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A BILL TO BE ENTITLED
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AN ACT
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relating to funding under the public school finance system for a |
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school district with a compressed tax rate below the state maximum |
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compressed tax rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 |
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available to a district with maintenance and operations tax revenue |
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per cent of tax effort equal to the maximum amount provided per cent |
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under Section 42.101(a) or (b), for the district's maintenance and |
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operations tax effort equal to or less than the rate equal to the |
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sum of the product of the state compression percentage, as |
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determined under Section 42.2516, multiplied by the maintenance and |
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operations tax rate adopted by the district for the 2005 tax year |
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and any additional tax effort included in calculating the |
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district's compressed tax rate under Section 42.101(a-1); |
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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 |
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available to the Austin Independent School District, as determined |
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by the commissioner in cooperation with the Legislative Budget |
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Board, for the first six cents by which the district's maintenance |
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and operations tax rate exceeds the rate equal to the sum of the |
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product of the state compression percentage, as determined under |
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Section 42.2516, multiplied by the maintenance and operations tax |
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rate adopted by the district for the 2005 tax year and any |
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additional tax effort included in calculating the district's |
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compressed tax rate under Section 42.101(a-1), subject to Section |
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41.093(b-1); or |
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(3) $319,500, for the district's maintenance and |
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operations tax effort that exceeds the amount of tax effort |
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described by Subdivision (2) [first six cents by which the
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district's maintenance and operations tax effort exceeds the rate
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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 the maintenance and
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operations tax rate adopted by the district for the 2005 tax year]. |
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SECTION 2. Section 41.093(b-1), Education Code, is amended |
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to read as follows: |
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(b-1) If the guaranteed level of state and local funds per |
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weighted student per cent of tax effort under Section |
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42.302(a-1)(1) for which state funds are appropriated for a school |
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year is an amount at least equal to the amount of revenue per |
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weighted student per cent of tax effort available to 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, the commissioner, in |
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computing the amounts described by Subsections (a)(1) and (2) and |
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determining the cost of an attendance credit, shall exclude |
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maintenance and operations tax revenue resulting from the tax rate |
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described by Section 41.002(a)(2) [first six cents by which a
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district's maintenance and operations tax rate exceeds the rate
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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 the maintenance and
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operations tax rate adopted by the district for the 2005 tax year]. |
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SECTION 3. Section 42.101, Education Code, as effective |
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September 1, 2015, is amended by adding Subsections (a-1), (a-2), |
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and (c) to read as follows: |
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(a-1) Notwithstanding Subsection (a), for a school district |
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that adopted a maintenance and operations tax rate for the 2005 tax |
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year below the maximum rate permitted by law for that year, the |
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district's compressed tax rate ("DCR") includes the portion of the |
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district's current maintenance and operations tax rate in excess of |
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the first six cents above the district's compressed tax rate, as |
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defined by Subsection (a), until the district's compressed tax rate |
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computed in accordance with this subsection is equal to the state |
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maximum compressed tax rate ("MCR"). |
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(a-2) Subsection (a-1) applies beginning with the 2017-2018 |
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school year. For the 2015-2016 and 2016-2017 school years, the |
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board of trustees of a school district that adopted a maintenance |
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and operations tax rate for the 2005 tax year below the maximum rate |
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permitted by law for that year may choose to apply Subsection (a-1) |
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to the calculation of the district's compressed tax rate ("DCR"). A |
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board of trustees that chooses to apply Subsection (a-1) must |
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notify the commissioner of the decision in writing not later than |
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September 1 of the affected school year. This subsection expires |
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September 1, 2018. |
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(c) This subsection applies to a school district for which |
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the compressed tax rate ("DCR") is determined in accordance with |
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Subsection (a-1). Any reduction in the district's adopted |
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maintenance and operations tax rate is applied to the following |
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components of the district's tax rate in the order specified: |
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(1) tax effort described by Section 42.302(a-1)(2); |
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(2) tax effort described by Section 42.302(a-1)(1); |
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and |
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(3) tax effort included in the determination of the |
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district's compressed tax rate ("DCR") under Subsection (a-1). |
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SECTION 4. Section 42.2516, Education Code, is amended by |
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adding Subsection (c-1) to read as follows: |
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(c-1) Revenue generated by the portion of a district's |
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maintenance and operations tax rate included in calculating the |
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district's compressed tax rate under Section 42.101(a-1) and local |
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share under Section 42.252(a-1) is included in determining the |
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amount to which a district is entitled under this section, but may |
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not increase the total amount of revenue per weighted student to |
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which the district is entitled under this section. This subsection |
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expires September 1, 2017. |
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SECTION 5. Section 42.252, Education Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) Notwithstanding Subsection (a), for a school district |
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that adopted a maintenance and operations tax rate for the 2005 tax |
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year below the maximum rate permitted by law for that year, the |
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district's tax rate ("TR") includes the tax effort included in |
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calculating the district's compressed tax rate under Section |
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42.101(a-1). |
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SECTION 6. Section 42.302(a-1), Education Code, is amended |
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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 |
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weighted student per cent of tax effort ("GL") for a school district |
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is: |
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(1) the greater of the amount of district tax revenue |
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per weighted student per cent of tax effort that would be available |
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to the Austin Independent School District, as determined by the |
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commissioner in cooperation with the Legislative Budget Board, if |
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the reduction of the limitation on tax increases as provided by |
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Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the |
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amount of district tax revenue per weighted student per cent of tax |
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effort used for purposes of this subdivision in the preceding |
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school year, for the first six cents by which the district's |
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maintenance and operations tax rate exceeds the rate equal to the |
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sum of the product of the state compression percentage, as |
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determined under Section 42.2516, multiplied by the maintenance and |
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operations tax rate adopted by the district for the 2005 tax year |
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and any additional tax effort included in calculating the |
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district's compressed tax rate under Section 42.101(a-1); and |
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(2) $31.95, for the district's maintenance and |
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operations tax effort that exceeds the amount of tax effort |
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described by Subdivision (1). |
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SECTION 7. This Act takes effect September 1, 2015. |