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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on the rate of school district |
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enrichment taxes eligible for equalization under the foundation |
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school program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 42.302(a), (a-1), and (a-3), Education |
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Code, are amended to read as follows: |
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(a) Each school district is guaranteed a specified amount |
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per weighted student in state and local funds for each cent of tax |
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effort over that required for the district's local fund assignment |
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up to the maximum level specified in this subchapter. The amount of |
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state support[, subject only to the maximum amount under Section
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42.303,] is determined by the formula: |
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GYA = (GL X WADA X DTR X 100) - LR |
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where: |
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"GYA" is the guaranteed yield amount of state funds to be |
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allocated to the district; |
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"GL" is the dollar amount guaranteed level of state and local |
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funds per weighted student per cent of tax effort, which is an |
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amount described by Subsection (a-1) or a greater amount for any |
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year provided by appropriation; |
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"WADA" is the number of students in weighted average daily |
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attendance, which is calculated by dividing the sum of the school |
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district's allotments under Subchapters B and C, less any allotment |
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to the district for transportation, any allotment under Section |
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42.158, and 50 percent of the adjustment under Section 42.102, by |
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the basic allotment for the applicable year; |
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"DTR" is the district enrichment tax rate of the school |
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district, which is determined by subtracting the amounts specified |
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by Subsection (b) from the total amount of maintenance and |
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operations taxes collected by the school district for the |
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applicable school year and dividing the difference by the quotient |
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of the district's taxable value of property as determined under |
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Subchapter M, Chapter 403, Government Code, or, if applicable, |
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under Section 42.2521, divided by 100; and |
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"LR" is the local revenue, which is determined by multiplying |
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"DTR" by the quotient of the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 42.2521, divided by 100. |
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(a-1) In this section, "wealth per student" has the meaning |
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assigned by Section 41.001. For purposes of Subsection (a), the |
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dollar amount guaranteed level of state and local funds per |
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weighted student per cent of tax effort ("GL") for a school district |
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is: |
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(1) the amount of district tax revenue per weighted |
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student per cent of tax effort available to a district at the 88th |
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percentile in wealth per student, as determined by the commissioner |
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in cooperation with the Legislative Budget Board, for the |
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district's maintenance and operations tax effort equal to or less |
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than the rate equal to the product of the state compression |
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percentage, as determined under Section 42.2516, multiplied by the |
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maintenance and operations tax rate adopted by the district for the |
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2005 tax year; |
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(2) the amount of district tax revenue per weighted |
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student per cent of tax effort available to the Austin Independent |
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School District, as determined by the commissioner in cooperation |
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with the Legislative Budget Board, for the first six cents by which |
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the district's maintenance and operations tax rate exceeds the rate |
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equal to the product of the state compression percentage, as |
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determined under Section 42.2516 [and notwithstanding the
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limitation on district enrichment tax rate ("DTR") under Section
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42.303], multiplied by the maintenance and operations tax rate |
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adopted by the district for the 2005 tax year; and |
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(3) $31.95, for the district's maintenance and |
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operations tax effort that exceeds the amount of tax effort |
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described by Subdivision (2). |
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(a-3) Subsection (a-1) applies beginning with the 2008-2009 |
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school year. For the 2006-2007 and 2007-2008 school years, the |
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dollar amount guaranteed level of state and local funds per |
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weighted student per cent of tax effort ("GL") for a school district |
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is the level specified by Subsection (a-1), except that: |
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(1) Subsection (a-1)(2) applies only to the first four |
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cents by which the district's maintenance and operations tax rate |
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exceeds the rate equal to the product of the state compression |
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percentage, as determined under Section 42.2516, multiplied by the |
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maintenance and operations tax rate adopted by the district for the |
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2005 tax year; and |
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(2) Subsection (a-1)(3) applies to the district's |
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maintenance and operations tax effort that exceeds the rate |
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described by Subdivision (1)[; and
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[(3) the limitation on district enrichment tax rate
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("DTR") under Section 42.303 does not apply to the district's
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maintenance and operations tax effort described by Subdivision
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(1)]. |
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SECTION 2. The following provisions of the Education Code |
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are repealed: |
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(1) Section 41.159(b); |
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(2) Section 42.302(a-2); and |
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(3) Section 42.303. |
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SECTION 3. During the 2007-2008 school year, the |
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commissioner of education shall provide funding, in the manner |
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provided by Section 42.253(i), Education Code, to school districts |
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under the Foundation School Program that includes any funding to |
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which the district would have been entitled under the law as amended |
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by this Act had that law been in effect for the 2006-2007 school |
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year. |
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SECTION 4. This Act takes effect September 1, 2007. |