By: Zaffirini S.B. No. 1863
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the rate of school district
enrichment taxes eligible for equalization under the foundation
school program.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Sections 42.302(a), (a-1), and (a-3), Education
Code, are amended 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 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 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, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
       "DTR" is the 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 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 "
DTR" 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 42.2521, divided by 100.
       (a-1)  In this section, "wealth per student" has the meaning
assigned by Section 41.001.  For purposes of Subsection (a), the
dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort ("GL") for a school district
is:
             (1)  the amount of district tax revenue per weighted
student per cent of tax effort available to a district at the 88th
percentile in wealth per student, as determined by the commissioner
in cooperation with the Legislative Budget Board, for the
district's maintenance and operations tax effort equal to or less
than the rate equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
             (2)  the amount of district tax revenue per weighted
student per cent of tax effort available to the Austin Independent
School District, as determined by the commissioner in cooperation
with the Legislative Budget Board, for the first six cents by which
the district's maintenance and operations tax rate exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516 [and notwithstanding the
limitation on district enrichment tax rate ("DTR") under Section
42.303], multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year; and
             (3)  $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (2).
       (a-3)  Subsection (a-1) applies beginning with the 2008–2009
school year.  For the 2006–2007 and 2007–2008 school years, the
dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort ("GL") for a school district
is the level specified by Subsection (a-1), except that:
             (1)  Subsection (a-1)(2) applies only to the first four
cents by which the district's maintenance and operations tax rate
exceeds the rate equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year; and
             (2)  Subsection (a-1)(3) applies to the district's
maintenance and operations tax effort that exceeds the rate
described by Subdivision (1) [; and
             [(3)  the limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the district's
maintenance and operations tax effort described by Subdivision
(1)].
       SECTION 2.  The following provisions of the Education Code
are repealed:
             (1)  Section 41.159(b);
             (2)  Section 42.302(a-2); and
             (3)  Section 42.303.
       SECTION 3.  During the 2007–2008 school year, the
commissioner of education shall provide funding, in the manner
provided by Section 42.253(i), Education Code, to school districts
under the Foundation School Program that includes any funding to
which the district would have been entitled under the law as amended
by this Act had that law been in effect for the 2006–2007 school
year.
       SECTION 4.  This Act takes effect September 1, 2007.