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A BILL TO BE ENTITLED
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AN ACT
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relating to public school finance and public education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 30.003, Education Code, is amended by |
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adding Subsection (b-1) and amending Subsection (f-1) to read as |
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follows: |
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(b-1) For purposes of subsection (b), the maintenance and |
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debt service taxes imposed by the district is reduced by the |
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district's amount of local revenue in excess of entitlement for |
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that year under Section 48.257. |
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(f-1) The commissioner shall determine the total amount |
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that the Texas School for the Blind and Visually Impaired and the |
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Texas School for the Deaf would have received from school districts |
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in accordance with this section if the following provisions had not |
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reduced the districts' share of the cost of providing education |
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services: |
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(1) H.B. No. 1, Acts of the 79th Legislature, 3rd |
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Called Session, 2006; |
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(2) Section 45.0032; |
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(3) Section 48.255; and |
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(4) Section 48.2551.; and |
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(5) Section 30.003 (b-1). |
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Section 2. Section 46.003, Education Code, is amended by |
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amending Subsection (a) to read as follows: |
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Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each |
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year, except as provided by Sections 46.005 and 46.006, a school |
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district is guaranteed a specified amount per student in state and |
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local funds for each cent of tax effort, up to the maximum rate |
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under Subsection (b), to pay the principal of and interest on |
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eligible bonds issued to construct, acquire, renovate, or improve |
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an instructional facility. The amount of state support is |
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determined by the formula: |
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FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100)) |
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where: |
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"FYA" is the guaranteed facilities yield amount of state |
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funds allocated to the district for the year; |
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"FYL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is $4535 or a |
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greater amount for any year provided by appropriation; |
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"ADA" is the greater of the number of students in average |
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daily attendance, as determined under Section 48.005, in the |
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district or 400; |
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"BTR" is the district's bond tax rate for the current year, |
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which is determined by dividing the amount budgeted by the district |
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for payment of eligible bonds by the quotient of the district's |
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taxable value of property as determined under Subchapter M, Chapter |
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403, Government Code, or, if applicable, Section 48.258, divided by |
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100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, Section 48.258. |
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Section 3. Section 46.032, Education Code, is amended by |
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amending Subsection (a) to read as follows: |
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Sec. 46.032. ALLOTMENT. (a) Each school district is |
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guaranteed a specified amount per student in state and local funds |
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for each cent of tax effort to pay the principal of and interest on |
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eligible bonds. The amount of state support, subject only to the |
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maximum amount under Section 46.034, is determined by the formula: |
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EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100)) |
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where: |
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"EDA" is the amount of state funds to be allocated to the |
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district for assistance with existing debt; |
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"EDGL" is the dollar amount guaranteed level of state and |
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local funds per student per cent of tax effort, which is the lesser |
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of: |
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(1) $4540 or a greater amount for any year provided by |
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appropriation; or |
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(2) the amount that would result in a total additional |
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amount of state funds under this subchapter for the current year |
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equal to $60 million in excess of the state funds to which school |
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districts would have been entitled under this section if the |
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guaranteed level amount were $35; |
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"ADA" is the number of students in average daily attendance, |
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as determined under Section 48.005, in the district; |
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"EDTR" is the existing debt tax rate of the district, which is |
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determined by dividing the amount budgeted by the district for |
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payment of eligible bonds by the quotient of the district's taxable |
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value of property as determined under Subchapter M, Chapter 403, |
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Government Code, or, if applicable, under Section 48.258, divided |
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by 100; and |
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"DPV" is the district's taxable value of property as |
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determined under Subchapter M, Chapter 403, Government Code, or, if |
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applicable, under Section 48.258. |
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Section 4. Section 48.0071, Education Code, is amended by |
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amending Subsection (d) as follows: |
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(d) This section expires September 1, 2023. |
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Section 5. Section 48.051, Education Code, is amended by |
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amending Subsection (a) and adding Subsection (e) to read as |
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follows: |
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(a) For each student in average daily attendance, not |
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including the time students spend each day in special education |
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programs in an instructional arrangement other than mainstream or |
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career and technology education programs, for which an additional |
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allotment is made under Subchapter C, a district is entitled to an |
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allotment equal to the lesser of $6,210160 or the amount that |
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results from the following formula: |
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A = $6,210160 X TR/MCR X IF |
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where: |
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"A" is the allotment to which a district is entitled; |
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"TR" is the district's tier one maintenance and operations |
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tax rate, as provided by Section 45.0032.; and |
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"MCR" is the district's maximum compressed tax rate, as |
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determined under Section 48.2551.; and |
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"IF" is the statewide inflation factor determined under |
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Section 48.0512. |
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(b) A greater amount for any school year may be provided by |
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appropriation. |
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(c) During any school year for which the maximum amount of |
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the basic allotment provided under Subsection (a) or (b) is greater |
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than the maximum amount provided for the preceding school year, a |
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school district must use at least 30 percent of the amount, if the |
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amount is greater than zero, that equals the product of the average |
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daily attendance of the district multiplied by the amount of the |
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difference between the district's funding under this chapter per |
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student in average daily attendance for the current school year and |
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the preceding school year to provide compensation increases to |
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full-time district employees other than administrators as follows: |
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(1) 75 percent must be used to increase the |
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compensation paid to classroom teachers, full-time librarians, |
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full-time school counselors certified under Subchapter B, Chapter |
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21, and full-time school nurses, prioritizing differentiated |
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compensation for classroom teachers with more than five years of |
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experience; and |
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(2) 25 percent may be used as determined by the |
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district to increase compensation paid to full-time district |
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employees. |
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(c-1) A school district employee who received a salary |
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increase under Subsection (c) from a school district for the |
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2019-2020 school year is, as long as the employee remains employed |
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by the same district and the district is receiving at least the same |
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amount of funding as the amount of funding the district received for |
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the 2019-2020 school year, entitled to salary that is at least equal |
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to the salary the employee received for the 2019-2020 school year. |
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This subsection does not apply if the board of trustees of the |
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school district at which the employee is employed: |
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(1) complies with Sections 21.4021, 21.4022, and |
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21.4032 in reducing the employee's salary; and |
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(2) has adopted a resolution declaring a financial |
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exigency for the district under Section 44.011. |
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(c-2) A reduction in the salary of a school district |
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employee described by Subsection (c-1) is subject to the rights |
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granted to the employee under this code. |
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(d) In this section, "compensation" includes benefits such |
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as insurance premiums. |
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(e) For purposes of calculating the amount of the required |
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compensation increases under Subsection (c), increases to an |
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allotment under Sections 48.111, 48.115, 48.151, 48.152, 48.252, |
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and 48.277 are excluded from the calculation. |
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Section 6. Section 48.0512, Education Code, is added to |
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read as follows: |
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Sec. 48.0512. INFLATION FACTOR FOR BASIC ALLOTMENT. (a) In |
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the second year of each biennium, the basic allotment under Section |
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48.051 is adjusted by a factor equivalent to the average annual |
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percentage increase in the Texas Consumer Price Index for the |
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preceding 10-year period. |
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(b) In school years where an adjustment under Subsection (a) |
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would result in a reduction to the basic allotment, then the basic |
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allotment would equal the value for the first year of the biennium. |
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Section 7. Section 48.101, Education Code, is amended by |
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amending Subsection (a) to read as follows: |
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(a) Small and mid-sized districts are entitled to an annual |
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allotment in accordance with this section. In this section: |
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(1) "AA" is the district's annual allotment per |
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student in average daily attendance; |
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(2) "ADA" is the number of students in average daily |
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attendance for which the district is entitled to an allotment under |
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Section 48.051, excluding students counted in average daily |
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attendance under Section 48.0071(b) for districts eligible to |
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operate virtual programs under Section 48.007(c); and |
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(3) "BA" is the basic allotment determined under |
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Section 48.051. |
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Section 8. Section 48.110, Education Code, is amended by |
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amending Subsection (d) to read as follows: |
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(d) For each annual graduate in a cohort described by |
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Subsection (b) who demonstrates college, career, or military |
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readiness as described by Subsection (f) in excess of the minimum |
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number of students determined for the applicable district cohort |
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under Subsection (c), a school district is entitled to an annual |
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outcomes bonus of: |
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(1) if the annual graduate is educationally |
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disadvantaged, $5,000; |
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(2) if the annual graduate is not educationally |
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disadvantaged, $3,000; and |
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(3) if the annual graduate is enrolled in a special |
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education program under Subchapter A, Chapter 29, $42,000, |
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regardless of whether the annual graduate is educationally |
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disadvantaged. |
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Section 9. Section 48.111, Education Code, is amended by |
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amending Subsections (a), (c), (c-1), (d), (d-1), (d-2), and (d-3) |
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to read as follows: |
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(a) Except as provided by Subsection (c), a A school |
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district is entitled to an annual allotment equal to the basic |
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allotment multiplied by the applicable weight under Subsection |
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(a-1) for each enrolled student equal to the difference, if the |
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difference is greater than zero, that results from subtracting 250 |
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from the difference between the number of students enrolled in the |
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district during the school year immediately preceding the current |
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school year and the number of students enrolled in the district |
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during the school year six years preceding the current school year. |
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(a-1) For purposes of Subsection (a), the agency shall |
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assign the following weights: |
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(1) 0.48 for each student enrolled at a district in the |
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top 40 percent of districts, as determined based on the number of |
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students calculated under Subsection (a); |
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(2) 0.33 for each student enrolled at a district in the |
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middle 30 percent of districts, as determined based on the number of |
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students calculated under Subsection (a); and |
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(3) 0.18 for each student enrolled at a district in the |
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bottom 30 percent of districts, as determined based on the number of |
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students calculated under Subsection (a). |
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(a-2) Notwithstanding Subsection (a-1), for the 2021-2022 |
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school year, instead of using the weights under that subsection, |
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the agency shall substitute the following weights: |
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(1) 0.45 for each student enrolled at a district in the |
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top 40 percent of districts, as determined based on the number of |
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students calculated under Subsection (a); |
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(2) 0.30 for each student enrolled at a district in the |
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middle 30 percent of districts, as determined based on the number of |
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students calculated under Subsection (a); and |
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(3) 0.15 for each student enrolled at a district in the |
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bottom 30 percent of districts, as determined based on the number of |
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students calculated under Subsection (a). |
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(a-3) Subsection (a-2) and this subsection expire September |
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1, 2024. |
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(b) For purposes of Subsection (a), in determining the |
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number of students enrolled in a school district, the commissioner |
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shall exclude students enrolled in the district who receive |
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full-time instruction through the state virtual school network |
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under Chapter 30A. |
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(c) Notwithstanding Subsection (a), the total amount that |
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may be used to provide allotments under Subsection (a) may not |
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exceed $320 million. If the total amount of allotments to which |
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districts are entitled under Subsection (a) for a school year |
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exceeds the amount permitted under this subsection, the |
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commissioner shall proportionately reduce each district's |
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allotment under this section. |
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(c-1) Notwithstanding Subsection (c), the total amount that |
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may be used to provide allotments under Subsection (a) may not |
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exceed: |
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(1) for the 2021-2022 school year, $270 million; |
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(2) for the 2022-2023 school year, $310 million; and |
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(3) for the 2023-2024 school year, $315 million. |
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(c-2) Subsection (c-1) and this subsection expire September |
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1, 2025. |
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(d) Subject to the limitation under Subsection (d-1), for |
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the 2021-2022 school year, the agency shall provide to each school |
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district, regardless of whether the district is entitled to an |
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allotment under Subsection (a) for the 2021-2022 school year, an |
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amount equal to the difference, if the difference is greater than |
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zero, between the amount of the allotment for the 2019-2020 school |
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year under this section, as this section existed on September 1, |
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2019, and the amount of the allotment for the 2021-2022 school year. |
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(d-1) The total amount that may be used to provide funding |
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under Subsection (d) may not exceed $40 million. If the total amount |
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of funding to which districts are entitled under Subsection (d) for |
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a school year exceeds the amount permitted under this subsection, |
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the commissioner shall proportionately reduce each district's |
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amount under Subsection (d). |
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(d-2) The amounts to which school districts are entitled |
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under Subsection (d) are not subject to the amount limitations |
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described by Subsections (c) and (c-1). |
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(d-3) Subsections (d), (d-1), (d-2), and this subsection |
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expire September 1, 2023. |
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Section 10. Section 48.202, Education Code, is amended by |
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amending Subsection (a-1) to read as follows: |
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(a-1) For purposes of Subsection (a), the dollar amount |
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guaranteed level of state and local funds per weighted student per |
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cent of tax effort ("GL") for a school district 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 available to a school |
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district at the 96th percentile of wealth per weighted student or |
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the amount that results from multiplying $6,2106,160, or the |
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greater amount provided under Section 48.051(b), if applicable, by |
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0.016, for the first eight cents by which the district's |
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maintenance and operations tax rate exceeds the district's tier one |
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tax rate; and |
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(2) subject to Subsection (f), the amount that results |
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from multiplying $6,210$6,160, or the greater amount provided under |
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Section 48.051(b), if applicable, by 0.008, for the district's |
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maintenance and operations tax effort that exceeds the amount of |
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tax effort described by Subdivision (1). |
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Section 11. Section 48.252, Education Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) For purposes of calculating an amount under (b)(2), |
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the agency shall calculate the amount to which the district would be |
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entitled to under this Chapter using the enrichment tax rate as |
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defined under Section 45.0032(b) for the school year prior to the |
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district entering into a contract to operate a district campus as |
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provided by Section 11.174. |
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Section 12. Section 48.257, Education Code, is amended by |
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adding Subsections (h) and (i) as follows: |
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(h) Subsection (i) applies only to a school district: |
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(1) for which Subsection (a) applies for the current |
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school year, |
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(2) that received an allotment under Section 48.277 |
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for the 2023-2024 school year, and |
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(3) that adopted a maintenance and operations tax rate |
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for the 2022-2023 school year of at least the district's maximum |
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compressed tax rate under Section 48.2551 plus five cents per $100 |
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valuation of taxable property. |
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(i) Notwithstanding Subsections (a) through (g), if a |
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district's maintenance and operations revenue per student in |
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average daily attendance after the required reduction under |
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Subsection (a) would be less than the district's 2023-2024 |
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maintenance and operations revenue per student in average daily |
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attendance, excluding Sections 48.278, 48.279, and 48.281, the |
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agency shall decrease the amount of the required reduction under |
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Subsection (a) by an amount of local funds necessary to provide |
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additional revenue up to the district's maintenance and operations |
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revenue per student in average daily attendance for the 2023-2024 |
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school year. |
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Section 13. Section 49.201, Education Code, is amended to |
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read as follows: |
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Sec. 49.201. AGREEMENT. The board of trustees of a district |
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with a local revenue level in excess of entitlement may execute an |
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agreement to educate the students of another district in a number |
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that, when the weighted average daily attendance of the students |
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served is added to the weighted average daily attendance of the |
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contracting district, is sufficient, in combination with any other |
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actions taken under this chapter, to reduce the district's local |
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revenue level to a level that is equal to or less than the level |
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established under Section 48.257. The agreement is not effective |
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unless the commissioner certifies that the transfer of weighted |
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average daily attendance will not result in any of the contracting |
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districts' local revenue level being greater than the level |
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established under Section 48.257 and that the agreement requires an |
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expenditure per student in weighted average daily attendance that |
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is at least equal to the amount per student in weighted average |
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daily attendance required under Section 49.153, unless it is |
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determined by the commissioner that a quality educational program |
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can be delivered at a lesser amount. The commissioner may approve a |
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special financial arrangement between districts if that |
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arrangement serves the best educational interests of the state. |
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Section 14. This Act takes effect September 1, 2023. |