By: Hochberg H.B. No. 83
A BILL TO BE ENTITLED
AN ACT
relating to public school finance matters; making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.005(a), Education Code, is amended to
read as follows:
(a) In this chapter, average daily attendance is:
(1) the quotient of the sum of attendance for each day
of the minimum number of days of instruction as described under
Section 25.081(a) divided by the minimum number of days of
instruction; [or]
(2) for a district that operates under a flexible year
program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1); or
(3) for a district that operates under a flexible
school day program under Section 29.0822, the sum of:
(A) average daily attendance as determined under
Subdivision (1), for students who are not served under Section
29.0822; and
(B) the average daily attendance as calculated by
the commissioner in accordance with Section 29.0822(d), for
students served under Section 29.0822.
SECTION 2. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. For each student in average
daily attendance, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C, a
district is entitled to an allotment of $_____ [$2,537]. A greater
amount for any school year may be provided by appropriation.
SECTION 3. Section 42.152, Education Code, is amended by
amending Subsections (a) and (t) and adding Subsection (c-3) to
read as follows:
(a) For each 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 legal guardian does not reside, a district is entitled to
an annual allotment equal to the adjusted basic allotment
multiplied by 0.25 [0.2], and by 2.41 for each full-time equivalent
student who is in a remedial and support program under Section
29.081 because the student is pregnant.
(c-3) Notwithstanding Subsection (c), a school district may
use funds allocated under this section to provide Saturday classes
for third grade students who fail to perform satisfactorily on an
assessment instrument administered under Section 39.023.
(b) A reduction made under this section, Section 39.031, or
the General Appropriations Act in the allotment under this section
does not affect the computation of students in weighted average
daily attendance for purposes of Subchapter F. The reduction in the
allotment under this section shall be applied in the same manner to
districts that receive state aid under this chapter and to
districts that make payments under Chapter 41.
SECTION 4. Section 42.153(a), Education Code, is amended to
read as follows:
(a) For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the adjusted basic allotment multiplied by 0.15 [0.1].
SECTION 5. Section 42.154(a), Education Code, is amended to
read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades [nine through 12 or in career and technology education
programs for students with disabilities in grades] seven through
12, a district is entitled to an annual allotment equal to the
adjusted basic allotment multiplied by a weight of 1.35.
SECTION 6. Section 42.155, Education Code, is amended by
adding Subsection (l) to read as follows:
(l) Beginning with the 2006-2007 school year, the allotment
per mile of approved route shall be at least 35 percent higher than
the allotment per mile of approved route for the 2005-2006 school
year.
SECTION 7. 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 amount of
additional funds to which the district is entitled due to the
increases made by H.B. No. ____, Acts of the 79th Legislature, 3rd
Called Session, 2006 [S.B. No. 4, Acts of the 76th Legislature,
Regular Session, 1999], to:
(A) the equalized wealth level under Section
41.002;
(B) the basic allotment under Section 42.101; and
(C) the guaranteed level of state and local funds
per weighted student per cent of tax effort under Section 42.302.
SECTION 8. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2513 to read as follows:
Sec. 42.2513. ADDITIONAL TRANSITIONAL AID. (a)
Notwithstanding any other provision of this chapter or Chapter 41,
a school district that imposes a maintenance and operations tax
rate of at least $____ per $100 valuation of taxable property is
entitled to the amount of state revenue necessary to maintain state
and local revenue per student in weighted average daily attendance
in the amount equal to the sum of:
(1) the amount of state and local revenue per student
in weighted average daily attendance for the maintenance and
operation of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as this
chapter existed on January 1, 2006, or, if the district would have
been subject to Chapter 41 as that chapter existed on January 1,
2006, the amount to which the district would have been entitled
under that chapter, based on the funding elements in effect for the
2004-2005 school year and including any amounts described by Rider
82, page III-23, Chapter 1330, Acts of the 78th Legislature,
Regular Session, 2003 (the General Appropriations Act); and
(2) an amount equal to three percent of the amount
described by Subdivision (1).
(b) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section.
The commissioner's determination is final and may not be appealed.
SECTION 9. Section 42.252(a), Education Code, is amended to
read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which when multiplied by the ratio of the
actual taxable value of the property in the district for the current
tax year divided by the taxable value of property in the district
for the preceding tax year as determined under Subchapter M,
Chapter 403, Government Code, raises $0.86 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.
SECTION 10. Section 42.302(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount equal to the quotient of the basic allotment under Section
42.101 divided by 86 [$27.14] or a greater amount for any year
provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation and[,] any allotment under
Section 42.158, [and 50 percent of the adjustment under Section
42.102,] by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by multiplying the district's adopted
maintenance and operations tax rate by the ratio of the actual
taxable value of the property in the district for the current tax
year divided by the taxable value of property in the district for
the preceding year as determined under Subchapter M, Chapter 403,
Government Code, and subtracting the district's tax rate ("TR") as
calculated under Section 42.252(a) [subtracting the amounts
specified by Subsection (b) from the total amount of maintenance
and operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100]; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, [or,
if applicable, under Section 42.2521,] divided by 100.
SECTION 11. Section 41.002(a), Education Code, is amended
to read as follows:
(a) A school district may not have a wealth per student that
exceeds the product of the amount of the guaranteed level of state
and local funds per weighted student per cent of tax effort under
Section 42.302 multiplied by 10,000 [$305,000].
SECTION 12. 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 42.302. In determining funding for an
open-enrollment charter school, adjustments under Sections 42.102,
42.103, 42.104, and 42.105 and the district enrichment tax rate
("DTR") under Section 42.302 are based on the average adjustment
and average district enrichment tax rate for the state, as
estimated at the beginning of the school year, and provided that the
amount of state funding for each student is not subject to
adjustment after the beginning of the school year due to changes in
property value or collection rates for the state.
SECTION 13. Section 26.08, Tax Code, is amended by adding
Subsections (a-1)-(a-3) and amending Subsections (i) and (k) to
read as follows:
(a-1) Except as provided by Subsection (a-2), for the 2006
tax year, a school district may not impose a tax for the maintenance
and operations of the district that exceeds the greater of:
(1) the rate equal to _____percent of the rate adopted
by the district for maintenance and operations for the 2005 tax
year; or
(2) the rate necessary to ensure that the district
receives the amount of revenue described by Sections 42.2513(a)(1)
and (2), Education Code, provided that the rate may not exceed $____
per $100 valuation of taxable property.
(a-2) Notwithstanding any other provision of law, for the
2006 tax year, a school district permitted by special law on January
1, 2006, to impose an ad valorem tax for maintenance and operations
at a rate greater than $1.50 per $100 valuation of taxable property
in the district may continue to impose a tax for the maintenance and
operations of the district at a rate not to exceed the rate that is
$____ less than the rate adopted by the district for maintenance and
operations for the 2005 tax year.
(a-3) Subsections (a-1) and (a-2) and this subsection
expire January 1, 2007.
(i) For purposes of this section, the rollback tax rate of a
school district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the rate of $____ [$0.06] per $100 of taxable
value; and
(3) the district's current debt rate.
(k) For purposes of this section, for the [2003, 2004,
2005,] 2006, 2007, or 2008 tax year, for a school district that is
entitled to state funds under Sections 1581.1015(c), (d), (e), and
(f) [Section 4(a-1), (a-2), (a-3), (a-4), (a-5), or (a-6), Article
3.50-9], Insurance Code, the rollback tax rate of the district is
the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the tax rate that, applied to the current total
value for the district, would impose taxes in the amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, permits the district to comply
with Section 1581.052 [3, Article 3.50-9], Insurance Code;
(3) the rate of $_____ [$0.06] per $100 of taxable
value; and
(4) the district's current debt rate.
SECTION 14. Section 311.013, Tax Code, is amended by adding
Subsection (n) to read as follows:
(n) This subsection applies only to a reinvestment zone
created before January 1, 2006, for which a school district entered
into an agreement before that date to pay a portion of the tax
increment produced by the school district into the tax increment
fund established for the zone. In addition to the amount the school
district is otherwise required to pay into the tax increment fund
each year, the comptroller shall pay into the fund from any
available source an additional amount. The additional amount is
the amount by which the amount the district would have been required
to pay into the fund for the current year under the agreement if the
district levied taxes at the district's 2005 tax rate exceeds the
amount the district is otherwise required to pay into the fund for
the current year. This subsection ceases to apply to the
reinvestment zone on the earlier of the dates specified by Sections
311.017(a)(1) and (2) for the reinvestment zone.
SECTION 15. Section 42.102, Subchapter B, Chapter 42,
Education Code is amended by amending Subsection (b) and by adding
Subsections (b-1), (b-2), (c), (c-1) and (c-2) to read as follows:
(b) The Legislative Budget Board shall adopt a cost of
education index based on a statistical analysis conducted on a
revenue neutral basis that is designed to isolate the independent
effects of uncontrollable factors on the compensation that school
districts must pay, including teacher salaries and other benefits.
The analysis must include, at a minimum, variations in teacher
characteristics, teacher work environments, and the economic and
social conditions of the communities in which teachers reside [The
cost of education adjustment 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].
(b-1) In this subsection, "teacher fixed effects index"
means the teacher fixed effects index detailed in the 2004 report
commissioned by the Joint Select Committee on Public School Finance
of the 78th Legislature. Notwithstanding Subsection (a), the cost
of education index for purposes of that subsection for the
following school years is determined using the teacher fixed
effects index in the following manner:
(1) for the 2006-2007 school year, the index shall be
computed giving a weight of 25 percent to the teacher fixed effects
index and a weight of 75 percent to the index used to determine a
school district's adjustment for the 2005-2006 school year;
(2) for the 2007-2008 school year, the index shall be
computed giving a weight of 50 percent to the teacher fixed effects
index and a weight of 50 percent to the index used to determine a
school district's adjustment for the 2005-2006 school year;
(3) for the 2008-2009 school year, the index shall be
computed giving a weight of 75 percent to the teacher fixed effects
index and a weight of 25 percent to the index used to determine a
school district's adjustment for the 2005-2006 school year; and
(4) for the 2009-2010 and 2010-2011 school years, the
cost of education index for purposes of Subsection (a) is the
teacher fixed effects index.
(b-2) All information relating to the computation and
adoption of the cost of education index under this section,
including underlying data, assumptions, and computations used in
the development of the index, is public information.
(c) The Legislative Budget Board shall biennially update
the cost of education index required by this section. The
Legislative Budget Board shall submit the updated index to the
legislature not later than December 1 of each even-numbered year.
(c-1) The Legislative Budget Board shall submit the initial
update required by Subsection (c) not later than December 1, 2010.
(c-2) Subsections (b-1) and (c-1) and this subsection
expire September 1, 2011.
SECTION 16. Section 11.13(b), Tax Code, is amended to read
as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $45,000 [$15,000] of the appraised value of the
adult's residence homestead, except that only $5,000 [$10,000] of
the exemption applies [does not apply] to an entity operating under
former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those
chapters existed on May 1, 1995, as permitted by Section 11.301,
Education Code.
SECTION 17. Section 11.26(a), Tax Code, is amended to read
as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2006 [1997] tax
year, the amount of the limitation provided by this section is the
amount of tax the school district imposed for the 2005 [1996] tax
year less an amount equal to the amount determined by multiplying
$30,000 [$10,000] times the tax rate of the school district for the
2006 [1997] tax year, plus any 2006 [1997] tax attributable to
improvements made in 2005 [1996], other than improvements made to
comply with governmental regulations or repairs.
SECTION 18. Section 42.2511(a), Education Code, is amended
to read as follows:
(a) Notwithstanding any other provision of this chapter, a
school district is entitled to additional state aid to the extent
that state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter M, Chapter 403, Government Code, does not fully
compensate the district for ad valorem tax revenue lost due to:
(1) the increase in the homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, as proposed by
H.J.R. No. 4, 75th Legislature, Regular Session, 1997, or as
proposed by the joint resolution to amend that section adopted by
the 79th Legislature, 3rd Called Session, 2006; and
(2) the additional limitation on tax increases under
Section 1-b(d), Article VIII, Texas Constitution, as proposed by
H.J.R. No. 4, 75th Legislature, Regular Session, 1997, or as
proposed by the joint resolution to amend that section adopted by
the 79th Legislature, 3rd Called Session, 2006.
SECTION 19. Section 403.302(j), Government Code, is amended
to read as follows:
(j) For purposes of Section 42.2511, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000; [and]
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; and
(3) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $45,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by the joint resolution to amend that
section adopted by the 79th Legislature, 3rd Called Session, 2006.
SECTION 20. Section 21.402, Education Code, is amended by
amending Subsections (a) and (d) and adding Subsections (c-1),
(c-2), and (c-3), 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 42.302 with an enrichment tax rate, as defined by Section
42.302, equal to the maximum rate authorized under Section 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 Chapter 1187 [H.B. No. 3343], Acts of the
77th Legislature, Regular Session, 2001, and by H.B. No. , Acts of
the 79th Legislature, 3rd Called Session, 2006.
(c-1) Not later than June 1, 2007, the commissioner shall
adjust the factors described by Subsection (c) so that the minimum
monthly salary calculated under Subsection (a) is $____ greater
than the minimum monthly salary that the formula would have
otherwise generated.
(c-2) Notwithstanding Subsection (a), for the 2006-2007
school year, a classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
is entitled to a monthly salary that is at least equal to the sum of:
(1) the monthly salary the employee would have
received for the 2006-2007 school year under the district's salary
schedule or other compensation system, including any local
supplement and any money representing a career ladder supplement
the employee would have received in the 2006-2007 school year; and
(2)$____
(c-3) Subsection (c-2) and this subsection expire September
1, 2007.
(d) A classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
employed by a school district in the 2006-2007 [2000 2001] school
year is, as long as the employee is employed by the same district,
entitled to a salary that is at least equal to the salary the
employee received for the 2006-2007 [2000 2001] school year.
SECTION 21. Subchapter I, Chapter 21, Education Code, is
amended by adding Section 21.4021 to read as follows:
Sec. 21.4021. ADDITIONAL COMPENSATION. In addition to the
amounts specified under Section 21.402, each school district shall
spend an amount equal to the product of $_____ multiplied by the
number of classroom teachers, full-time librarians, full-time
counselors certified under Subchapter B, and full-time school
nurses employed by the district and entitled to a minimum salary
under Section 21.402 on:
(1) additional across-the-board salary increases for
all employees subject to the minimum salary schedule; or
(2) additional stipends, in amounts determined by the
district, to encourage successful classroom teachers who hold
appropriate certificates issued as provided by Subchapter B and
have at least three years of classroom experience to:
(A) teach or serve as a mentor or master teacher
at a campus that is considered low-performing under Section 39.132;
(B) teach or serve as a mentor or master teacher
at a campus or in a program where at least 70 percent of the students
are educationally disadvantaged;
(C) serve as a mentor or master teacher in a
subject in which the teacher is certified and which is designated by
the commissioner as a critical shortage area; or
(D) teach or serve in a program that is designed
to provide highly qualified teachers to students who are at risk of
failing or dropping out of school.
SECTION 22. Subchapter C, Chapter 29, Education Code, is
amended by adding Section 29.0822 to read as follows:
Sec. 29.0822. OPTIONAL FLEXIBLE SCHOOL DAY PROGRAM.(a)
Notwithstanding Section 25.081 or 25.082(a), a school district may
provide a flexible school day program for students in grades nine
through 12 who have dropped out of school or for students at risk of
dropping out of school. As used in this subsection "students at
risk of dropping out of school" has the meaning assigned by Section
29.081.
(b) To enable a school district to provide a program under
this section that meets the needs of students described by
Subsection (a), a school district may:
(1) provide flexibility in the number of hours each
day a student attends;
(2) provide flexibility in the number of days each
week a student attends; or
(3) allow a student to enroll in less or more than a
full course load.
(c) A course offered in a program under this section must
provide for at least the same number of instructional hours as
required for a course offered in a program that meets the required
minimum number of instructional days under Section 25.081 and the
required length of school day under Section 25.082(a).
(d) The commissioner may adopt rules for the administration
of this section. The commissioner shall calculate average daily
attendance for students served under this section. The
commissioner shall allow accumulations of hours of instruction for
students whose schedule would not otherwise allow full state
funding. Funding under this subsection shall be determined based
on the number of instructional days in the district calendar and a
seven-hour school day, but attendance may be cumulated over a
school year, inclusive of any summer or vacation sessions. The
attendance of students who accumulate less than the number of
attendance hours required under this subsection shall be
proportionately reduced for funding purposes. The commissioner may
set maximum funding amounts for an individual course under this
section.
SECTION 23. Section 32.005 (a), Education Code, is amended
to read as follows:
(a) Each school district is entitled to an allotment of
$____ [$30] for each student in average daily attendance or a
different amount for any year provided by appropriation.
SECTION 24. Section 22.103, Education Code, as added by
Chapter 1359, Acts of the 79th Legislature, Regular Session, 2005,
is amended to read as follows:
Sec. 22.103. DISTRIBUTION BY AGENCY. Each [Subject to the
availability of funds, each] month the agency shall deliver to each
district, including a district that is ineligible for state aid
under Chapter 42, each other educational district that is a member
of the Teacher Retirement System of Texas, each participating
charter school, and each regional education service center state
funds in an amount, as determined by the agency, equal to the
product of the number of employees employed by the district,
school, or service center multiplied by $1,000, or by a greater
[the] amount specified in the General Appropriations Act for
purposes of this subchapter, and divided by 12. The agency shall
distribute funding to only one entity for employees who are
employed by more than one entity listed in this section.
SECTION 25. Sections 22.103-22.110, Education Code, as
added by Chapter 899, Acts of the 79th Legislature, Regular
Session, 2005, are repealed.
SECTION 26. In addition to amounts previously appropriated
for the state fiscal biennium ending August 31, 2007, $_______ is
appropriated to the Texas Education Agency out of the general
revenue fund for the following purposes:
(1) $_____ to implement the provisions of this bill;
(2) $_____ for the purpose of new issuances under the
Instructional Facilities Allotment;
(3) $_____ to the Teacher Retirement Fund to reduce
actuarial shortfalls in the fund;
(4) $_____ for Pension Contribution;
(5) $_____ for Pension Benefit Restoration;
(6) $_____ for Retired school Employee Health Care;
(7) $_____ to restore funding and expand pre-K
programs;
(8) $_____ to restore funding for Master Reading &
Math Teacher Program;
(9) $_____ to restore funding for the Reading, Math &
Science Initiative;
(10) $_____ to restore funding for the After School
Initiative;
(11) $_____ to restore funding for Disciplinary
Alternative Education Programs;
(12) $_____ to restore funding for Extended Year
Programs;
(13) $_____ to restore funding for the High School
Initiative;
(14) $_____ to restore funding for the Student Success
Initiative;
(15) $_____ to restore funding for the Advanced
Placement Incentive Program;
(16) $_____ to fund textbooks already purchased;
(17) $_____ for purchase of textbooks deferred from
Proclamation 2002.
SECTION 27. (a) Except where otherwise provided by this
Act, this Act applies beginning with the 2006-2007 school year.
(b) The changes in law made by this Act relating to the
maintenance and operations tax rate of a school district take
effect beginning with the 2006 tax year.
(c) If before the effective date of this Act, the governing
body of a school district adopted an ad valorem tax rate for the
district for the 2006 tax year under the law in effect immediately
before the effective date of this Act, and the adopted ad valorem
tax rate included a rate for maintenance and operations expenses
that is greater than the maximum maintenance and operations tax
rate for the 2006 tax year permitted under this Act:
(1) on the effective date of this Act, the ad valorem
tax rate adopted for the district is invalidated; and
(2) the governing body shall adopt an ad valorem tax
rate for the 2006 tax year in accordance with the changes in law
made by this Act.
(d) If tax bills for the 2006 tax year were sent by the tax
assessor for a school district pursuant to a tax rate invalidated
under Subsection (b) (1) of this section, the tax assessor for the
school district shall prepare and mail a new tax bill for the 2006
tax year to each taxpayer of the district in the manner required by
Chapter 31, Tax Code. If a taxpayer pays the taxes for the 2006 tax
year pursuant to a tax rate invalidated under Subsection (b) (1) of
this section, the school district shall refund any difference
between the tax paid and the tax due at the rate adopted under
Subsection (b) (2) of this section.
(e) If this Act is passed by the legislature without
receiving a vote of two-thirds of all the members elected to each
house, any action taken before the effective date of this Act in
preparation for the implementation of the changes in law made by
this Act, including adoption of a maintenance and operations tax
rate, by an officer or employee or the governing body of a school
district that the officer, employee, or governing body determines
is necessary or appropriate and that the officer, employee, or
governing body would have been authorized to take had this Act been
in effect at the time of the action is validated as of the effective
date of this Act. Any public notice required by Chapter 26, Tax
Code, or Chapter 44, Education Code, given before the effective
date of this Act that includes an additional statement that the tax
rate for the school district will be adopted in accordance with the
changes in law made by this Act is validated as of the effective
date of this Act.
SECTION 28. (a) Except where otherwise provided by this
Act, this Act takes effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, this Act takes
effect on the 91st day after the last day of the legislative
session.
(b) Sections 16 through 19 take effect January 1, 2007, but
only if the constitutional amendment proposed by the 79th
Legislature, 3rd Called Session, 2006, increasing the amount of the
school district residence homestead property tax exemption to
$45,000 and providing for a corresponding adjustment of the
limitation on school taxes on residence homesteads of elderly and
disabled persons is approved by the voters. If that amendment is
not approved by the voters, these sections have no effect.