84R2733 JSL-D
By: Watson S.B. No. 244
A BILL TO BE ENTITLED
AN ACT
relating to the elimination of the cost of education adjustment
under the Foundation School Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.062(c), Education Code, is amended to
read as follows:
(c) Except as otherwise provided by this subsection, if the
commissioner certifies that the amount appropriated for a state
fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
the amount to which school districts are entitled under those
subchapters for that year, the commissioner shall use the excess
funds, in an amount not to exceed $20 million in any state fiscal
year, for the purpose of making grants under this section. The use
of excess funds under this subsection has priority over any
provision of Chapter 42 that permits or directs the use of excess
foundation school program funds, including Sections [42.2517,]
42.2521, 42.2522, and 42.2531. The commissioner is required to use
excess funds as provided by this subsection only if the
commissioner is not required to reduce the total amount of state
funds allocated to school districts under Section 42.253(h).
SECTION 2. Section 12.106(a-1), Education Code, is amended
to read as follows:
(a-1) In determining funding for an open-enrollment charter
school under Subsection (a), adjustments under Sections [42.102,]
42.103[, 42.104,] and 42.105 are based on the average adjustment
for the state.
SECTION 3. Section 29.014(d), Education Code, is amended to
read as follows:
(d) The basic allotment for a student enrolled in a district
to which this section applies is adjusted by[:
[(1) the cost of education adjustment under Section
42.102 for the school district in which the district is
geographically located; and
[(2)] the weight for a homebound student under Section
42.151(a).
SECTION 4. Section 41.034(a), Education Code, is amended to
read as follows:
(a) For the first and second school years after creation of
a consolidated district under this subchapter, the commissioner
shall adjust allotments to the consolidated district to the extent
necessary to preserve the effects of an adjustment under Section
[42.102,] 42.103[,] or 42.105 to which either of the consolidating
districts would have been entitled but for the consolidation.
SECTION 5. Section 42.007(c), Education Code, is amended to
read as follows:
(c) The funding elements must include:
(1) a basic allotment for the purposes of Section
42.101 that, when combined with the guaranteed yield component
provided by Subchapter F, represents the cost per student of a
regular education program that meets all mandates of law and
regulation;
(2) [adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts;
[(3)] appropriate program cost differentials and
other funding elements for the programs authorized under Subchapter
C, with the program funding level expressed as dollar amounts and as
weights applied to the basic allotment or adjusted [basic]
allotment, as applicable, for the appropriate year;
(3) [(4)] the maximum guaranteed level of qualified
state and local funds per student for the purposes of Subchapter F;
(4) [(5)] the enrichment [and facilities] tax rate
under Subchapter F;
(5) [(6)] the computation of students in weighted
average daily attendance under Section 42.302; and
(6) [(7)] the amount to be appropriated for the school
facilities assistance program under Chapter 46.
SECTION 6. Section 42.103, Education Code, is amended to
read as follows:
Sec. 42.103. SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a)
The basic allotment for certain small and mid-sized districts is
adjusted in accordance with this section. In this section:
(1) "AA" is the district's adjusted allotment per
student;
(2) "ADA" is the number of students in average daily
attendance for which the district is entitled to an allotment under
Section 42.101; and
(3) "BA [ABA]" is the [adjusted] basic allotment
determined under Section 42.101 [42.102].
(b) The basic allotment of a school district that contains
at least 300 square miles and has not more than 1,600 students in
average daily attendance is adjusted by applying the formula:
AA = (1 + ((1,600 - ADA) X .0004)) X BA [ABA]
(c) The basic allotment of a school district that contains
less than 300 square miles and has not more than 1,600 students in
average daily attendance is adjusted by applying the formula:
AA = (1 + ((1,600 - ADA) X .00025)) X BA [ABA]
(d) The basic allotment of a school district that offers a
kindergarten through grade 12 program and has less than 5,000
students in average daily attendance is adjusted by applying the
formula, of the following formulas, that results in the greatest
adjusted allotment:
(1) the formula in Subsection (b) or (c) for which the
district is eligible; or
(2) AA = (1 + ((5,000 - ADA) X .000025)) X BA [ABA].
SECTION 7. Section 42.105, Education Code, as effective
September 1, 2015, 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 funding
[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 funding [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 funding
[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.
SECTION 8. Sections 42.151(a) and (k), Education Code, are
amended to read as follows:
(a) For each student in average daily attendance in a
special education program under Subchapter A, Chapter 29, in a
mainstream instructional arrangement, a school district is
entitled to an annual allotment equal to the basic allotment or
adjusted [basic] allotment, as applicable, multiplied by 1.1. For
each full-time equivalent student in average daily attendance in a
special education program under Subchapter A, Chapter 29, in an
instructional arrangement other than a mainstream instructional
arrangement, a district is entitled to an annual allotment equal to
the basic allotment or adjusted [basic] allotment, as applicable,
multiplied by a weight determined according to instructional
arrangement as follows:
Homebound5.0
Hospital class3.0
Speech therapy5.0
Resource room3.0
Self-contained, mild and moderate,
regular campus3.0
Self-contained, severe, regular campus3.0
Off home campus2.7
Nonpublic day school1.7
Vocational adjustment class2.3
(k) A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the [adjusted] basic allotment or adjusted allotment, as
applicable, for each full-time equivalent student in average daily
attendance, multiplied by the amount designated for the student's
instructional arrangement under this section, for each day the
program is provided divided by the number of days in the minimum
school year. The total amount of state funding for extended year
services under this section may not exceed $10 million per year. A
school district may use funds received under this section only in
providing an extended year program.
SECTION 9. Section 42.152(a), Education Code, is amended to
read as follows:
(a) For each student who is educationally disadvantaged or
who is a student who does not have a disability and resides in a
residential placement facility in a district in which the student's
parent or legal guardian does not reside, a district is entitled to
an annual allotment equal to the basic allotment or adjusted
[basic] allotment, as applicable, multiplied by 0.2, and by 2.41
for each full-time equivalent student who is in a remedial and
support program under Section 29.081 because the student is
pregnant.
SECTION 10. Section 42.153(a), Education Code, is amended
to read as follows:
(a) For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the basic allotment or adjusted [basic] allotment, as applicable,
multiplied by 0.1.
SECTION 11. Section 42.154(a), Education Code, is amended
to read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades nine through 12 or in career and technology education
programs for students with disabilities in grades seven through 12,
a district is entitled to:
(1) an annual allotment equal to the basic allotment
or adjusted [basic] allotment, as applicable, multiplied by a
weight of 1.35; and
(2) $50, if the student is enrolled in:
(A) two or more advanced career and technology
education classes for a total of three or more credits; or
(B) an advanced course as part of a tech-prep
program under Subchapter T, Chapter 61.
SECTION 12. Section 42.156(a), Education Code, is amended
to read as follows:
(a) For each identified student a school district serves in
a program for gifted and talented students that the district
certifies to the commissioner as complying with Subchapter D,
Chapter 29, a district is entitled to an annual allotment equal to
the district's basic allotment or adjusted [basic] allotment as
determined under Section 42.101 [42.102] or Section 42.103, as
applicable, multiplied by .12 for each school year or a greater
amount provided by appropriation.
SECTION 13. Section 42.157(a), Education Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), for each student
in average daily attendance who is using a public education grant
under Subchapter G, Chapter 29, to attend school in a district other
than the district in which the student resides, the district in
which the student attends school is entitled to an annual allotment
equal to the basic allotment or adjusted [basic] allotment, as
applicable, multiplied by a weight of 0.1.
SECTION 14. Section 42.261(a), Education Code, is amended
to read as follows:
(a) Funds appropriated by the legislature for a tax year for
the purpose of reducing a school district's maintenance and
operations tax rate and providing state aid under Section 42.2516:
(1) [are not excess funds for purposes of Section
42.2517;
[(2)] are not available for purposes of Section
42.2521 or 42.2522;
(2) [(3)] may not be used for purposes of Chapter 46;
and
(3) [(4)] may not be provided by the commissioner to a
school district for a purpose other than reduction of the
district's maintenance and operations tax rate.
SECTION 15. Section 42.302(a), Education Code, is amended
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 calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation and[,] any allotment under
Section 42.158 or 42.160, [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.
SECTION 16. Section 322.008(b), Government Code, is amended
to read as follows:
(b) The general appropriations bill may include for
purposes of information the funding elements computed by the
Legislative Budget Board under Section 42.007, Education Code[,
excluding the values for each school district calculated under
Section 42.007(c)(2), Education Code]. If the funding elements are
included, the funding elements under Section 42.007(c)(2)
[42.007(c)(3)], Education Code, shall be reported in dollar amounts
per pupil.
SECTION 17. Section 825.405(b), Government Code, is amended
to read as follows:
(b) For purposes of this section:
(1) the statutory minimum salary for certain school
personnel under Section 21.402, Education Code, is the salary
provided by that section multiplied by the cost of education index
adjustment adopted by the foundation school fund budget committee
and contained in Chapter 203, Title 19, Texas Administrative Code,
as that chapter existed on March 26, 1997, applicable [under
Section 42.102, Education Code,] to the district in which the
member is employed; and
(2) the statutory minimum salary for members who would
have been entitled to the minimum salary for certain school
personnel under former Section 16.056, Education Code, as that
section existed on January 1, 1995, is a minimum salary computed in
the same manner as the minimum salary for certain school personnel
under Section 21.402, Education Code, multiplied by the cost of
education index adjustment adopted by the foundation school fund
budget committee and contained in Chapter 203, Title 19, Texas
Administrative Code, as that chapter existed on March 26, 1997,
applicable [under Section 42.102, Education Code,] to the district
in which the member is employed.
SECTION 18. The following sections of the Education Code
are repealed:
(1) Section 42.102;
(2) Section 42.104; and
(3) Section 42.2517.
SECTION 19. This Act takes effect September 1, 2015.