2005S0364-1 02/24/05
By: Lucio S.B. No. 797
A BILL TO BE ENTITLED
AN ACT
relating to the financing of instructional facilities and the
payment of existing debt of school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (c), Section 42.007, Education Code,
is amended to read as follows:
(c) The funding elements must include:
(1) a basic allotment for the purposes of Section
42.101 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 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, including a
specific amount not less than the amount designated in Section
46.003(a) to promote the financing of facilities under Subchapter
A, Chapter 46, in districts with low wealth per student as described
by Section 42.259(a)(1).
SECTION 2. Section 42.251, Education Code, is amended to
read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (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
guaranteed yield allotments under Subchapter F, computed in
accordance with this chapter, and the instructional facilities
allotment under Subchapter A, Chapter 46, constitute the total cost
of the Foundation School Program.
(b) The program shall be financed by:
(1) ad valorem tax revenue generated by an equalized
uniform school district effort;
(2) ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;
(3) ad valorem tax revenue generated by local school
district effort for the purpose of funding instructional facilities
under Subchapter A, Chapter 46;
(4) state available school funds distributed in
accordance with law; and
(5) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
SECTION 3. Subsections (a), (b), and (c), Section 42.253,
Education Code, are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled under Subchapter F;
(3) the amount of money to which a school district is
entitled under Subchapter A, Chapter 46;
(4) the amount of money allocated to the district from
the available school fund;
(5) [(4)] the amount of each district's tier one local
share under Section 42.252; [and]
(6) [(5)] the amount of each district's tier two local
share under Section 42.302; and
(7) the amount of each district's local share of the
instructional facilities allotment under Subchapter A, Chapter 46.
(b) Except as provided by this subsection, the commissioner
shall base the determinations under Subsection (a) on the estimates
provided to the legislature under Section 42.254, or, if the
General Appropriations Act provides estimates for that purpose, on
the estimates provided under that Act, for each school district for
each school year. The commissioner shall reduce the entitlement of
each district that has a final taxable value of property for the
second year of a state fiscal biennium that is higher than the
estimate under Section 42.254 or the General Appropriations Act, as
applicable. A reduction under this subsection may not reduce the
district's entitlement below the amount to which it is entitled at
its actual taxable value of property. The commissioner shall base
the determinations for the instructional facilities allotment on
the procedures specified in Subchapter A, Chapter 46.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections
[(a)(3),] (a)(4), [and] (a)(5), (a)(6), and (a)(7).
SECTION 4. Section 46.003, Education Code, is amended by
amending Subsections (a) and (h) and adding Subsection (i) 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 total amount of state
support provided each biennium must equal at least $300 million or a
higher amount provided by appropriation. The amount of state
support for a school district 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 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 42.2521.
(h) To receive state assistance under this subchapter, a
school district must apply to the commissioner in accordance with
rules adopted by the commissioner before issuing bonds that will be
paid with state assistance. Until the bonds are fully paid, [or]
the instructional facility is sold, or the school district becomes
eligible to receive assistance with payment of the bonds under
Subchapter B:
(1) a school district is entitled to continue
receiving state assistance under this subchapter without
reapplying to the commissioner; and
(2) the guaranteed level of state and local funds per
student per cent of tax effort applicable to the bonds may not be
reduced below the level provided for the year in which the bonds
were issued.
(i) Notwithstanding any other provision of this chapter,
the commissioner shall ensure that a school district that becomes
eligible for state assistance under Subchapter B with payment of
bonds for which the district initially received state assistance
under this subchapter continues to receive state assistance under
this subchapter as necessary to result in a total guaranteed level
of state and local funds per student per cent of tax effort equal to
the level provided under this subchapter for the year in which the
bonds were issued.
SECTION 5. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
final [2002–2003] school year of the preceding state fiscal
biennium;
(2) [or] taxes levied to pay the principal of and
interest on the bonds were included in the district's audited debt
service collections for that school year; or [and]
(3) [(2)] the district received [does not receive]
state assistance under Subchapter A for payment of [the] principal
and interest on [the] bonds during the final school year of the
preceding state fiscal biennium.
SECTION 6. This Act takes effect September 1, 2005.