By:  Shapiro                                                      S.B. No. 900
	(In the Senate - Filed March 5, 2003; March 11, 2003, read 
first time and referred to Committee on Education; March 19, 2003, 
reported favorably by the following vote:  Yeas 8, Nays 0; 
March 19, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to computation and reporting of the ratios of a school 
district's expenditures and personnel relating to direct student 
instruction.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 44, Education Code, is 
amended by adding Section 44.0071 to read as follows:
	Sec. 44.0071.  COMPUTATION OF INSTRUCTIONAL EXPENDITURES 
RATIO AND INSTRUCTIONAL EMPLOYEES RATIO.  (a)  Each fiscal year, a 
school district shall compute and report to the commissioner:
		(1)  the percentage of the district's total 
expenditures for the preceding fiscal year that were used to fund 
direct instructional activities; and
		(2)  the percentage of the district's full-time 
equivalent employees during the preceding fiscal year whose only 
job function was to directly provide classroom instruction to 
students.
	(b)  At least annually a school district shall provide 
educators employed by the district with a list of district 
employees determined by the district for purposes of this section 
to be engaged only in providing classroom instruction to students.
	(c)  For purposes of this section:                                      
		(1)  a district's total expenditures include amounts 
spent on physical plant construction or operation; and
		(2)  the computation of a district's expenditures used 
to fund direct instructional activities may include the salary, 
including any associated employment taxes, and value of any 
benefits provided to a district employee only if the employee's 
only job function was to provide classroom instruction to students.
	(d)  The commissioner shall adopt rules as necessary to 
implement this section.
	SECTION 2.  Subsections (b) and (c), Section 39.052, 
Education Code, are amended to read as follows:
	(b)  The report card shall include the following information 
[where applicable]:
		(1)  where applicable, the academic excellence 
indicators adopted under Sections 39.051(b)(1) through (9);
		(2)  average class size by grade level and subject; 
[and]  
		(3)  the administrative and instructional costs per 
student, computed in a manner consistent 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)  The commissioner shall adopt rules [for] requiring 
dissemination of the information required under Subsection (b)(4) 
and appropriate class size and student performance portions of 
campus report cards annually to the parent, guardian, conservator, 
or other person having lawful control of each student at the campus.  
On written request, the school district shall provide a copy of a 
campus report card to any other party.
	SECTION 3.  Subsection (a), Section 39.182, Education Code, 
is amended to read as follows:
	(a)  Not later than December 1 of each year, the agency shall 
prepare and deliver to the governor, the lieutenant governor, the 
speaker of the house of representatives, each member of the 
legislature, the Legislative Budget Board, and the clerks of the 
standing committees of the senate and house of representatives with 
primary jurisdiction over the public school system a comprehensive 
report covering the preceding school year and containing:
		(1)  an evaluation of the achievements of the state 
educational program in relation to the statutory goals for the 
public education system under Section 4.002;
		(2)  an evaluation of the status of education in the 
state as reflected by the academic excellence indicators adopted 
under Section 39.051;
		(3)  a summary compilation of overall student 
performance on academic skills assessment instruments required by 
Section 39.023 with the number and percentage of students exempted 
from the administration of those instruments and the basis of the 
exemptions, aggregated by grade level, subject area, campus, and 
district, with appropriate interpretations and analysis, and 
disaggregated by race, ethnicity, gender, and socioeconomic 
status;
		(4)  a summary compilation of overall performance of 
students placed in an alternative education program established 
under Section 37.008 on academic skills assessment instruments 
required by Section 39.023 with the number of those students 
exempted from the administration of those instruments and the basis 
of the exemptions, aggregated by district, grade level, and subject 
area, with appropriate interpretations and analysis, and 
disaggregated by race, ethnicity, gender, and socioeconomic 
status;
		(5)  a summary compilation of overall performance of 
students at risk of dropping out of school, as defined by Section 
29.081(d), on academic skills assessment instruments required by 
Section 39.023 with the number of those students exempted from the 
administration of those instruments and the basis of the 
exemptions, aggregated by district, grade level, and subject area, 
with appropriate interpretations and analysis, and disaggregated 
by race, ethnicity, gender, and socioeconomic status;
		(6)  an evaluation of the correlation between student 
grades and student performance on academic skills assessment 
instruments required by Section 39.023;
		(7)  a statement of the dropout rate of students in 
grade levels 7 through 12, expressed in the aggregate and by grade 
level, and a statement of the completion rates of students for grade 
levels 9 through 12;
		(8)  a statement of:                                                          
			(A)  the completion rate of students who enter 
grade level 9 and graduate not more than four years later;
			(B)  the completion rate of students who enter 
grade level 9 and graduate, including students who require more 
than four years to graduate;
			(C)  the completion rate of students who enter 
grade level 9 and not more than four years later receive a high 
school equivalency certificate;
			(D)  the completion rate of students who enter 
grade level 9 and receive a high school equivalency certificate, 
including students who require more than four years to receive a 
certificate; and
			(E)  the number and percentage of all students who 
have not been accounted for under Paragraph (A), (B), (C), or (D);
		(9)  a statement of the projected cross-sectional and 
longitudinal dropout rates for grade levels 9 through 12 for the 
next five years, assuming no state action is taken to reduce the 
dropout rate;
		(10)  a description of a systematic, measurable plan 
for reducing the projected cross-sectional and longitudinal 
dropout rates to five percent or less for the 1997-1998 school year;
		(11)  a summary of the information required by Section 
29.083 regarding grade level retention of students and information 
concerning:
			(A)  the number and percentage of students 
retained; and                   
			(B)  the performance of retained students on 
assessment instruments required under Section 39.023(a);
		(12)  information, aggregated by district type and 
disaggregated by race, ethnicity, gender, and socioeconomic 
status, on:
			(A)  the number of students placed in an 
alternative education program established under Section 37.008;
			(B)  the average length of a student's placement 
in an alternative education program established under Section 
37.008;
			(C)  the academic performance of students on 
assessment instruments required under Section 39.023(a) during the 
year preceding and during the year following placement in an 
alternative education program; and
			(D)  the dropout rates of students who have been 
placed in an alternative education program established under 
Section 37.008;
		(13)  a list of each school district or campus that does 
not satisfy performance standards, with an explanation of the 
actions taken by the commissioner to improve student performance in 
the district or campus and an evaluation of the results of those 
actions;
		(14)  an evaluation of the status of the curriculum 
taught in public schools, with recommendations for legislative 
changes necessary to improve or modify the curriculum required by 
Section 28.002;
		(15)  a description of all funds received by and each 
activity and expenditure of the agency;
		(16)  a summary and analysis of the instructional 
expenditures ratios and instructional employees ratios
[compliance] of school districts computed [with administrative 
cost ratios set by the commissioner] under Section 44.0071 [42.201, 
including any improvements and cost savings achieved by school 
districts];
		(17)  a summary of the effect of deregulation, 
including exemptions and waivers granted under Section 7.056 or 
39.112;
		(18)  a statement of the total number and length of 
reports that school districts and school district employees must 
submit to the agency, identifying which reports are required by 
federal statute or rule, state statute, or agency rule, and a 
summary of the agency's efforts to reduce overall reporting 
requirements;
		(19)  a list of each school district that is not in 
compliance with state special education requirements, including:
			(A)  the period for which the district has not 
been in compliance;         
			(B)  the manner in which the agency considered the 
district's failure to comply in determining the district's 
accreditation status; and
			(C)  an explanation of the actions taken by the 
commissioner to ensure compliance and an evaluation of the results 
of those actions;
		(20)  a comparison of the performance of 
open-enrollment charter schools and school districts on the 
academic excellence indicators specified in Section 39.051(b) and 
accountability measures adopted under Section 39.051(g), with a 
separately aggregated comparison of the performance of 
open-enrollment charter schools predominantly serving students at 
risk of dropping out of school, as defined by Section 29.081(d), 
with the performance of school districts; and
		(21)  any additional information considered important 
by the commissioner or the State Board of Education.
	SECTION 4.  Subchapter D, Chapter 42, Education Code, is 
repealed.           
	SECTION 5.  This Act takes effect September 1, 2003.                           
	SECTION 6.  The repeal of Subchapter D, Chapter 42, 
Education Code, by this Act does not affect the liability of a 
school district for excess administrative costs during the 
2002-2003 school year that the commissioner of education is 
entitled to recover during the 2003-2004 school year under 
Subsection (d), Section 42.201, Education Code, as that subsection 
existed on January 1, 2003, and the former law is continued in 
effect for that purpose.
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