By: Hochberg H.B. No. 3646

A BILL TO BE ENTITLED

AN ACT

relating to public school finance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 21.402, Education Code, is amended by adding Subsections (c-1), (c-2), (c-3), and (c-4) by amending Subsections (d) and (g) to read as follows:

(c-1) Notwithstanding Subsection (a), for the 2009-2010 and 2010-2011 school years, each school district and open-enrollment charter school shall use at least the amount specified in Section 42.2512(a)(1):

(1) to increase the salaries of classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, full-time school nurses and full-time speech pathologists;

(2) for any resulting increase in the district or open-enrollment charter school contribution to the retirement system required under 825.405, Government Code; and

(3) for any resulting increase in the district or open-enrollment charter school contribution under the federal Social Security Act.

(c-2) An increase in salary under Subsection (c-1) does not include any amount to which an employee would have received for the 2009-2010 or 2010-2011 school year, as applicable, under the district's salary schedule for the 2008-2009 school year, if that schedule had been in effect for the 2009-2010 or 2010-2011 school year, including any local supplement and any money representing a career ladder supplement the employee would have received in the 2009-2010 or 2010-2011 school year.

(c-3) An increase in salary under Subsection (c-1) does not include any part of the salary to which an employee is entitled under Subsection (a).

(c-4) Subsections (c-1), (c-2), (c-3) and this subsection expire September 1, 2011.

(d) A classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, [or] full-time school nurse, or full-time speech pathologist employed by a school district in the 2010-2011 [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 2010-2011 [2006-2007] school year.

(g) The commissioner may adopt rules to govern the application of this section, including rules that:

(1) require the payment of a minimum salary under this section to a person employed in more than one capacity for which a minimum salary is provided and whose combined employment in those capacities constitutes full-time employment; and

(2) specify the credentials a person must hold to be considered a school nurse or speech pathologist under this section.

SECTION 2. Subchapter A, Chapter 29, Education Code, is amended by adding Section 29.018 to read as follows:

Sec. 29.018. SPECIAL EDUCATION GRANT. (a) From funds appropriated for the purposes of this section, federal funds, or any other funds available, the commissioner shall make grants available to school districts to assist districts in covering the cost of educating students with disabilities.

(b) A school district is eligible to apply for a grant under this section if:

(1) the district does not receive sufficient funds, including state funds provided under Section 42.151 and federal funds, for a student with disabilities to pay for the special education services provided to the student; or

(2) the district does not receive sufficient funds, including state funds provided under Section 42.151 and federal funds, for all students with disabilities in the district to pay for the special education services provided to the students.

(c) A school district that applies for a grant under this section must provide the commissioner with a report comparing the state and federal funds received by the district for students with disabilities and the expenses incurred by the district in providing special education services to students with disabilities.

(d) Expenses that may be included by a school district in applying for a grant under this section include the cost of training personnel to provide special education services to a student with disabilities.

(e) A school district that receives a grant under this section must educate students with disabilities in the least restrictive environment that is appropriate to meet the student's educational needs.

(f) The commissioner shall adopt rules as necessary to administer this section.

SECTION 3. Section 29.082, Education Code, is amended by amending adding Subsections (h) to read as follows:

(h) The commission shall give priority to applications for extended year programs to districts with high concentrations of educationally disadvantaged students.

SECTION 4. Section 29.0822, Education Code, is amended by amending Subsections (a) and (c) and adding Subsections (e) to read as follows:

(a) Notwithstanding Section 25.081 or 25.082, a school district may apply to the commissioner to provide a flexible school day program for students [in grades nine through 12] who:

(1) have dropped out of school or are at risk of dropping out of school as defined by Section 29.081; [or]

(2) attend a campus that is implementing an innovative redesign of the campus or an early college high school under a plan approved by the commissioner; or

(3) as a result of attendance requirements under Section 25.092, will be denied credit for one or more classes in which the students have been enrolled.

(c) Except in the case of a course designed for a student described by Subsection (a)(3), a [A] course offered in a program under this section must provide for at least the same number of instructional hours as required for a course offered in a program that meets the required minimum number of instructional days under Section 25.081 and the required length of school day under Section 25.082.

(e) A student described by Subsection (a)(3) may enroll in a course in a program under this section offered during the school year or during the period in which school is recessed for the summer. The student may enroll in such a course to the extent necessary for the student to earn class credit that, as a result of attendance requirements under Section 25.092, the student would not otherwise be able to receive without retaking the class.

SECTION 5. Section 29.085, Education Code, is amended by adding Subsections (e) and (f) to read as follows:

(e) In distributing these funds, preference shall be given to a school district that received funds for a program under this section for the preceding school year. The program established under this section is required only in school districts in which the program is financed by funds appropriated for this purpose and any other funds distributed by the commissioner for the program.

(f) To receive funds for this program, a school district must apply to the commissioner. The commissioner shall give a preference to the districts that apply that have the highest concentration of students who are pregnant or who are parents.

SECTION 6. Subchapter A, Chapter 33, Education Code, is amended by amending Section 33.002, and adding Section 33.008 and 33.009 to read as follows:

Sec. 33.002. CERTIFIED COUNSELOR. (a) This section applies only to a school district that receives funds as provided by this subchapter [Section 42.152(i)].

Sec. 33.008. A program established under this subchapter is required only in school districts in which the program is financed by funds appropriated for this purpose or other funds distributed by the commissioner for a program under this subchapter. In distributing these funds, preference shall be given to a school district that received funds for a program under this subchapter for the preceding school year.

Sec. 33.009. To receive funds for the program, a school district must apply to the commissioner. The commissioner shall give a preference to the districts that apply that have the highest concentration of at-risk students. For each school year that a school district receives funds under this subchapter 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.

SECTION 7. Section 39.031, Education Code, is amended to read as follows:

Sec. 39.031. COST. [(a)] The cost of preparing, administering, or grading the assessment instruments and [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] the cost of releasing the question and answer keys under Section 39.023(e) shall be paid from amounts appropriated to the agency.

SECTION 8. Subsection (a), Section 41.002, Education Code is amended to read as follows:

(a) A school district may not have a wealth per student that exceeds:

(1) for a district with an effective maintenance and operations tax rate of $1.06 or less, the wealth per student that generates the amount of maintenance and operations tax revenue per weighted student available to a district with a taxable value of property per weighted student in daily attendance used to compute the basic allotment under Section 42.101 [at the percentile in wealth per student 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]; or

[(2) the wealth per student that generates the amount of maintenance and operations tax revenue per weighted student 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, multiplied by the maintenance and operations tax rate adopted by the district for the 2005 tax year, subject to Section 41.093(b-1); or]

[(3)] (2) for a district with an effective tax rate that exceeds $1.06, $319,500[, for the district's maintenance and operations tax effort that exceeds the first six cents by which the district's maintenance and operations tax effort 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].

SECTION 9. Section 42.101, Education Code, is amended to read as follows:

Sec. 42.101. BASIC ALLOTMENT. 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 in an amount equal to the product of the amount per student per cent of tax effort available to a district with a taxable value of property per weighted student in daily attendance divided by_____, where the divisor represents the approximate statewide local share of funding, which may be set by appropriation, [specified by Section 42.302(a-1)(1)], multiplied by the lesser of: [86. A greater amount for any school year may be provided by appropriation.]

(1) the district's effective tax rate for maintenance and operations multiplied by 100; or

(2) 100.

SECTION 10. Subsection (b), Section 42.102, Education Code, is amended to read as follows:

(b) The cost of education adjustment is 93 percent of the 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 11. Subchapter C, Chapter 42, Education Code, is amended by adding Section 42.159 to read as follows:

Sec. 42.159. HIGH SCHOOL ALLOTMENT. A school district is entitled to 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.

SECTION 12. Subsection (a), Section 42.2512, Education Code, is amended to read as follows:

(a) A school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount, as determined by the commissioner, equal to the difference, if any, between:

(1) an amount equal to the product of $_____ [$3,000] multiplied by the number of classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses and full- full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses and full-time speech pathologists as designated by the commission under Section 41.402(g), employed by the district [and entitled to a minimum salary under Section 21.402; and

(2) an amount equal to _____ [80] percent of the amount of additional funds to which the district is entitled due to the increases made by H.B. [S.B.] No. _____ [4], Acts of the 81st [76th] Legislature, Regular Session, 2009 [1999], to:

(A) the equalized wealth level under Section 41.002;

(B) the basic allotment under Section 42.101; and

(C) the guaranteed level of state and local funds per weighted student per cent of tax effort under Section 42.302.

SECTION 13. Section 42.2516, Education Code, is amended to read as follows:

(a) The state compression rate is 66.67 percent. [In this section, "state compression percentage" means the percentage, as determined by the commissioner, of a school district's adopted maintenance and operations tax rate for the 2005 tax year that serves as the basis for state funding for tax rate reduction under this section. The commissioner shall determine the state compression percentage for each school year based on the percentage by which a district is able to reduce the district's maintenance and operations tax rate for that year, as compared to the district's adopted maintenance and operations tax rate for the 2005 tax year, as a result of state funds appropriated for distribution under this section for that year from the property tax relief fund established under Section 403.109, Government Code, or from another funding source available for school district property tax relief.

[(a-1) Subsection (a) applies beginning with the state fiscal year ending August 31, 2009. For the state fiscal year ending August 31, 2007, the state compression percentage is 88.67 percent. For the state fiscal year ending August 31, 2008, the state compression percentage is 66.67 percent. This subsection expires September 1, 2009.]

(b) Subject to Subsections (b-1), (b-2), (f-1), and (g), [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 2008-2009 [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) 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.]

(b-1) The amount determined for a school district under Subsection (b) is increased or reduced as follows:

(1) if for any school year the district is entitled to a greater allotment under Section 42.158 than the allotment to which the district was entitled under that section for the 2008-2009 school year [on which the district's entitlement under Subsection (b) is based], the district's entitlement under Subsection (b) is increased by an amount equal to the difference between the amount to which the district is entitled under Section 42.158 for that school year and the amount to which the district was entitled under that section for the 2008-2009 school year [:

[(A) the 2005-2006 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(A); or

[(B) the 2006-2007 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(B) or (C)]; and

(2) if for any school year the district is not entitled to an allotment under Section 42.158 or is entitled to a lesser allotment under that section than the allotment to which the district was entitled under that section for the 2008-2009 school year [on which the district's entitlement under Subsection (b) is based], the district's entitlement under Subsection (b) is reduced by an amount equal to the difference between the amount to which the district was entitled under Section 42.158 for the 2008-2009 [2005-2006 or 2006-2007] school year [, as appropriate based on whether the district's entitlement under Subsection (b) is determined under Subsection (b)(1)(A), (B), or (C),] and the amount to which the district is entitled under Section 42.158 for the current school year.

(b-2) The amount determined for a school district under Subsection (b) is increased or reduced as follows:

(1) if for any school year the district is entitled to a greater allotment under Section 42.155 or greater additional state aid under Section 42.2515 than the allotment or additional state aid to which the district was entitled under Section 42.155 or 42.2515, as applicable, for the 2008-2009 school year [on which the district's entitlement under Subsection (b) is based], the district's entitlement under Subsection (b) is increased by an amount equal to the difference between the amount to which the district is entitled under Section 42.155 or 42.2515, as applicable, for that school year and the amount to which the district was entitled under the applicable section for the 2008-2009 school year [, as applicable for:

[(A) the 2005-2006 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(A); or

[(B) the 2006-2007 school year, if the amount determined for the district under Subsection (b) is determined under Subsection (b)(1)(B) or (C)]; and

(2) if for any school year the district is not entitled to an allotment under Section 42.155 or additional state aid under Section 42.2515 or is entitled to a lesser allotment or less additional state aid under the applicable section than the allotment or additional state aid to which the district was entitled under the applicable section for the 2008-2009 school year [on which the district's entitlement under Subsection (b) is based], the district's entitlement under Subsection (b) is reduced by an amount equal to the difference between the amount to which the district was entitled under Section 42.155 or 42.2515, as applicable, for the 2008-2009 [2005-2006 or 2006-2007] school year, [as appropriate based on whether the district's entitlement under Subsection (b) is determined under Subsection (b)(1)(A), (B), or (C),] and the amount to which the district is entitled under the applicable section for the current school year.

(c) In determining the amount to which a district is entitled under Subsection (b)(1), the commissioner shall include:

(1) any amounts received by the districts during the 2008-2009 school year [described by] Rider 86 [69], page III-24 [III-19], Chapter 1428 [1369], Acts of the 80th [79th] Legislature, Regular Session, 2007 [2005] (the General Appropriations Act);

(2) for a school district that received additional revenue for the 2008-2009 [2005-2006] school year as a result of an agreement under Subchapter E, Chapter 41:

(A) if the amount of state revenue to which the district is entitled under Subsection (b) is computed based on the amount described by Subsection (b)(1)(A), the amount of that additional revenue retained by the district for the 2008-2009 [2005-2006] school year, which is the amount by which the total maintenance and operations revenue available to the district for that school year exceeded the total maintenance and operations revenue that would have been available to the district for that school year if the district had not entered into the agreement, less any amount the district paid to another entity under the agreement; [or

[(B) if the amount of state revenue to which the district is entitled under Subsection (b) is computed based on the amount described by Subsection (b)(1)(B) or (C), the amount of the additional revenue that would have been retained by the district for the 2006-2007 school year if the district had entered into the agreement on the same terms as under the agreement for the 2005-2006 school year, which is the amount by which the total maintenance and operations revenue that would have been available to the district for the 2006-2007 school year if the district had entered into the agreement exceeds the total maintenance and operations revenue that would have been available to the district for that school year if the district had not entered into the agreement and had imposed a maintenance and operations tax at the rate of $1.50 on the $100 valuation of taxable property, less any amount the district would have paid to another entity under the agreement;]

(3) any amount necessary to reflect an adjustment made by the commissioner under Section 42.005;

(4) any amount necessary to reflect an adjustment made by the commissioner under Section 42.2521; and

(5) any amount necessary to reflect an adjustment made by the commissioner under Section 42.2531.

(d) If, for the 2008-2009 [2006-2007] or a subsequent school year, a school district enters into an agreement under Subchapter E, Chapter 41, the commissioner shall reduce the amount of state revenue to which the district is entitled under Subsection (b) for that school year by an amount equal to any additional revenue for that school year that the district receives and retains as a result of that agreement, which is the amount by which the total maintenance and operations revenue available to the district exceeds the total maintenance and operations revenue that would have been available to the district if the district had not entered into the agreement and had imposed a maintenance and operations tax at the maximum rate permitted under Section 45.003(d), less any amount the district pays to another entity under the agreement.

(e) The amount of revenue to which a school district is entitled because of the technology allotment under Section 32.005 is not included in making a determination under Subsection (b)(1).

(f) For purposes of determining the amount of revenue to which a school district is entitled under this section, the commissioner shall use the average tax collection rate for the district for the 2006, 2007, and 2008 [2003, 2004, and 2005] tax years.

(f-1) The commissioner shall, in accordance with rules adopted by the commissioner, adjust the amount of a school district's local revenue derived from maintenance and operations tax collections, as calculated for purposes of determining the amount of state revenue to which the district is entitled under this section, if the district, for the 2010 [2007] tax year or a subsequent tax year:

(1) adopts an exemption under Section 11.13(n), Tax Code, that was not in effect for the 2009 [2005 or 2006] tax year, or eliminates an exemption under Section 11.13(n), Tax Code, that was in effect for the 2009 [2005 or 2006] tax year;

(2) adopts an exemption under Section 11.13(n), Tax Code, at a greater or lesser percentage than the percentage in effect for the district for the 2009 [2005 or 2006] tax year;

(3) grants an exemption under an agreement authorized by Chapter 312, Tax Code, that was not in effect for the 2009 [2005 or 2006] tax year, or ceases to grant an exemption authorized by that chapter that was in effect for the 2009 [2005 or 2006] tax year; or

(4) agrees to deposit taxes into a tax increment fund created under Chapter 311, Tax Code, under a reinvestment zone financing plan that was not in effect for the 2009 [2005 or 2006] tax year, or ceases depositing taxes into a tax increment fund created under that chapter under a reinvestment zone financing plan that was in effect for the 2009 [2005 or 2006] tax year.

SECTION 14. Subchapter F, Chapter 42, Education Code, is amended by adding Section 42.3021 to read as follows:

Sec. 42.3021 INCREASED YIELD ON LAST ADOPTED SIX CENTS IN TAX RATE. (a) In addition to sum of the school district's allotments under Subchapters B and C, and the guaranteed yield amount under Section 42.302, a district is guaranteed an additional amount calculated by increasing the yield on the district's last adopted six cents of effective tax rate for maintenance and operations to 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, or the amount of district tax revenue per weighted student per cent of tax effort used for purposes of this section in the preceding school year. This section applies whether the cents of tax rate are within the basic allotment under Subchapters B and C, or within the guaranteed yield allotment under Section 42.302.

(a-1) Subsection (a) applies beginning with the 2010-2011 school year. This subsection and subsection (a-2) expire September 1, 2010.

(a-2) In addition to sum of the school district's allotments under Subchapters B and C, and the guaranteed yield amount under Section 42.302, a district is guaranteed an additional amount calculated by increasing the yield on the district's last adopted six cents of effective tax rate for maintenance and operations to 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. guaranteed yield allotment under Section 42.302.

SECTION 15. Subsection (a), Section 42.252, Education Code, is amended to read as follows:

(a) Each school district's share 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 which for each hundred dollars of valuation is an effective tax rate of $0.86; and

"DPV" is the taxable value of property in the school district for the current [preceding] tax year determined under Subchapter M, Chapter 403, Government Code.

SECTION 16. Subsection (a), Section 42.302, Education Code, is 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 $1.00 [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, and any allotment under Sections [Section] 42.158 or 42.159, [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.

SECTION 17. Effective September 1, 2009, 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 $31.95[:

[(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 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, 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)].

SECTION 18. 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 $31.95[:

[(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 greater of 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, 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 19. Section 42.303, Education Code, is amended to read as follows:

Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The district enrichment tax rate ("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 $1.00 [of $0.86, or a greater amount for any year provided by appropriation].

SECTION 20. REPEALERS. (a) Section 41.002, Education Code, Subsections (e), (f), and (g), are repealed.

(b) Section 41.102, Education Code, Subsection (e) is repealed.

(c) Section 41.152, Education Code, Subsections (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), and (u) are repealed.

(d) Section 42.2511, Section 42.2513, Section 42.2514, Education Code, are repealed.

(e) Section 42.2516, Subsections (a-1) and (h), Education Code, are repealed.

SECTION 21. This Act applies beginning with the 2009-2010 school year.

SECTION 22. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.