84R2733 JSL-D

By: Watson S.B. No. 244

A BILL TO BE ENTITLED

AN ACT

relating to the elimination of the cost of education adjustment under the Foundation School Program.

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

SECTION 1. Section 7.062(c), Education Code, is amended to read as follows:

(c) Except as otherwise provided by this subsection, if the commissioner certifies that the amount appropriated for a state fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds the amount to which school districts are entitled under those subchapters for that year, the commissioner shall use the excess funds, in an amount not to exceed $20 million in any state fiscal year, for the purpose of making grants under this section. The use of excess funds under this subsection has priority over any provision of Chapter 42 that permits or directs the use of excess foundation school program funds, including Sections [42.2517,] 42.2521, 42.2522, and 42.2531. The commissioner is required to use excess funds as provided by this subsection only if the commissioner is not required to reduce the total amount of state funds allocated to school districts under Section 42.253(h).

SECTION 2. Section 12.106(a-1), Education Code, is amended to read as follows:

(a-1) In determining funding for an open-enrollment charter school under Subsection (a), adjustments under Sections [42.102,] 42.103[, 42.104,] and 42.105 are based on the average adjustment for the state.

SECTION 3. Section 29.014(d), Education Code, is amended to read as follows:

(d) The basic allotment for a student enrolled in a district to which this section applies is adjusted by[:

[(1) the cost of education adjustment under Section 42.102 for the school district in which the district is geographically located; and

[(2)] the weight for a homebound student under Section 42.151(a).

SECTION 4. Section 41.034(a), Education Code, is amended to read as follows:

(a) For the first and second school years after creation of a consolidated district under this subchapter, the commissioner shall adjust allotments to the consolidated district to the extent necessary to preserve the effects of an adjustment under Section [42.102,] 42.103[,] or 42.105 to which either of the consolidating districts would have been entitled but for the consolidation.

SECTION 5. Section 42.007(c), Education Code, is amended to read as follows:

(c) The funding elements must include:

(1) a basic allotment for the purposes of Section 42.101 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 basic allotment or adjusted [basic] allotment, as applicable, for the appropriate year;

(3) [(4)] the maximum guaranteed level of qualified state and local funds per student for the purposes of Subchapter F;

(4) [(5)] the enrichment [and facilities] tax rate under Subchapter F;

(5) [(6)] the computation of students in weighted average daily attendance under Section 42.302; and

(6) [(7)] the amount to be appropriated for the school facilities assistance program under Chapter 46.

SECTION 6. Section 42.103, Education Code, is amended to read as follows:

Sec. 42.103. SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a) The basic allotment for certain small and mid-sized districts is adjusted in accordance with this section. In this section:

(1) "AA" is the district's adjusted allotment per student;

(2) "ADA" is the number of students in average daily attendance for which the district is entitled to an allotment under Section 42.101; and

(3) "BA [ABA]" is the [adjusted] basic allotment determined under Section 42.101 [42.102].

(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 BA [ABA]

(c) 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 formula:

AA = (1 + ((1,600 - ADA) X .00025)) X BA [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) or (c) for which the district is eligible; or

(2) AA = (1 + ((5,000 - ADA) X .000025)) X BA [ABA].

SECTION 7. Section 42.105, Education Code, as effective September 1, 2015, is amended to read as follows:

Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding Sections 42.101[, 42.102,] and 42.103, a school district that has fewer than 130 students in average daily attendance shall be provided funding [an adjusted basic allotment] on the basis of 130 students in average daily attendance if it offers a kindergarten through grade 12 program and has preceding or current year's average daily attendance of at least 90 students or is 30 miles or more by bus route from the nearest high school district. A district offering a kindergarten through grade 8 program whose preceding or current year's average daily attendance was at least 50 students or which is 30 miles or more by bus route from the nearest high school district shall be provided funding [an adjusted basic allotment] on the basis of 75 students in average daily attendance. An average daily attendance of 60 students shall be the basis of providing funding [the adjusted basic allotment] if a district offers a kindergarten through grade 6 program and has preceding or current year's average daily attendance of at least 40 students or is 30 miles or more by bus route from the nearest high school district.

SECTION 8. Sections 42.151(a) and (k), Education Code, are amended to read as follows:

(a) For each student in average daily attendance in a special education program under Subchapter A, Chapter 29, in a mainstream instructional arrangement, a school district is entitled to an annual allotment equal to the basic allotment or adjusted [basic] allotment, as applicable, multiplied by 1.1. For each full-time equivalent student in average daily attendance in a special education program under Subchapter A, Chapter 29, in an instructional arrangement other than a mainstream instructional arrangement, a district is entitled to an annual allotment equal to the basic allotment or adjusted [basic] allotment, as applicable, multiplied by a weight determined according to instructional arrangement as follows:

Homebound5.0

Hospital class3.0

Speech therapy5.0

Resource room3.0

Self-contained, mild and moderate,

regular campus3.0

Self-contained, severe, regular campus3.0

Off home campus2.7

Nonpublic day school1.7

Vocational adjustment class2.3

(k) A school district that provides an extended year program required by federal law for special education students who may regress is entitled to receive funds in an amount equal to 75 percent, or a lesser percentage determined by the commissioner, of the [adjusted] basic allotment or adjusted allotment, as applicable, for each full-time equivalent student in average daily attendance, multiplied by the amount designated for the student's instructional arrangement under this section, for each day the program is provided divided by the number of days in the minimum school year. The total amount of state funding for extended year services under this section may not exceed $10 million per year. A school district may use funds received under this section only in providing an extended year program.

SECTION 9. 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 basic allotment or adjusted [basic] allotment, as applicable, multiplied by 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 10. Section 42.153(a), Education Code, is amended 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 basic allotment or adjusted [basic] allotment, as applicable, multiplied by 0.1.

SECTION 11. Section 42.154(a), Education Code, is amended to read as follows:

(a) For each full-time equivalent student in average daily attendance in an approved career and technology education program in grades nine through 12 or in career and technology education programs for students with disabilities in grades seven through 12, a district is entitled to:

(1) an annual allotment equal to the basic allotment or adjusted [basic] allotment, as applicable, multiplied by a weight of 1.35; and

(2) $50, if the student is enrolled in:

(A) two or more advanced career and technology education classes for a total of three or more credits; or

(B) an advanced course as part of a tech-prep program under Subchapter T, Chapter 61.

SECTION 12. Section 42.156(a), Education Code, is amended to read as follows:

(a) For each identified student a school district serves in a program for gifted and talented students that the district certifies to the commissioner as complying with Subchapter D, Chapter 29, a district is entitled to an annual allotment equal to the district's basic allotment or adjusted [basic] allotment as determined under Section 42.101 [42.102] or Section 42.103, as applicable, multiplied by .12 for each school year or a greater amount provided by appropriation.

SECTION 13. Section 42.157(a), Education Code, is amended to read as follows:

(a) Except as provided by Subsection (b), for each student in average daily attendance who is using a public education grant under Subchapter G, Chapter 29, to attend school in a district other than the district in which the student resides, the district in which the student attends school is entitled to an annual allotment equal to the basic allotment or adjusted [basic] allotment, as applicable, multiplied by a weight of 0.1.

SECTION 14. Section 42.261(a), Education Code, is amended to read as follows:

(a) Funds appropriated by the legislature for a tax year for the purpose of reducing a school district's maintenance and operations tax rate and providing state aid under Section 42.2516:

(1) [are not excess funds for purposes of Section 42.2517;

[(2)] are not available for purposes of Section 42.2521 or 42.2522;

(2) [(3)] may not be used for purposes of Chapter 46; and

(3) [(4)] may not be provided by the commissioner to a school district for a purpose other than reduction of the district's maintenance and operations tax rate.

SECTION 15. Section 42.302(a), 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 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 Section 42.158 or 42.160, [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 16. Section 322.008(b), Government Code, is amended to read as follows:

(b) The general appropriations bill may include for purposes of information the funding elements computed by the Legislative Budget Board under Section 42.007, Education Code[, excluding the values for each school district calculated under Section 42.007(c)(2), Education Code]. If the funding elements are included, the funding elements under Section 42.007(c)(2) [42.007(c)(3)], Education Code, shall be reported in dollar amounts per pupil.

SECTION 17. Section 825.405(b), Government Code, is amended to read as follows:

(b) For purposes of this section:

(1) the statutory minimum salary for certain school personnel under Section 21.402, Education Code, is the salary provided by that section multiplied by 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, applicable [under Section 42.102, Education Code,] to the district in which the member is employed; and

(2) the statutory minimum salary for members who would have been entitled to the minimum salary for certain school personnel under former Section 16.056, Education Code, as that section existed on January 1, 1995, is a minimum salary computed in the same manner as the minimum salary for certain school personnel under Section 21.402, Education Code, multiplied by 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, applicable [under Section 42.102, Education Code,] to the district in which the member is employed.

SECTION 18. The following sections of the Education Code are repealed:

(1) Section 42.102;

(2) Section 42.104; and

(3) Section 42.2517.

SECTION 19. This Act takes effect September 1, 2015.