86R14124 MEW-D
 
  By: Hinojosa H.B. No. 3804
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an annual cost-of-living adjustment for school district
  employees and an annual adjustment to the basic allotment under the
  public school finance system to reflect inflation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 22, Education Code, is
  amended by adding Section 22.012 to read as follows:
         Sec. 22.012.  COST-OF-LIVING ADJUSTMENT.  (a)  Each school
  year, the commissioner shall determine a cost-of-living adjustment
  based on the Consumer Price Index for All Urban Consumers published
  by the Bureau of Labor Statistics of the United States Department of
  Labor for the salary or wages paid to a school district employee
  based on any change in the average cost of living since the
  preceding school year.
         (b)  From funds available to the state as a result of
  attendance credits purchased under Subchapter D, Chapter 41, the
  commissioner shall provide funding to each school district to
  provide the cost-of-living adjustment determined under Subsection
  (a) to each district employee.
         (c)  The cost-of-living adjustment provided under Subsection
  (b) is in addition to the salary or wages that the district would
  otherwise pay the employee during the school year.
         SECTION 2.  Subchapter A, Chapter 41, Education Code, is
  amended by adding Section 41.0012 to read as follows:
         Sec. 41.0012.  EXCLUSION OF CERTAIN REVENUE.
  Notwithstanding Section 41.001(3), in making any determination
  necessary for purposes of this chapter, the commissioner shall
  exclude the portion of the basic allotment under Section 42.101
  that is funded using revenue available to the state as a result of
  attendance credits purchased under Subchapter D.
         SECTION 3.  Section 41.094(b), Education Code, is amended to
  read as follows:
         (b)  Receipts shall be deposited in the state treasury and
  may be used only:
               (1)  to increase the basic allotment as provided by
  Section 42.101(a-3); and
               (2)  to provide a cost-of-living adjustment under
  Section 22.012 [for foundation school program purposes].
         SECTION 4.  Section 42.101, Education Code, is amended by
  amending Subsection (a) and adding Subsections (a-3) and (a-4) to
  read as follows:
         (a)  Subject to adjustment under Subsection (a-3), 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 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-3)  Beginning with the 2019-2020 school year, the basic
  allotment provided to a district under Subsection (a) or (b) is
  adjusted annually to increase the allotment by the amount that
  results from applying the inflation rate, as determined by the
  comptroller on the basis of changes in the Consumer Price Index for
  All Urban Consumers published by the Bureau of Labor Statistics of
  the United States Department of Labor, to the allotment for the
  preceding school year.
         (a-4)  The commissioner shall provide the adjustment to the
  basic allotment under Subsection (a-3) using funds available to the
  state as a result of attendance credits purchased under Subchapter
  D, Chapter 41, and, if necessary, funds deposited to the foundation
  school fund under Sections 201.404 and 202.353, Tax Code.
         SECTION 5.  This Act takes effect September 1, 2019.