Texas 2017 - 85th Regular

Texas House Bill HB1474 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R7791 MEW-D
2	2	By: González of El Paso H.B. No. 1474
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the public school finance system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 29.918(a) and (b), Education Code, are
10	10	amended to read as follows:
11	11	(a) Notwithstanding Section [39.234 or] 42.152, a school
12	12	district or open-enrollment charter school with a high dropout
13	13	rate, as determined by the commissioner, must submit a plan to the
14	14	commissioner describing the manner in which the district or charter
15	15	school intends to use the compensatory education allotment under
16	16	Section 42.152 [and the high school allotment under Section 42.160]
17	17	for developing and implementing research-based strategies for
18	18	dropout prevention. The district or charter school shall submit
19	19	the plan not later than December 1 of each school year preceding the
20	20	school year in which the district or charter school will receive the
21	21	compensatory education allotment [or high school allotment] to
22	22	which the plan applies.
23	23	(b) A school district or open-enrollment charter school to
24	24	which this section applies may not spend or obligate more than 25
25	25	percent of the district's or charter school's compensatory
26	26	education allotment [or high school allotment] unless the
27	27	commissioner approves the plan submitted under Subsection (a). The
28	28	commissioner shall complete an initial review of the district's or
29	29	charter school's plan not later than March 1 of the school year
30	30	preceding the school year in which the district or charter school
31	31	will receive the compensatory education allotment [or high school
32	32	allotment] to which the plan applies.
33	33	SECTION 2. Section 39.0233(a), Education Code, is amended
34	34	to read as follows:
35	35	(a) The agency, in coordination with the Texas Higher
36	36	Education Coordinating Board, shall adopt a series of questions to
37	37	be included in an end-of-course assessment instrument administered
38	38	under Section 39.023(c) to be used for purposes of Section 51.3062.
39	39	The questions adopted under this subsection must be developed in a
40	40	manner consistent with any college readiness standards adopted
41	41	under Section [Sections 39.233 and] 51.3062.
42	42	SECTION 3. Section 41.002(a), Education Code, is amended to
43	43	read as follows:
44	44	(a) A school district may not have a wealth per student that
45	45	exceeds:
46	46	(1) the wealth per student that generates the amount
47	47	of maintenance and operations tax revenue per weighted student
48	48	available to a district with maintenance and operations tax revenue
49	49	per cent of tax effort equal to the maximum amount provided per cent
50	50	under Section 42.101(a), (a-3), or (b), for the district's
51	51	maintenance and operations tax effort equal to or less than the rate
52	52	equal to the sum of the product of the state compression percentage,
53	53	as determined under Section 42.2516, multiplied by the maintenance
54	54	and operations tax rate adopted by the district for the 2005 tax
55	55	year and any additional tax effort included in calculating the
56	56	district's compressed tax rate under Section 42.101(a-1);
57	57	(2) the greater of the wealth per student that
58	58	generates the amount of maintenance and operations tax revenue per
59	59	weighted student available to the Austin Independent School
60	60	District or a district at the 95th percentile in wealth per student,
61	61	as determined by the commissioner in cooperation with the
62	62	Legislative Budget Board, for the first six cents by which the
63	63	district's maintenance and operations tax rate exceeds the rate
64	64	equal to the sum of the product of the state compression percentage,
65	65	as determined under Section 42.2516, multiplied by the maintenance
66	66	and operations tax rate adopted by the district for the 2005 tax
67	67	year and any additional tax effort included in calculating the
68	68	district's compressed tax rate under Section 42.101(a-1), subject
69	69	to Section 41.093(b-1); or
70	70	(3) the wealth per student specified under Subdivision
71	71	(1) [$319,500], for the district's maintenance and operations tax
72	72	effort that exceeds the amount of tax effort described by
73	73	Subdivision (2).
74	74	SECTION 4. Section 41.093(b-1), Education Code, is amended
75	75	to read as follows:
76	76	(b-1) If the guaranteed level of state and local funds per
77	77	weighted student per cent of tax effort under Section
78	78	42.302(a-1)(1) for which state funds are appropriated for a school
79	79	year is an amount at least equal to the greater of the amount of
80	80	revenue per weighted student per cent of tax effort available to the
81	81	Austin Independent School District or the amount available to a
82	82	district at the 95th percentile in wealth per student, as
83	83	determined by the commissioner in cooperation with the Legislative
84	84	Budget Board, the commissioner, in computing the amounts described
85	85	by Subsections (a)(1) and (2) and determining the cost of an
86	86	attendance credit, shall exclude maintenance and operations tax
87	87	revenue resulting from the tax rate described by Section
88	88	41.002(a)(2).
89	89	SECTION 5. Section 41.099(a), Education Code, is amended to
90	90	read as follows:
91	91	(a) Section [Sections 41.002(e),] 41.094 applies [, 41.097,
92	92	and 41.098 apply] only to a district that:
93	93	(1) executes an agreement to purchase all attendance
94	94	credits necessary to reduce the district's wealth per student to
95	95	the equalized wealth level;
96	96	(2) executes an agreement to purchase attendance
97	97	credits and an agreement under Subchapter E to contract for the
98	98	education of nonresident students who transfer to and are educated
99	99	in the district but who are not charged tuition; or
100	100	(3) executes an agreement under Subchapter E to
101	101	contract for the education of nonresident students:
102	102	(A) to an extent that does not provide more than
103	103	10 percent of the reduction in wealth per student required for the
104	104	district to achieve a wealth per student that is equal to or less
105	105	than the equalized wealth level; and
106	106	(B) under which all revenue paid by the district
107	107	to other districts, in excess of the reduction in state aid that
108	108	results from counting the weighted average daily attendance of the
109	109	students served in the contracting district, is required to be used
110	110	for funding a consortium of at least three districts in a county
111	111	with a population of less than 40,000 that is formed to support a
112	112	technology initiative.
113	113	SECTION 6. Subchapter A, Chapter 42, Education Code, is
114	114	amended by adding Sections 42.010 and 42.013 to read as follows:
115	115	Sec. 42.010. COMPREHENSIVE REVIEW OF PUBLIC SCHOOL FINANCE
116	116	WEIGHTS, ALLOTMENTS, AND ADJUSTMENTS. (a) The agency shall
117	117	conduct a comprehensive review of weights, allotments, and
118	118	adjustments under the public school finance system, including all
119	119	current weights, allotments, and adjustments provided under this
120	120	chapter and any additional weights, allotments, and adjustments
121	121	that the agency determines may be appropriate. The review must
122	122	determine the effectiveness of existing weights, allotments, and
123	123	adjustments in fulfilling the mission of the public education
124	124	system stated in Section 4.001(a) and furthering the state policy
125	125	stated in Section 42.001. At a minimum, the review must determine
126	126	how closely and appropriately each of the following elements
127	127	reflects and provides financing for costs beyond the control of
128	128	school districts:
129	129	(1) adjustments for costs related to the geographic
130	130	variation in known resource costs and costs of education,
131	131	controlling for the impact of unequalized wealth and hold-harmless
132	132	provisions, and properly reflecting the impact of high
133	133	concentrations of poverty on the compensation that school districts
134	134	must pay to attract and retain teachers of comparable or
135	135	appropriate quality;
136	136	(2) adjustments for costs related to the size and
137	137	diseconomies of scale of school districts;
138	138	(3) adjustments for costs related to the varying
139	139	instructional needs and characteristics of students and the extent
140	140	to which the adjustments provide each student with access to
141	141	programs and services that are appropriate to the student's
142	142	educational needs;
143	143	(4) other factors, in addition to economic status,
144	144	that correlate to student at-risk status and the need for
145	145	compensatory education, and the degree to which those factors
146	146	correspond to additional educational costs; and
147	147	(5) the manner in which the cost adjustments are
148	148	applied to and affect the overall school finance system.
149	149	(b) The review of the adjustments described in Subsection
150	150	(a)(1) must:
151	151	(1) address all uncontrollable costs that can
152	152	reasonably be quantified;
153	153	(2) consider the qualifications, experience, and
154	154	turnover rate of personnel and the impact of those factors on
155	155	student achievement in considering the adequacy and comparability
156	156	of salaries;
157	157	(3) properly address the impact of factors that have a
158	158	large impact on certain types of school districts, such as extreme
159	159	isolation, regardless of general state impact;
160	160	(4) include only factors for which a rational economic
161	161	argument can be made;
162	162	(5) be carefully constructed to make sure that a cost
163	163	factor does not significantly affect more than one variable; and
164	164	(6) not be artificially adjusted to meet predetermined
165	165	outcomes and must not use arbitrary limits.
166	166	(c) In determining whether any additional weights,
167	167	allotments, and adjustments are appropriate under the public school
168	168	finance system, as required by Subsection (a), the agency shall
169	169	include consideration of an additional weight for educational
170	170	services provided to students in prekindergarten on a half-day
171	171	basis and on a full-day basis.
172	172	(d) The agency may contract with one or more consultants if
173	173	necessary to enable the agency to perform its duties under this
174	174	section.
175	175	(e) The Legislative Budget Board, the comptroller, the
176	176	state auditor, and any other state agency, official, or personnel
177	177	shall cooperate with the agency in carrying out its duties under
178	178	this section.
179	179	(f) Not later than December 1, 2018, the agency shall
180	180	provide a report that:
181	181	(1) states the findings of the review conducted under
182	182	this section; and
183	183	(2) includes recommendations for updated weights,
184	184	allotments, and adjustments and any other statutory changes
185	185	considered appropriate by the agency.
186	186	(g) This section expires January 1, 2019.
187	187	Sec. 42.013. STUDY OF LEGISLATION ON SCHOOL FUNDING. (a)
188	188	After each legislative session, the commissioner shall conduct a
189	189	study assessing the manner in which any statute enacted or amended
190	190	during that legislative session affects the equalized wealth level
191	191	of a school district under Chapter 41 or the foundation school
192	192	program under this chapter and whether the standard of neutrality
193	193	described under Section 42.001(b) is maintained.
194	194	(b) The study under this section must:
195	195	(1) include an analysis of the effects of legislation
196	196	on each school district in the state; and
197	197	(2) indicate how a school district compares to other
198	198	districts with respect to:
199	199	(A) property wealth per weighted student;
200	200	(B) revenue per weighted student;
201	201	(C) tax effort; and
202	202	(D) revenue per cent of tax effort.
203	203	(c) The commissioner shall issue a report on the study's
204	204	findings to the governor, the lieutenant governor, the speaker of
205	205	the house of representatives, and the legislature. The
206	206	commissioner shall make the report available to the public on the
207	207	agency's Internet website.
208	208	SECTION 7. Section 42.101(a), Education Code, is amended to
209	209	read as follows:
210	210	(a) For each student in average daily attendance, not
211	211	including the time students spend each day in special education
212	212	programs in an instructional arrangement other than mainstream or
213	213	career and technology education programs, for which an additional
214	214	allotment is made under Subchapter C, a district is entitled to an
215	215	allotment equal to the lesser of $5,440 [$4,765] or the amount that
216	216	results from the following formula:
217	217	A = $5,440 [$4,765] X (DCR/MCR)
218	218	where:
219	219	"A" is the allotment to which a district is entitled;
220	220	"DCR" is the district's compressed tax rate, which is the
221	221	product of the state compression percentage, as determined under
222	222	Section 42.2516, multiplied by the maintenance and operations tax
223	223	rate adopted by the district for the 2005 tax year; and
224	224	"MCR" is the state maximum compressed tax rate, which is the
225	225	product of the state compression percentage, as determined under
226	226	Section 42.2516, multiplied by $1.50.
227	227	SECTION 8. Effective September 1, 2018, Section 42.101,
228	228	Education Code, is amended by amending Subsection (a) and adding
229	229	Subsection (a-3) to read as follows:
230	230	(a) Subject to adjustment under Subsection (a-3), for [For]
231	231	each student in average daily attendance, not including the time
232	232	students spend each day in special education programs in an
233	233	instructional arrangement other than mainstream or career and
234	234	technology education programs, for which an additional allotment is
235	235	made under Subchapter C, a district is entitled to an allotment
236	236	equal to the lesser of $5,840 [$4,765] or the amount that results
237	237	from the following formula:
238	238	A = $5,840 [$4,765] X (DCR/MCR)
239	239	where:
240	240	"A" is the allotment to which a district is entitled;
241	241	"DCR" is the district's compressed tax rate, which is the
242	242	product of the state compression percentage, as determined under
243	243	Section 42.2516, multiplied by the maintenance and operations tax
244	244	rate adopted by the district for the 2005 tax year; and
245	245	"MCR" is the state maximum compressed tax rate, which is the
246	246	product of the state compression percentage, as determined under
247	247	Section 42.2516, multiplied by $1.50.
248	248	(a-3) Beginning with the 2019-2020 school year, the basic
249	249	allotment provided to a district under Subsection (a) or (b) is
250	250	adjusted annually to increase the allotment by the greater of:
251	251	(1) one percent of the amount of the allotment for the
252	252	preceding school year; or
253	253	(2) the amount that results from applying the
254	254	inflation rate, as determined by the comptroller on the basis of
255	255	changes in the Texas Consumer Price Index, to the allotment for the
256	256	preceding school year.
257	257	SECTION 9. Sections 42.152(a) and (c), Education Code, are
258	258	amended to read as follows:
259	259	(a) For each student who is educationally disadvantaged or
260	260	who is a student who does not have a disability and resides in a
261	261	residential placement facility in a district in which the student's
262	262	parent or legal guardian does not reside, a district is entitled to
263	263	an annual allotment equal to the adjusted basic allotment
264	264	multiplied by 0.25 [0.2], and by 2.41 for each full-time equivalent
265	265	student who is in a compensatory, intensive, or accelerated
266	266	[remedial and support] program under Section 29.081 because the
267	267	student is pregnant.
268	268	(c) Funds allocated under this section shall be used to fund
269	269	supplemental programs and services designed to eliminate any
270	270	disparity in performance on assessment instruments administered
271	271	under Subchapter B, Chapter 39, or disparity in the rates of high
272	272	school completion between students at risk of dropping out of
273	273	school, as defined by Section 29.081, and all other students.
274	274	Specifically, the funds, other than an indirect cost allotment
275	275	established under State Board of Education rule, which may not
276	276	exceed 25 [45] percent, may be used to meet the costs of providing a
277	277	compensatory, intensive, or accelerated instruction program under
278	278	Section 29.081 or a disciplinary alternative education program
279	279	established under Section 37.008, to pay the costs associated with
280	280	placing students in a juvenile justice alternative education
281	281	program established under Section 37.011, or to support a program
282	282	eligible under Title I of the Elementary and Secondary Education
283	283	Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent
284	284	amendments, and by federal regulations implementing that Act, at a
285	285	campus at which at least 40 percent of the students are
286	286	educationally disadvantaged. In meeting the costs of providing a
287	287	compensatory, intensive, or accelerated instruction program under
288	288	Section 29.081, a district's compensatory education allotment
289	289	shall be used for costs supplementary to the regular education
290	290	program, such as costs for program and student evaluation,
291	291	instructional materials and equipment and other supplies required
292	292	for quality instruction, supplemental staff expenses, salary for
293	293	teachers of at-risk students, smaller class size, and
294	294	individualized instruction. A home-rule school district or an
295	295	open-enrollment charter school must use funds allocated under
296	296	Subsection (a) for a purpose authorized in this subsection but is
297	297	not otherwise subject to Subchapter C, Chapter 29. For purposes of
298	298	this subsection, a program specifically designed to serve students
299	299	at risk of dropping out of school, as defined by Section 29.081, is
300	300	considered to be a program supplemental to the regular education
301	301	program, and a district may use its compensatory education
302	302	allotment for such a program.
303	303	SECTION 10. Sections 42.153(a) and (b), Education Code, are
304	304	amended to read as follows:
305	305	(a) For each student in average daily attendance in a
306	306	bilingual education or special language program under Subchapter B,
307	307	Chapter 29, a district is entitled to an annual allotment equal to
308	308	the adjusted basic allotment multiplied by 0.25 [0.1].
309	309	(b) Funds allocated under this section, other than an
310	310	indirect cost allotment established under State Board of Education
311	311	rule, which may not exceed 25 percent, must be used in providing
312	312	bilingual education or special language programs under Subchapter
313	313	B, Chapter 29, and must be accounted for under existing agency
314	314	reporting and auditing procedures.
315	315	SECTION 11. Section 42.251(b), Education Code, is amended
316	316	to read as follows:
317	317	(b) The program shall be financed by:
318	318	(1) ad valorem tax revenue generated by an equalized
319	319	uniform school district effort;
320	320	(2) ad valorem tax revenue generated by local school
321	321	district effort in excess of the equalized uniform school district
322	322	effort; and
323	323	(3) [state available school funds distributed in
324	324	accordance with law; and
325	325	[(4)] state funds appropriated for the purposes of
326	326	public school education and allocated to each district in an amount
327	327	sufficient to finance the cost of each district's Foundation School
328	328	Program not covered by other funds specified in this subsection.
329	329	SECTION 12. Sections 42.253(a) and (c), Education Code, are
330	330	amended to read as follows:
331	331	(a) For each school year the commissioner shall determine:
332	332	(1) the amount of money to which a school district is
333	333	entitled under Subchapters B and C;
334	334	(2) the amount of money to which a school district is
335	335	entitled under Subchapter F;
336	336	(3) [the amount of money allocated to the district
337	337	from the available school fund;
338	338	[(4)] the amount of each district's tier one local
339	339	share under Section 42.252; and
340	340	(4) [(5)] the amount of each district's tier two local
341	341	share under Section 42.302.
342	342	(c) Each school district is entitled to an amount equal to
343	343	the difference for that district between the sum of Subsections
344	344	(a)(1) and (a)(2) and the sum of Subsections (a)(3) and [,] (a)(4)[,
345	345	and (a)(5)].
346	346	SECTION 13. Sections 42.302(a) and (a-1), Education Code,
347	347	are amended to read as follows:
348	348	(a) Each school district is guaranteed a specified amount
349	349	per weighted student in state and local funds for each cent of tax
350	350	effort over that required for the district's local fund assignment
351	351	up to the maximum level specified in this subchapter. The amount
352	352	of state support, subject only to the maximum amount under Section
353	353	42.303, is determined by the formula:
354	354	GYA = (GL X WADA X DTR X 100) - LR
355	355	where:
356	356	"GYA" is the guaranteed yield amount of state funds to be
357	357	allocated to the district;
358	358	"GL" is the dollar amount guaranteed level of state and local
359	359	funds per weighted student per cent of tax effort, which is an
360	360	amount described by Subsection (a-1) or a greater amount for any
361	361	year provided by appropriation;
362	362	"WADA" is the number of students in weighted average daily
363	363	attendance, which is calculated by dividing the sum of the school
364	364	district's allotments under Subchapters B and C, less any allotment
365	365	to the district for transportation, any allotment under Section
366	366	42.158 [or 42.160], and 50 percent of the adjustment under Section
367	367	42.102, by the basic allotment for the applicable year;
368	368	"DTR" is the district enrichment tax rate of the school
369	369	district, which is determined by subtracting the amounts specified
370	370	by Subsection (b) from the total amount of maintenance and
371	371	operations taxes collected by the school district for the
372	372	applicable school year and dividing the difference by the quotient
373	373	of the district's taxable value of property as determined under
374	374	Subchapter M, Chapter 403, Government Code, or, if applicable,
375	375	under Section 42.2521, divided by 100; and
376	376	"LR" is the local revenue, which is determined by multiplying
377	377	"DTR" by the quotient of the district's taxable value of property as
378	378	determined under Subchapter M, Chapter 403, Government Code, or, if
379	379	applicable, under Section 42.2521, divided by 100.
380	380	(a-1) For purposes of Subsection (a), the dollar amount
381	381	guaranteed level of state and local funds per weighted student per
382	382	cent of tax effort ("GL") for a school district is:
383	383	(1) the greater of the amount of district tax revenue
384	384	per weighted student per cent of tax effort that would be available
385	385	to the Austin Independent School District or the amount that would
386	386	be available to a district at the 95th percentile in wealth per
387	387	student, as determined by the commissioner in cooperation with the
388	388	Legislative Budget Board, if the reduction of the limitation on tax
389	389	increases as provided by Section 11.26(a-1), (a-2), or (a-3), Tax
390	390	Code, did not apply, [or the amount of district tax revenue per
391	391	weighted student per cent of tax effort used for purposes of this
392	392	subdivision in the preceding school year,] for the first six cents
393	393	by which the district's maintenance and operations tax rate exceeds
394	394	the rate equal to the sum of the product of the state compression
395	395	percentage, as determined under Section 42.2516, multiplied by the
396	396	maintenance and operations tax rate adopted by the district for the
397	397	2005 tax year and any additional tax effort included in calculating
398	398	the district's compressed tax rate under Section 42.101(a-1); and
399	399	(2) the amount of district tax revenue per weighted
400	400	student per cent of tax effort available to a district with
401	401	maintenance and operations tax revenue per cent of tax effort equal
402	402	to the maximum amount provided per cent under Section 42.101(a),
403	403	(a-3), or (b) [$31.95], for the district's maintenance and
404	404	operations tax effort that exceeds the amount of tax effort
405	405	described by Subdivision (1).
406	406	SECTION 14. Section 43.001, Education Code, is amended by
407	407	amending Subsection (c) and adding Subsection (c-1) to read as
408	408	follows:
409	409	(c) The term "scholastic population" in Subsection (b) or
410	410	any other law governing the apportionment, distribution, and
411	411	transfer of the available school fund means all students of school
412	412	age enrolled in weighted average daily attendance the preceding
413	413	school year in the public elementary and high school grades of
414	414	school districts within or under the jurisdiction of a county of
415	415	this state.
416	416	(c-1) The amount provided to a school district as a result
417	417	of the annual apportionment of the available school fund in
418	418	accordance with Subsection (b) is in addition to amounts to which
419	419	the district is entitled under Chapter 42.
420	420	SECTION 15. Section 45.259(d), Education Code, is amended
421	421	to read as follows:
422	422	(d) If money appropriated for the Foundation School Program
423	423	is used for purposes of this subchapter and as a result there is
424	424	insufficient money to fully fund the Foundation School Program, the
425	425	commissioner shall, to the extent necessary, reduce each school
426	426	district's foundation school fund allocations[, other than any
427	427	portion appropriated from the available school fund,] in the same
428	428	manner provided by Section 42.253(h) for a case in which school
429	429	district entitlements exceed the amount appropriated. The
430	430	following fiscal year, a district's entitlement under Section
431	431	42.253 is increased by an amount equal to the reduction under this
432	432	subsection.
433	433	SECTION 16. The following provisions of the Education Code
434	434	are repealed:
435	435	(1) Section 29.097(g);
436	436	(2) Section 29.098(e);
437	437	(3) Sections 29.203(b), (c), and (g);
438	438	(4) Section 39.233;
439	439	(5) Section 39.234;
440	440	(6) Sections 41.002(e), (f), and (g);
441	441	(7) Section 41.097;
442	442	(8) Section 41.098;
443	443	(9) Section 42.157;
444	444	(10) Section 42.160; and
445	445	(11) Section 42.4101.
446	446	SECTION 17. Except as otherwise provided by this Act, this
447	447	Act takes effect September 1, 2017.