Texas 2009 - 81st Regular

Texas Senate Bill SB2392 Compare Versions

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1	1	By: Shapiro, Ogden S.B. No. 2392
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to public school finance.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	ARTICLE 1. PUBLIC SCHOOL FINANCE
9	9	SECTION 1.01. Section 41.002(a), Education Code, is amended
10	10	to read as follows:
11	11	(a) A school district may not have a wealth per student that
12	12	exceeds:
13	13	(1) $_______ [the wealth per student that generates
14	14	the amount of maintenance and operations tax revenue per weighted
15	15	student available to a district at the 88th percentile in wealth per
16	16	student], for the district's maintenance and operations tax effort
17	17	equal to or less than the rate equal to the product of the state
18	18	compression percentage, as determined under Section 42.2516,
19	19	multiplied by the maintenance and operations tax rate adopted by
20	20	the district for the 2005 tax year;
21	21	(2) the wealth per student that generates the amount
22	22	of maintenance and operations tax revenue per weighted student
23	23	available to the Austin Independent School District, as determined
24	24	by the commissioner in cooperation with the Legislative Budget
25	25	Board, for the first eight [six] cents by which the district's
26	26	maintenance and operations tax rate exceeds the rate equal to the
27	27	product of the state compression percentage, as determined under
28	28	Section 42.2516, multiplied by the maintenance and operations tax
29	29	rate adopted by the district for the 2005 tax year, subject to
30	30	Section 41.093(b-1); or
31	31	(3) $319,500, for the district's maintenance and
32	32	operations tax effort that exceeds the first eight [six] cents by
33	33	which the district's maintenance and operations tax effort exceeds
34	34	the rate equal to the product of the state compression percentage,
35	35	as determined under Section 42.2516, multiplied by the maintenance
36	36	and operations tax rate adopted by the district for the 2005 tax
37	37	year.
38	38	SECTION 1.02. Section 41.093(b-1), Education Code, is
39	39	amended to read as follows:
40	40	(b-1) If the guaranteed level of state and local funds per
41	41	weighted student per cent of tax effort under Section
42	42	42.302(a-1)(1) [42.302(a-1)(2)] for which state funds are
43	43	appropriated for a school year is an amount at least equal to the
44	44	amount of revenue per weighted student per cent of tax effort
45	45	available to the Austin Independent School District, as determined
46	46	by the commissioner in cooperation with the Legislative Budget
47	47	Board, the commissioner, in computing the amounts described by
48	48	Subsections (a)(1) and (2) and determining the cost of an
49	49	attendance credit, shall exclude maintenance and operations tax
50	50	revenue resulting from the first eight [six] cents by which a
51	51	district's maintenance and operations tax rate exceeds the rate
52	52	equal to the product of the state compression percentage, as
53	53	determined under Section 42.2516, multiplied by the maintenance and
54	54	operations tax rate adopted by the district for the 2005 tax year.
55	55	SECTION 1.03. Subchapter A, Chapter 42, Education Code, is
56	56	amended by adding Section 42.008 to read as follows:
57	57	Sec. 42.008. LIMITATION ON REVENUE INCREASES.
58	58	(a) Notwithstanding any other provision of this title, a school
59	59	district is not entitled in any school year to receive an amount of
60	60	state and local maintenance and operations revenue per student in
61	61	weighted average daily attendance that exceeds by more than ____
62	62	percent the amount of state and local maintenance and operations
63	63	revenue per student in weighted average daily attendance received
64	64	by the district during the preceding school year.
65	65	(a-1) Subsection (a) applies beginning with the 2010-2011
66	66	school year. For the 2009-2010 school year, a school district is
67	67	not entitled to receive an amount of state and local maintenance and
68	68	operations revenue per student in weighted average daily attendance
69	69	that exceeds by more than ____ percent the amount of state and local
70	70	maintenance and operations revenue per student in weighted average
71	71	daily attendance that the district would have received during that
72	72	year under Chapter 41 and this chapter, as those chapters existed on
73	73	January 1, 2009, at a maintenance and operations tax rate equal to
74	74	the product of the state compression percentage for that year, as
75	75	determined under Section 42.2516, multiplied by the maintenance and
76	76	operations tax rate adopted by the district for the 2005 tax year.
77	77	This subsection expires September 1, 2010.
78	78	(b) Enrichment revenue to which a school district is
79	79	entitled under Section 42.302 is not included for purposes of
80	80	determining the limitation imposed by this section.
81	81	(c) The commissioner shall make adjustments to amounts due
82	82	to a school district under this chapter or amounts required for a
83	83	district to comply with Chapter 41 as necessary to comply with the
84	84	limitation imposed by this section.
85	85	(d) A determination by the commissioner under this section
86	86	is final and may not be appealed.
87	87	SECTION 1.04. Section 42.101, Education Code, is amended to
88	88	read as follows:
89	89	Sec. 42.101. BASIC ALLOTMENT. (a) For each student in
90	90	average daily attendance in the regular program, [not including the
91	91	time students spend each day in special education programs in an
92	92	instructional arrangement other than mainstream or career and
93	93	technology education programs, for which an additional allotment is
94	94	made under Subchapter C,] a district is entitled to an allotment [in
95	95	an amount] equal to the lesser of $_____ or the amount that results
96	96	from the following formula:
97	97	A = $_____ X (DCR/MCR)
98	98	where:
99	99	"A" is the allotment to which a district is entitled;
100	100	"DCR" is the district's compressed tax rate, which is the
101	101	product of the state compression percentage, as determined under
102	102	Section 42.2516, multiplied by the maintenance and operations tax
103	103	rate adopted by the district for the 2005 tax year; and
104	104	"MCR" is the state maximum compressed tax rate, which is the
105	105	product of the state compression percentage, as determined under
106	106	Section 42.2516, multiplied by $1.50 [product of the amount per
107	107	student per cent of tax effort available to a district at the
108	108	percentile in wealth per student specified by Section
109	109	42.302(a-1)(1), multiplied by 86].
110	110	(b) For each student in average daily attendance in an
111	111	educational program for which a special allotment is provided under
112	112	Subchapter C, a district is entitled to an allotment of $_____.
113	113	(c) Except as provided by Subsection (d), a reference in
114	114	this title to the basic allotment means the amount specified under
115	115	Subsection (a) or (b), and a reference in this title to the adjusted
116	116	basic allotment means the amount specified under Subsection (a) or
117	117	(b), as adjusted in accordance with this subchapter.
118	118	(d) A reference in Subchapter C to the adjusted basic
119	119	allotment means the amount specified under Subsection (b), as
120	120	adjusted in accordance with this subchapter.
121	121	(e) A greater amount than the amount specified under
122	122	Subsection (a) or (b) [for any school year] may be provided for any
123	123	school year by appropriation.
124	124	SECTION 1.05. Section 42.102, Education Code, is amended by
125	125	adding Subsection (c) to read as follows:
126	126	(c) This section expires September 1, 2011.
127	127	SECTION 1.06. Section 42.103, Education Code, is amended by
128	128	adding Subsection (f) to read as follows:
129	129	(f) This section expires September 1, 2011.
130	130	SECTION 1.07. Section 42.105, Education Code, is amended to
131	131	read as follows:
132	132	Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
133	133	Sections 42.101, 42.102, and 42.103, a school district that has
134	134	fewer than 130 students in average daily attendance shall be
135	135	provided an adjusted basic allotment on the basis of 130 students in
136	136	average daily attendance if it offers a kindergarten through grade
137	137	12 program and has preceding or current year's average daily
138	138	attendance of at least 90 students or is 30 miles or more by bus
139	139	route from the nearest high school district. A district offering a
140	140	kindergarten through grade 8 program whose preceding or current
141	141	year's average daily attendance was at least 50 students or which is
142	142	30 miles or more by bus route from the nearest high school district
143	143	shall be provided an adjusted basic allotment on the basis of 75
144	144	students in average daily attendance. An average daily attendance
145	145	of 60 students shall be the basis of providing the adjusted basic
146	146	allotment if a district offers a kindergarten through grade 6
147	147	program and has preceding or current year's average daily
148	148	attendance of at least 40 students or is 30 miles or more by bus
149	149	route from the nearest high school district. This section expires
150	150	September 1, 2011.
151	151	SECTION 1.08. Section 42.151, Education Code, is amended by
152	152	adding Subsection (n) to read as follows:
153	153	(n) This section expires September 1, 2011.
154	154	SECTION 1.09. Section 42.152, Education Code, is amended by
155	155	adding Subsection (v) to read as follows:
156	156	(v) This section expires September 1, 2011.
157	157	SECTION 1.10. Section 42.153, Education Code, is amended by
158	158	adding Subsection (d) to read as follows:
159	159	(d) This section expires September 1, 2011.
160	160	SECTION 1.11. Section 42.154, Education Code, is amended by
161	161	adding Subsection (f) to read as follows:
162	162	(f) This section expires September 1, 2011.
163	163	SECTION 1.12. Section 42.155, Education Code, is amended by
164	164	adding Subsection (l) to read as follows:
165	165	(l) This section expires September 1, 2011.
166	166	SECTION 1.13. Section 42.156, Education Code, is amended by
167	167	adding Subsection (g) to read as follows:
168	168	(g) This section expires September 1, 2011.
169	169	SECTION 1.14. Section 42.157, Education Code, is amended by
170	170	adding Subsection (c) to read as follows:
171	171	(c) This section expires September 1, 2011.
172	172	SECTION 1.15. Subchapter C, Chapter 42, Education Code, is
173	173	amended by adding Section 42.160 to read as follows:
174	174	Sec. 42.160. HIGH SCHOOL ALLOTMENT. (a) A school district
175	175	is entitled to an annual allotment of $275 for each student in
176	176	average daily attendance in grades 9 through 12 in the district.
177	177	(b) Except as provided by Subsection (c), a school district
178	178	or campus must use funds allocated under this section to:
179	179	(1) implement or administer a college readiness
180	180	program that provides academic support and instruction to prepare
181	181	underachieving students for entrance into an institution of higher
182	182	education;
183	183	(2) implement or administer a program that encourages
184	184	students to pursue advanced academic opportunities, including
185	185	early college high school programs and dual credit, advanced
186	186	placement, and international baccalaureate courses;
187	187	(3) implement or administer a program that provides
188	188	opportunities for students to take academically rigorous course
189	189	work, including four years of mathematics and four years of science
190	190	at the high school level;
191	191	(4) implement or administer a program, including
192	192	online course support and professional development, that aligns the
193	193	curriculum for grades 6 through 12 with postsecondary curriculum
194	194	and expectations; or
195	195	(5) implement or administer other high school
196	196	completion and success initiatives in grades 6 through 12 approved
197	197	by the commissioner.
198	198	(c) A school district may use funds allocated under this
199	199	section on any instructional program in grades 6 through 12 other
200	200	than an athletic program if:
201	201	(1) the district is recognized as exceptional by the
202	202	commissioner under the academic accountability indicator adopted
203	203	under Section 39.051(b)(13); and
204	204	(2) the district's completion rates for grades 9
205	205	through 12 meet or exceed completion rate standards required by the
206	206	commissioner to achieve a rating of exemplary under Section 39.072.
207	207	(d) An open-enrollment charter school is entitled to an
208	208	allotment under this section in the same manner as a school
209	209	district.
210	210	(e) The commissioner shall adopt rules to administer this
211	211	section, including rules related to the permissible use of funds
212	212	allocated under this section to an open-enrollment charter school.
213	213	SECTION 1.16. Section 42.2516, Education Code, is amended
214	214	to read as follows:
215	215	Sec. 42.2516. ADDITIONAL STATE AID FOR TAX REDUCTION.
216	216	(a) In this section, "state compression percentage" means the
217	217	percentage, as determined by the commissioner, of a
218	218	school district's adopted maintenance and operations tax rate for
219	219	the 2005 tax year that serves as the basis for state funding for tax
220	220	rate reduction under this section. The commissioner shall
221	221	determine the state compression percentage for each school year
222	222	based on the percentage by which a district is able to reduce the
223	223	district's maintenance and operations tax rate for that year, as
224	224	compared to the district's adopted maintenance and operations tax
225	225	rate for the 2005 tax year, as a result of state funds appropriated
226	226	for distribution under this section for that year from the property
227	227	tax relief fund established under Section 403.109, Government Code,
228	228	or from another funding source available for school district
229	229	property tax relief.
230	230	(b) Notwithstanding any other provision of this title, a
231	231	school district that imposes a maintenance and operations tax at a
232	232	rate at least equal to the product of the state compression
233	233	percentage multiplied by the maintenance and operations tax rate
234	234	adopted by the district for the 2005 tax year is entitled to at
235	235	least the amount of state revenue necessary to provide the district
236	236	with the sum of:
237	237	(1) the amount of state and local revenue per student
238	238	in weighted average daily attendance for maintenance and operations
239	239	that the district would have received during the 2009-2010 school
240	240	year under Chapter 41 and this chapter, as those chapters existed on
241	241	January 1, 2009, at a maintenance and operations tax rate equal to
242	242	the product of the state compression percentage for that year
243	243	multiplied by the maintenance and operations tax rate adopted by
244	244	the district for the 2005 tax year; and
245	245	(2) an amount equal to the product of $___ multiplied
246	246	by the number of students in average daily attendance in the
247	247	district.
248	248	(c) Enrichment revenue to which a school district is
249	249	entitled under Section 42.302 is not included for purposes of
250	250	determining the amount to which a district is entitled under this
251	251	section.
252	252	(d) A school district that is required to take action under
253	253	Chapter 41 to reduce its wealth per student to the equalized wealth
254	254	level and that is entitled to state revenue under this section may
255	255	receive that revenue through an adjustment against the total amount
256	256	of attendance credits required to be purchased under Subchapter D,
257	257	Chapter 41, or the total number of nonresident students required to
258	258	be educated under Subchapter E, Chapter 41, as determined by the
259	259	commissioner.
260	260	(e) The commissioner may adopt rules necessary to implement
261	261	this section.
262	262	(f) A determination by the commissioner under this section
263	263	is final and may not be appealed.
264	264	[(a-1) Subsection (a) applies beginning with the state
265	265	fiscal year ending August 31, 2009. For the state fiscal year
266	266	ending August 31, 2007, the state compression percentage is 88.67
267	267	percent. For the state fiscal year ending August 31, 2008, the
268	268	state compression percentage is 66.67 percent. This subsection
269	269	expires September 1, 2009.
270	270	[(b) Subject to Subsections (b-1), (b-2), (f-1), (g), and
271	271	(h), but notwithstanding any other provision of this title, a
272	272	school district is entitled to state revenue necessary to provide
273	273	the district with the sum of:
274	274	[(1) the amount of state revenue necessary to maintain
275	275	state and local revenue per student in weighted average daily
276	276	attendance in the amount equal to the greater of:
277	277	[(A) the amount of state and local revenue per
278	278	student in weighted average daily attendance for the maintenance
279	279	and operations of the district available to the district for the
280	280	2005-2006 school year;
281	281	[(B) the amount of state and local revenue per
282	282	student in weighted average daily attendance for the maintenance
283	283	and operations of the district to which the district would have been
284	284	entitled for the 2006-2007 school year under this chapter, as it
285	285	existed on January 1, 2006, or, if the district would have been
286	286	subject to Chapter 41, as that chapter existed on January 1, 2006,
287	287	the amount to which the district would have been entitled under that
288	288	chapter, based on the funding elements in effect for the 2005-2006
289	289	school year, if the district imposed a maintenance and operations
290	290	tax at the rate adopted by the district for the 2005 tax year; or
291	291	[(C) the amount of state and local revenue per
292	292	student in weighted average daily attendance for the maintenance
293	293	and operations of the district to which the district would have been
294	294	entitled for the 2006-2007 school year under this chapter, as it
295	295	existed on January 1, 2006, or, if the district would have been
296	296	subject to Chapter 41, as that chapter existed on January 1, 2006,
297	297	the amount to which the district would have been entitled under that
298	298	chapter, based on the funding elements in effect for the 2005-2006
299	299	school year, if the district imposed a maintenance and operations
300	300	tax at the rate equal to the rate described by Section 26.08(i) or
301	301	(k)(1), Tax Code, as applicable, for the 2006 tax year;
302	302	[(2) an amount equal to the product of $2,500
303	303	multiplied by the number of classroom teachers, full-time
304	304	librarians, full-time counselors certified under Subchapter B,
305	305	Chapter 21, and full-time school nurses employed by the district
306	306	and entitled to a minimum salary under Section 21.402; and
307	307	[(3) an amount equal to the product of $275 multiplied
308	308	by the number of students in average daily attendance in grades nine
309	309	through 12 in the district.
310	310	[(b-1) The amount determined for a school district under
311	311	Subsection (b) is increased or reduced as follows:
312	312	[(1) if for any school year the district is entitled to
313	313	a greater allotment under Section 42.158 than the allotment to
314	314	which the district was entitled under that section for the school
315	315	year on which the district's entitlement under Subsection (b) is
316	316	based, the district's entitlement under Subsection (b) is increased
317	317	by an amount equal to the difference between the amount to which the
318	318	district is entitled under Section 42.158 for that school year and
319	319	the amount to which the district was entitled under that section
320	320	for:
321	321	[(A) the 2005-2006 school year, if the amount
322	322	determined for the district under Subsection (b) is determined
323	323	under Subsection (b)(1)(A); or
324	324	[(B) the 2006-2007 school year, if the amount
325	325	determined for the district under Subsection (b) is determined
326	326	under Subsection (b)(1)(B) or (C); and
327	327	[(2) if for any school year the district is not
328	328	entitled to an allotment under Section 42.158 or is entitled to a
329	329	lesser allotment under that section than the allotment to which the
330	330	district was entitled under that section for the school year on
331	331	which the district's entitlement under Subsection (b) is based, the
332	332	district's entitlement under Subsection (b) is reduced by an amount
333	333	equal to the difference between the amount to which the district was
334	334	entitled under Section 42.158 for the 2005-2006 or 2006-2007 school
335	335	year, as appropriate based on whether the district's entitlement
336	336	under Subsection (b) is determined under Subsection (b)(1)(A), (B),
337	337	or (C), and the amount to which the district is entitled under
338	338	Section 42.158 for the current school year.
339	339	[(b-2) The amount determined for a school district under
340	340	Subsection (b) is increased or reduced as follows:
341	341	[(1) if for any school year the district is entitled to
342	342	a greater allotment under Section 42.155 or greater additional
343	343	state aid under Section 42.2515 than the allotment or additional
344	344	state aid to which the district was entitled under Section 42.155 or
345	345	42.2515, as applicable, for the school year on which the district's
346	346	entitlement under Subsection (b) is based, the district's
347	347	entitlement under Subsection (b) is increased by an amount equal to
348	348	the difference between the amount to which the district is entitled
349	349	under Section 42.155 or 42.2515, as applicable, for that school
350	350	year and the amount to which the district was entitled under the
351	351	applicable section, as applicable for:
352	352	[(A) the 2005-2006 school year, if the amount
353	353	determined for the district under Subsection (b) is determined
354	354	under Subsection (b)(1)(A); or
355	355	[(B) the 2006-2007 school year, if the amount
356	356	determined for the district under Subsection (b) is determined
357	357	under Subsection (b)(1)(B) or (C); and
358	358	[(2) if for any school year the district is not
359	359	entitled to an allotment under Section 42.155 or additional state
360	360	aid under Section 42.2515 or is entitled to a lesser allotment or
361	361	less additional state aid under the applicable section than the
362	362	allotment or additional state aid to which the district was
363	363	entitled under the applicable section for the school year on which
364	364	the district's entitlement under Subsection (b) is based, the
365	365	district's entitlement under Subsection (b) is reduced by an amount
366	366	equal to the difference between the amount to which the district was
367	367	entitled under Section 42.155 or 42.2515, as applicable, for the
368	368	2005-2006 or 2006-2007 school year, as appropriate based on whether
369	369	the district's entitlement under Subsection (b) is determined under
370	370	Subsection (b)(1)(A), (B), or (C), and the amount to which the
371	371	district is entitled under the applicable section for the current
372	372	school year.
373	373	[(c) In determining the amount to which a district is
374	374	entitled under Subsection (b)(1), the commissioner shall include:
375	375	[(1) any amounts described by Rider 69, page III-19,
376	376	Chapter 1369, Acts of the 79th Legislature, Regular Session, 2005
377	377	(the General Appropriations Act);
378	378	[(2) for a school district that received additional
379	379	revenue for the 2005-2006 school year as a result of an agreement
380	380	under Subchapter E, Chapter 41:
381	381	[(A) if the amount of state revenue to which the
382	382	district is entitled under Subsection (b) is computed based on the
383	383	amount described by Subsection (b)(1)(A), the amount of that
384	384	additional revenue retained by the district for the 2005-2006
385	385	school year, which is the amount by which the total maintenance and
386	386	operations revenue available to the district for that school year
387	387	exceeded the total maintenance and operations revenue that would
388	388	have been available to the district for that school year if the
389	389	district had not entered into the agreement, less any amount the
390	390	district paid to another entity under the agreement; or
391	391	[(B) if the amount of state revenue to which the
392	392	district is entitled under Subsection (b) is computed based on the
393	393	amount described by Subsection (b)(1)(B) or (C), the amount of the
394	394	additional revenue that would have been retained by the district
395	395	for the 2006-2007 school year if the district had entered into the
396	396	agreement on the same terms as under the agreement for the 2005-2006
397	397	school year, which is the amount by which the total maintenance and
398	398	operations revenue that would have been available to the district
399	399	for the 2006-2007 school year if the district had entered into the
400	400	agreement exceeds the total maintenance and operations revenue that
401	401	would have been available to the district for that school year if
402	402	the district had not entered into the agreement and had imposed a
403	403	maintenance and operations tax at the rate of $1.50 on the $100
404	404	valuation of taxable property, less any amount the district would
405	405	have paid to another entity under the agreement;
406	406	[(3) any amount necessary to reflect an adjustment
407	407	made by the commissioner under Section 42.005;
408	408	[(4) any amount necessary to reflect an adjustment
409	409	made by the commissioner under Section 42.2521; and
410	410	[(5) any amount necessary to reflect an adjustment
411	411	made by the commissioner under Section 42.2531.
412	412	[(d) If, for the 2006-2007 or a subsequent school year, a
413	413	school district enters into an agreement under Subchapter E,
414	414	Chapter 41, the commissioner shall reduce the amount of state
415	415	revenue to which the district is entitled under Subsection (b) for
416	416	that school year by an amount equal to any additional revenue for
417	417	that school year that the district receives and retains as a result
418	418	of that agreement, which is the amount by which the total
419	419	maintenance and operations revenue available to the district
420	420	exceeds the total maintenance and operations revenue that would
421	421	have been available to the district if the district had not entered
422	422	into the agreement and had imposed a maintenance and operations tax
423	423	at the maximum rate permitted under Section 45.003(d), less any
424	424	amount the district pays to another entity under the agreement.
425	425	[(e) The amount of revenue to which a school district is
426	426	entitled because of the technology allotment under Section 32.005
427	427	is not included in making a determination under Subsection (b)(1).
428	428	[(f) For purposes of determining the amount of revenue to
429	429	which a school district is entitled under this section, the
430	430	commissioner shall use the average tax collection rate for the
431	431	district for the 2003, 2004, and 2005 tax years.
432	432	[(f-1) The commissioner shall, in accordance with rules
433	433	adopted by the commissioner, adjust the amount of a school
434	434	district's local revenue derived from maintenance and operations
435	435	tax collections, as calculated for purposes of determining the
436	436	amount of state revenue to which the district is entitled under this
437	437	section, if the district, for the 2007 tax year or a subsequent tax
438	438	year:
439	439	[(1) adopts an exemption under Section 11.13(n), Tax
440	440	Code, that was not in effect for the 2005 or 2006 tax year, or
441	441	eliminates an exemption under Section 11.13(n), Tax Code, that was
442	442	in effect for the 2005 or 2006 tax year;
443	443	[(2) adopts an exemption under Section 11.13(n), Tax
444	444	Code, at a greater or lesser percentage than the percentage in
445	445	effect for the district for the 2005 or 2006 tax year;
446	446	[(3) grants an exemption under an agreement authorized
447	447	by Chapter 312, Tax Code, that was not in effect for the 2005 or 2006
448	448	tax year, or ceases to grant an exemption authorized by that chapter
449	449	that was in effect for the 2005 or 2006 tax year; or
450	450	[(4) agrees to deposit taxes into a tax increment fund
451	451	created under Chapter 311, Tax Code, under a reinvestment zone
452	452	financing plan that was not in effect for the 2005 or 2006 tax year,
453	453	or ceases depositing taxes into a tax increment fund created under
454	454	that chapter under a reinvestment zone financing plan that was in
455	455	effect for the 2005 or 2006 tax year.
456	456	[(f-2) The rules adopted by the commissioner under
457	457	Subsection (f-1) must:
458	458	[(1) require the commissioner to determine, as if this
459	459	section did not exist, the effect under Chapter 41 and this chapter
460	460	of a school district's action described by Subsection (f-1)(1),
461	461	(2), (3), or (4) on the total state revenue to which the district
462	462	would be entitled or the cost to the district of purchasing
463	463	sufficient attendance credits to reduce the district's wealth per
464	464	student to the equalized wealth level; and
465	465	[(2) require an increase or reduction in the amount of
466	466	state revenue to which a school district is entitled under
467	467	Subsection (b) that is substantially equivalent to any change in
468	468	total state revenue or the cost of purchasing attendance credits
469	469	that would apply to the district if this section did not exist.
470	470	[(f-3) An adjustment made by the commissioner under the
471	471	rules adopted under Subsection (f-1) is final and may not be
472	472	appealed.
473	473	[(g) If a school district adopts a maintenance and
474	474	operations tax rate that is below the rate equal to the product of
475	475	the state compression percentage multiplied by the maintenance and
476	476	operations tax rate adopted by the district for the 2005 tax year,
477	477	the commissioner shall reduce the district's entitlement under this
478	478	section in proportion to the amount by which the adopted rate is
479	479	less than the rate equal to the product of the state compression
480	480	percentage multiplied by the rate adopted by the district for the
481	481	2005 tax year.
482	482	[(h) Notwithstanding any other provision of this title, if
483	483	the amount of state and local revenue per student in weighted
484	484	average daily attendance for the maintenance and operations of the
485	485	district available to the district in a school year as a result of
486	486	increases to the equalized wealth level under Section 41.002, the
487	487	basic allotment under Section 42.101, and the guaranteed level
488	488	under Section 42.302 made by H.B. No. 1, Acts of the 79th
489	489	Legislature, 3rd Called Session, 2006, exceeds the amount to which
490	490	a district is entitled under Subsection (b) for that school year,
491	491	the commissioner must:
492	492	[(1) reduce the amount of state aid provided to the
493	493	district for that school year by an amount equal to the excess
494	494	revenue, as determined by the commissioner; or
495	495	[(2) for a district with a wealth per student greater
496	496	than the applicable amount described by Section 41.002(a), require
497	497	the district to purchase a number of attendance credits for that
498	498	school year at a cost equal to the amount of excess revenue, as
499	499	determined by the commissioner.
500	500	[(i) A school district that is required to take action under
501	501	Chapter 41 to reduce its wealth per student to the equalized wealth
502	502	level and that is entitled to state revenue under this section may
503	503	receive that revenue through an adjustment against the total amount
504	504	of attendance credits required to be purchased under Subchapter D,
505	505	Chapter 41, or the total number of nonresident students required to
506	506	be educated under Subchapter E, Chapter 41, as determined by the
507	507	commissioner.
508	508	[(j) If a school district reduces its maintenance and
509	509	operations tax rate by an amount less than the rate equal to the
510	510	product of the difference between the state compression percentage
511	511	for the preceding year and the state compression percentage for the
512	512	year of the reduction, multiplied by the maintenance and operations
513	513	tax rate adopted by the district for the 2005 tax year, the
514	514	commissioner may not reduce the amount to which the district is
515	515	entitled under this section on the basis of the additional revenue
516	516	collected by the district.
517	517	[(k) The commissioner may adopt rules necessary to
518	518	administer this section.
519	519	[(l) A determination by the commissioner under this section
520	520	is final and may not be appealed.]
521	521	SECTION 1.17. Section 42.252(a), Education Code, is amended
522	522	to read as follows:
523	523	(a) Each school district's share of the Foundation School
524	524	Program is determined by the following formula:
525	525	LFA = TR X DPV
526	526	where:
527	527	"LFA" is the school district's local share;
528	528	"TR" is a tax rate which for each hundred dollars of valuation
529	529	is an effective tax rate of the amount equal to the product of the
530	530	state compression percentage, as determined under Section 42.2516,
531	531	multiplied by the lesser of:
532	532	(1) $1.50; or
533	533	(2) the maintenance and operations tax rate adopted by
534	534	the district for the 2005 tax year [$0.86]; and
535	535	"DPV" is the taxable value of property in the school district
536	536	for the preceding tax year determined under Subchapter M, Chapter
537	537	403, Government Code.
538	538	SECTION 1.18. Section 42.260(a), Education Code, is amended
539	539	to read as follows:
540	540	(a) In this section, "participating charter school" means
541	541	an open-enrollment charter school that participates in the uniform
542	542	group coverage program established under Chapter 1579, Insurance
543	543	Code [has the meaning assigned by Section 42.2514].
544	544	SECTION 1.19. Section 42.302, Education Code, is amended by
545	545	amending Subsections (a), (a-1), and (a-2) and adding Subsection
546	546	(g) to read as follows:
547	547	(a) Each school district is guaranteed a specified amount
548	548	per weighted student in state and local funds for each cent of tax
549	549	effort over that required for the district's local fund assignment
550	550	up to the maximum level specified in this subchapter. The amount
551	551	of state support, subject only to the maximum amount under Section
552	552	42.303, is determined by the formula:
553	553	GYA = (GL X WADA X DTR X 100) - LR
554	554	where:
555	555	"GYA" is the guaranteed yield amount of state funds to be
556	556	allocated to the district;
557	557	"GL" is the dollar amount guaranteed level of state and local
558	558	funds per weighted student per cent of tax effort, which is an
559	559	amount described by Subsection (a-1) or a greater amount for any
560	560	year provided by appropriation;
561	561	"WADA" is the number of students in weighted average daily
562	562	attendance, which is determined in the manner provided by
563	563	Subsection (g) [calculated by dividing the sum of the school
564	564	district's allotments under Subchapters B and C, less any allotment
565	565	to the district for transportation, any allotment under Section
566	566	42.158, and 50 percent of the adjustment under Section 42.102, by
567	567	the basic allotment for the applicable year];
568	568	"DTR" is the district enrichment tax rate of the school
569	569	district, which is determined by subtracting the amounts specified
570	570	by Subsection (b) from the total amount of maintenance and
571	571	operations taxes collected by the school district for the
572	572	applicable school year and dividing the difference by the quotient
573	573	of the district's taxable value of property as determined under
574	574	Subchapter M, Chapter 403, Government Code, or, if applicable,
575	575	under Section 42.2521, divided by 100; and
576	576	"LR" is the local revenue, which is determined by multiplying
577	577	"DTR" by the quotient of the district's taxable value of property as
578	578	determined under Subchapter M, Chapter 403, Government Code, or, if
579	579	applicable, under Section 42.2521, divided by 100.
580	580	(a-1) In this section, "wealth per student" has the meaning
581	581	assigned by Section 41.001. For purposes of Subsection (a), the
582	582	dollar amount guaranteed level of state and local funds per
583	583	weighted student per cent of tax effort ("GL") for a school district
584	584	is:
585	585	(1) the greater of [the amount of district tax revenue
586	586	per weighted student per cent of tax effort available to a district
587	587	at the 88th percentile in wealth per student, as determined by the
588	588	commissioner in cooperation with the Legislative Budget Board, for
589	589	the district's maintenance and operations tax effort equal to or
590	590	less than the rate equal to the product of the state compression
591	591	percentage, as determined under Section 42.2516, multiplied by the
592	592	maintenance and operations tax rate adopted by the district for the
593	593	2005 tax year;
594	594	[(2)] the amount of district tax revenue per weighted
595	595	student per cent of tax effort that would be available to the Austin
596	596	Independent School District, as determined by the commissioner in
597	597	cooperation with the Legislative Budget Board, if the reduction of
598	598	the limitation on tax increases as provided by Section 11.26(a-1),
599	599	(a-2), or (a-3), Tax Code, did not apply, or the amount of district
600	600	tax revenue per weighted student per cent of tax effort used for
601	601	purposes of this subdivision in the preceding school year, for the
602	602	first eight [six] cents by which the district's maintenance and
603	603	operations tax rate exceeds the rate equal to the product of the
604	604	state compression percentage, as determined under Section 42.2516
605	605	[and notwithstanding the limitation on district enrichment tax rate
606	606	("DTR") under Section 42.303], multiplied by the maintenance and
607	607	operations tax rate adopted by the district for the 2005 tax year;
608	608	and
609	609	(2) [(3)] $31.95, for the district's maintenance and
610	610	operations tax effort that exceeds the amount of tax effort
611	611	described by Subdivision (1) [(2)].
612	612	(a-2) The limitation on district enrichment tax rate
613	613	("DTR") under Section 42.303 does not apply to the district's
614	614	maintenance and operations tax effort described by Subsection
615	615	(a-1)(1) [(a-1)(2)].
616	616	(g) The number of students in weighted average daily
617	617	attendance is the sum of:
618	618	(1) the quotient resulting from dividing the sum of
619	619	the school district's allotments under Section 42.101(a), as
620	620	adjusted in accordance with Subchapter B, except excluding 50
621	621	percent of the adjustment under Section 42.102, by the amount of the
622	622	allotment under Section 42.101(a); and
623	623	(2) the quotient resulting from dividing the sum of
624	624	the school district's allotments under Section 42.101(b) and
625	625	Subchapter C, less any allotment under Section 42.155, 42.158, or
626	626	42.160, adjusted in accordance with Subchapter B, except excluding
627	627	50 percent of the adjustment under Section 42.102, by the amount of
628	628	the allotment under Section 42.101(b).
629	629	SECTION 1.20. Section 42.303, Education Code, is amended to
630	630	read as follows:
631	631	Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
632	632	district enrichment tax rate ("DTR") under Section 42.302 may not
633	633	exceed the amount per $100 of valuation by which the maximum rate
634	634	permitted under Section 45.003 exceeds the rate used to determine
635	635	the district's local share under Section 42.252 [of $0.86], or a
636	636	greater amount for any year provided by appropriation.
637	637	SECTION 1.21. Section 26.08(n), Tax Code, is amended to
638	638	read as follows:
639	639	(n) For purposes of this section, the rollback tax rate of a
640	640	school district whose maintenance and operations tax rate for the
641	641	2005 tax year was $1.50 or less per $100 of taxable value is:
642	642	(1) for the 2009 [2006] tax year, the sum of the
643	643	following:
644	644	(A) the rate that is equal to 66.67 [88.67]
645	645	percent of the maintenance and operations tax rate adopted by the
646	646	district for the 2005 tax year;
647	647	(B) [,] the rate of $0.06 [$0.04] per $100 of
648	648	taxable value;
649	649	(C) the rate that is equal to the sum of the
650	650	differences for the 2006 and each subsequent tax year between the
651	651	adopted tax rate of the district for that year if the rate was
652	652	approved at an election under this section and the rollback tax rate
653	653	of the district for that year;[,] and
654	654	(D) the district's current debt rate; and
655	655	(2) for the 2010 [2007] and subsequent tax years, the
656	656	lesser of the following:
657	657	(A) the sum of the following:
658	658	(i) the rate per $100 of taxable value that
659	659	is equal to the product of the state compression percentage, as
660	660	determined under Section 42.2516, Education Code, for the current
661	661	year and $1.50;
662	662	(ii) the rate of $0.06 [$0.04] per $100 of
663	663	taxable value;
664	664	(iii) the rate that is equal to the sum of
665	665	the differences for the 2006 and each subsequent tax year between
666	666	the adopted tax rate of the district for that year if the rate was
667	667	approved at an election under this section and the rollback tax rate
668	668	of the district for that year; and
669	669	(iv) the district's current debt rate; or
670	670	(B) the sum of the following:
671	671	(i) the effective maintenance and
672	672	operations tax rate of the district as computed under Subsection
673	673	(i) [or (k), as applicable];
674	674	(ii) the rate per $100 of taxable value that
675	675	is equal to the product of the state compression percentage, as
676	676	determined under Section 42.2516, Education Code, for the current
677	677	year and $0.06; and
678	678	(iii) the district's current debt rate.
679	679	ARTICLE 2. CONFORMING AMENDMENTS
680	680	SECTION 2.01. Section 21.402(a), Education Code, is amended
681	681	to read as follows:
682	682	(a) Except as provided by Subsection (d), (e), or (f), a
683	683	school district must pay each classroom teacher, full-time
684	684	librarian, full-time counselor certified under Subchapter B, or
685	685	full-time school nurse not less than the minimum monthly salary,
686	686	based on the employee's level of experience in addition to other
687	687	factors, as determined by commissioner rule, determined by the
688	688	following formula:
689	689	MS = SF x FS
690	690	where:
691	691	"MS" is the minimum monthly salary;
692	692	"SF" is the applicable salary factor specified by Subsection
693	693	(c); and
694	694	"FS" is the amount, as determined by the commissioner under
695	695	Subsection (b), of state and local funds per weighted student,
696	696	including funds provided under Section 42.2516 [42.2516(b)(1)(B),
697	697	but not funds provided under Section 42.2516(b)(1)(A), (b)(1)(C),
698	698	(b)(2), or (b)(3)], available to a district eligible to receive
699	699	state assistance under Section 42.302 with a maintenance and
700	700	operations tax rate per $100 of taxable value equal to the product
701	701	of the state compression percentage, as determined under Section
702	702	42.2516, multiplied by $1.50, except that the amount of state and
703	703	local funds per weighted student does not include the amount
704	704	attributable to the increase in the guaranteed level made by
705	705	Chapter 1187, Acts of the 77th Legislature, Regular Session, 2001.
706	706	SECTION 2.02. Section 29.097(g), Education Code, is amended
707	707	to read as follows:
708	708	(g) For purposes of Subsection (f)(2), a school district is
709	709	encouraged to use funds allocated under Section 42.160
710	710	[42.2516(b)(3)].
711	711	SECTION 2.03. Section 29.098(h), Education Code, is amended
712	712	to read as follows:
713	713	(h) For purposes of Subsection (g)(2), a school district is
714	714	encouraged to use funds allocated under Section 42.160
715	715	[42.2516(b)(3)].
716	716	SECTION 2.04. Section 29.918(a), Education Code, is amended
717	717	to read as follows:
718	718	(a) Notwithstanding Section [39.114 or] 42.152 or 42.160, a
719	719	school district or open-enrollment charter school with a high
720	720	dropout rate, as determined by the commissioner, must submit a plan
721	721	to the commissioner describing the manner in which the district or
722	722	charter school intends to use the compensatory education allotment
723	723	under Section 42.152 and the high school allotment under Section
724	724	42.160 [42.2516(b)(3)] for developing and implementing
725	725	research-based strategies for dropout prevention. The district or
726	726	charter school shall submit the plan not later than December 1 of
727	727	each school year preceding the school year in which the district or
728	728	charter school will receive the compensatory education allotment or
729	729	high school allotment to which the plan applies.
730	730	SECTION 2.05. Section 29.919(e), Education Code, is amended
731	731	to read as follows:
732	732	(e) As a condition of receiving a state grant, a campus must
733	733	contribute additional funding for activities provided at the campus
734	734	through the program, in an amount equal to at least $100 each school
735	735	year for each student in an eligible grade level served through the
736	736	program. The additional funding required by this subsection may
737	737	consist of local funds, private funds, or state funds other than
738	738	grant funds provided under this section. For program activities
739	739	provided at the high school level, the high school allotment
740	740	provided under Section 42.160 [42.2516(b)(3)] may be used to meet
741	741	the additional funding requirement prescribed by this subsection.
742	742	SECTION 2.06. Section 39.113(a), Education Code, is amended
743	743	to read as follows:
744	744	(a) The agency shall:
745	745	(1) develop standards for evaluating the success and
746	746	cost-effectiveness of high school completion and success and
747	747	college readiness programs implemented under Section 42.160
748	748	[39.114];
749	749	(2) provide guidance for school districts and campuses
750	750	in establishing and improving high school completion and success
751	751	and college readiness programs implemented under Section 42.160
752	752	[39.114]; and
753	753	(3) develop standards for selecting and methods for
754	754	recognizing school districts and campuses that offer exceptional
755	755	high school completion and success and college readiness programs
756	756	under Section 42.160 [39.114].
757	757	SECTION 2.07. Section 1579.251(a), Insurance Code, is
758	758	amended to read as follows:
759	759	(a) The state shall assist employees of participating
760	760	school districts and charter schools in the purchase of group
761	761	health coverage under this chapter by providing for each covered
762	762	employee the amount of $900 each state fiscal year or a greater
763	763	amount as provided by the General Appropriations Act. The state
764	764	contribution shall be distributed through the school finance
765	765	formulas under Chapters 41 and 42, Education Code, and used by
766	766	school districts and charter schools as provided by Section
767	767	[Sections 42.2514 and] 42.260, Education Code.
768	768	SECTION 2.08. Section 1581.053(b), Insurance Code, is
769	769	amended to read as follows:
770	770	(b) Notwithstanding Subsection (a), amounts a district or
771	771	school is required to use to pay contributions under a group health
772	772	coverage plan for district or school employees under Section
773	773	[42.2514 or] 42.260, Education Code, other than amounts described
774	774	by Section 42.260(c)(2)(B), are not used in computing whether the
775	775	district or school complies with Section 1581.052.
776	776	ARTICLE 3. REPEALER; CONFLICTS; EFFECTIVE DATE
777	777	SECTION 3.01. (a) The following provisions of the
778	778	Education Code are repealed:
779	779	(1) Section 39.114; and
780	780	(2) Sections 42.2511, 42.2512, and 42.2514.
781	781	(b) Section 403.302(j), Government Code, is repealed.
782	782	(c) Subchapter C, Chapter 1581, Insurance Code, is
783	783	repealed.
784	784	(d) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
785	785	Legislature, Regular Session, 2007, is repealed.
786	786	SECTION 3.02. To the extent of any conflict, this Act
787	787	prevails over another Act of the 81st Legislature, Regular Session,
788	788	2009, relating to nonsubstantive additions to and corrections in
789	789	enacted codes.
790	790	SECTION 3.03. This Act takes effect September 1, 2009.