84R5072 JSL/CAE-D
 
  By: Watson S.B. No. 595
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the equalized wealth level, basic allotment, local
  share, and guaranteed yield under the public school finance system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 41.002(a), Education Code, is amended to
  read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) or (b), 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 $1.50 [the maintenance and
  operations tax rate adopted by the district for the 2005 tax year];
               (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 $1.50 [the maintenance and operations tax rate
  adopted by the district for the 2005 tax year], subject to Section
  41.093(b-1); or
               (3)  the wealth per student specified under Subdivision
  (1) [$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 $1.50 [the maintenance and
  operations tax rate adopted by the district for the 2005 tax year].
         SECTION 2.  Section 41.093(b-1), Education Code, is amended
  to read as follows:
         (b-1)  If the guaranteed level of state and local funds per
  weighted student per cent of tax effort under Section
  42.302(a-1)(1) for which state funds are appropriated for a school
  year is an amount at least equal to the amount of 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, the commissioner, in
  computing the amounts described by Subsections (a)(1) and (2) and
  determining the cost of an attendance credit, shall exclude
  maintenance and operations tax revenue resulting from the first six
  cents by which a 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
  $1.50 [the maintenance and operations tax rate adopted by the
  district for the 2005 tax year].
         SECTION 3.  Section 42.101, Education Code, as effective
  September 1, 2015, is amended by amending Subsection (a) and adding
  Subsection (a-1) to read as follows:
         (a)  Except as provided by Subsection (a-1), for [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
  equal to $5,040 [the lesser of $4,765 or the amount that results
  from the following formula:
  [A = $4,765 X (DCR/MCR)
  [where:
         ["A" is the allotment to which a district is entitled;
         ["DCR" is the district's compressed tax rate, which is 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
         ["MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50].
         (a-1)  A school district with a maintenance and operations
  tax rate less than the rate equal to the product of the state
  compression percentage, as determined under Section 42.2516,
  multiplied by $1.50 is entitled to a proportion of the allotment
  provided under Subsection (a) or (b) equal to the proportion that
  the district's maintenance and operations tax rate bears to the tax
  rate equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by $1.50.
         SECTION 4.  Section 42.252(a), 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 the lesser of:
               (1)  the amount equal to the product of the state
  compression percentage, as determined under Section 42.2516,
  multiplied by [the lesser of:
               [(1)]  $1.50; or
               (2)  the maintenance and operations tax rate adopted by
  the district [for the 2005 tax year]; and
         "DPV" is the taxable value of property in the school district
  for the preceding tax year determined under Subchapter M, Chapter
  403, Government Code.
         SECTION 5.  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 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 $1.50 [the maintenance and
  operations tax rate adopted by the district for the 2005 tax year];
  and
               (2)  the amount of district tax revenue per weighted
  student per cent of tax effort available to a district with
  maintenance and operations tax revenue per cent of tax effort equal
  to the maximum amount provided per cent under Section 42.101(a) or
  (b) [$31.95], for the district's maintenance and operations tax
  effort that exceeds the amount of tax effort described by
  Subdivision (1).
         SECTION 6.  This Act takes effect September 1, 2015.