BILL ANALYSIS Senate Research Center S.B. 457 85R6566 CAE-F By: Campbell Education 4/12/2017 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Open-enrollment public charter school students in Texas are currently funded based on a calculation of the statewide average of foundation school program dollars provided to independent school districts. Unlike independent school districts, public charter schools do not receive direct state aid for facilities and do not levy an ad valorem tax to support their schools. As a result, students enrolled in a public charter school receive, on average, $1000 less in foundation school program funding than students enrolled in independent school district campuses. S.B. 457 provides public charter schools access to the minimum facilities funding guarantee of instructional facilities allotment (IFA) and existing debt allotment (EDA) at the state average tax rate. As proposed, S.B. 457 amends current law relating to funding for an open-enrollment charter school based on the guaranteed level of state and local funds provided to school districts through the existing debt allotment. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 12.106, Education Code, by adding Subsection (d), as follows: (d) Entitles a charter holder to receive for the open-enrollment charter school, in addition to other amounts, funding per student in average daily attendance in an amount equal to the guaranteed level of state and local funds per student per cent of tax effort under Section 46.032(a) (relating to the guaranteed specified amount to each school district, per student, as determined by a certain formula) multiplied by the state average interest and sinking fund tax rate imposed by school districts for the current year. SECTION 2. Effective date: September 1, 2017. BILL ANALYSIS Senate Research Center S.B. 457 85R6566 CAE-F By: Campbell Education 4/12/2017 As Filed Senate Research Center S.B. 457 85R6566 CAE-F By: Campbell Education 4/12/2017 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Open-enrollment public charter school students in Texas are currently funded based on a calculation of the statewide average of foundation school program dollars provided to independent school districts. Unlike independent school districts, public charter schools do not receive direct state aid for facilities and do not levy an ad valorem tax to support their schools. As a result, students enrolled in a public charter school receive, on average, $1000 less in foundation school program funding than students enrolled in independent school district campuses. S.B. 457 provides public charter schools access to the minimum facilities funding guarantee of instructional facilities allotment (IFA) and existing debt allotment (EDA) at the state average tax rate. As proposed, S.B. 457 amends current law relating to funding for an open-enrollment charter school based on the guaranteed level of state and local funds provided to school districts through the existing debt allotment. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 12.106, Education Code, by adding Subsection (d), as follows: (d) Entitles a charter holder to receive for the open-enrollment charter school, in addition to other amounts, funding per student in average daily attendance in an amount equal to the guaranteed level of state and local funds per student per cent of tax effort under Section 46.032(a) (relating to the guaranteed specified amount to each school district, per student, as determined by a certain formula) multiplied by the state average interest and sinking fund tax rate imposed by school districts for the current year. SECTION 2. Effective date: September 1, 2017.