80R4927 ESH-D
	By: Pitts	H.B. No. 3890

	A BILL TO BE ENTITLED
	AN ACT
	relating to certification of and salaries for certain professional
	public school employees and public school finance.
	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, 2007, Section 21.402,
	Education Code, is amended by amending Subsections (a)-(d) and
	adding Subsections (c-1) and (c-2) 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 in addition to other
	factors, as determined by commissioner rule, 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, including funds provided under Section 42.2516(b)(1)(B),
	but not funds provided under Section 42.2516(b)(1)(A), (b)(1)(C),
	(b)(2), or (b)(3), available to a district eligible to receive
	state assistance under Section 42.302 with a maintenance and
	operations tax rate per $100 of taxable value equal to the product
	of the state compression percentage, as determined under Section
	42.2516, multiplied by $1.50, 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
	Chapter 1187, 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:
	Years 0 1 2 3 4
	Experience 0 1 2 3 4
	Salary .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Factor .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Years 5 6 7 8 9
	Experience 5 6 7 8 9
	Salary .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Factor .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Years 10 11 12 13 14
	Experience 10 11 12 13 14
	Salary .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Factor .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Years 15 16 17 18 19
	Experience 15 16 17 18 19
	Salary .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Factor .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Years 20 andover
	Experience 20 andover
	Salary .9639 [1.009]
	Factor .9639 [1.009]
	(c-1)  Notwithstanding Subsection (a), for the 2007-2008
	school year, a classroom teacher, full-time librarian, full-time
	counselor certified under Subchapter B, or full-time school nurse
	is entitled to a monthly salary that is at least equal to the sum of:
	(1)  the monthly salary the employee would have
	received for the 2007-2008 school year under the district's salary
	schedule for the 2006-2007 school year, if that schedule had been in
	effect for the 2007-2008 school year, including any local
	supplement and any money representing a career ladder supplement
	the employee would have received in the 2007-2008 school year; and
	(2)  the difference between:
	(A)  $200; and
	(B)  the amount, if any, of the increase in
	salary, under the district's salary schedule for the 2006-2007
	school year, to which the employee is entitled for advancing on the
	district's salary schedule from the 2006-2007 school year to the
	2007-2008 school year.
	(c-2)  Subsection (c-1) and this subsection expire September
	1, 2008.
	(d)  A classroom teacher, full-time librarian, full-time
	counselor certified under Subchapter B, or full-time school nurse
	employed by a school district in the 2007-2008 [2006-2007] 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 [2006-2007] school year.
	SECTION 1.03.  Effective September 1, 2008, Section
	21.402(c), Education Code, is amended to read as follows:
	(c)  The salary factors per step are as follows:
	Years 0 1 2 3 4
	Experience 0 1 2 3 4
	Salary .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Factor .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Years 5 6 7 8 9
	Experience 5 6 7 8 9
	Salary .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Factor .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Years 10 11 12 13 14
	Experience 10 11 12 13 14
	Salary .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Factor .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Years 15 16 17 18 19
	Experience 15 16 17 18 19
	Salary .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Factor .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Years 20 [and over] 21 and over
	Experience 20 [and over] 21 and over
	Salary .9639 [1.009] .9754
	Factor .9639 [1.009] .9754
	SECTION 1.04.  Effective September 1, 2008, Section
	21.403(a), Education Code, is amended to read as follows:
	(a)  A teacher, librarian, counselor, or nurse shall advance
	one step on the minimum salary schedule under Section 21.402 for
	each year of experience as a teacher, librarian, counselor, or
	nurse until step 21 [20] is reached.
	SECTION 1.05.  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:
	Years 0 1 2 3 4
	Experience 0 1 2 3 4
	Salary .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Factor .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Years 5 6 7 8 9
	Experience 5 6 7 8 9
	Salary .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Factor .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Years 10 11 12 13 14
	Experience 10 11 12 13 14
	Salary .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Factor .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Years 15 16 17 18 19
	Experience 15 16 17 18 19
	Salary .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Factor .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Years 20 [and over] 21 22 and over
	Experience 20 [and over] 21 22 and over
	Salary .9639 [1.009] .9754 .9869
	Factor .9639 [1.009] .9754 .9869
	SECTION 1.06.  Effective September 1, 2009, Section
	21.403(a), Education Code, is amended to read as follows:
	(a)  A teacher, librarian, counselor, or nurse shall advance
	one step on the minimum salary schedule under Section 21.402 for
	each year of experience as a teacher, librarian, counselor, or
	nurse until step 22 [20] is reached.
	SECTION 1.07.  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:
	Years 0 1 2 3 4
	Experience 0 1 2 3 4
	Salary .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Factor .6115 [.6226] .6231 [.6360] .6352 [.6492] .6475 [.6627] .6733 [.6909]
	Years 5 6 7 8 9
	Experience 5 6 7 8 9
	Salary .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Factor .6992 [.7192] .7250 [.7474] .7490 [.7737] .7717 [.7985] .7931 [.8220]
	Years 10 11 12 13 14
	Experience 10 11 12 13 14
	Salary .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Factor .8133 [.8441] .8325 [.8650] .8508 [.8851] .8677 [.9035] .8840 [.9213]
	Years 15 16 17 18 19
	Experience 15 16 17 18 19
	Salary .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Factor .8992 [.9380] .9138 [.9539] .9273 [.9687] .9402 [.9828] .9525 [.9963]
	Years 20 [and over] 21 22 23 and over
	Experience 20 [and over] 21 22 23 and over
	Salary .9639 [1.009] .9754 .9869 .9983
	Factor .9639 [1.009] .9754 .9869 .9983
	SECTION 1.08.  Effective September 1, 2010, Section
	21.403(a), Education Code, is amended to read as follows:
	(a)  A teacher, librarian, counselor, or nurse shall advance
	one step on the minimum salary schedule under Section 21.402 for
	each year of experience as a teacher, librarian, counselor, or
	nurse until step 23 [20] is reached.
	SECTION 1.09.  Not later than January 1, 2008, 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, 2008.
	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(a), 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 2012-2013
	school year. For the 2007-2008 through 2011-2012 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 2007-2008 school year, $30;
	(2)  for the 2008-2009 school year, $50;
	(3)  for the 2009-2010 school year, $75;
	(4)  for the 2010-2011 school year, $100; and
	(5)  for the 2011-2012 school year, $125.
	(a-2)  Subsection (a-1) and this subsection expire September
	1, 2012.
	(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, 2007, 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, 2013, 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 41.093(a), Education Code, is amended
	to read as follows:
	(a)  The [Subject to Subsection (b-1), the] cost of each
	credit is an amount equal to the greater of:
	(1)  the amount of the district's maintenance and
	operations tax revenue per student in weighted average daily
	attendance for the school year for which the contract is executed;
	or
	(2)  the amount of the statewide district average of
	maintenance and operations tax revenue per student in weighted
	average daily attendance for the school year preceding the school
	year for which the contract is executed.
	SECTION 2.21.  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 2.22.  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 2.23.  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 2.24.  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 2.25.  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 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.
	[in an amount equal to the product of the amount per student per
	cent of tax effort available to a district at the percentile in
	wealth per student specified by Section 42.302(a-1)(1), multiplied
	by 86.]
	(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 2.26.  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 2012-2013 school year.  For the
	2007-2008 through 2011-2012 school years, the cost of education
	adjustment is determined in the following manner:
	(1)  for the 2007-2008 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 2006-2007
	school year;
	(2)  for the 2008-2009 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 2006-2007
	school year;
	(3)  for the 2009-2010 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 2006-2007 school
	year;
	(4)  for the 2010-2011 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 2006-2007
	school year; and
	(5)  for the 2011-2012 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 2006-2007
	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 2012-2013 school year. For the 2007-2008 through
	2011-2012 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 2007-2008 school year, 56 percent;
	(2)  for the 2008-2009 school year, 59 percent;
	(3)  for the 2009-2010 school year, 62 percent;
	(4)  for the 2010-2011 school year, 65 percent; and
	(5)  for the 2011-2012 school year, 68 percent.
	(e)  Subsections (b-1), (d), and this subsection expire
	September 1, 2012. [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 2.27.  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 2007-2008 through 2011-2012 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 2007-2008 school year:
	AA = (1 + ((1,600 - ADA) X .000275)) X ABA
	(2)  for the 2008-2009 school year:
	AA = (1 + ((1,600 - ADA) X .0003)) X ABA
	(3)  for the 2009-2010 school year:
	AA = (1 + ((1,600 - ADA) X .000325)) X ABA
	(4)  for the 2010-2011 school year:
	AA = (1 + ((1,600 - ADA) X .00035)) X ABA
	(5)  for the 2011-2012 school year:
	AA = (1 + ((1,600 - ADA) X .000375)) X ABA
	(c-1)  Subsection (c) and this subsection expire September
	1, 2012. [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 2012-2013
	school year.  For the 2007-2008 through 2011-2012 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 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 .0000275)) X ABA
	(2)  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 .00003)) X ABA
	(3)  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 .0000325)) X ABA
	(4)  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 .000035)) X ABA
	(5)  for the 2011-2012 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, 2012.
	SECTION 2.28.  Effective September 1, 2012, 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 2.29.  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 0.22 [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 2.30.  Effective September 1, 2009, 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 2.31.  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 2.32.  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 2009-2010
	school year. For the 2007-2008 and 2008-2009 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 2007-2008 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 2008-2009 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, 2009.
	SECTION 2.33.  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 2.401.91
	1.15 to 1.651.69
	.90 to 1.151.48
	up to .901.33
	(c-2)  Subsection (c-1) applies beginning with the 2009-2010
	school year. For the 2007-2008 and 2008-2009 school years, the
	allotment per mile of approved route under Subsection (c) is
	computed as follows:
	(1)  for the 2007-2008 school year:
	Linear Density                              Allocation Per Mile
	Grouping                                    of Approved Route
	2.40 and above$1.64
	1.65 to 2.401.44
	1.15 to 1.651.28
	.90 to 1.151.12
	up to .901.01
	(2)  for the 2008-2009 school year:
	Linear Density                              Allocation Per Mile
	Grouping                                    of Approved Route
	2.40 and above$1.89
	1.65 to 2.401.66
	1.15 to 1.651.47
	.90 to 1.151.29
	up to .901.16
	(c-3)  Subsection (c-2) and this subsection expire September
	1, 2009. [may not exceed the amount set by appropriation.]
	SECTION 2.34.  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 2.35.  Section 42.2516, Education Code, is amended
	by amending Subsection (b) and adding Subsections (e-1) and (m) to
	read as follows:
	(b)  Subject to Subsection [Subsections] (g) or Section
	42.2523 [and (h)], but notwithstanding any other provision of this
	title, a school district is entitled to state revenue necessary to
	provide the district with the sum of:
	(1)  the amount of state revenue necessary to maintain
	state and local revenue per student in weighted average daily
	attendance in the amount equal to the greater of:
	(A)  the amount of state and local revenue per
	student in weighted average daily attendance for the maintenance
	and operations of the district available to the district for the
	2005-2006 school year;
	(B)  the amount of state and local revenue per
	student in weighted average daily attendance for the maintenance
	and operations of the district to which the district would have been
	entitled for the 2006-2007 school year under this chapter, as it
	existed on January 1, 2006, or, if the district would have been
	subject to Chapter 41, as that chapter existed on January 1, 2006,
	the amount to which the district would have been entitled under that
	chapter, based on the funding elements in effect for the 2005-2006
	school year, if the district imposed a maintenance and operations
	tax at the rate adopted by the district for the 2005 tax year; or
	(C)  the amount of state and local revenue per
	student in weighted average daily attendance for the maintenance
	and operations of the district to which the district would have been
	entitled for the 2006-2007 school year under this chapter, as it
	existed on January 1, 2006, or, if the district would have been
	subject to Chapter 41, as that chapter existed on January 1, 2006,
	the amount to which the district would have been entitled under that
	chapter, based on the funding elements in effect for the 2005-2006
	school year, if the district imposed a maintenance and operations
	tax at the rate equal to the rate described by Section 26.08(i) or
	(k)(1), Tax Code, as applicable, for the 2006 tax year;
	(2)  the following amounts, depending on the school
	year:
	(A)  for the 2007-2008 school year, an amount
	equal to $150 per student in weighted average daily attendance for
	the 2006-2007 school year divided by the district's average daily
	attendance for the 2006-2007 school year; or
	(B)  for the 2008-2009 or a subsequent school
	year, the greater of:
	(i)  an amount equal to $150 per student in
	weighted average daily attendance for the 2006-2007 school year
	divided by the district's average daily attendance for the
	2006-2007 school year; or
	(ii)  an amount equal to 140 percent of the
	quotient of the product of $4,500 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 2008-2009 school year and
	entitled to a minimum salary under Section 21.402 divided by the
	district's average daily attendance for the 2008-2009 school
	year; [an amount equal to the product of $2,500 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 and entitled to a minimum
	salary under Section 21.402;] and
	(3)  an amount equal to the product of $275 multiplied
	by the number of students in average daily attendance in grades nine
	through 12 in the district.
	(e-1)  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.
	(m)  The General Appropriations Act must include, in the
	appropriation to the agency, a line item for funding to be provided
	under this section.
	SECTION 2.36.  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 2.37.  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 2.38.  Subchapter E, Chapter 42, Education Code, is
	amended by adding Section 42.2523 to read as follows:
	Sec. 42.2523.  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 42.2516(b)(1):
	(1)  108 percent for the 2007-2008 school year;
	(2)  116 percent for the 2008-2009 school year; and
	(3)  124 percent for the 2009-2010 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, 2010.
	SECTION 2.39.  The heading to Subchapter F, Chapter 42,
	Education Code, is amended to read as follows:
	SUBCHAPTER F.  MEANINGFUL DISCRETION TIER [GUARANTEED YIELD
	PROGRAM]
	SECTION 2.40.  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 2.41.  Section 42.302, Education Code, is amended by
	amending Subsection (a) and adding Subsections (a-5), (a-6), and
	(g) 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 [an
	amount described by Subsection (a-1)] 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, 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 for the
	current tax year 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-5)  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 2013-2014 school year.
	For the 2007-2008 through 2012-2013 school years, the GL is
	determined as provided by this subsection, except that a greater
	amount may be provided by appropriation:
	(1)  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 92nd percentile in wealth per student;
	(2)  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 93rd percentile in wealth per student;
	(3)  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 94th percentile in wealth per student;
	(4)  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 95th percentile in wealth per student;
	(5)  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 96th percentile in wealth per student; and
	(6)  for the 2012-2013 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-6)  Subsection (a-5) and this subsection expire September
	1, 2013.
	(g)  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 2.42.  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 the amount per $100 of valuation by which the maximum rate
	permitted under Section 45.003 exceeds the rate of $_____ [$0.86],
	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 2007 tax year, the rate of $0.02 per $100
	of valuation;
	(2)  for the 2008 tax year, the rate of $0.04 per $100
	of valuation;
	(3)  for the 2009 tax year, the rate of $0.06 per $100
	of valuation;
	(4)  for the 2010 tax year, the rate of $0.08 per $100
	of valuation;
	(5)  for the 2011 tax year, the rate of $0.10 per $100
	of valuation;
	(6)  for the 2012 tax year, the rate of $0.12 per $100
	of valuation; and
	(7)  for the 2013 tax year, the rate of $0.14 per $100
	of valuation.
	(c)  Subsection (b) and this subsection expire September 1,
	2014.
	SECTION 2.43.  Effective September 1, 2007, 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, 2013.
	SECTION 2.44.  Effective September 1, 2013, 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 2.45.  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].
	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 2009-2010
	school year. For the 2007-2008 school year, the state shall pay 16
	percent of the total costs described by Subsection (a). For the
	2008-2009 school year, the state shall pay 33 percent of the total
	costs described by Subsection (a). This subsection expires
	September 1, 2010.
	(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, 2007; and
	(2)  contributions made on behalf of employees in a
	class of employees the district covered under the social security
	program before January 1, 2007.
	(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)  Subchapter G, Chapter 42;
	(3)  Subchapter H, Chapter 42, as added by Chapter 260,
	Acts of the 74th Legislature, Regular Session, 1995;
	(4)  Sections 41.001, 41.002, 41.003, 41.0031, 41.007,
	41.011, 41.092, 41.098, 41.099, and 42.2521;
	(5)  Section 39.024(e);
	(6)  Section 41.009(b);
	(7)  Sections 41.093(b-1) and (b-2);
	(8)  Section 41.252(b);
	(9)  Section 42.103(e);
	(10)  Section 42.151(l);
	(11)  Sections 42.152(e), (f), (g), (h), (i), (j), (k),
	(l), (n), (o), (p), and (t);
	(12)  Section 42.154(e);
	(13)  Section 42.2516(h);
	(14)  Section 42.252(d); and
	(15)  Sections 42.302(a-1), (a-2), (a-3), and (a-4).
	SECTION 4.02.  This Act applies beginning with the 2007-2008
	school year.
	SECTION 4.03.  Except as otherwise provided by this Act,
	this Act takes effect September 1, 2007.