85R6606 KKA-D
By: Bettencourt S.B. No. 1887
A BILL TO BE ENTITLED
AN ACT
relating to performance-based supplemental funding for school
districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 42, Education Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. PERFORMANCE-BASED SUPPLEMENTAL FUNDING
Sec. 42.551. DEFINITION. In this subchapter, "weighted
average daily attendance" has the meaning assigned by Section
42.302.
Sec. 42.552. USE OF PRECEDING YEAR PERFORMANCE. The
eligibility of a school district for supplemental funding under
this subchapter during a school year is based on the district's
performance, as described by the applicable provision of this
subchapter, during the preceding school year.
Sec. 42.553. DETERMINATION BY COMMISSIONER. A
determination by the commissioner of the amount of supplemental
funding to be provided to a school district under this subchapter is
final and may not be appealed.
Sec. 42.554. USE OF SUPPLEMENTAL FUNDING. A school
district may use supplemental funding received under this
subchapter for any purpose authorized under Section 45.105(c).
Sec. 42.555. RULES. The commissioner may adopt rules to
implement this subchapter.
Sec. 42.556. SUPPLEMENTAL FUNDING BASED ON COMPARATIVE
ACADEMIC AND FINANCIAL PERFORMANCE. (a) The commissioner shall
evaluate each school district using a system that:
(1) integrates district academic achievement
information and financial performance information available
through the Public Education Information Management System
(PEIMS); and
(2) using matrices, quadrants, or quartiles, rates or
ranks school districts according to academic return on financial
investment.
(b) For each student in weighted average daily attendance, a
school district with a rating or ranking above a minimum level
specified by the commissioner may receive supplemental funding
according to a graduated scale provided by appropriation under
which the amount per student increases in correlation with a
district's higher rating or ranking.
Sec. 42.557. SUPPLEMENTAL FUNDING BASED ON STAR RATING
SYSTEM. (a) In this section, "star rating system" means a system
administered by a state agency using state funds that:
(1) evaluates a school district's academic progress
and fiscal performance; and
(2) awards a rating that ranges from one to five stars,
with ratings provided in half-star increments.
(b) The commissioner shall select a star rating system to be
used for purposes of this section. The system selected by the
commissioner must:
(1) evaluate a school district's academic progress
using regression analysis to predict student performance in
mathematics and reading, with consideration given to student
demographic characteristics, including sex, race, socioeconomic
status, limited English proficiency, special education status, and
grade level; and
(2) evaluate a school district's fiscal performance in
comparison to other school districts that operate in similar labor
markets, are of similar size, and serve students with similar
demographic characteristics.
(c) For each student in weighted average daily attendance, a
school district with a rating of at least three stars may receive
supplemental funding according to a graduated scale provided by
appropriation under which the amount per student increases in
correlation with a greater number of stars in a district's rating.
Sec. 42.558. SUPPLEMENTAL FUNDING BASED ON ADMINISTRATIVE
COST RATIO. (a) In this section, a school district's
administrative cost ratio is determined by dividing the sum of the
district's expenditures for instructional leadership and general
administration by the sum of the district's expenditures for
instruction, instructional resources and media services,
curriculum and instructional staff development, and guidance,
counseling, and evaluation services.
(b) For each student in weighted average daily attendance, a
school district may receive supplemental funding in an amount
specified by appropriation if:
(1) for a district with an average daily attendance of
10,000 or more, the district has an administrative cost ratio of
less than 8.55 percent;
(2) for a district with an average daily attendance of
at least 5,000 but less than 10,000, the district has an
administrative cost ratio of less than 10 percent;
(3) for a district with an average daily attendance of
at least 1,000 but less than 5,000, the district has an
administrative cost ratio of less than 11.51 percent;
(4) for a district with an average daily attendance of
at least 500 but less than 1,000, the district has an administrative
cost ratio of less than 13.11 percent; and
(5) for a district with an average daily attendance of
less than 500, the district has an administrative cost ratio of less
than 24.04 percent.
Sec. 42.559. SUPPLEMENTAL FUNDING BASED ON DEBT PER
STUDENT. For each student in weighted average daily attendance, a
school district may receive supplemental funding in an amount
specified by appropriation if:
(1) the district does not receive state assistance
under Subchapter B, Chapter 46;
(2) the district's enrollment growth for the preceding
10-year period is at least 25 percent; and
(3) the district's general obligation principal debt
per student did not exceed $25,000 in any of the 10 preceding fiscal
years.
SECTION 2. Section 42.251(a), Education Code, is amended to
read as follows:
(a) The sum of the basic allotment under Subchapter B and
the special allotments under Subchapter C, computed in accordance
with this chapter, constitute the tier one allotments. The sum of
the tier one allotments, [and] the guaranteed yield allotments
under Subchapter F, computed in accordance with this chapter, and
amounts provided under Subchapter K constitute the total cost of
the Foundation School Program.
SECTION 3. Sections 42.253(a) and (c), Education Code, are
amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled under Subchapter F;
(3) the amount of money to be provided to a school
district, if any, under Subchapter K;
(4) the amount of money allocated to the district from
the available school fund;
(5) [(4)] the amount of each district's tier one local
share under Section 42.252; and
(6) [(5)] the amount of each district's tier two local
share under Section 42.302.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1), [and] (a)(2), and (a)(3) and the sum of Subsections
[(a)(3),] (a)(4), [and] (a)(5), and (a)(6).
SECTION 4. This Act takes effect September 1, 2017.