Amend CSHB 2 in Section 1B.05 of the bill as follows:                        
	(1)  Between amended Subsections (a) and (b), Section 
42.102, Education Code (committee printing, page 5, between lines 
50 and 51), insert the following:
	(a-1) Notwithstanding any other provision of this section, 
the initial amount of the cost of education index adjustment is a 
percent determined by the Legislative Budget Board that would 
result in a total amount of funds delivered under this section that 
does not exceed the total amount of funds delivered using the 
application of the cost of education index as it existed on January 
1, 2005.
	(a-2) The Legislative Budget Board shall annually increase 
the initial adjustment percentage determined under Subsection (a) 
so that the percentage:
		(1)  increases at the same rate of growth as the 
implementation of the small and mid-sized district adjustments 
described by Sections 42.103(c-1) and (d-1); and
		(2)  does not exceed 71 percent.                                       
	(2)  Between proposed Subsections (c) and (d), Section 
42.102, Education Code (committee printing, page 6, between lines 
21 and 22), insert the following:
	(c-1) The application of the cost of education index under 
this section may not result in a greater difference between the 
highest adjustment and the lowest adjustment than the difference 
that existed between the highest and lowest adjustments under 
Chapter 203, Title 19, Texas Administrative Code, as that chapter 
existed on January 1, 2005.  The Legislative Budget Board shall 
increase the amount of the lowest adjustment to satisfy this 
subsection.
	(3)  Between proposed Subsections (d) and (e), Section 
42.102, Education Code (committee printing, page 6, between lines 
29 and 30), insert the following:
	(d-1) 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.
	(4)  Strike proposed Subsection (e), Section 42.102, 
Education Code (committee printing, page 6, lines 30 and 31), and 
substitute the following:
	(e)  A school district may appeal a determination of the 
Legislative Budget Board under Subsection (d) and request a 
contested case hearing before an administrative law judge of the 
State Office of Administrative Hearings.  A district must pay the 
cost of an appeal under this section.  An appeal must be limited to 
the computation and application of data under this section and may 
not include an appeal of the methodology used to compute the teacher 
fixed effects index.
	(5)  In proposed Subsection (f), Section 42.102, Education 
Code (committee printing, page 6, line 33), strike "Subsection 
(b-1)" and substitute "Subsections (a-1), (a-2), (b-1),".