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A BILL TO BE ENTITLED
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AN ACT
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relating to performance-based supplemental funding for school |
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districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 42, Education Code, is amended by adding |
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Subchapter K to read as follows: |
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SUBCHAPTER K. PERFORMANCE-BASED SUPPLEMENTAL FUNDING |
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Sec. 42.551. DEFINITION. In this subchapter, "weighted |
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average daily attendance" has the meaning assigned by Section |
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42.302. |
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Sec. 42.552. USE OF PRECEDING YEAR PERFORMANCE. The |
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eligibility of a school district for supplemental funding under |
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this subchapter during a school year is based on the district's |
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performance, as described by the applicable provision of this |
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subchapter, during the preceding school year. |
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Sec. 42.553. DETERMINATION BY COMMISSIONER. A |
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determination by the commissioner of the amount of supplemental |
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funding to be provided to a school district under this subchapter is |
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final and may not be appealed. |
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Sec. 42.554. USE OF SUPPLEMENTAL FUNDING. A school |
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district may use supplemental funding received under this |
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subchapter for any purpose authorized under Section 45.105(c). |
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Sec. 42.555. RULES. The commissioner may adopt rules to |
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implement this subchapter. |
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Sec. 42.556. SUPPLEMENTAL FUNDING BASED ON COMPARATIVE |
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ACADEMIC AND FINANCIAL PERFORMANCE. (a) The commissioner shall |
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evaluate each school district using a system that: |
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(1) integrates district academic achievement |
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information and financial performance information available |
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through the Public Education Information Management System |
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(PEIMS); and |
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(2) using matrices, quadrants, or quartiles, rates or |
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ranks school districts according to academic return on financial |
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investment. |
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(b) For each student in weighted average daily attendance, a |
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school district with a rating or ranking above a minimum level |
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specified by the commissioner may receive supplemental funding |
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according to a graduated scale provided by appropriation under |
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which the amount per student increases in correlation with a |
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district's higher rating or ranking. |
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Sec. 42.557. SUPPLEMENTAL FUNDING BASED ON STAR RATING |
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SYSTEM. (a) In this section, "star rating system" means a system |
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administered by a state agency using state funds that: |
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(1) evaluates a school district's academic progress |
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and fiscal performance; and |
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(2) awards a rating that ranges from one to five stars, |
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with ratings provided in half-star increments. |
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(b) The commissioner shall select a star rating system to be |
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used for purposes of this section. The system selected by the |
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commissioner must: |
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(1) evaluate a school district's academic progress |
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using regression analysis to predict student performance in |
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mathematics and reading, with consideration given to student |
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demographic characteristics, including sex, race, socioeconomic |
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status, limited English proficiency, special education status, and |
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grade level; and |
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(2) evaluate a school district's fiscal performance in |
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comparison to other school districts that operate in similar labor |
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markets, are of similar size, and serve students with similar |
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demographic characteristics. |
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(c) For each student in weighted average daily attendance, a |
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school district with a rating of at least three stars may receive |
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supplemental funding according to a graduated scale provided by |
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appropriation under which the amount per student increases in |
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correlation with a greater number of stars in a district's rating. |
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Sec. 42.558. SUPPLEMENTAL FUNDING BASED ON ADMINISTRATIVE |
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COST RATIO. (a) In this section, a school district's |
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administrative cost ratio is determined by dividing the sum of the |
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district's expenditures for instructional leadership and general |
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administration by the sum of the district's expenditures for |
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instruction, instructional resources and media services, |
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curriculum and instructional staff development, and guidance, |
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counseling, and evaluation services. |
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(b) For each student in weighted average daily attendance, a |
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school district may receive supplemental funding in an amount |
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specified by appropriation if: |
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(1) for a district with an average daily attendance of |
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10,000 or more, the district has an administrative cost ratio of |
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less than 8.55 percent; |
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(2) for a district with an average daily attendance of |
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at least 5,000 but less than 10,000, the district has an |
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administrative cost ratio of less than 10 percent; |
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(3) for a district with an average daily attendance of |
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at least 1,000 but less than 5,000, the district has an |
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administrative cost ratio of less than 11.51 percent; |
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(4) for a district with an average daily attendance of |
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at least 500 but less than 1,000, the district has an administrative |
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cost ratio of less than 13.11 percent; and |
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(5) for a district with an average daily attendance of |
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less than 500, the district has an administrative cost ratio of less |
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than 24.04 percent. |
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Sec. 42.559. SUPPLEMENTAL FUNDING BASED ON DEBT PER |
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STUDENT. For each student in weighted average daily attendance, a |
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school district may receive supplemental funding in an amount |
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specified by appropriation if: |
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(1) the district does not receive state assistance |
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under Subchapter B, Chapter 46; |
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(2) the district's enrollment growth for the preceding |
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10-year period is at least 25 percent; and |
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(3) the district's general obligation principal debt |
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per student did not exceed $25,000 in any of the 10 preceding fiscal |
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years. |
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SECTION 2. Section 42.251(a), Education Code, is amended to |
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read as follows: |
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(a) The sum of the basic allotment under Subchapter B and |
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the special allotments under Subchapter C, computed in accordance |
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with this chapter, constitute the tier one allotments. The sum of |
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the tier one allotments, [and] the guaranteed yield allotments |
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under Subchapter F, computed in accordance with this chapter, and |
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amounts provided under Subchapter K constitute the total cost of |
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the Foundation School Program. |
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SECTION 3. Sections 42.253(a) and (c), Education Code, are |
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amended to read as follows: |
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(a) For each school year the commissioner shall determine: |
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(1) the amount of money to which a school district is |
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entitled under Subchapters B and C; |
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(2) the amount of money to which a school district is |
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entitled under Subchapter F; |
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(3) the amount of money to be provided to a school |
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district, if any, under Subchapter K; |
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(4) the amount of money allocated to the district from |
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the available school fund; |
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(5) [(4)] the amount of each district's tier one local |
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share under Section 42.252; and |
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(6) [(5)] the amount of each district's tier two local |
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share under Section 42.302. |
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(c) Each school district is entitled to an amount equal to |
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the difference for that district between the sum of Subsections |
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(a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections |
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[(a)(3),] (a)(4), [and] (a)(5), and (a)(6). |
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SECTION 4. This Act takes effect September 1, 2017. |