Amend the proposed Hilderbran amendment to CSHB 2 (page 114 
of the amendment packet) by striking item (1) of the proposed 
amendment (page 1, lines 2-13) and substituting the following:
	(1)  On page 4, strike lines 8-11 and substitute the 
following:              
	(b)  A school district that experiences a decline of two 
percent or more in average daily attendance shall be funded on the 
basis of:
		(1)  the actual average daily attendance of the 
preceding school year, if the district has fewer than 1,600 
students in average daily attendance in the current school year; or
		(2)  an average daily attendance not to exceed 98 
percent of the actual average daily attendance of the preceding 
school year, if the district has 1,600 or more students in average 
daily attendance in the current school year.
	(2)  On page 22, strike lines 20-27, and on page 23, strike 
lines 1-13, and substitute the following:
	(b)  The sum of the total accreditation allotments and any 
special student allotments under Subchapter C of a school district 
that has not more than 400 students in average daily attendance is 
adjusted by applying the following formula, or the formula under 
Subsection (c) if that results in a greater allotment:
	A = ((400 - ADA) X .004) X SA
	(b-1)  Notwithstanding Subsection (b), the sum of the total 
accreditation allotments and any special student allotments under 
Subchapter C of a school district that has not more than 400 
students in average daily attendance is adjusted for the following 
school years by applying the following formulas, or the appropriate 
formula under Subsection (c-1) if that results in a greater 
allotment:
		(1)  for the 2005-2006 school year:                                    

A = ((400 - ADA) X .003) X SA
		(2)  for the 2006-2007 school year:                                    

A = ((400 - ADA) X .0033) X SA
		(3)  for the 2007-2008 school year:                                    

A = ((400 - ADA) X .0035) X SA; and
		(4)  for the 2008-2009 school year:                                    

A = ((400 - ADA) X .0038) X SA
	(c)  The sum of the total accreditation allotments and any 
special student allotments under Subchapter C of a school district 
that has not more than 1,600 students in average daily attendance is 
adjusted by applying the following formula, or the formula under 
Subsection (d) if that results in a greater allotment:
	A = ((1,600 - ADA) X .0004) X SA
	(c-1)  Notwithstanding Subsection (c), the sum of the total 
accreditation allotments and any special student allotments under 
Subchapter C of a school district that has not more than 1,600 
students in average daily attendance is adjusted for the following 
school years by applying the following formulas, or the appropriate 
formula under Subsection (d-1) if that results in a greater 
allotment:
		(1)  for the 2005-2006 school year:                                    

A = ((1,600 - ADA) X .00028) X SA
		(2)  for the 2006-2007 school year:                                    

A = ((1,600 - ADA) X .00031) X SA
		(3)  for the 2007-2008 school year:                                    

A = ((1,600 - ADA) X .00034) X SA; and
		(4)  for the 2008-2009 school year:                                    

A = ((1,600 - ADA) X .00037) X SA
	(d)  The sum of the total accreditation allotments and any 
special student allotments under Subchapter C 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 allotment:
		(1)  the formula in Subsection (b) or (c) for which the 
district is eligible; or
		(2)  A = ((5,000 - ADA) X .00004) X SA.                                
	(d-1)  Notwithstanding Subsection (d), the sum of the total 
accreditation allotments and any special student allotments under 
Subchapter C 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 for the following school years by 
applying the following formulas, or the appropriate formula under 
Subsection (b) or (c) if that results in a greater allotment:
		(1)  for the 2005-2006 school year:                                    

A = ((5,000 - ADA) X .000028) X SA
		(2)  for the 2006-2007 school year:                                    

A = ((5,000 - ADA) X .000031) X SA
		(3)  for the 2007-2008 school year:                                    

A = ((5,000 - ADA) X .000034) X SA; and
		(4)  for the 2008-2009 school year:                                    

A = ((5,000 - ADA) X .000037) X SA
	(e)  Subsections (b), (c), and (d) apply beginning with the 
2009-2010 school year.  Subsections (b-1), (c-1), and (d-1) and 
this subsection expire September 1, 2010.
	(3)  On page 24, line 1, strike "75" and substitute "90".        
	(4)  On page 24, line 7, strike "60" and substitute "70".        
	(5)  On page 24, between lines 21 and 22, insert the 
following:              
	(c)  Notwithstanding Subsection (a), a school district to 
which that subsection applies that offers a half-day 
prekindergarten program with at least three students in average 
daily attendance shall be provided an adjusted accreditation 
allotment on the basis of the applicable number of students in 
average daily attendance prescribed by Subsection (a), plus an 
additional five students in average daily attendance.