By: Shapiro, Ogden S.B. No. 2392
A BILL TO BE ENTITLED
AN ACT
relating to public school finance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.01. Section 41.002(a), Education Code, is amended
to read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) $_______ [the wealth per student that generates
the amount of maintenance and operations tax revenue per weighted
student available to a district at the 88th percentile in wealth per
student], for the district's maintenance and operations tax effort
equal to or less than the rate equal to 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;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first eight [six] cents by which the district's
maintenance and operations tax rate exceeds the rate equal to 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, subject to
Section 41.093(b-1); or
(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the first eight [six] cents by
which the district's maintenance and operations tax effort exceeds
the rate equal to 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.
SECTION 1.02. Section 41.093(b-1), Education Code, is
amended to read as follows:
(b-1) If the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section
42.302(a-1)(1) [42.302(a-1)(2)] for which state funds are
appropriated for a school year is an amount at least equal to the
amount of revenue per weighted student per cent of tax effort
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, the commissioner, in computing the amounts described by
Subsections (a)(1) and (2) and determining the cost of an
attendance credit, shall exclude maintenance and operations tax
revenue resulting from the first eight [six] cents by which a
district's maintenance and operations tax rate exceeds the rate
equal to 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.
SECTION 1.03. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.008 to read as follows:
Sec. 42.008. LIMITATION ON REVENUE INCREASES.
(a) Notwithstanding any other provision of this title, a school
district is not entitled in any school year to receive an amount of
state and local maintenance and operations revenue per student in
weighted average daily attendance that exceeds by more than ____
percent the amount of state and local maintenance and operations
revenue per student in weighted average daily attendance received
by the district during the preceding school year.
(a-1) Subsection (a) applies beginning with the 2010-2011
school year. For the 2009-2010 school year, a school district is
not entitled to receive an amount of state and local maintenance and
operations revenue per student in weighted average daily attendance
that exceeds by more than ____ percent the amount of state and local
maintenance and operations revenue per student in weighted average
daily attendance that the district would have received during that
year under Chapter 41 and this chapter, as those chapters existed on
January 1, 2009, at a maintenance and operations tax rate equal to
the product of the state compression percentage for that year, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year.
This subsection expires September 1, 2010.
(b) Enrichment revenue to which a school district is
entitled under Section 42.302 is not included for purposes of
determining the limitation imposed by this section.
(c) The commissioner shall make adjustments to amounts due
to a school district under this chapter or amounts required for a
district to comply with Chapter 41 as necessary to comply with the
limitation imposed by this section.
(d) A determination by the commissioner under this section
is final and may not be appealed.
SECTION 1.04. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. BASIC ALLOTMENT. (a) For each student in
average daily attendance in the regular program, [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 [in
an amount] equal to the lesser of $_____ or the amount that results
from the following formula:
A = $_____ 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 [product of the amount per
student per cent of tax effort available to a district at the
percentile in wealth per student specified by Section
42.302(a-1)(1), multiplied by 86].
(b) For each student in average daily attendance in an
educational program for which a special allotment is provided under
Subchapter C, a district is entitled to an allotment of $_____.
(c) Except as provided by Subsection (d), a reference in
this title to the basic allotment means the amount specified under
Subsection (a) or (b), and a reference in this title to the adjusted
basic allotment means the amount specified under Subsection (a) or
(b), as adjusted in accordance with this subchapter.
(d) A reference in Subchapter C to the adjusted basic
allotment means the amount specified under Subsection (b), as
adjusted in accordance with this subchapter.
(e) A greater amount than the amount specified under
Subsection (a) or (b) [for any school year] may be provided for any
school year by appropriation.
SECTION 1.05. Section 42.102, Education Code, is amended by
adding Subsection (c) to read as follows:
(c) This section expires September 1, 2011.
SECTION 1.06. Section 42.103, Education Code, is amended by
adding Subsection (f) to read as follows:
(f) This section expires September 1, 2011.
SECTION 1.07. Section 42.105, Education Code, is amended to
read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided an adjusted basic allotment on the basis of 130 students in
average daily attendance if it offers a kindergarten through grade
12 program and has preceding or current year's average daily
attendance of at least 90 students or is 30 miles or more by bus
route from the nearest high school district. A district offering a
kindergarten through grade 8 program whose preceding or current
year's average daily attendance was at least 50 students or which is
30 miles or more by bus route from the nearest high school district
shall be provided an adjusted basic allotment on the basis of 75
students in average daily attendance. An average daily attendance
of 60 students shall be the basis of providing the adjusted basic
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year's average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district. This section expires
September 1, 2011.
SECTION 1.08. Section 42.151, Education Code, is amended by
adding Subsection (n) to read as follows:
(n) This section expires September 1, 2011.
SECTION 1.09. Section 42.152, Education Code, is amended by
adding Subsection (v) to read as follows:
(v) This section expires September 1, 2011.
SECTION 1.10. Section 42.153, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) This section expires September 1, 2011.
SECTION 1.11. Section 42.154, Education Code, is amended by
adding Subsection (f) to read as follows:
(f) This section expires September 1, 2011.
SECTION 1.12. Section 42.155, Education Code, is amended by
adding Subsection (l) to read as follows:
(l) This section expires September 1, 2011.
SECTION 1.13. Section 42.156, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) This section expires September 1, 2011.
SECTION 1.14. Section 42.157, Education Code, is amended by
adding Subsection (c) to read as follows:
(c) This section expires September 1, 2011.
SECTION 1.15. Subchapter C, Chapter 42, Education Code, is
amended by adding Section 42.160 to read as follows:
Sec. 42.160. HIGH SCHOOL ALLOTMENT. (a) A school district
is entitled to an annual allotment of $275 for each student in
average daily attendance in grades 9 through 12 in the district.
(b) Except as provided by Subsection (c), a school district
or campus must use funds allocated under this section to:
(1) implement or administer a college readiness
program that provides academic support and instruction to prepare
underachieving students for entrance into an institution of higher
education;
(2) implement or administer a program that encourages
students to pursue advanced academic opportunities, including
early college high school programs and dual credit, advanced
placement, and international baccalaureate courses;
(3) implement or administer a program that provides
opportunities for students to take academically rigorous course
work, including four years of mathematics and four years of science
at the high school level;
(4) implement or administer a program, including
online course support and professional development, that aligns the
curriculum for grades 6 through 12 with postsecondary curriculum
and expectations; or
(5) implement or administer other high school
completion and success initiatives in grades 6 through 12 approved
by the commissioner.
(c) A school district may use funds allocated under this
section on any instructional program in grades 6 through 12 other
than an athletic program if:
(1) the district is recognized as exceptional by the
commissioner under the academic accountability indicator adopted
under Section 39.051(b)(13); and
(2) the district's completion rates for grades 9
through 12 meet or exceed completion rate standards required by the
commissioner to achieve a rating of exemplary under Section 39.072.
(d) An open-enrollment charter school is entitled to an
allotment under this section in the same manner as a school
district.
(e) The commissioner shall adopt rules to administer this
section, including rules related to the permissible use of funds
allocated under this section to an open-enrollment charter school.
SECTION 1.16. Section 42.2516, Education Code, is amended
to read as follows:
Sec. 42.2516. ADDITIONAL STATE AID FOR TAX REDUCTION.
(a) In this section, "state compression percentage" means the
percentage, as determined by the commissioner, of a
school district's adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding for tax
rate reduction under this section. The commissioner shall
determine the state compression percentage for each school year
based on the percentage by which a district is able to reduce the
district's maintenance and operations tax rate for that year, as
compared to the district's adopted maintenance and operations tax
rate for the 2005 tax year, as a result of state funds appropriated
for distribution under this section for that year from the property
tax relief fund established under Section 403.109, Government Code,
or from another funding source available for school district
property tax relief.
(b) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) the amount of state and local revenue per student
in weighted average daily attendance for maintenance and operations
that the district would have received during the 2009-2010 school
year under Chapter 41 and this chapter, as those chapters existed on
January 1, 2009, at a maintenance and operations tax rate equal to
the product of the state compression percentage for that year
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year; and
(2) an amount equal to the product of $___ multiplied
by the number of students in average daily attendance in the
district.
(c) Enrichment revenue to which a school district is
entitled under Section 42.302 is not included for purposes of
determining the amount to which a district is entitled under this
section.
(d) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level and that is entitled to state revenue under this section may
receive that revenue through an adjustment against the total amount
of attendance credits required to be purchased under Subchapter D,
Chapter 41, or the total number of nonresident students required to
be educated under Subchapter E, Chapter 41, as determined by the
commissioner.
(e) The commissioner may adopt rules necessary to implement
this section.
(f) A determination by the commissioner under this section
is final and may not be appealed.
[(a-1) Subsection (a) applies beginning with the state
fiscal year ending August 31, 2009. For the state fiscal year
ending August 31, 2007, the state compression percentage is 88.67
percent. For the state fiscal year ending August 31, 2008, the
state compression percentage is 66.67 percent. This subsection
expires September 1, 2009.
[(b) Subject to Subsections (b-1), (b-2), (f-1), (g), and
(h), but notwithstanding any other provision of this title, a
school district is entitled to state revenue necessary to provide
the district with the sum of:
[(1) the amount of state revenue necessary to maintain
state and local revenue per student in weighted average daily
attendance in the amount equal to the greater of:
[(A) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district available to the district for the
2005-2006 school year;
[(B) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate adopted by the district for the 2005 tax year; or
[(C) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate equal to the rate described by Section 26.08(i) or
(k)(1), Tax Code, as applicable, for the 2006 tax year;
[(2) an amount equal to the product of $2,500
multiplied by the number of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B,
Chapter 21, and full-time school nurses employed by the district
and entitled to a minimum salary under Section 21.402; and
[(3) an amount equal to the product of $275 multiplied
by the number of students in average daily attendance in grades nine
through 12 in the district.
[(b-1) The amount determined for a school district under
Subsection (b) is increased or reduced as follows:
[(1) if for any school year the district is entitled to
a greater allotment under Section 42.158 than the allotment to
which the district was entitled under that section for the school
year on which the district's entitlement under Subsection (b) is
based, the district's entitlement under Subsection (b) is increased
by an amount equal to the difference between the amount to which the
district is entitled under Section 42.158 for that school year and
the amount to which the district was entitled under that section
for:
[(A) the 2005-2006 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(A); or
[(B) the 2006-2007 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(B) or (C); and
[(2) if for any school year the district is not
entitled to an allotment under Section 42.158 or is entitled to a
lesser allotment under that section than the allotment to which the
district was entitled under that section for the school year on
which the district's entitlement under Subsection (b) is based, the
district's entitlement under Subsection (b) is reduced by an amount
equal to the difference between the amount to which the district was
entitled under Section 42.158 for the 2005-2006 or 2006-2007 school
year, as appropriate based on whether the district's entitlement
under Subsection (b) is determined under Subsection (b)(1)(A), (B),
or (C), and the amount to which the district is entitled under
Section 42.158 for the current school year.
[(b-2) The amount determined for a school district under
Subsection (b) is increased or reduced as follows:
[(1) if for any school year the district is entitled to
a greater allotment under Section 42.155 or greater additional
state aid under Section 42.2515 than the allotment or additional
state aid to which the district was entitled under Section 42.155 or
42.2515, as applicable, for the school year on which the district's
entitlement under Subsection (b) is based, the district's
entitlement under Subsection (b) is increased by an amount equal to
the difference between the amount to which the district is entitled
under Section 42.155 or 42.2515, as applicable, for that school
year and the amount to which the district was entitled under the
applicable section, as applicable for:
[(A) the 2005-2006 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(A); or
[(B) the 2006-2007 school year, if the amount
determined for the district under Subsection (b) is determined
under Subsection (b)(1)(B) or (C); and
[(2) if for any school year the district is not
entitled to an allotment under Section 42.155 or additional state
aid under Section 42.2515 or is entitled to a lesser allotment or
less additional state aid under the applicable section than the
allotment or additional state aid to which the district was
entitled under the applicable section for the school year on which
the district's entitlement under Subsection (b) is based, the
district's entitlement under Subsection (b) is reduced by an amount
equal to the difference between the amount to which the district was
entitled under Section 42.155 or 42.2515, as applicable, for the
2005-2006 or 2006-2007 school year, as appropriate based on whether
the district's entitlement under Subsection (b) is determined under
Subsection (b)(1)(A), (B), or (C), and the amount to which the
district is entitled under the applicable section for the current
school year.
[(c) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall include:
[(1) any amounts described by Rider 69, page III-19,
Chapter 1369, Acts of the 79th Legislature, Regular Session, 2005
(the General Appropriations Act);
[(2) for a school district that received additional
revenue for the 2005-2006 school year as a result of an agreement
under Subchapter E, Chapter 41:
[(A) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(A), the amount of that
additional revenue retained by the district for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue available to the district for that school year
exceeded the total maintenance and operations revenue that would
have been available to the district for that school year if the
district had not entered into the agreement, less any amount the
district paid to another entity under the agreement; or
[(B) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(B) or (C), the amount of the
additional revenue that would have been retained by the district
for the 2006-2007 school year if the district had entered into the
agreement on the same terms as under the agreement for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue that would have been available to the district
for the 2006-2007 school year if the district had entered into the
agreement exceeds the total maintenance and operations revenue that
would have been available to the district for that school year if
the district had not entered into the agreement and had imposed a
maintenance and operations tax at the rate of $1.50 on the $100
valuation of taxable property, less any amount the district would
have paid to another entity under the agreement;
[(3) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.005;
[(4) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2521; and
[(5) any amount necessary to reflect an adjustment
made by the commissioner under Section 42.2531.
[(d) If, for the 2006-2007 or a subsequent school year, a
school district enters into an agreement under Subchapter E,
Chapter 41, the commissioner shall reduce the amount of state
revenue to which the district is entitled under Subsection (b) for
that school year by an amount equal to any additional revenue for
that school year that the district receives and retains as a result
of that agreement, which is the amount by which the total
maintenance and operations revenue available to the district
exceeds the total maintenance and operations revenue that would
have been available to the district if the district had not entered
into the agreement and had imposed a maintenance and operations tax
at the maximum rate permitted under Section 45.003(d), less any
amount the district pays to another entity under the agreement.
[(e) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
is not included in making a determination under Subsection (b)(1).
[(f) For purposes of determining the amount of revenue to
which a school district is entitled under this section, the
commissioner shall use the average tax collection rate for the
district for the 2003, 2004, and 2005 tax years.
[(f-1) The commissioner shall, in accordance with rules
adopted by the commissioner, adjust the amount of a school
district's local revenue derived from maintenance and operations
tax collections, as calculated for purposes of determining the
amount of state revenue to which the district is entitled under this
section, if the district, for the 2007 tax year or a subsequent tax
year:
[(1) adopts an exemption under Section 11.13(n), Tax
Code, that was not in effect for the 2005 or 2006 tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 2005 or 2006 tax year;
[(2) adopts an exemption under Section 11.13(n), Tax
Code, at a greater or lesser percentage than the percentage in
effect for the district for the 2005 or 2006 tax year;
[(3) grants an exemption under an agreement authorized
by Chapter 312, Tax Code, that was not in effect for the 2005 or 2006
tax year, or ceases to grant an exemption authorized by that chapter
that was in effect for the 2005 or 2006 tax year; or
[(4) agrees to deposit taxes into a tax increment fund
created under Chapter 311, Tax Code, under a reinvestment zone
financing plan that was not in effect for the 2005 or 2006 tax year,
or ceases depositing taxes into a tax increment fund created under
that chapter under a reinvestment zone financing plan that was in
effect for the 2005 or 2006 tax year.
[(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
[(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district's action described by Subsection (f-1)(1),
(2), (3), or (4) on the total state revenue to which the district
would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district's wealth per
student to the equalized wealth level; and
[(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b) that is substantially equivalent to any change in
total state revenue or the cost of purchasing attendance credits
that would apply to the district if this section did not exist.
[(f-3) An adjustment made by the commissioner under the
rules adopted under Subsection (f-1) is final and may not be
appealed.
[(g) If a school district adopts a maintenance and
operations tax rate that is below the rate equal to the product of
the state compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the adopted rate is
less than the rate equal to the product of the state compression
percentage multiplied by the rate adopted by the district for the
2005 tax year.
[(h) Notwithstanding any other provision of this title, if
the amount of state and local revenue per student in weighted
average daily attendance for the maintenance and operations of the
district available to the district in a school year as a result of
increases to the equalized wealth level under Section 41.002, the
basic allotment under Section 42.101, and the guaranteed level
under Section 42.302 made by H.B. No. 1, Acts of the 79th
Legislature, 3rd Called Session, 2006, exceeds the amount to which
a district is entitled under Subsection (b) for that school year,
the commissioner must:
[(1) reduce the amount of state aid provided to the
district for that school year by an amount equal to the excess
revenue, as determined by the commissioner; or
[(2) for a district with a wealth per student greater
than the applicable amount described by Section 41.002(a), require
the district to purchase a number of attendance credits for that
school year at a cost equal to the amount of excess revenue, as
determined by the commissioner.
[(i) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level and that is entitled to state revenue under this section may
receive that revenue through an adjustment against the total amount
of attendance credits required to be purchased under Subchapter D,
Chapter 41, or the total number of nonresident students required to
be educated under Subchapter E, Chapter 41, as determined by the
commissioner.
[(j) If a school district reduces its maintenance and
operations tax rate by an amount less than the rate equal to the
product of the difference between the state compression percentage
for the preceding year and the state compression percentage for the
year of the reduction, multiplied by the maintenance and operations
tax rate adopted by the district for the 2005 tax year, the
commissioner may not reduce the amount to which the district is
entitled under this section on the basis of the additional revenue
collected by the district.
[(k) The commissioner may adopt rules necessary to
administer this section.
[(l) A determination by the commissioner under this section
is final and may not be appealed.]
SECTION 1.17. Section 42.252(a), Education Code, is amended
to read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of the amount equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the lesser of:
(1) $1.50; or
(2) the maintenance and operations tax rate adopted by
the district for the 2005 tax year [$0.86]; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
SECTION 1.18. Section 42.260(a), Education Code, is amended
to read as follows:
(a) In this section, "participating charter school" means
an open-enrollment charter school that participates in the uniform
group coverage program established under Chapter 1579, Insurance
Code [has the meaning assigned by Section 42.2514].
SECTION 1.19. Section 42.302, Education Code, is amended by
amending Subsections (a), (a-1), and (a-2) and adding Subsection
(g) to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount
of state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is determined in the manner provided by
Subsection (g) [calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year];
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
(a-1) In this section, "wealth per student" has the meaning
assigned by Section 41.001. For purposes of Subsection (a), the
dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort ("GL") for a school district
is:
(1) the greater of [the amount of district tax revenue
per weighted student per cent of tax effort available to a district
at the 88th percentile in wealth per student, as determined by the
commissioner in cooperation with the Legislative Budget Board, for
the district's maintenance and operations tax effort equal to or
less than the rate equal to 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;
[(2)] the amount of district tax revenue per weighted
student per cent of tax effort that would be available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, if the reduction of
the limitation on tax increases as provided by Section 11.26(a-1),
(a-2), or (a-3), Tax Code, did not apply, or the amount of district
tax revenue per weighted student per cent of tax effort used for
purposes of this subdivision in the preceding school year, for the
first eight [six] cents by which the district's maintenance and
operations tax rate exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516
[and notwithstanding the limitation on district enrichment tax rate
("DTR") under Section 42.303], multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
and
(2) [(3)] $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (1) [(2)].
(a-2) The limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the district's
maintenance and operations tax effort described by Subsection
(a-1)(1) [(a-1)(2)].
(g) The number of students in weighted average daily
attendance is the sum of:
(1) the quotient resulting from dividing the sum of
the school district's allotments under Section 42.101(a), as
adjusted in accordance with Subchapter B, except excluding 50
percent of the adjustment under Section 42.102, by the amount of the
allotment under Section 42.101(a); and
(2) the quotient resulting from dividing the sum of
the school district's allotments under Section 42.101(b) and
Subchapter C, less any allotment under Section 42.155, 42.158, or
42.160, adjusted in accordance with Subchapter B, except excluding
50 percent of the adjustment under Section 42.102, by the amount of
the allotment under Section 42.101(b).
SECTION 1.20. Section 42.303, Education Code, is amended to
read as follows:
Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
district enrichment tax rate ("DTR") under Section 42.302 may not
exceed the amount per $100 of valuation by which the maximum rate
permitted under Section 45.003 exceeds the rate used to determine
the district's local share under Section 42.252 [of $0.86], or a
greater amount for any year provided by appropriation.
SECTION 1.21. Section 26.08(n), Tax Code, is amended to
read as follows:
(n) For purposes of this section, the rollback tax rate of a
school district whose maintenance and operations tax rate for the
2005 tax year was $1.50 or less per $100 of taxable value is:
(1) for the 2009 [2006] tax year, the sum of the
following:
(A) the rate that is equal to 66.67 [88.67]
percent of the maintenance and operations tax rate adopted by the
district for the 2005 tax year;
(B) [,] the rate of $0.06 [$0.04] per $100 of
taxable value;
(C) the rate that is equal to the sum of the
differences for the 2006 and each subsequent tax year between the
adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year;[,] and
(D) the district's current debt rate; and
(2) for the 2010 [2007] and subsequent tax years, the
lesser of the following:
(A) the sum of the following:
(i) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $1.50;
(ii) the rate of $0.06 [$0.04] per $100 of
taxable value;
(iii) the rate that is equal to the sum of
the differences for the 2006 and each subsequent tax year between
the adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
(iv) the district's current debt rate; or
(B) the sum of the following:
(i) the effective maintenance and
operations tax rate of the district as computed under Subsection
(i) [or (k), as applicable];
(ii) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $0.06; and
(iii) the district's current debt rate.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 21.402(a), Education Code, is amended
to read as follows:
(a) Except as provided by Subsection (d), (e), or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per weighted student,
including funds provided under Section 42.2516 [42.2516(b)(1)(B),
but not funds provided under Section 42.2516(b)(1)(A), (b)(1)(C),
(b)(2), or (b)(3)], available to a district eligible to receive
state assistance under Section 42.302 with a maintenance and
operations tax rate per $100 of taxable value equal to the product
of the state compression percentage, as determined under Section
42.2516, multiplied by $1.50, except that the amount of state and
local funds per weighted student does not include the amount
attributable to the increase in the guaranteed level made by
Chapter 1187, Acts of the 77th Legislature, Regular Session, 2001.
SECTION 2.02. Section 29.097(g), Education Code, is amended
to read as follows:
(g) For purposes of Subsection (f)(2), a school district is
encouraged to use funds allocated under Section 42.160
[42.2516(b)(3)].
SECTION 2.03. Section 29.098(h), Education Code, is amended
to read as follows:
(h) For purposes of Subsection (g)(2), a school district is
encouraged to use funds allocated under Section 42.160
[42.2516(b)(3)].
SECTION 2.04. Section 29.918(a), Education Code, is amended
to read as follows:
(a) Notwithstanding Section [39.114 or] 42.152 or 42.160, a
school district or open-enrollment charter school with a high
dropout rate, as determined by the commissioner, must submit a plan
to the commissioner describing the manner in which the district or
charter school intends to use the compensatory education allotment
under Section 42.152 and the high school allotment under Section
42.160 [42.2516(b)(3)] for developing and implementing
research-based strategies for dropout prevention. The district or
charter school shall submit the plan not later than December 1 of
each school year preceding the school year in which the district or
charter school will receive the compensatory education allotment or
high school allotment to which the plan applies.
SECTION 2.05. Section 29.919(e), Education Code, is amended
to read as follows:
(e) As a condition of receiving a state grant, a campus must
contribute additional funding for activities provided at the campus
through the program, in an amount equal to at least $100 each school
year for each student in an eligible grade level served through the
program. The additional funding required by this subsection may
consist of local funds, private funds, or state funds other than
grant funds provided under this section. For program activities
provided at the high school level, the high school allotment
provided under Section 42.160 [42.2516(b)(3)] may be used to meet
the additional funding requirement prescribed by this subsection.
SECTION 2.06. Section 39.113(a), Education Code, is amended
to read as follows:
(a) The agency shall:
(1) develop standards for evaluating the success and
cost-effectiveness of high school completion and success and
college readiness programs implemented under Section 42.160
[39.114];
(2) provide guidance for school districts and campuses
in establishing and improving high school completion and success
and college readiness programs implemented under Section 42.160
[39.114]; and
(3) develop standards for selecting and methods for
recognizing school districts and campuses that offer exceptional
high school completion and success and college readiness programs
under Section 42.160 [39.114].
SECTION 2.07. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapters 41 and 42, Education Code, and used by
school districts and charter schools as provided by Section
[Sections 42.2514 and] 42.260, Education Code.
SECTION 2.08. Section 1581.053(b), Insurance Code, is
amended to read as follows:
(b) Notwithstanding Subsection (a), amounts a district or
school is required to use to pay contributions under a group health
coverage plan for district or school employees under Section
[42.2514 or] 42.260, Education Code, other than amounts described
by Section 42.260(c)(2)(B), are not used in computing whether the
district or school complies with Section 1581.052.
ARTICLE 3. REPEALER; CONFLICTS; EFFECTIVE DATE
SECTION 3.01. (a) The following provisions of the
Education Code are repealed:
(1) Section 39.114; and
(2) Sections 42.2511, 42.2512, and 42.2514.
(b) Section 403.302(j), Government Code, is repealed.
(c) Subchapter C, Chapter 1581, Insurance Code, is
repealed.
(d) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
Legislature, Regular Session, 2007, is repealed.
SECTION 3.02. To the extent of any conflict, this Act
prevails over another Act of the 81st Legislature, Regular Session,
2009, relating to nonsubstantive additions to and corrections in
enacted codes.
SECTION 3.03. This Act takes effect September 1, 2009.