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A BILL TO BE ENTITLED
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AN ACT
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relating to public school finance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.402(a), Education Code, is amended to |
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read as follows: |
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(a) Except as provided by Subsection (d), (e), or (f), a |
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school district must pay each classroom teacher, full-time |
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librarian, full-time counselor certified under Subchapter B, or |
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full-time school nurse not less than the minimum monthly salary, |
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based on the employee's level of experience in addition to other |
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factors, as determined by commissioner rule, determined by the |
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following formula: |
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MS = SF x FS |
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where: |
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"MS" is the minimum monthly salary; |
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"SF" is the applicable salary factor specified by Subsection |
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(c); and |
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"FS" is the amount, as determined by the commissioner under |
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Subsection (b), of state and local funds per weighted student, |
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including funds provided under Section 42.2516(b-3) |
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[42.2516(b)(1)(B), but not funds provided under Section
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42.2516(b)(1)(A), (b)(1)(C), (b)(2), or (b)(3)], available to a |
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district eligible to receive state assistance under Section 42.302 |
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with a maintenance and operations tax rate per $100 of taxable value |
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equal to the product of the state compression percentage, as |
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determined under Section 42.2516, multiplied by $1.50, except that |
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the amount of state and local funds per weighted student does not |
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include the amount attributable to the increase in the guaranteed |
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level made by Chapter 1187, Acts of the 77th Legislature, Regular |
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Session, 2001. |
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SECTION 2. Sections 29.918(a) and (b), Education Code, are |
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amended to read as follows: |
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(a) Notwithstanding Section [39.114 or] 42.152, a school |
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district or open-enrollment charter school with a high dropout |
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rate, as determined by the commissioner, must submit a plan to the |
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commissioner describing the manner in which the district or charter |
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school intends to use the compensatory education allotment under |
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Section 42.152 and other funds [the high school allotment under
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Section 42.2516(b)(3)] for developing and implementing |
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research-based strategies for dropout prevention. The district or |
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charter school shall submit the plan not later than December 1 of |
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each school year preceding the school year in which the district or |
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charter school will receive the compensatory education allotment or |
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other funds [high school allotment] to which the plan applies. |
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(b) A school district or open-enrollment charter school to |
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which this section applies may not spend or obligate more than 25 |
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percent of the district's or charter school's compensatory |
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education allotment [or high school allotment] unless the |
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commissioner approves the plan submitted under Subsection |
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(a). The commissioner shall complete an initial review of the |
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district's or charter school's plan not later than March 1 of the |
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school year preceding the school year in which the district or |
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charter school will receive the funds [compensatory education
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allotment or high school allotment] to which the plan applies. |
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SECTION 3. Section 29.919(e), Education Code, is amended to |
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read as follows: |
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(e) As a condition of receiving a state grant, a campus must |
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contribute additional funding for activities provided at the campus |
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through the program, in an amount equal to at least $100 each school |
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year for each student in an eligible grade level served through the |
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program. The additional funding required by this subsection may |
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consist of local funds, private funds, or state funds other than |
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grant funds provided under this section. [For program activities
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provided at the high school level, the high school allotment
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provided under Section 42.2516(b)(3) may be used to meet the
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additional funding requirement prescribed by this subsection.] |
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SECTION 4. The heading to Section 39.114, Education Code, |
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is amended to read as follows: |
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Sec. 39.114. SPECIAL HIGH SCHOOL PROGRAMS AND INITIATIVES |
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[ALLOTMENT]. |
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SECTION 5. Sections 39.114(a) and (d), Education Code, are |
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amended to read as follows: |
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(a) A [Except as provided by Subsection (b), a] school |
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district or campus, including an open-enrollment charter school, is |
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encouraged to [must] use funds in an amount equal to the amount that |
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would have been allocated to the district under Section |
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42.2516(b)(3), as that section existed on January 1, 2009, to: |
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(1) implement or administer a college readiness |
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program that provides academic support and instruction to prepare |
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underachieving students for entrance into an institution of higher |
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education; |
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(2) implement or administer a program that encourages |
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students to pursue advanced academic opportunities, including |
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early college high school programs and dual credit, advanced |
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placement, and international baccalaureate courses; |
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(3) implement or administer a program that provides |
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opportunities for students to take academically rigorous course |
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work, including four years of mathematics and four years of science |
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at the high school level; |
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(4) implement or administer a program, including |
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online course support and professional development, that aligns the |
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curriculum for grades six through 12 with postsecondary curriculum |
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and expectations; or |
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(5) implement or administer other high school |
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completion and success initiatives in grades six through 12 |
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approved by the commissioner. |
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(d) The commissioner shall adopt rules to administer this |
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section[, including rules related to the permissible use of funds
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allocated under this section to an open-enrollment charter school]. |
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SECTION 6. Section 41.002(a), Education Code, is amended to |
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read as follows: |
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(a) A school district may not have a wealth per student that |
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exceeds: |
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(1) the wealth per student that generates the amount |
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of maintenance and operations tax revenue per weighted student per |
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cent of tax effort available to a district as a result of the |
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guaranteed level provided by Section 42.302(a-1)(1) [at the 88th
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percentile in wealth per student], for the district's maintenance |
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and operations tax effort equal to or less than the rate equal to |
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the product of the state compression percentage, as determined |
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under Section 42.2516, multiplied by the maintenance and operations |
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tax rate adopted by the district for the 2005 tax year; |
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(2) the wealth per student that generates the amount |
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of maintenance and operations tax revenue per weighted student per |
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cent of tax effort available to a district as a result of the |
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guaranteed level provided by Section 42.302(a-1)(2) [the Austin
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Independent School District, as determined by the commissioner in
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cooperation with the Legislative Budget Board], for the first six |
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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, subject to Section 41.093(b-1); or |
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(3) the wealth per student that generates the amount |
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of maintenance and operations tax revenue per weighted student per |
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cent of tax effort available to a district as a result of the |
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guaranteed level provided by Section 42.302(a-1)(3) [$319,500], |
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for the district's maintenance and operations tax effort that |
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exceeds the first six cents by which the district's maintenance and |
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operations tax effort exceeds the rate equal to the product of the |
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state compression percentage, as determined under Section 42.2516, |
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multiplied by the maintenance and operations tax rate adopted by |
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the district for the 2005 tax year. |
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SECTION 7. Section 41.099(a), Education Code, is amended to |
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read as follows: |
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(a) Sections [41.002(e),] 41.094 and [,] 41.097[, and
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41.098] apply only to a district that: |
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(1) executes an agreement to purchase all attendance |
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credits necessary to reduce the district's wealth per student to |
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the equalized wealth level; |
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(2) executes an agreement to purchase attendance |
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credits and an agreement under Subchapter E to contract for the |
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education of nonresident students who transfer to and are educated |
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in the district but who are not charged tuition; or |
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(3) executes an agreement under Subchapter E to |
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contract for the education of nonresident students: |
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(A) to an extent that does not provide more than |
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10 percent of the reduction in wealth per student required for the |
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district to achieve a wealth per student that is equal to or less |
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than the equalized wealth level; and |
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(B) under which all revenue paid by the district |
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to other districts, in excess of the reduction in state aid that |
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results from counting the weighted average daily attendance of the |
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students served in the contracting district, is required to be used |
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for funding a consortium of at least three districts in a county |
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with a population of less than 40,000 that is formed to support a |
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technology initiative. |
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SECTION 8. Section 41.121, Education Code, is amended to |
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read as follows: |
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Sec. 41.121. AGREEMENT. The board of trustees of a district |
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with a wealth per student that exceeds the equalized wealth level |
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may execute an agreement to educate the students of another |
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district in a number that, when the weighted average daily |
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attendance of the students served is added to the weighted average |
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daily attendance of the contracting district, is sufficient, in |
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combination with any other actions taken under this chapter, to |
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reduce the district's wealth per student to a level that is equal to |
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or less than the equalized wealth level. The agreement is not |
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effective unless the commissioner certifies that the transfer of |
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weighted average daily attendance will not result in any of the |
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contracting districts' wealth per student being greater than the |
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equalized wealth level and that the agreement requires an |
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expenditure per student in weighted average daily attendance that |
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is at least equal to the amount per student in weighted average |
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daily attendance required under Section 41.093[, unless it is
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determined by the commissioner that a quality educational program
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can be delivered at a lesser amount. The commissioner may approve a
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special financial arrangement between districts if that
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arrangement serves the best educational interests of the state]. |
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SECTION 9. Section 42.2516, Education Code, is amended by |
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amending Subsections (d), (e), and (f) and adding Subsections |
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(a-2), (a-3), (a-4), (b-3), (b-4), (b-5), (b-6), and (b-7) to read |
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as follows: |
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(a-2) If, for the 2010-2011 school year or any subsequent |
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school year, the total amount of state and local revenue per student |
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in weighted average daily attendance for the maintenance and |
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operations of the district to which the district would be entitled |
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under this chapter or Chapter 41 exceeds the sum of $200 and the |
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amount of state and local revenue per student in weighted average |
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daily attendance for the maintenance and operations of the district |
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available to the district for the preceding school year, the |
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commissioner shall require the district, notwithstanding |
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Subsection (a) or any other law, to compress the district's |
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maintenance and operations tax rate as necessary to reduce the |
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district's available revenue to the lesser amount. |
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(a-3) Notwithstanding any other provision of law, the |
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amount of compression the commissioner may require under Subsection |
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(a-2) does not affect the state compression percentage under |
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Subsection (a). If the voters of a district required by the |
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commissioner to compress the district's maintenance and operations |
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tax rate under Subsection (a-2) have authorized a maintenance and |
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operations tax rate that is higher than the required compressed |
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rate, the district, notwithstanding Section 26.08, Tax Code, or any |
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other law, is not required in a subsequent year to obtain additional |
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voter authorization to impose a rate that does not exceed the |
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previously authorized rate. |
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(a-4) The amount of revenue to which a school district is |
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entitled because of the technology allotment under Section 32.005, |
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the transportation allotment under Section 42.155, and the new |
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instructional facility allotment under Section 42.158 is not |
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included in making a determination under Subsection (a-2). |
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(b-3) Subject to Subsections (b-4), (b-7), (e), (f-1), and |
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(g), but notwithstanding any other provision of this title, a |
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school district is entitled to state revenue necessary to provide |
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the district with the sum of: |
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(1) the amount of state and local revenue per student |
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in weighted average daily attendance for the maintenance and |
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operations of the district available to the district for the |
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2008-2009 school year; |
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(2) the amount to which the district is entitled under |
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Section 42.155 for the current school year; |
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(3) the amount to which the district is entitled under |
|
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Section 42.158 for the current school year; and |
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(4) an amount equal to the product of: |
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(A) for the 2009-2010 school year, $75 multiplied |
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by the number of students in weighted average daily attendance in |
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the district; or |
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(B) for each subsequent school year, $175 |
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multiplied by the number of students in weighted average daily |
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attendance in the district. |
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(b-4) For each school year, the commissioner shall |
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calculate for each school district in accordance with Subsection |
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(b-5) the additional maintenance and operations tax effort, in |
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excess of the district's maintenance and operations tax rate for |
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the 2008 tax year, that is needed to entitle the district to the |
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amount of increased revenue described by Subsection (b-3)(4). If a |
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district's maintenance and operations tax rate is less than $1 on |
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the $100 valuation of taxable property and does not equal at least |
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the sum of the district's maintenance and operations tax rate for |
|
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the 2008 tax year and the needed additional tax effort calculated by |
|
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the commissioner, the amount of increased revenue to which the |
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district is entitled under Subsection (b-3)(4) is adjusted by |
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applying the ratio of the amount by which the district's |
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maintenance and operations tax rate exceeds the district's |
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maintenance and operations tax rate for the 2008 tax year divided by |
|
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the needed additional tax effort calculated by the commissioner. |
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(b-5) Notwithstanding any other provision of law, the |
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additional school district maintenance and operations tax effort |
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described by Subsection (b-4) is the difference between the tax |
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rate resulting from the product of the maximum maintenance and |
|
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operations tax rate permitted for the 2005 tax year under Section |
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45.003 and the state compression percentage under Subsection (a), |
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minus the district's tax rate described by Section 42.302(a-1)(1). |
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The tax effort described in Subsection (b-4) is subject to all rules |
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and entitled to the same guaranteed level of state and local funds |
|
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per weighted student per cent of tax effort as tax effort described |
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by Section 42.302(a-1)(1). |
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(b-6) Notwithstanding any other provision of law, the |
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increased revenue described by Subsection (b-3)(4) is not included |
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in the determination of the number of students in weighted average |
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daily attendance under Section 42.302(a). |
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(b-7) The amount of revenue to which a district is entitled |
|
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under Subsection (b-3) includes funds sufficient to ensure the |
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maintenance of: |
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(1) the professional staff salary allotment provided |
|
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by Subsection (b)(2) and the high school allotment provided by |
|
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Subsection (b)(3) as those sections existed on January 1, 2009; |
|
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(2) the staff salary allotment provided by Section |
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42.2513 as that section existed on January 1, 2009; |
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(3) funding for school district employees who |
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participate in a group health coverage plan provided by or through |
|
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the district; |
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(4) the $110 per weighted student allocation |
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authorized in Rider 82, page III-23, Chapter 1330 (H.B. 1), Acts of |
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the 78th Legislature, Regular Session, 2003 (the General |
|
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Appropriations Act); and |
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(5) the $23.63 per weighted student allocation |
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authorized in Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of |
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the 80th Legislature, Regular Session, 2007 (the General |
|
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Appropriations Act). |
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(d) If [, for the 2006-2007 or a subsequent school year,] a |
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school district enters into an agreement under Subchapter E, |
|
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Chapter 41, the commissioner shall reduce the amount of state |
|
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revenue to which the district is entitled under Subsection (b-3) |
|
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[(b)] for that school year by an amount equal to any additional |
|
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revenue for that school year that the district receives and retains |
|
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as a result of that agreement, which is the amount by which the |
|
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total maintenance and operations revenue available to the district |
|
|
exceeds the total maintenance and operations revenue that would |
|
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have been available to the district if the district had not entered |
|
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into the agreement and had imposed a maintenance and operations tax |
|
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at the maximum rate permitted under Section 45.003(d), less any |
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amount the district pays to another entity under the agreement. |
|
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(e) The amount of revenue to which a school district is |
|
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entitled because of the technology allotment under Section 32.005, |
|
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the transportation allotment under Section 42.155, and the new |
|
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instructional facility allotment under Section 42.158 and the |
|
|
amount of state and local revenue resulting from a tax rate |
|
|
described by Section 42.302(a-1)(2) or (3) are [is] not included in |
|
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making a determination under Subsection (b-3)(1) [(b)(1)]. |
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(f) For purposes of determining the amount of revenue to |
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which a school district is entitled under this section, the |
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commissioner shall use the average tax collection rate for the |
|
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district for the 2006, 2007, and 2008 [2003, 2004, and 2005] tax |
|
|
years. |
|
|
SECTION 10. Section 42.260(a), Education Code, is amended |
|
|
to read as follows: |
|
|
(a) In this section, "participating charter school" means |
|
|
an open-enrollment charter school that participates in the uniform |
|
|
group coverage program established under Chapter 1579, Insurance |
|
|
Code [has the meaning assigned by Section 42.2514]. |
|
|
SECTION 11. Effective September 1, 2009, Section |
|
|
42.302(a-1), Education Code, is amended to read as follows: |
|
|
(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 greater of 90 percent of the amount of district |
|
|
tax revenue per weighted student per cent of tax effort that would |
|
|
be available to the Austin Independent School District [a district
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|
|
at the 88th percentile in wealth per student], as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, or |
|
|
the amount of district tax revenue per weighted student per cent of |
|
|
tax effort used for purposes of this subdivision in the preceding |
|
|
school year, 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 greater of the amount of district tax revenue |
|
|
per weighted student per cent of tax effort that would be available |
|
|
to the Austin Independent School District, as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, if |
|
|
the reduction of the limitation on tax increases as provided by |
|
|
Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
|
|
amount of district tax revenue per weighted student per cent of tax |
|
|
effort used for purposes of this subdivision in the preceding |
|
|
school year, 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
|
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|
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). |
|
|
SECTION 12. Effective September 1, 2010, Section |
|
|
42.302(a-1), Education Code, as amended by Chapters 19 (H.B. 5) and |
|
|
1191 (H.B. 828), Acts of the 80th Legislature, Regular Session, |
|
|
2007, is reenacted and amended to read as follows: |
|
|
(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 greater of 95 percent of the amount of district |
|
|
tax revenue per weighted student per cent of tax effort that would |
|
|
be available to the Austin Independent School District [a district
|
|
|
at the 88th percentile in wealth per student], as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, or |
|
|
the amount of district tax revenue per weighted student per cent of |
|
|
tax effort used for purposes of this subdivision in the preceding |
|
|
school year, 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 greater of the amount of district tax revenue |
|
|
per weighted student per cent of tax effort that would be available |
|
|
to the Austin Independent School District, as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, if |
|
|
the reduction of the limitation on tax increases as provided by |
|
|
Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
|
|
amount of district tax revenue per weighted student per cent of tax |
|
|
effort used for purposes of this subdivision in the preceding |
|
|
school year, 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, 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). |
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|
SECTION 13. Effective September 1, 2011, Section |
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|
42.302(a-1), Education Code, as amended by Chapters 19 (H.B. 5) and |
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|
1191 (H.B. 828), Acts of the 80th Legislature, Regular Session, |
|
|
2007, is reenacted and amended to read as follows: |
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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 |
|
|
weighted student per cent of tax effort ("GL") for a school district |
|
|
is: |
|
|
(1) the greater of the amount of district tax revenue |
|
|
per weighted student per cent of tax effort that would be available |
|
|
to the Austin Independent School District [a district at the 88th
|
|
|
percentile in wealth per student], as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, or |
|
|
the amount of district tax revenue per weighted student per cent of |
|
|
tax effort used for purposes of this subdivision in the preceding |
|
|
school year, 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 greater of the amount of district tax revenue |
|
|
per weighted student per cent of tax effort that would be available |
|
|
to the Austin Independent School District, as determined by the |
|
|
commissioner in cooperation with the Legislative Budget Board, if |
|
|
the reduction of the limitation on tax increases as provided by |
|
|
Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
|
|
amount of district tax revenue per weighted student per cent of tax |
|
|
effort used for purposes of this subdivision in the preceding |
|
|
school year, 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, 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). |
|
|
SECTION 14. Section 1579.251(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) The state shall assist employees of participating |
|
|
school districts and charter schools in the purchase of group |
|
|
health coverage under this chapter by providing for each covered |
|
|
employee the amount of $900 each state fiscal year or a greater |
|
|
amount as provided by the General Appropriations Act. The state |
|
|
contribution shall be distributed through the school finance |
|
|
formulas under Chapters 41 and 42, Education Code, and used by |
|
|
school districts and charter schools as provided by Section |
|
|
[Sections 42.2514 and] 42.260, Education Code. |
|
|
SECTION 15. Section 1581.053(b), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(b) Notwithstanding Subsection (a), amounts a district or |
|
|
school is required to use to pay contributions under a group health |
|
|
coverage plan for district or school employees under Section |
|
|
[42.2514 or] 42.260, Education Code, other than amounts described |
|
|
by Section 42.260(c)(2)(B), are not used in computing whether the |
|
|
district or school complies with Section 1581.052. |
|
|
SECTION 16. (a) The following sections of the Education |
|
|
Code are repealed: |
|
|
(1) Section 29.097(g); |
|
|
(2) Section 29.098(h); |
|
|
(3) Sections 39.114(b), (b-1), and (c); |
|
|
(4) Sections 41.002(e), (f), and (g); |
|
|
(5) Section 41.098; |
|
|
(6) Sections 42.2511, 42.2512, 42.2513, and 42.2514; |
|
|
and |
|
|
(7) Sections 42.2516(a-1), (b), (b-1), (b-2), (c), and |
|
|
(h). |
|
|
(b) Section 403.302(j), Government Code, is repealed. |
|
|
(c) Subchapter C, Chapter 1581, Insurance Code, is |
|
|
repealed. |
|
|
SECTION 17. To the extent of any conflict, this Act prevails |
|
|
over another Act of the 81st Legislature, Regular Session, 2009, |
|
|
relating to nonsubstantive additions to and corrections in enacted |
|
|
codes. |
|
|
SECTION 18. Except as otherwise provided by this Act, this |
|
|
Act takes effect September 1, 2009. |