79S30651 ESH-D
By: Pitts H.B. No. 91
A BILL TO BE ENTITLED
AN ACT
relating to certification of and salaries for certain professional
public school employees, public school finance, and school property
tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CERTIFICATION OF AND SALARIES FOR CERTAIN
PROFESSIONAL PUBLIC SCHOOL EMPLOYEES
SECTION 1.01. Section 21.003(a), Education Code, is amended
to read as follows:
(a) A person may not be employed as a teacher, teacher
intern or teacher trainee, librarian, educational aide,
administrator, educational diagnostician, or counselor by a school
district unless the person holds an appropriate certificate or
permit issued as provided by Subchapter B.
SECTION 1.02. Effective September 1, 2006, Section 21.402,
Education Code, is amended by amending Subsections (a)-(d) and
adding Subsections (c-1)-(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 BA [FS]
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"BA" is the amount of the basic allotment under Section
42.101. ["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 H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001.]
(b) Not later than July [June] 1 of each year, the
commissioner shall determine the amount of the basic allotment
[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:
YearsExperience 0 1 2 3 4
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 2007-2008 [2000-2001] school year.
SECTION 1.03. Effective September 1, 2007, Section
21.402(c), Education Code, is amended to read as follows:
(c) The salary factors per step are as follows:
YearsExperience 0 1 2 3 4
20] is reached.
SECTION 1.06. Effective September 1, 2009, Section
21.402(c), Education Code, is amended to read as follows:
(c) The salary factors per step are as follows:
YearsExperience 0 1 2 3 4
20] is reached.
SECTION 1.08. Effective September 1, 2010, Section
21.402(c), Education Code, is amended to read as follows:
(c) The salary factors per step are as follows:
YearsExperience 0 1 2 3 4
20] is reached.
SECTION 1.10. Not later than January 1, 2007, the State
Board for Educator Certification shall propose rules governing the
certification of educational diagnosticians. Section 21.003(a),
Education Code, as amended by this Act, applies only to the
employment of an educational diagnostician by a school district on
or after September 1, 2007.
ARTICLE 2. PUBLIC SCHOOL FINANCE
SECTION 2.01. Section 7.024(a), Education Code, is amended
to read as follows:
(a) The investment capital fund consists of money
appropriated for purposes of [transferred to] the fund [as provided
by Section 42.152(l)]. The agency shall administer the fund. The
purposes of this fund are to assist eligible public schools to
implement practices and procedures consistent with deregulation
and school restructuring in order to improve student achievement
and to help schools identify and train parents and community
leaders who will hold the school and the school district
accountable for achieving high academic standards.
SECTION 2.02. Section 12.106, 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 meaningful discretion [district
enrichment] tax rate ("MDTR") [("DTR")] under Section 42.302 are
based on the average adjustment and average meaningful discretion
[district enrichment] tax rate for the state.
SECTION 2.03. Section 29.014, Education Code, is amended by
adding Subsection (e) to read as follows:
(e) From funds appropriated for the purpose, the
commissioner shall distribute funds to school districts for
programs under this section. The program established under this
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.
SECTION 2.04. Section 29.082, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) From funds appropriated for the purpose, the
commissioner shall distribute funds to finance extended year
programs under this section. The commissioner shall give priority
to applications for extended year programs to districts with high
concentrations of educationally disadvantaged students.
SECTION 2.05. Section 29.085, Education Code, is amended by
adding Subsection (e) to read as follows:
(e) From funds appropriated for the purpose, the
commissioner shall distribute funds for programs under this
section. In distributing those funds, the commissioner shall give
preference to school districts that received funds for a program
under this section for the preceding school year and then to the
districts that have the highest concentration of students who are
pregnant or who are parents. To receive funds for a program under
this section, a school district must apply to the commissioner. A
program established under this 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.
SECTION 2.06. Subchapter F, Chapter 29, Education Code, is
amended by adding Section 29.189 to read as follows:
Sec. 29.189. REGIONAL CAREER AND TECHNOLOGY EDUCATION
PLANNING. The commissioner shall use the amount specified in the
General Appropriations Act to support regional career and
technology education planning.
SECTION 2.07. Section 32.005, Education Code, is amended to
read as follows:
Sec. 32.005. TECHNOLOGY ALLOTMENT. (a) Each school
district is entitled to an allotment of $150 [$30] for each student
in average daily attendance or a greater [different] amount for any
year provided by appropriation.
(a-1) Subsection (a) applies beginning with the 2011-2012
school year. For the 2006-2007 through 2010-2011 school years, each
school district is entitled to an allotment in the following
amount, or a greater amount for any year provided by appropriation:
(1) for the 2006-2007 school year, $30;
(2) for the 2007-2008 school year, $50;
(3) for the 2008-2009 school year, $75;
(4) for the 2009-2010 school year, $100; and
(5) for the 2010-2011 school year, $125.
(a-2) Subsection (a-1) and this subsection expire September
1, 2011.
(b) An allotment under this section may be used only to:
(1) provide for the purchase by school districts of
electronic textbooks or technological equipment that contributes
to student learning; [and]
(2) pay for training educational personnel directly
involved in student learning in the appropriate use of electronic
textbooks and for providing for access to technological equipment
for instructional use;
(3) pay the salaries of educational personnel directly
involved in acquiring, installing, or maintaining technological
equipment for instructional use; and
(4) pay the costs of establishing and maintaining
information systems networks used for instructional purposes.
(c) The allotment under this section may be paid from:
(1) the telecommunications infrastructure fund under
Subchapter C, Chapter 57, Utilities Code;
(2) the available school fund, to the extent that the
amount appropriated from the telecommunications infrastructure
fund is not sufficient to fully fund the allotment; or
(3) any other fund that may be used for that purpose
and that is identified in the General Appropriations Act as the
source of payment of the allotment, to the extent that the amounts
appropriated from the funds described by Subdivisions (1) and (2)
are not sufficient to fully fund the allotment.
SECTION 2.08. Section 33.002(a), Education Code, is amended
to read as follows:
(a) From funds appropriated for the purpose, the
commissioner shall distribute funds for programs under this
subchapter. In distributing those funds, the commissioner shall
give preference to a school district that received funds under this
subsection for the preceding school year and then to the districts
that have the highest concentration of students at risk of dropping
out of school, as described by Section 29.081. To receive funds for
the program, a school district must apply to the commissioner. For
each school year that a school district receives funds under this
subsection, the district shall allocate an amount of local funds
for school guidance and counseling programs that is equal to or
greater than the amount of local funds that the school district
allocated for that purpose during the preceding school year. This
section applies only to a school district that receives funds as
provided by this subsection [Section 42.152(i)].
SECTION 2.09. Sections 39.024(c) and (d), Education Code,
are amended to read as follows:
(c) Using funds appropriated for purposes of this
subsection, the [The] agency shall develop study guides for the
assessment instruments administered under Sections 39.023(a) and
(c). 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.
(d) Using funds appropriated for purposes of this
subsection, the [The] agency shall develop and make available
teacher training materials and other teacher training resources to
assist teachers in enabling students of limited English proficiency
to meet state performance expectations. The teacher training
resources shall be designed to support intensive, individualized,
and accelerated instructional programs developed by school
districts for students of limited English proficiency.
SECTION 2.10. Section 39.031, Education Code, is amended to
read as follows:
Sec. 39.031. COST. [(a)] The commissioner shall pay the
cost of preparing, administering, or grading the assessment
instruments and the [shall be paid from the funds allotted under
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 allotment under Section
42.152, the commissioner shall subtract the cost from the
district's other foundation school fund allotments.
[(b) The] cost of releasing the question and answer keys
under Section 39.023(e) [shall be paid] from amounts appropriated
to the agency for those purposes.
SECTION 2.11. The heading to Chapter 41, Education Code, is
amended to read as follows:
CHAPTER 41. EQUALIZATION ACTIONS [EQUALIZED WEALTH LEVEL]
SECTION 2.12. Section 41.004, Education Code, is amended to
read as follows:
Sec. 41.004. ANNUAL REVIEW OF EQUALIZATION [PROPERTY
WEALTH]. (a) Not later than July 15 of each year, using the
estimate of enrollment under Section 42.254, the commissioner shall
review the local share and tier one allotment [wealth per student]
of each school district [districts] in the state and shall notify:
(1) each district subject to commissioner action under
Section 42.401 [with wealth per student exceeding the equalized
wealth level]; and
(2) [each district to which the commissioner proposes
to annex property detached from a district notified under
Subdivision (1), if necessary, under Subchapter G; and
[(3)] each district to which the commissioner proposes
to consolidate a district notified under Subdivision (1), if
necessary, under Subchapter H.
(b) If, before the dates provided by this subsection, a
district notified under Subsection (a)(1) has not purchased average
daily attendance credit as provided by Subchapter D [successfully
exercised one or more options under Section 41.003 that reduce the
district's wealth per student to a level equal to or less than the
equalized wealth level], the commissioner [shall order the
detachment of property from that district as provided by Subchapter
G. If that detachment will not reduce the district's wealth per
student to a level equal to or less than the equalized wealth level,
the commissioner may not detach property under Subchapter G but]
shall order the consolidation of the district with one or more other
districts as provided by Subchapter H. [An agreement under Section
41.003(1) or (2) must be executed not later than September 1
immediately following the notice under Subsection (a).] An
election to authorize the purchase of average daily attendance
credit as provided by Subchapter D [for an option under Section
41.003(3), (4), or (5)] must be ordered before September 1
immediately following the notice under Subsection (a).
(c) A district notified under Subsection (a) may not adopt a
tax rate for the tax year in which the district receives the notice
until the commissioner certifies that the district has entered into
an agreement under Subchapter D to purchase average daily
attendance credit [achieved the equalized wealth level].
(d) A [detachment and annexation or] consolidation under
this chapter:
(1) is effective for Foundation School Program funding
purposes for the school year that begins in the calendar year in
which the [detachment and annexation or] consolidation is [agreed
to or] ordered; and
(2) applies to the ad valorem taxation of property
beginning with the tax year in which the [agreement or] order is
effective.
SECTION 2.13. 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 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 Section 42.401 [this chapter] and estimates of
student enrollments, will match appropriation levels.
SECTION 2.14. Section 41.008(a), Education Code, is amended
to read as follows:
(a) The governing board of a school district that results
from consolidation under this chapter[, including a consolidated
taxing district under Subchapter F,] for the tax year in which the
consolidation occurs may determine whether to adopt a homestead
exemption provided by Section 11.13, Tax Code, and may set the
amount of the exemption, if adopted, at any time before the school
district adopts a tax rate for that tax year. This section applies
only to an exemption that the governing board of a school district
is authorized to adopt or change in amount under Section 11.13, Tax
Code.
SECTION 2.15. Section 41.009(a), Education Code, is amended
to read as follows:
(a) A tax abatement agreement executed by a school district
that is involved in consolidation [or in detachment and annexation
of territory] under this chapter is not affected and applies to the
taxation of the property covered by the agreement as if executed by
the district within which the property is included.
SECTION 2.16. Section 41.010, Education Code, is amended to
read as follows:
Sec. 41.010. TAX INCREMENT OBLIGATIONS. The payment of tax
increments under Chapter 311, Tax Code, is not affected by the
consolidation of territory [or tax bases or by annexation] under
this chapter. In each tax year a school district paying a tax
increment from taxes on property over which the district has
assumed taxing power is entitled to retain the same percentage of
the tax increment from that property that the district in which the
property was located before the consolidation [or annexation] could
have retained for the respective tax year.
SECTION 2.17. Section 41.013(a), Education Code, is amended
to read as follows:
(a) A [Except as provided by Subchapter G, a] decision of
the commissioner under this chapter is appealable under Section
7.057.
SECTION 2.18. Effective September 1, 2006, Section 41.091,
Education Code, is amended to read as follows:
Sec. 41.091. AGREEMENT. A school district subject to
Section 42.401 [with a wealth per student that exceeds the
equalized wealth level] may execute an agreement with the
commissioner to purchase attendance credits in an amount equal to
the sum of:
(1) the difference between the district's local share
under Section 42.252 and the district's tier one allotment under
Section 42.251; and
(2) the difference between the total amount of
meaningful discretion tax revenue raised by the district and the
amount of state and local funds guaranteed under Section 42.302 to a
school district that imposes a meaningful discretion tax at the
rate imposed by the district. [sufficient, in combination with any
other actions taken under this chapter, to reduce the district's
wealth per student to a level that is equal to or less than the
equalized wealth level.]
SECTION 2.19. Effective September 1, 2012, Section 41.091,
Education Code, is amended to read as follows:
Sec. 41.091. AGREEMENT. A school district subject to
Section 42.401 [with a wealth per student that exceeds the
equalized wealth level] may execute an agreement with the
commissioner to purchase attendance credits in an amount equal to
the difference between the district's local share under Section
42.252 and the district's tier one allotment under Section 42.251.
[sufficient, in combination with any other actions taken under this
chapter, to reduce the district's wealth per student to a level that
is equal to or less than the equalized wealth level.]
SECTION 2.20. Section 41.251, Education Code, is amended to
read as follows:
Sec. 41.251. COMMISSIONER ORDER. If the commissioner is
required under Section 42.401 [41.004] to order the consolidation
of districts, the consolidation is governed by this subchapter.
The commissioner's order shall be effective on a date determined by
the commissioner, but not later than the earliest practicable date
after November 8.
SECTION 2.21. Section 41.252, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsection (d) to read
as follows:
(a) In selecting the districts to be consolidated with a
district subject to Section 42.401 [that has a property wealth
greater than the equalized wealth level], the commissioner shall
select one or more districts with a local share under Section 42.252
[wealth per student] that, when consolidated, will result in a
consolidated district that is not subject to Section 42.401 [with a
wealth per student equal to or less than the equalized wealth
level]. In achieving that result, the commissioner shall give
priority to school districts in the following order:
(1) first, to the contiguous district that has the
lowest local share percentage [wealth per student] and is located
in the same county;
(2) second, to the district that has the lowest local
share percentage [wealth per student] and is located in the same
county;
(3) third, to a contiguous district not subject to
Section 42.401 [with a property wealth below the equalized wealth
level] that has requested the commissioner to consider [that] it
for inclusion [be considered] in a consolidation plan;
(4) fourth, to include as few districts as possible
that are not subject to Section 42.401 and [fall below the equalized
wealth level within the consolidation order that] have not
requested the commissioner to be included in a consolidation plan;
(5) fifth, to the district that has the lowest local
share percentage [wealth per student] and is located in the same
regional education service center area; and
(6) sixth, to a district that has a tax rate similar to
that of the district subject to Section 42.401 [that has a property
wealth greater than the equalized wealth level].
(c) In applying the selection criteria specified by
Subsection (a), if more than two districts are to be consolidated,
the commissioner shall select the third and each subsequent
district to be consolidated by treating the district subject to
Section 42.401 [that has a property wealth greater than the
equalized wealth level] and the district or districts previously
selected for consolidation as one district.
(d) In this section, "local share percentage" means a
percentage determined by dividing a school district's local share
under Section 42.252 by the district's tier one allotment under
Section 42.251.
SECTION 2.22. 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 a basic instructional program and facilities suitable to
the student's educational needs; and
(2) access to a substantially equalized program of
financing that permits each district to exercise meaningful
discretion in the maintenance and operation of district schools [in
excess of basic costs for certain services, as provided by this
chapter].
(b) The Foundation School Program consists of:
(1) a basic tier that provides [two tiers that in
combination provide for:
[(A)] sufficient financing for all school
districts to:
(A) provide a basic program of education that
achieves a general diffusion of knowledge, is rated academically
acceptable or higher under Section 39.072, and meets other
applicable legal standards; and
(B) pay all other state-required costs;
(2) a meaningful discretion tier that provides
substantially equal access to funds to provide each school district
with meaningful discretion in the maintenance and operation of
district schools [an enriched program]; and
(3) [(2)] a facilities component as provided by
Chapter 46.
SECTION 2.23. Section 42.007, Education Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The funding elements must include:
(1) a basic allotment for the purposes of Section
42.101 that provides for a general diffusion of knowledge and that
[, when combined with the guaranteed yield component provided by
Subchapter F,] represents the cost per student of a regular
education program that meets all 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 authorized under Subchapter C,
with the program funding level expressed as dollar amounts and as
weights applied to the 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 F;
(5) the meaningful discretion [enrichment and
facilities] tax rate under Subchapter F;
(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.
(d) The Legislative Budget Board shall conduct a study to
determine the appropriate funding weights for compensatory
education programs and bilingual and special language programs. Not
later than January 15, 2009, the board shall deliver a report with
the board's recommendations regarding the funding weights to the
lieutenant governor, the speaker of the house of representatives,
and the presiding officer of the standing committee of each house of
the legislature with primary jurisdiction over public education.
This subsection expires January 31, 2009.
SECTION 2.24. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. (a) 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:
(1) for the 2006-2007 or 2007-2008 school year,
$4,800; and
(2) for the 2008-2009 or a subsequent school year, an
amount equal to the basic allotment for the preceding school year
multiplied by the percentage increase, as of June 1 preceding the
school year, in the consumer price index since the preceding June 1
[$2,537].
(b) A greater amount for any school year may be provided by
appropriation.
(c) In this section, "consumer price index" means the
average over a calendar year of the Consumer Price Index for All
Urban Consumers (CPI-U), U.S. City Average, published monthly by
the United States Bureau of Labor Statistics, or its successor in
function.
SECTION 2.25. Section 42.102, Education Code, is amended by
amending Subsection (b) and adding Subsections (b-1)-(e) to read as
follows:
(b) The cost of education adjustment is the teacher fixed
effects index in the 2004 report commissioned by the Joint Select
Committee on Public School Finance of the 78th Legislature, as
adjusted so that there is not a greater difference between the
highest index value and the lowest index value in the regional
boundaries of a regional education service center than the
difference that existed between the highest index value and lowest
index value within the regional boundaries of that regional
education service center under 19 T.A.C. Chapter 203, as that
chapter existed on January 1, 2006.
(b-1) The cost of education adjustment under Subsection (b)
applies beginning with the 2011-2012 school year. For the
2006-2007 through 2010-2011 school years, the cost of education
adjustment is determined in the following manner:
(1) for the 2006-2007 school year, the adjustment
shall be computed giving a weight of 16.67 percent to the teacher
fixed effects index and a weight of 83.33 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 adjustment
shall be computed giving a weight of 33.33 percent to the teacher
fixed effects index and a weight of 66.67 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 adjustment
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;
(4) for the 2009-2010 school year, the adjustment
shall be computed giving a weight of 66.67 percent to the teacher
fixed effects index and a weight of 33.33 percent to the index used
to determine a school district's adjustment for the 2005-2006
school year; and
(5) for the 2010-2011 school year, the adjustment
shall be computed giving a weight of 83.33 percent to the teacher
fixed effects index and a weight of 16.67 percent to the index used
to determine a school district's adjustment for the 2005-2006
school year.
(c) A school district's adjusted basic allotment is
determined by the formula:
ABA = BA X CEI X 71 percent
where:
"ABA" is the district's adjusted basic allotment;
"BA" is the basic allotment under Section 42.101; and
"CEI" is the cost of education adjustment under this section.
(d) The percentage adjustment in Subsection (c) applies
beginning with the 2011-2012 school year. For the 2006-2007 through
2010-2011 school years, a school district's adjusted basic
allotment is determined by the formula provided by Subsection (c),
using the following percentage adjustments:
(1) for the 2006-2007 school year, 56 percent;
(2) for the 2007-2008 school year, 59 percent;
(3) for the 2008-2009 school year, 62 percent;
(4) for the 2009-2010 school year, 65 percent; and
(5) for the 2010-2011 school year, 68 percent.
(e) Subsections (b-1), (d), and this subsection expire
September 1, 2011. [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.]
SECTION 2.26. Section 42.103, Education Code, is amended by
amending Subsections (c) and (d) and adding Subsections (c-1),
(d-1), and (d-2) to read as follows:
(c) For the 2006-2007 through 2010-2011 school years, the
[The] basic 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 following formulas:
(1) for the 2006-2007 school year:
AA = (1 + ((1,600 - ADA) X .000275)) X ABA
(2) for the 2007-2008 school year:
AA = (1 + ((1,600 - ADA) X .0003)) X ABA
(3) for the 2008-2009 school year:
AA = (1 + ((1,600 - ADA) X .000325)) X ABA
(4) for the 2009-2010 school year:
AA = (1 + ((1,600 - ADA) X .00035)) X ABA
(5) for the 2010-2011 school year:
AA = (1 + ((1,600 - ADA) X .000375)) X ABA
(c-1) Subsection (c) and this subsection expire September
1, 2011. [formula:
[AA = (1 + ((1,600 - ADA) X .00025)) X ABA]
(d) The basic 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), if the district [or
(c) for which the district] is eligible; or
(2) AA = (1 + ((5,000 - ADA) X .00004 [.000025])) X
ABA.
(d-1) Subsection (d) applies beginning with the 2011-2012
school year. For the 2006-2007 through 2010-2011 school years, the
basic 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) for the 2006-2007 school year:
(A) the formula in Subsection (b) or (c) for
which the district is eligible; or
(B) AA = (1 + ((5,000 - ADA) X .0000275)) X ABA
(2) for the 2007-2008 school year:
(A) the formula in Subsection (b) or (c) for
which the district is eligible; or
(B) AA = (1 + ((5,000 - ADA) X .00003)) X ABA
(3) for the 2008-2009 school year:
(A) the formula in Subsection (b) or (c) for
which the district is eligible; or
(B) AA = (1 + ((5,000 - ADA) X .0000325)) X ABA
(4) for the 2009-2010 school year:
(A) the formula in Subsection (b) or (c) for
which the district is eligible; or
(B) AA = (1 + ((5,000 - ADA) X .000035)) X ABA
(5) for the 2010-2011 school year:
(A) the formula in Subsection (b) or (c) for
which the district is eligible; or
(B) AA = (1 + ((5,000 - ADA) X .0000375)) X ABA
(d-2) Subsection (d-1) and this subsection expire September
1, 2011.
SECTION 2.27. Effective September 1, 2011, Section
42.103(b), Education Code, is amended to read as follows:
(b) The basic 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:
AA = (1 + ((1,600 - ADA) X .0004)) X ABA
SECTION 2.28. Effective September 1, 2007, Section
42.152(a), Education Code, is amended 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 0.22 [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.
SECTION 2.29. Effective September 1, 2008, Section
42.152(a), Education Code, is amended 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 0.24 [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.
SECTION 2.30. Section 42.152(m), Education Code, is amended
to read as follows:
(m) From [the total amount of] funds appropriated for the
purpose [allotments under 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.
SECTION 2.31. Section 42.153, Education Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (a-2) 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:
(1) 0.16, for a student who enrolled in a public school
in this state for the first time at or above the ninth grade level;
or
(2) 0.13, for a student other than a student described
by Subdivision (1) [0.1].
(a-1) Subsection (a) applies beginning with the 2008-2009
school year. For the 2006-2007 and 2007-2008 school years, 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:
(1) for the 2006-2007 school year:
(A) 0.12, for a student who enrolled in a public
school in this state for the first time at or above the ninth grade
level; or
(B) 0.11, for a student other than a student
described by Paragraph (A); or
(2) for the 2007-2008 school year:
(A) 0.14, for a student who enrolled in a public
school in this state for the first time at or above the ninth grade
level; or
(B) 0.12, for a student other than a student
described by Paragraph (A).
(a-2) Subsection (a-1) and this subsection expire September
1, 2008.
SECTION 2.32. Section 42.155, Education Code, is amended by
amending Subsection (c) and adding Subsections (c-1)-(c-3) to read
as follows:
(c) As provided by this section, each [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.
(c-1) [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.] The allotment per mile of approved route
under Subsection (c) is computed as follows:
Linear Density Allocation Per Mile
Grouping of Approved Route
2.40 and above $2.17
1.65 to 2.40 1.91
1.15 to 1.65 1.69
.90 to 1.15 1.48
up to .90 1.33
(c-2) Subsection (c-1) applies beginning with the 2008-2009
school year. For the 2006-2007 and 2007-2008 school years, the
allotment per mile of approved route under Subsection (c) is
computed as follows:
(1) for the 2006-2007 school year:
Linear Density Allocation Per Mile
Grouping of Approved Route
2.40 and above $1.64
1.65 to 2.40 1.44
1.15 to 1.65 1.28
.90 to 1.15 1.12
up to .90 1.01
(2) for the 2007-2008 school year:
Linear Density Allocation Per Mile
Grouping of Approved Route
2.40 and above $1.89
1.65 to 2.40 1.66
1.15 to 1.65 1.47
.90 to 1.15 1.29
up to .90 1.16
(c-3) Subsection (c-2) and this subsection expire September
1, 2008. [may not exceed the amount set by appropriation.]
SECTION 2.33. Section 42.251(a), Education Code, is amended
to read as follows:
(a) The sum of the basic allotment under Subchapter B and
the special allotments under Subchapter C, computed in accordance
with this chapter, constitute the tier one allotments. The sum of
the tier one allotments and the tier two [guaranteed yield]
allotments under Subchapter F, computed in accordance with this
chapter, constitute the total cost of the Foundation School
Program.
SECTION 2.34. Section 42.252, Education Code, is amended by
amending Subsection (a) and adding Subsections (e)-(g) to read as
follows:
(a) Each school district's share of tier one 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 of $____ [which] for each hundred dollars
of valuation, or a lesser rate for any school year provided by
appropriation [is an effective tax rate of $0.86]; and
"DPV" is the lesser of:
(1) the taxable value of property in the school
district for the preceding tax year as determined under Subchapter
M, Chapter 403, Government Code; or
(2) the taxable value of property in the school
district for the current tax year as determined under Subchapter M,
Chapter 403, Government Code.
(e) If a school district's current year tier one maintenance
and operations tax levy is equal to or greater than the district's
local share, the district is eligible to receive the full amount of
the tier one allotment to which the district is entitled under this
chapter.
(f) If a school district's current year tier one maintenance
and operations tax levy is less than the district's local share, the
district's tier one allotment is adjusted by a percentage
determined by dividing the district's current year tier one
maintenance and operations tax levy by the district's local share
and multiplying the resulting quotient by 100. The commissioner
shall determine the amount of the tier one allotment to which a
district is entitled under this subsection. The commissioner's
determination is final and may not be appealed.
(g) In implementing any provision of this title that refers
to a school district's tier one allotment, the tier one allotment of
a district described by Subsection (f) is the proportionate amount
provided by that subsection.
SECTION 2.35. Section 42.2522(c), Education Code, is
amended to read as follows:
(c) In the first year of a state fiscal biennium, before
providing funding as provided by Subsection (a)(2), the
commissioner shall ensure that sufficient appropriated funds for
purposes of the Foundation School Program are available for the
second year of the biennium[, including funds to be used for
purposes of Section 42.2521].
SECTION 2.36. Subchapter E, Chapter 42, Education Code, is
amended by adding Sections 42.2523 and 42.2524 to read as follows:
Sec. 42.2523. ADDITIONAL TRANSITIONAL AID. (a) Subject to
Section 42.2524, but notwithstanding any other provision of this
subtitle, and provided that a school district imposes a tax at a
minimum rate specified by the commissioner, for each school year, a
school district is entitled to the amount of state revenue
necessary to provide state and local revenue equal to the product of
the district's average daily attendance for that school year
multiplied by an amount equal to the sum of:
(1) the amount of state and local revenue per student
in average daily attendance for the maintenance and operation of
the district to which the district was entitled for the 2005-2006
school year under Chapter 42, as that chapter existed on September
1, 2005, or, if the district was subject to Chapter 41, as that
chapter existed on September 1, 2005, the amount to which the
district was entitled under that chapter, based on the funding
elements in effect for the 2005-2006 school year, and including:
(A) any amounts described by Rider 69, page
III-19, Chapter 1369, Acts of the 79th Legislature, Regular
Session, 2005 (the General Appropriations Act);
(B) the portion of any profit the district
received during the 2005-2006 school year as a result of an
agreement under Subchapter E, Chapter 41, that exceeds the amount
of state and local revenue that would have been available to the
district during that school year if the district imposed a
maintenance and operations tax of $1.50 per $100 of valuation
during that school year;
(C) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2521, as that section
existed on September 1, 2005; and
(D) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2531; and
(2) the following amounts, depending on the school
year:
(A) for the 2006-2007 school year, an amount
equal to $150 per student in weighted average daily attendance for
the 2005-2006 school year divided by the district's average daily
attendance for the 2005-2006 school year; or
(B) for the 2007-2008 or a subsequent school
year, the greater of:
(i) an amount equal to $150 per student in
weighted average daily attendance for the 2005-2006 school year
divided by the district's average daily attendance for the
2005-2006 school year; or
(ii) an amount equal to 140 percent of the
quotient of the product of $4,000 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 in the 2007-2008 school year and
entitled to a minimum salary under Section 21.402 divided by the
district's average daily attendance for the 2007-2008 school year.
(b) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
is not included in making a determination under Subsection (a).
(c) The commissioner shall determine the minimum tax rate
for a school district under Subsection (a) on the basis of the tax
rate adopted by the district for maintenance and operations for the
2005-2006 school year. The commissioner shall compute the amount
of state and local revenue in Subsection (a)(1) using a maintenance
and operations tax rate that does not exceed $1.50 for each $100
valuation of taxable property for both entitlement to state aid and
collection of local taxes.
(d) 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.
(e) Any amount to which a school district is entitled under
Subchapter F is not included in determining the amount to which the
district is entitled under this section.
(f) The General Appropriations Act must include, in the
appropriation to the agency, a line item for funding to be provided
under this section.
Sec. 42.2524. TEMPORARY LIMITATIONS ON AID. (a)
Notwithstanding any other provision of this subtitle, the
commissioner shall withhold from a school district the amount of
state funds, or adjust the amount required under Section 41.093 for
a school district to purchase attendance credits, necessary to
ensure that the district does not receive an amount of state and
local revenue per student in average daily attendance that is
greater than the following percentage of the amount described by
Section 42.2523(a)(1):
(1) 108 percent for the 2006-2007 school year;
(2) 116 percent for the 2007-2008 school year; and
(3) 124 percent for the 2008-2009 school year.
(b) The commissioner shall determine the amount of state
funds required to be withheld or additional attendance credits to
be purchased under this section. The commissioner's determination
is final and may not be appealed.
(c) Any amount to which a school district is entitled under
Section 32.005 or Subchapter F is not included in determining the
amount that the district may receive under this section.
(d) This section expires September 1, 2009.
SECTION 2.37. Sections 42.253(g) and (h), Education Code,
are amended to read as follows:
(g) If a school district demonstrates to the satisfaction of
the commissioner that the estimate of the district's tax rate,
student enrollment, or taxable value of property used in
determining the amount of state funds to which the district is
entitled are so inaccurate as to result in undue financial hardship
to the district, the commissioner may adjust funding to that
district in that school year to the extent that funds are available
for that year[, including funds in the reserve account. Funds in
the reserve account may not be used under this subsection until any
reserve funds have been used for purposes of Subsection (f)].
(h) If the amount appropriated for the foundation school
program for the second year of a state fiscal biennium is less than
the amount to which school districts are entitled for that year, the
commissioner shall certify the amount of the difference to the
Legislative Budget Board not later than January 1 of the second year
of the state fiscal biennium. The Legislative Budget Board shall
propose to the legislature that the certified amount be transferred
to the foundation school fund from the economic stabilization fund
and appropriated for the purpose of increases in allocations under
this subsection. If the legislature fails during the regular
session to enact the proposed transfer and appropriation [proposed
under Subsection (f)] and there are not funds available under
Subsection (j), 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, as determined under Subchapter M,
Chapter 403, 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.
SECTION 2.38. The heading to Subchapter F, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER F. MEANINGFUL DISCRETION TIER [GUARANTEED YIELD
PROGRAM]
SECTION 2.39. Section 42.301, Education Code, is amended to
read as follows:
Sec. 42.301. PURPOSE. The purpose of the meaningful
discretion tier [guaranteed yield component] of the Foundation
School Program is to provide each school district with the
opportunity [to provide the basic program and] to supplement the
basic [that] program at a level of its own choice. [An allotment
under this subchapter may be used for any legal purpose other than
capital outlay or debt service.]
SECTION 2.40. Section 42.302, Education Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(f) 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 MDTR [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 the
amount of district tax revenue per cent of tax effort available to a
school district at the 98th percentile in wealth per student
[$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;
"MDTR" ["DTR"] is the meaningful discretion [district
enrichment] tax rate of the school district under Section
45.003(e)[, which is determined by subtracting the amounts
specified by Subsection (b) from the total amount of maintenance
and operations taxes collected by the school district] for the
applicable school year [and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100]; and
"LR" is the local revenue, which is determined by multiplying
"MDTR" ["DTR"] by the quotient of the district's taxable value of
property for the current tax year as determined under Subchapter M,
Chapter 403, Government Code, [or, if applicable, under Section
42.2521,] divided by 100.
(a-1) The dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort ("GL") under
Subsection (a) applies beginning with the 2012-2013 school year.
For the 2006-2007 through 2011-2012 school years, the GL is
determined as provided by this subsection, except that a greater
amount may be provided by appropriation:
(1) for the 2006-2007 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 92nd percentile in wealth per student;
(2) for the 2007-2008 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 93rd percentile in wealth per student;
(3) for the 2008-2009 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 94th percentile in wealth per student;
(4) for the 2009-2010 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 95th percentile in wealth per student;
(5) for the 2010-2011 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 96th percentile in wealth per student; and
(6) for the 2011-2012 school year, GL is the amount of
district tax revenue per cent of tax effort available to a school
district at the 97th percentile in wealth per student.
(a-2) Subsection (a-1) and this subsection expire September
1, 2012.
(f) In this section, "wealth per student" means the taxable
value of property for the current tax year as determined under
Subchapter M, Chapter 403, Government Code, divided by the number
of students in weighted average daily attendance.
SECTION 2.41. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON MEANINGFUL DISCRETION
[ENRICHMENT] TAX RATE. (a) The meaningful discretion [district
enrichment] tax rate ("MDTR") [("DTR")] under Section 42.302 may
not exceed $0.15 [$0.64] per $100 of valuation, or a greater amount
for any year provided by appropriation.
(b) Notwithstanding Subsection (a), the meaningful
discretion tax rate may not exceed:
(1) for the 2006 tax year, the rate of $0.02 per $100
of valuation;
(2) for the 2007 tax year, the rate of $0.04 per $100
of valuation;
(3) for the 2008 tax year, the rate of $0.06 per $100
of valuation;
(4) for the 2009 tax year, the rate of $0.08 per $100
of valuation;
(5) for the 2010 tax year, the rate of $0.10 per $100
of valuation;
(6) for the 2011 tax year, the rate of $0.12 per $100
of valuation; and
(7) for the 2012 tax year, the rate of $0.14 per $100
of valuation.
(c) Subsection (b) and this subsection expire September 1,
2013.
SECTION 2.42. Effective September 1, 2006, Chapter 42,
Education Code, is amended by adding Subchapter H to read as
follows:
SUBCHAPTER H. ADDITIONAL EQUALIZATION
Sec. 42.401. DISTRICTS SUBJECT TO ADDITIONAL EQUALIZATION.
(a) Except as provided by Subsection (b), a school district shall
be consolidated by the commissioner under Subchapter H, Chapter 41,
if:
(1) the district's local share under Section 42.252
exceeds the district's tier one allotment under Section 42.251; or
(2) the amount by which the district's local revenue
("LR") under Section 42.302 exceeds the amount of state and local
funds guaranteed under that section to the district at the
meaningful discretion tax rate ("MDTR") imposed by the district.
(b) As an alternative to consolidation under Subchapter H,
Chapter 41, a school district described by Subsection (a) may elect
to purchase average daily attendance credit in the manner provided
by Subchapter D, Chapter 41.
(c) This subchapter expires September 1, 2012.
SECTION 2.43. Effective September 1, 2012, Chapter 42,
Education Code, is amended by adding Subchapter H to read as
follows:
SUBCHAPTER H. ADDITIONAL EQUALIZATION
Sec. 42.401. DISTRICTS SUBJECT TO ADDITIONAL EQUALIZATION.
(a) Except as provided by Subsection (b), a school district in
which the district's local share under Section 42.252 exceeds the
district's tier one allotment under Section 42.251 shall be
consolidated by the commissioner under Subchapter H, Chapter 41.
(b) As an alternative to consolidation under Subchapter H,
Chapter 41, a school district described by Subsection (a) may elect
to purchase average daily attendance credit in the manner provided
by Subchapter D, Chapter 41.
SECTION 2.44. Section 45.003, Education Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes to provide for a general diffusion of knowledge
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.
(e) In addition to a maintenance tax authorized under
Subsection (d), a school district may impose a maintenance tax for
meaningful discretion at a rate not to exceed the rate permitted by
Section 42.303. An election to approve a meaningful discretion tax
rate is required only if the total of the rate of the district's
maintenance tax to provide for a general diffusion of knowledge and
the proposed meaningful discretion tax rate exceed the maintenance
tax rate authorized by the voters in an election held before January
1, 2006. An election under this subsection must include the
question of whether the governing body may impose an annual ad
valorem tax to allow the governing body meaningful discretion in
the maintenance and operation of public schools, at a rate not to
exceed the rate stated in the proposition.
SECTION 2.45. Subchapter A, Chapter 46, Education Code, is
amended by adding Section 46.0021 to read as follows:
Sec. 46.0021. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
OF PROPERTY. (a) For purposes of this chapter, and to the extent
money specifically authorized to be used under this section is
available, the commissioner shall adjust the taxable value of
property in a school district that, due to factors beyond the
control of the board of trustees, experiences a rapid decline in the
tax base used in calculating taxable values in excess of four
percent of the tax base used in the preceding year.
(b) To the extent that a sufficient amount of money is not
available to fund all adjustments under this section, the
commissioner shall reduce adjustments in the manner provided by
Section 42.253(h) so that the total amount of adjustments equals
the amount of money available to fund the adjustments.
(c) A decision of the commissioner under this section is
final and may not be appealed.
SECTION 2.46. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 46.0021 [42.2521],
divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 46.0021 [42.2521].
SECTION 2.47. Section 46.006(g), Education Code, is amended
to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 46.0021
[42.2521], divided by the district's average daily attendance as
determined under Section 42.005.
SECTION 2.48. Section 46.032(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds 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 46.0021
[42.2521], divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 46.0021 [42.2521].
SECTION 2.49. Section 56.208(a), Education Code, is amended
to read as follows:
(a) The Early High School Graduation Scholarship program is
financed under the Foundation School Program. Funding for the
state tuition credits is not subject to the provisions of Sections
42.253(h) [42.253(e)] through (k).
SECTION 2.50. Sections 26.08(j) and (l), Tax Code, are
amended to read as follows:
(j) For purposes of Subsection (i), the amount of state
funds that would have been available to a school district in the
preceding year is computed using the district's adopted maintenance
and operations [maximum] tax rate for the preceding [current] year
[under Section 42.253(e), Education Code].
(l) For purposes of Subsection (k), the amount of state
funds that would have been available to a school district in the
preceding year is computed using the district's adopted maintenance
and operations [maximum] tax rate for the preceding [current] year
[under Section 42.253(e), Education Code].
SECTION 2.51. Section 311.013, Tax Code, is amended by
adding Subsection (n) to read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (5) of that subsection.
In addition to the amount otherwise required to be paid into the tax
increment fund, the district shall pay into the fund an amount equal
to the amount by which the amount of taxes the district would have
been required to pay into the fund in the current year if the
district levied taxes at the rate the district levied in 2005
exceeds the amount the district is otherwise required to pay into
the fund in the current year, not to exceed the amount the school
district realizes from the reduction in the school district's
taxable value under Section 403.302(d)(5), Government Code.
SECTION 2.52. Section 403.302, Government Code, is amended
by amending Subsections (d) and (i) and adding Subsections (c-1),
(c-2), and (d-1) to read as follows:
(c-1) This subsection applies only to a school district
whose central administrative office is located in a county with a
population of 9,000 or less and a total area of more than 6,000
square miles. If after conducting the annual study for a tax year
the comptroller determines that the local value for a school
district is not valid, the comptroller shall adjust the taxable
value determined under Subsections (a) and (b) as follows:
(1) for each category of property sampled and tested
by the comptroller in the school district, the comptroller shall
use the weighted mean appraisal ratio determined by the study,
unless the ratio is more than four percentage points lower than the
weighted mean appraisal ratio determined by the comptroller for
that category of property in the immediately preceding study, in
which case the comptroller shall use the weighted mean appraisal
ratio determined in the immediately preceding study minus four
percentage points;
(2) the comptroller shall use the category weighted
mean appraisal ratios as adjusted under Subdivision (1) to
establish a value estimate for each category of property sampled
and tested by the comptroller in the school district; and
(3) the value estimates established under Subdivision
(2), together with the local tax roll value for any categories not
sampled and tested by the comptroller, less total deductions
determined by the comptroller, determines the taxable value for the
school district.
(c-2) Subsection (c-1) and this subsection expire September
1, 2008.
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) for a school district for which a deduction from
taxable value is made under Subdivision (4), an amount equal to the
taxable value required to generate revenue when taxed at the school
district's current tax rate in an amount that, when added to the
taxes of the district paid into a tax increment fund as described by
Subdivision (4)(B), is equal to the total amount of taxes the
district would have paid into the tax increment fund if the district
levied taxes at the rate the district levied in 2005;
(6) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(7) [(6)] the difference between the comptroller's
estimate of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) [(7)] the portion of the appraised value of
residence homesteads of individuals who receive a tax limitation
under Section 11.26, Tax Code, on which school district taxes are
not imposed in the year that is the subject of the study, calculated
as if the residence homesteads were appraised at the full value
required by law;
(9) [(8)] a portion of the market value of property
not otherwise fully taxable by the district at market value because
of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(10) [(9)] the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) [(10)] the appraised value of property the
collection of delinquent taxes on which is deferred under Section
33.06, Tax Code;
(12) [(11)] the portion of the appraised value of
property the collection of delinquent taxes on which is deferred
under Section 33.065, Tax Code; and
(13) [(12)] the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
(d-1) For a school district for which in the 2005 tax year a
deduction from taxable value is made under Subsection (d)(5), the
comptroller shall certify to the commissioner of education a final
taxable value for the 2005 tax year, calculated as if the reduction
in the school district's ad valorem tax rate and the method of
calculating the amount of the deduction from taxable value under
Subsection (d)(5) required by _.B. No. _, Acts of the 79th
Legislature, ___ Called Session, 2006, took effect January 1, 2005.
This subsection expires September 1, 2007.
(i) If the comptroller determines in the annual study that
the market value of property in a school district as determined by
the appraisal district that appraises property for the school
district, less the total of the amounts and values listed in
Subsection (d) as determined by that appraisal district, is valid,
the comptroller, in determining the taxable value of property in
the school district under Subsection (d), shall for purposes of
Subsection (d)(13) [(d)(12)] subtract from the market value as
determined by the appraisal district of residence homesteads to
which Section 23.23, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23, Tax Code.
If the comptroller determines in the annual study that the market
value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(13) [(d)(12)] subtract from the market value as
estimated by the comptroller of residence homesteads to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code.
ARTICLE 3. SOCIAL SECURITY CONTRIBUTIONS
SECTION 3.01. Subchapter B, Chapter 606, Government Code,
is amended by adding Section 606.0261 to read as follows:
Sec. 606.0261. PAYMENT OF SCHOOL DISTRICT CONTRIBUTIONS.
(a) Subject to Subsection (b), the state shall pay 50 percent of
the total costs incurred by a school district in making
contributions for social security coverage for the district's
employees.
(a-1) Subsection (a) applies beginning with the 2008-2009
school year. For the 2006-2007 school year, the state shall pay 16
percent of the total costs described by Subsection (a). For the
2007-2008 school year, the state shall pay 33 percent of the total
costs described by Subsection (a). This subsection expires
September 1, 2009.
(b) Payment of state assistance under this section is
limited to:
(1) school districts that covered district employees
under the social security program before January 1, 2006; and
(2) contributions made on behalf of employees in a
class of employees the district covered under the social security
program before January 1, 2006.
(c) Using funds appropriated for the purpose, the
commissioner of education shall distribute money to which school
districts are entitled under this section in accordance with rules
adopted by the commissioner.
ARTICLE 4. REPEALER; APPLICABILITY; EFFECTIVE DATE
SECTION 4.01. The following provisions of the Education
Code are repealed:
(1) Subchapters B, C, E, F, and G, Chapter 41;
(2) Subchapters G and H, Chapter 42; and
(3) Sections 39.024(e), 41.001, 41.002, 41.003,
41.0031, 41.007, 41.009(b), 41.011, 41.092, 41.098, 41.099,
41.252(b), 42.103(e), 42.151(l), 42.152(e)-(l), (n)-(p), and (t),
42.154(e), 42.252(d), 42.2521, 42.253(e)-(f) and (l), and
42.302(b)-(e).
SECTION 4.02. This Act applies beginning with the 2006-2007
school year.
SECTION 4.03. Except as otherwise provided by this Act,
this Act takes effect September 1, 2006.