By: Taylor of Galveston, et al. S.B. No. 945
(Aycock)
A BILL TO BE ENTITLED
AN ACT
relating to funding under the public school finance system for a
school district with a compressed tax rate below the state maximum
compressed tax rate.
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
sum of 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 any additional tax effort included in calculating the
district's compressed tax rate under Section 42.101(a-1);
(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 sum of 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 any
additional tax effort included in calculating the district's
compressed tax rate under Section 42.101(a-1), subject to Section
41.093(b-1); or
(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (2) [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 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 tax rate
described by Section 41.002(a)(2) [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 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 adding Subsections (a-1), (a-2),
and (c) to read as follows:
(a-1) Notwithstanding Subsection (a), for a school district
that adopted a maintenance and operations tax rate for the 2005 tax
year below the maximum rate permitted by law for that year, the
district's compressed tax rate ("DCR") includes the portion of the
district's current maintenance and operations tax rate in excess of
the first six cents above the district's compressed tax rate, as
defined by Subsection (a), until the district's compressed tax rate
computed in accordance with this subsection is equal to the state
maximum compressed tax rate ("MCR").
(a-2) Subsection (a-1) applies beginning with the 2017-2018
school year. For the 2015-2016 and 2016-2017 school years, the
board of trustees of a school district that adopted a maintenance
and operations tax rate for the 2005 tax year below the maximum rate
permitted by law for that year may choose to apply Subsection (a-1)
to the calculation of the district's compressed tax rate ("DCR"). A
board of trustees that chooses to apply Subsection (a-1) must
notify the commissioner of the decision in writing not later than
September 1 of the affected school year. This subsection expires
September 1, 2018.
(c) This subsection applies to a school district for which
the compressed tax rate ("DCR") is determined in accordance with
Subsection (a-1). Any reduction in the district's adopted
maintenance and operations tax rate is applied to the following
components of the district's tax rate in the order specified:
(1) tax effort described by Section 42.302(a-1)(2);
(2) tax effort described by Section 42.302(a-1)(1);
and
(3) tax effort included in the determination of the
district's compressed tax rate ("DCR") under Subsection (a-1).
SECTION 4. Section 42.2516, Education Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) Revenue generated by the portion of a district's
maintenance and operations tax rate included in calculating the
district's compressed tax rate under Section 42.101(a-1) and local
share under Section 42.252(a-1) is included in determining the
amount to which a district is entitled under this section, but may
not increase the total amount of revenue per weighted student to
which the district is entitled under this section. This subsection
expires September 1, 2017.
SECTION 5. Section 42.252, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for a school district
that adopted a maintenance and operations tax rate for the 2005 tax
year below the maximum rate permitted by law for that year, the
district's tax rate ("TR") includes the tax effort included in
calculating the district's compressed tax rate under Section
42.101(a-1).
SECTION 6. 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
sum of 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 any additional tax effort included in calculating the
district's compressed tax rate under Section 42.101(a-1); and
(2) $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (1).
SECTION 7. This Act takes effect September 1, 2015.