84R5072 JSL/CAE-D
By: Watson S.B. No. 595
A BILL TO BE ENTITLED
AN ACT
relating to the equalized wealth level, basic allotment, local
share, and guaranteed yield under the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b), 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 $1.50 [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 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 $1.50 [the maintenance and operations tax rate
adopted by the district for the 2005 tax year], subject to Section
41.093(b-1); or
(3) the wealth per student specified under Subdivision
(1) [$319,500], for the district's maintenance and operations tax
effort that exceeds the first 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 $1.50 [the maintenance and
operations tax rate adopted by the district for the 2005 tax year].
SECTION 2. 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) 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 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
$1.50 [the maintenance and operations tax rate adopted by the
district for the 2005 tax year].
SECTION 3. Section 42.101, Education Code, as effective
September 1, 2015, is amended by amending Subsection (a) and adding
Subsection (a-1) to read as follows:
(a) Except as provided by Subsection (a-1), for [For] each
student in average daily attendance, not including the time
students spend each day in special education programs in an
instructional arrangement other than mainstream or career and
technology education programs, for which an additional allotment is
made under Subchapter C, a district is entitled to an allotment
equal to $5,040 [the lesser of $4,765 or the amount that results
from the following formula:
[A = $4,765 X (DCR/MCR)
[where:
["A" is the allotment to which a district is entitled;
["DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
["MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50].
(a-1) A school district with a maintenance and operations
tax rate less than the rate equal to the product of the state
compression percentage, as determined under Section 42.2516,
multiplied by $1.50 is entitled to a proportion of the allotment
provided under Subsection (a) or (b) equal to the proportion that
the district's maintenance and operations tax rate bears to the tax
rate equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by $1.50.
SECTION 4. 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 lesser of:
(1) 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]; 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 5. Section 42.302(a-1), Education Code, is amended
to read as follows:
(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 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 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 $1.50 [the maintenance and
operations tax rate adopted by the district for the 2005 tax year];
and
(2) the amount of district tax revenue per weighted
student per cent of tax effort available to a district with
maintenance and operations tax revenue per cent of tax effort equal
to the maximum amount provided per cent under Section 42.101(a) or
(b) [$31.95], for the district's maintenance and operations tax
effort that exceeds the amount of tax effort described by
Subdivision (1).
SECTION 6. This Act takes effect September 1, 2015.