation.
(b) In computing the district enrichment tax rate of a
school district, the total amount of enrichment taxes collected by
the school district does not include the amount of:
(1) taxes with respect to which the district receives
state assistance under Subchapter B or Chapter 46; or
(2) taxes paid into a tax increment fund under Chapter
311, Tax Code.
(c) For purposes of this section:
(1) school district taxes for which credit is granted
under Section 31.035, 31.036, or 31.037, Tax Code, or under
Subchapter D, Chapter 313, Tax Code, are considered taxes collected
by the school district as if the taxes were paid when the credit for
the taxes was granted; and
(2) the total amount of taxes collected for an
applicable school year by a school district with alternate tax
dates, as authorized by Section 26.135, Tax Code, is the amount of
taxes collected on or after January 1 of the year in which the
school year begins and not later than December 31 of the same year.
Sec. 42.354. DISTRIBUTION OF SUPPLEMENTAL GUARANTEED
YIELD. (a) For each school year the commissioner shall determine
the guaranteed yield amount of state funds to which a school
district is entitled under Section 42.352.
(b) Except as provided by this subsection, the commissioner
shall base the determination under Subsection (a) on the estimates
provided to the legislature under Section 42.254 for each school
district for each school year. The commissioner shall reduce the
entitlement of each district that has a final taxable value of
property for the second year of a state fiscal biennium that is
higher than the estimate under Section 42.254. A reduction under
this subsection may not reduce the district's entitlement below the
amount to which it is entitled at its actual taxable value of
property. The sum of the reductions under this subsection may not
be greater than the amount necessary to fully fund the entitlement
of each district.
(c) The commissioner shall approve warrants to each school
district equaling the amount of its entitlement as determined under
Subsection (a) except as provided by this section. Warrants for all
money spent according to this chapter shall be approved and
transmitted as provided by Subchapter E. The total amount of the
warrants issued under this section may not exceed the total amount
appropriated for purposes of the supplemental guaranteed yield for
that fiscal year.
(d) If the total amount of state funds allocated to
districts under this subchapter for a fiscal year exceeds the
amount appropriated for that year and there are not funds available
under Subsection (f), the commissioner shall reduce the total
amount of state funds allocated to each district by an amount
determined by a method under which the application of the same
number of cents of increase in tax rate in all districts applied to
the taxable value of property of each district for purposes of
maintenance and operations, as determined under Section
403.302(d), Government Code, results in a total levy equal to the
total reduction. The following fiscal year, a district's
entitlement under this section is increased by an amount equal to
the reduction made under this subsection.
(e) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under this subchapter for the current school
year and shall compare that amount with the amount of the warrants
issued to the district under this section for that year. If the
amount of the warrants differs from the amount to which a district
is entitled because of variations in the district's tax rate,
student enrollment, or taxable value of property, the commissioner
shall adjust the district's entitlement for the next fiscal year
accordingly.
(f) The legislature may appropriate funds necessary for
increases under Subsection (e) from funds that the comptroller, at
any time during the fiscal year, finds are available.
SECTION 41. Section 8.051(d), Education Code, is amended to
read as follows:
(d) Each regional education service center shall maintain
core services for purchase by school districts and campuses. The
core services are:
(1) training and assistance in teaching each subject
area assessed under Section 39.023;
(2) training and assistance in providing each program
described by [that qualifies for a funding allotment under] Section
42.151, 42.152, 42.153, or 42.156;
(3) assistance specifically designed for a school
district rated academically unacceptable under Section 39.072(a)
or a campus whose performance is considered unacceptable based on
the indicators adopted under Section 39.051;
(4) training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5) assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6) assistance in complying with state laws and rules.
SECTION 42. Section 11.158(a), Education Code, is amended
to read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student's option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student's own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student's option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school's
regular staff, if participation in the course is at the student's
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school, except that the board may not charge a fee for
transportation for which the school district receives funds under
Section 42.404 [42.155(d)]; or
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092.
SECTION 43. Section 12.106(a), Education Code, is amended
to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 as if the
school were a school district without a tier one local share for
purposes of Section 42.253 and without any local revenue ("LR") for
purposes of Section 42.352 [42.302]. In determining funding for an
open-enrollment charter school, adjustments under Sections
[42.102,] 42.103, 42.104, and 42.105, the district tax rate ("DTR")
under Section 42.101, and the district enrichment tax rate ("DETR")
[("DTR")] under Section 42.352 [42.302] are based on the average
adjustment and average district [enrichment] tax rates [rate] for
the state.
SECTION 44. Section 13.054(f), Education Code, is amended
to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, the commissioner shall annually adjust the
local share [fund assignment] of a district to which territory is
annexed under this section by multiplying the enlarged district's
local share [fund assignment] computed under Section 42.252 by a
fraction, the numerator of which is the number of students residing
in the district preceding the date of the annexation and the
denominator of which is the number of students residing in the
district as enlarged on the date of the annexation.
SECTION 45. Sections 21.402(a), (b), and (c), Education
Code, are amended to read as follows:
(a) Except as provided by Subsection (d), (e), or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience, determined by the
following formula:
MS = SF X FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per [weighted] student
available to a district eligible to receive state assistance under
Section 42.101 [42.302] with a district [an enrichment] tax rate,
as defined by Section 42.101 [42.302], equal to the maximum rate
authorized under Section 42.102 [42.303, except that the amount of
state and local funds per weighted student does not include the
amount attributable to the increase in the guaranteed level made by
H.B. No. 3343, Acts of the 77th Legislature, Regular Session,
2001].
(b) Not later than June 1 of each year, the commissioner
shall determine the amount of state and local funds per [weighted]
student available, for purposes of Subsection (a), to a district
described by that subsection for the following school year.
(c) The salary factors per step are as follows:
Years Experience
0
1
2
Salary Factor
____[.5656]
____[.5790]
____[.5924]
Years Experience
3
4
5
Salary Factor
____[.6058]
____[.6340]
____[.6623]
Years Experience
6
7
8
Salary Factor
____[.6906]
____[.7168]
____[.7416]
Years Experience
9
10
11
Salary Factor
____[.7651]
____[.7872]
____[.8082]
Years Experience
12
13
14
Salary Factor
____[.8281]
____[.8467]
____[.8645]
Years Experience
15
16
17
Salary Factor
____[.8811]
____[.8970]
____[.9119]
Years Experience
18
19
20
and over
Salary Factor
____[.9260]
____[.9394]
.9520
SECTION 46. Section 29.002, Education Code, is amended to
read as follows:
Sec. 29.002. DEFINITION. In this subchapter, "special
services" means:
(1) special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in the regular classroom or in an instructional
arrangement described by Sections 42.101(b)(2)-(13) [Section
42.151]; and
(2) related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 47. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds. The local share
under this section of the total contract cost for each student is
that portion of the local tax effort that exceeds the district's
local share [fund assignment] under Section 42.252, divided by the
average daily attendance in the district. If the contract involves
a private facility, the state share of the total contract cost is
that amount remaining after subtracting the local share under this
section. If the contract involves a public facility, the state
share is that amount remaining after subtracting the local share
under this section from the portion of the contract that involves
the costs of instructional and related services. For purposes of
this subsection, "local tax effort" means the total amount of money
generated by taxes imposed for debt service and maintenance and
operation less any amounts paid into a tax increment fund under
Chapter 311, Tax Code.
SECTION 48. Section 29.014(d), Education Code, is amended
to read as follows:
(d) The guaranteed level of state and local funds per
student [basic allotment] for a student enrolled in a district to
which this section applies is adjusted by:
(1) the cost of education adjustment under Section
42.103 [42.102] for the school district in which the district is
geographically located; and
(2) the weight for a homebound student under Section
42.101(b)(3) [42.151(a)].
SECTION 49. Section 29.082(a), Education Code, is amended
to read as follows:
(a) A school district may set aside an amount from the
district's allocations [allotment] under Sections 42.101(b)(14)
and (15) [Section 42.152] or may apply to the agency for funding of
an extended year program for a period not to exceed 30 instructional
days for students in kindergarten through grade 8 who are
identified as likely not to be promoted to the next grade level for
the succeeding school year.
SECTION 50. Section 29.203(b), Education Code, is amended
to read as follows:
(b) A school district is entitled to the allocation
[allotment] provided by Section 42.101(b)(19) [42.157] for each
eligible student using a public education grant. [If the district
has a wealth per student greater than the guaranteed wealth level
but less than the equalized wealth level, a school district is
entitled under rules adopted by the commissioner to additional
state aid in an amount equal to the difference between the cost to
the district of providing services to a student using a public
education grant and the sum of the state aid received because of the
allotment under Section 42.157 and money from the available school
fund attributable to the student.]
SECTION 51. Section 34.002(c), Education Code, is amended
to read as follows:
(c) A school district that fails or refuses to meet the
safety standards for school buses established under this section is
ineligible to share in the transportation allotment under
Subchapter H, Chapter 42, [Section 42.155] until the first
anniversary of the date the district begins complying with the
safety standards.
SECTION 52. Section 39.024(c), Education Code, is amended
to read as follows:
(c) The agency shall develop study guides for the assessment
instruments administered under Sections 39.023(a), [and] (c), and
(l). To assist parents in providing assistance during the period
that school is recessed for summer, each school district shall
distribute the study guides to parents of students who do not
perform satisfactorily on one or more parts of an assessment
instrument administered under this subchapter. [The commissioner
shall retain a portion of the total amount of funds allotted under
Section 42.152(a) that the commissioner considers appropriate to
finance the development and distribution of the study guides and
shall reduce each district's allotment proportionately.]
SECTION 53. Section 39.031(a), Education Code, is amended
to read as follows:
(a) The cost of preparing, administering, or grading the
assessment instruments shall be paid from the funds allocated
[allotted] under Sections 42.101(b)(14) and (15) [Section 42.152],
and each district shall bear the cost in the same manner described
for a reduction [in allotments] under Section 42.253. If a district
does not receive an allocation [allotment] under Section
42.101(b)(14) or (15) [42.152], the commissioner shall subtract the
cost from the district's other foundation school fund allocations
[allotments].
SECTION 54. Section 45.003(d), Education Code, is amended
to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate, which may be not
more than $____ [$1.50] on the $100 valuation of taxable property in
the district, stated in the proposition.
SECTION 55. Section 45.006(b), Education Code, is amended
to read as follows:
(b) Notwithstanding Section 45.003, a school district may
levy, assess, and collect maintenance taxes at a rate that exceeds
$____ [$1.50] per $100 valuation of taxable property if:
(1) additional ad valorem taxes are necessary to pay a
debt of the district that:
(A) resulted from the rendition of a judgment
against the district before May 1, 1995;
(B) is greater than $5 million;
(C) decreases a property owner's ad valorem tax
liability;
(D) requires the district to refund to the
property owner the difference between the amount of taxes paid by
the property owner and the amount of taxes for which the property
owner is liable; and
(E) is payable according to the judgment in more
than one of the district's fiscal years; and
(2) the additional taxes are approved by the voters of
the district at an election held for that purpose.
SECTION 56. Sections 46.012 and 46.036, Education Code, as
added by Chapter 1156, Acts of the 77th Legislature, Regular
Session, 2001, are amended to read as follows:
Sec. 46.012. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under [Subchapter F,] Chapter 42.
Sec. 46.036. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under [Subchapter F,] Chapter 42.
SECTION 57. Section 56.208(b), Education Code, is amended
to read as follows:
(b) The commissioner of education shall reduce the total
annual amount of foundation school fund payments made to a school
district by an amount equal to F x A, where:
(1) "F" is the lesser of one or the quotient of the
district's tier one local share for the preceding school year under
Section 42.252 divided by the amount of money to which the district
was entitled under Subchapter [Subchapters] B [and C], Chapter 42,
for the preceding school year; and
(2) "A" is the amount of state tuition credits under
this subchapter applied by institutions of higher education on
behalf of eligible persons who graduated from the district that has
not been used to compute a previous reduction under this
subsection.
SECTION 58. Section 87.208, Education Code, is amended to
read as follows:
Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
regents of The Texas A&M University System administers a program
that is substantially similar to the Seaborne Conservation Corps as
it was administered by the board during the 1998-1999 school year,
the program is entitled, for each student enrolled, to allocations
[allotments] from the Foundation School Program under Chapter 42 as
if the program were a school district, except that the program has a
local share applied that is equivalent to the local share [fund
assignment] of the school district in which the principal
facilities of the program are located.
SECTION 59. Section 96.707(k), Education Code, is amended
to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to allocations [allotments] from the Foundation School
Program under Chapter 42 as if the academy were a school district,
except that the academy has a local share applied that is equivalent
to the tier one local share [fund assignment] of the Beaumont
Independent School District.
SECTION 60. Section 105.301(e), Education Code, is amended
to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.051 or
22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to allocations [allotments] from the foundation school program
under Chapter 42 as if the academy were a school district, except
that the academy has a local share applied that is equivalent to the
tier one local share [fund assignment] of the Denton Independent
School District.
SECTION 61. Section 317.005(f), Government Code, is
amended to read as follows:
(f) The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the foundation school program for a fiscal
year. The governor or board may not adopt such an order if it would
result in an allocation of money between particular programs or
statutory allotments under the foundation school program contrary
to the statutory proration formula provided by Section 42.253(h),
Education Code. The governor or board may transfer an amount to the
total amount appropriated to finance the foundation school program
for a fiscal year and may increase the guaranteed level of state and
local funds per student [basic allotment]. The governor or board
may adjust allocations of amounts between particular programs or
statutory allocations [allotments] under the foundation school
program only for the purpose of conforming the allocations to
actual student [pupil] enrollments or attendance.
SECTION 62. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district before disposing of the property in
another manner. If more than one public school or school district
seeks to acquire the same property on substantially the same terms,
the system, institution, or agency shall give preference to a
public school that is considered low-performing by the commissioner
of education or to a school district that has a taxable wealth per
student that entitles the district to an allotment of state funds
under Section 42.253(c) [Subchapter F, Chapter 42], Education Code.
SECTION 63. Section 26.08, Tax Code, is amended by adding
Subsection (n) to read as follows:
(n) In this section, "weighted average daily attendance" is
computed in the manner provided by Section 41.0011, Education Code.
SECTION 64. The following provisions of the Education Code
are repealed:
(1) Sections 29.203(c) and (g)(2), 42.104, 42.151(a),
(b), and (f), 42.152(a), 42.153(a), 42.154(a) and (b), 42.156(a),
(d), and (e), 42.157, 42.252(d), 42.253(l), and 42.4101;
(2) Subchapter F, Chapter 42; and
(3) Subchapter G, Chapter 42, as added by Chapter 260,
Acts of the 74th Legislature, Regular Session, 1995.
SECTION 65. This Act takes effect September 1, 2003.