Texas 2017 - 85th Regular

Texas Senate Bill SB704 Compare Versions

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

Old	New	Differences
1	1	85R4790 MEW-F
2	2	By: Rodríguez S.B. No. 704
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. Section 29.918(a), Education Code, is amended to
10	10	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	SECTION 2. Section 39.0233(a), Education Code, is amended
24	24	to read as follows:
25	25	(a) The agency, in coordination with the Texas Higher
26	26	Education Coordinating Board, shall adopt a series of questions to
27	27	be included in an end-of-course assessment instrument administered
28	28	under Section 39.023(c) to be used for purposes of Section 51.3062.
29	29	The questions adopted under this subsection must be developed in a
30	30	manner consistent with any college readiness standards adopted
31	31	under Section [Sections 39.233 and] 51.3062.
32	32	SECTION 3. Section 41.002(a), Education Code, is amended to
33	33	read as follows:
34	34	(a) A school district may not have a wealth per student that
35	35	exceeds:
36	36	(1) the wealth per student that generates the amount
37	37	of maintenance and operations tax revenue per weighted student
38	38	available to a district with maintenance and operations tax revenue
39	39	per cent of tax effort equal to the maximum amount provided per cent
40	40	under Section 42.101(a), (a-3), or (b), for the district's
41	41	maintenance and operations tax effort equal to or less than the rate
42	42	equal to the sum of the product of the state compression percentage,
43	43	as determined under Section 42.2516, multiplied by the maintenance
44	44	and operations tax rate adopted by the district for the 2005 tax
45	45	year and any additional tax effort included in calculating the
46	46	district's compressed tax rate under Section 42.101(a-1);
47	47	(2) the greater of the wealth per student that
48	48	generates the amount of maintenance and operations tax revenue per
49	49	weighted student available to the Austin Independent School
50	50	District or a district at the 95th percentile in wealth per student,
51	51	as determined by the commissioner in cooperation with the
52	52	Legislative Budget Board, for the first six cents by which the
53	53	district's maintenance and operations tax rate exceeds the rate
54	54	equal to the sum of the product of the state compression percentage,
55	55	as determined under Section 42.2516, multiplied by the maintenance
56	56	and operations tax rate adopted by the district for the 2005 tax
57	57	year and any additional tax effort included in calculating the
58	58	district's compressed tax rate under Section 42.101(a-1), subject
59	59	to Section 41.093(b-1); or
60	60	(3) the wealth per student specified under Subdivision
61	61	(1) [$319,500], for the district's maintenance and operations tax
62	62	effort that exceeds the amount of tax effort described by
63	63	Subdivision (2).
64	64	SECTION 4. Section 41.093(b-1), Education Code, is amended
65	65	to read as follows:
66	66	(b-1) If the guaranteed level of state and local funds per
67	67	weighted student per cent of tax effort under Section
68	68	42.302(a-1)(1) for which state funds are appropriated for a school
69	69	year is an amount at least equal to the greater of the amount of
70	70	revenue per weighted student per cent of tax effort available to the
71	71	Austin Independent School District or the amount available to a
72	72	district at the 95th percentile in wealth per student, as
73	73	determined by the commissioner in cooperation with the Legislative
74	74	Budget Board, the commissioner, in computing the amounts described
75	75	by Subsections (a)(1) and (2) and determining the cost of an
76	76	attendance credit, shall exclude maintenance and operations tax
77	77	revenue resulting from the tax rate described by Section
78	78	41.002(a)(2).
79	79	SECTION 5. Section 41.099(a), Education Code, is amended to
80	80	read as follows:
81	81	(a) Section [Sections 41.002(e),] 41.094 applies [, 41.097,
82	82	and 41.098 apply] only to a district that:
83	83	(1) executes an agreement to purchase all attendance
84	84	credits necessary to reduce the district's wealth per student to
85	85	the equalized wealth level;
86	86	(2) executes an agreement to purchase attendance
87	87	credits and an agreement under Subchapter E to contract for the
88	88	education of nonresident students who transfer to and are educated
89	89	in the district but who are not charged tuition; or
90	90	(3) executes an agreement under Subchapter E to
91	91	contract for the education of nonresident students:
92	92	(A) to an extent that does not provide more than
93	93	10 percent of the reduction in wealth per student required for the
94	94	district to achieve a wealth per student that is equal to or less
95	95	than the equalized wealth level; and
96	96	(B) under which all revenue paid by the district
97	97	to other districts, in excess of the reduction in state aid that
98	98	results from counting the weighted average daily attendance of the
99	99	students served in the contracting district, is required to be used
100	100	for funding a consortium of at least three districts in a county
101	101	with a population of less than 40,000 that is formed to support a
102	102	technology initiative.
103	103	SECTION 6. Subchapter A, Chapter 42, Education Code, is
104	104	amended by adding Sections 42.010 and 42.013 to read as follows:
105	105	Sec. 42.010. COMPREHENSIVE REVIEW OF PUBLIC SCHOOL FINANCE
106	106	WEIGHTS, ALLOTMENTS, AND ADJUSTMENTS. (a) The agency shall
107	107	conduct a comprehensive review of weights, allotments, and
108	108	adjustments under the public school finance system, including all
109	109	current weights, allotments, and adjustments provided under this
110	110	chapter and any additional weights, allotments, and adjustments
111	111	that the agency determines may be appropriate. The review must
112	112	determine the effectiveness of existing weights, allotments, and
113	113	adjustments in fulfilling the mission of the public education
114	114	system stated in Section 4.001(a) and furthering the state policy
115	115	stated in Section 42.001. At a minimum, the review must determine
116	116	how closely and appropriately each of the following elements
117	117	reflects and provides financing for costs beyond the control of
118	118	school districts:
119	119	(1) adjustments for costs related to the geographic
120	120	variation in known resource costs and costs of education,
121	121	controlling for the impact of unequalized wealth and hold-harmless
122	122	provisions, and properly reflecting the impact of high
123	123	concentrations of poverty on the compensation that school districts
124	124	must pay to attract and retain teachers of comparable or
125	125	appropriate quality;
126	126	(2) adjustments for costs related to the size and
127	127	diseconomies of scale of school districts;
128	128	(3) adjustments for costs related to the varying
129	129	instructional needs and characteristics of students and the extent
130	130	to which the adjustments provide each student with access to
131	131	programs and services that are appropriate to the student's
132	132	educational needs;
133	133	(4) other factors, in addition to economic status,
134	134	that correlate to student at-risk status and the need for
135	135	compensatory education, and the degree to which those factors
136	136	correspond to additional educational costs; and
137	137	(5) the manner in which the cost adjustments are
138	138	applied to and affect the overall school finance system.
139	139	(b) The review of the adjustments described in Subsection
140	140	(a)(1) must:
141	141	(1) address all uncontrollable costs that can
142	142	reasonably be quantified;
143	143	(2) consider the qualifications, experience, and
144	144	turnover rate of personnel and the impact of those factors on
145	145	student achievement in considering the adequacy and comparability
146	146	of salaries;
147	147	(3) properly address the impact of factors that have a
148	148	large impact on certain types of school districts, such as extreme
149	149	isolation, regardless of general state impact;
150	150	(4) include only factors for which a rational economic
151	151	argument can be made;
152	152	(5) be carefully constructed to make sure that a cost
153	153	factor does not significantly affect more than one variable; and
154	154	(6) not be artificially adjusted to meet predetermined
155	155	outcomes and must not use arbitrary limits.
156	156	(c) In determining whether any additional weights,
157	157	allotments, and adjustments are appropriate under the public school
158	158	finance system, as required by Subsection (a), the agency shall
159	159	include consideration of an additional weight for educational
160	160	services provided to students in prekindergarten on a half-day
161	161	basis and on a full-day basis.
162	162	(d) The agency may contract with one or more consultants if
163	163	necessary to enable the agency to perform its duties under this
164	164	section.
165	165	(e) The Legislative Budget Board, the comptroller, the
166	166	state auditor, and any other state agency, official, or personnel
167	167	shall cooperate with the agency in carrying out its duties under
168	168	this section.
169	169	(f) Not later than December 1, 2018, the agency shall
170	170	provide a report that:
171	171	(1) states the findings of the review conducted under
172	172	this section; and
173	173	(2) includes recommendations for updated weights,
174	174	allotments, and adjustments and any other statutory changes
175	175	considered appropriate by the agency.
176	176	(g) This section expires January 1, 2019.
177	177	Sec. 42.013. STUDY OF LEGISLATION ON SCHOOL FUNDING. (a)
178	178	After each legislative session, the commissioner shall conduct a
179	179	study assessing the manner in which any statute enacted or amended
180	180	during that legislative session affects the equalized wealth level
181	181	of a school district under Chapter 41 or the foundation school
182	182	program under this chapter and whether the standard of neutrality
183	183	described under Section 42.001(b) is maintained.
184	184	(b) The study under this section must:
185	185	(1) include an analysis of the effects of legislation
186	186	on each school district in the state; and
187	187	(2) indicate how a school district compares to other
188	188	districts with respect to:
189	189	(A) property wealth per weighted student;
190	190	(B) revenue per weighted student;
191	191	(C) tax effort; and
192	192	(D) revenue per cent of tax effort.
193	193	(c) The commissioner shall issue a report on the study's
194	194	findings to the governor, the lieutenant governor, the speaker of
195	195	the house of representatives, and the legislature. The
196	196	commissioner shall make the report available to the public on the
197	197	agency's Internet website.
198	198	SECTION 7. Section 42.101(a), Education Code, is amended to
199	199	read as follows:
200	200	(a) For each student in average daily attendance, not
201	201	including the time students spend each day in special education
202	202	programs in an instructional arrangement other than mainstream or
203	203	career and technology education programs, for which an additional
204	204	allotment is made under Subchapter C, a district is entitled to an
205	205	allotment equal to the lesser of $5,440 [$4,765] or the amount that
206	206	results from the following formula:
207	207	A = $5,440 [$4,765] X (DCR/MCR)
208	208	where:
209	209	"A" is the allotment to which a district is entitled;
210	210	"DCR" is the district's compressed tax rate, which is the
211	211	product of the state compression percentage, as determined under
212	212	Section 42.2516, multiplied by the maintenance and operations tax
213	213	rate adopted by the district for the 2005 tax year; and
214	214	"MCR" is the state maximum compressed tax rate, which is the
215	215	product of the state compression percentage, as determined under
216	216	Section 42.2516, multiplied by $1.50.
217	217	SECTION 8. Effective September 1, 2018, Section 42.101,
218	218	Education Code, is amended by amending Subsection (a) and adding
219	219	Subsection (a-3) to read as follows:
220	220	(a) Subject to adjustment under Subsection (a-3), for [For]
221	221	each student in average daily attendance, not including the time
222	222	students spend each day in special education programs in an
223	223	instructional arrangement other than mainstream or career and
224	224	technology education programs, for which an additional allotment is
225	225	made under Subchapter C, a district is entitled to an allotment
226	226	equal to the lesser of $5,840 [$4,765] or the amount that results
227	227	from the following formula:
228	228	A = $5,840 [$4,765] X (DCR/MCR)
229	229	where:
230	230	"A" is the allotment to which a district is entitled;
231	231	"DCR" is the district's compressed tax rate, which is the
232	232	product of the state compression percentage, as determined under
233	233	Section 42.2516, multiplied by the maintenance and operations tax
234	234	rate adopted by the district for the 2005 tax year; and
235	235	"MCR" is the state maximum compressed tax rate, which is the
236	236	product of the state compression percentage, as determined under
237	237	Section 42.2516, multiplied by $1.50.
238	238	(a-3) Beginning with the 2019-2020 school year, the basic
239	239	allotment provided to a district under Subsection (a) or (b) is
240	240	adjusted annually to increase the allotment by the greater of:
241	241	(1) one percent of the amount of the allotment for the
242	242	preceding school year; or
243	243	(2) the amount that results from applying the
244	244	inflation rate, as determined by the comptroller on the basis of
245	245	changes in the Texas Consumer Price Index, to the allotment for the
246	246	preceding school year.
247	247	SECTION 9. Sections 42.152(a) and (c), Education Code, are
248	248	amended to read as follows:
249	249	(a) For each student who is educationally disadvantaged or
250	250	who is a student who does not have a disability and resides in a
251	251	residential placement facility in a district in which the student's
252	252	parent or legal guardian does not reside, a district is entitled to
253	253	an annual allotment equal to the adjusted basic allotment
254	254	multiplied by 0.25 [0.2], and by 2.41 for each full-time equivalent
255	255	student who is in a compensatory, intensive, or accelerated
256	256	[remedial and support] program under Section 29.081 because the
257	257	student is pregnant.
258	258	(c) Funds allocated under this section shall be used to fund
259	259	supplemental programs and services designed to eliminate any
260	260	disparity in performance on assessment instruments administered
261	261	under Subchapter B, Chapter 39, or disparity in the rates of high
262	262	school completion between students at risk of dropping out of
263	263	school, as defined by Section 29.081, and all other students.
264	264	Specifically, the funds, other than an indirect cost allotment
265	265	established under State Board of Education rule, which may not
266	266	exceed 25 [45] percent, may be used to meet the costs of providing a
267	267	compensatory, intensive, or accelerated instruction program under
268	268	Section 29.081 or a disciplinary alternative education program
269	269	established under Section 37.008, to pay the costs associated with
270	270	placing students in a juvenile justice alternative education
271	271	program established under Section 37.011, or to support a program
272	272	eligible under Title I of the Elementary and Secondary Education
273	273	Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent
274	274	amendments, and by federal regulations implementing that Act, at a
275	275	campus at which at least 40 percent of the students are
276	276	educationally disadvantaged. In meeting the costs of providing a
277	277	compensatory, intensive, or accelerated instruction program under
278	278	Section 29.081, a district's compensatory education allotment
279	279	shall be used for costs supplementary to the regular education
280	280	program, such as costs for program and student evaluation,
281	281	instructional materials and equipment and other supplies required
282	282	for quality instruction, supplemental staff expenses, salary for
283	283	teachers of at-risk students, smaller class size, and
284	284	individualized instruction. A home-rule school district or an
285	285	open-enrollment charter school must use funds allocated under
286	286	Subsection (a) for a purpose authorized in this subsection but is
287	287	not otherwise subject to Subchapter C, Chapter 29. For purposes of
288	288	this subsection, a program specifically designed to serve students
289	289	at risk of dropping out of school, as defined by Section 29.081, is
290	290	considered to be a program supplemental to the regular education
291	291	program, and a district may use its compensatory education
292	292	allotment for such a program.
293	293	SECTION 10. Sections 42.153(a) and (b), Education Code, are
294	294	amended to read as follows:
295	295	(a) For each student in average daily attendance in a
296	296	bilingual education or special language program under Subchapter B,
297	297	Chapter 29, a district is entitled to an annual allotment equal to
298	298	the adjusted basic allotment multiplied by 0.25 [0.1].
299	299	(b) Funds allocated under this section, other than an
300	300	indirect cost allotment established under State Board of Education
301	301	rule, which may not exceed 25 percent, must be used in providing
302	302	bilingual education or special language programs under Subchapter
303	303	B, Chapter 29, and must be accounted for under existing agency
304	304	reporting and auditing procedures.
305	305	SECTION 11. Section 42.251(b), Education Code, is amended
306	306	to read as follows:
307	307	(b) The program shall be financed by:
308	308	(1) ad valorem tax revenue generated by an equalized
309	309	uniform school district effort;
310	310	(2) ad valorem tax revenue generated by local school
311	311	district effort in excess of the equalized uniform school district
312	312	effort; and
313	313	(3) [state available school funds distributed in
314	314	accordance with law; and
315	315	[(4)] state funds appropriated for the purposes of
316	316	public school education and allocated to each district in an amount
317	317	sufficient to finance the cost of each district's Foundation School
318	318	Program not covered by other funds specified in this subsection.
319	319	SECTION 12. Sections 42.253(a) and (c), Education Code, are
320	320	amended to read as follows:
321	321	(a) For each school year the commissioner shall determine:
322	322	(1) the amount of money to which a school district is
323	323	entitled under Subchapters B and C;
324	324	(2) the amount of money to which a school district is
325	325	entitled under Subchapter F;
326	326	(3) [the amount of money allocated to the district
327	327	from the available school fund;
328	328	[(4)] the amount of each district's tier one local
329	329	share under Section 42.252; and
330	330	(4) [(5)] the amount of each district's tier two local
331	331	share under Section 42.302.
332	332	(c) Each school district is entitled to an amount equal to
333	333	the difference for that district between the sum of Subsections
334	334	(a)(1) and (a)(2) and the sum of Subsections (a)(3) and [,] (a)(4)[,
335	335	and (a)(5)].
336	336	SECTION 13. Sections 42.302(a) and (a-1), Education Code,
337	337	are amended to read as follows:
338	338	(a) Each school district is guaranteed a specified amount
339	339	per weighted student in state and local funds for each cent of tax
340	340	effort over that required for the district's local fund assignment
341	341	up to the maximum level specified in this subchapter. The amount
342	342	of state support, subject only to the maximum amount under Section
343	343	42.303, is determined by the formula:
344	344	GYA = (GL X WADA X DTR X 100) - LR
345	345	where:
346	346	"GYA" is the guaranteed yield amount of state funds to be
347	347	allocated to the district;
348	348	"GL" is the dollar amount guaranteed level of state and local
349	349	funds per weighted student per cent of tax effort, which is an
350	350	amount described by Subsection (a-1) or a greater amount for any
351	351	year provided by appropriation;
352	352	"WADA" is the number of students in weighted average daily
353	353	attendance, which is calculated by dividing the sum of the school
354	354	district's allotments under Subchapters B and C, less any allotment
355	355	to the district for transportation, any allotment under Section
356	356	42.158 [or 42.160], and 50 percent of the adjustment under Section
357	357	42.102, by the basic allotment for the applicable year;
358	358	"DTR" is the district enrichment tax rate of the school
359	359	district, which is determined by subtracting the amounts specified
360	360	by Subsection (b) from the total amount of maintenance and
361	361	operations taxes collected by the school district for the
362	362	applicable school year and dividing the difference by the quotient
363	363	of the district's taxable value of property as determined under
364	364	Subchapter M, Chapter 403, Government Code, or, if applicable,
365	365	under Section 42.2521, divided by 100; and
366	366	"LR" is the local revenue, which is determined by multiplying
367	367	"DTR" by the quotient of the district's taxable value of property as
368	368	determined under Subchapter M, Chapter 403, Government Code, or, if
369	369	applicable, under Section 42.2521, divided by 100.
370	370	(a-1) For purposes of Subsection (a), the dollar amount
371	371	guaranteed level of state and local funds per weighted student per
372	372	cent of tax effort ("GL") for a school district is:
373	373	(1) the greater of the amount of district tax revenue
374	374	per weighted student per cent of tax effort that would be available
375	375	to the Austin Independent School District or the amount that would
376	376	be available to a district at the 95th percentile in wealth per
377	377	student, as determined by the commissioner in cooperation with the
378	378	Legislative Budget Board, if the reduction of the limitation on tax
379	379	increases as provided by Section 11.26(a-1), (a-2), or (a-3), Tax
380	380	Code, did not apply, [or the amount of district tax revenue per
381	381	weighted student per cent of tax effort used for purposes of this
382	382	subdivision in the preceding school year,] for the first six cents
383	383	by which the district's maintenance and operations tax rate exceeds
384	384	the rate equal to the sum of the product of the state compression
385	385	percentage, as determined under Section 42.2516, multiplied by the
386	386	maintenance and operations tax rate adopted by the district for the
387	387	2005 tax year and any additional tax effort included in calculating
388	388	the district's compressed tax rate under Section 42.101(a-1); and
389	389	(2) the amount of district tax revenue per weighted
390	390	student per cent of tax effort available to a district with
391	391	maintenance and operations tax revenue per cent of tax effort equal
392	392	to the maximum amount provided per cent under Section 42.101(a),
393	393	(a-3), or (b) [$31.95], for the district's maintenance and
394	394	operations tax effort that exceeds the amount of tax effort
395	395	described by Subdivision (1).
396	396	SECTION 14. Section 43.001, Education Code, is amended by
397	397	amending Subsection (c) and adding Subsection (c-1) to read as
398	398	follows:
399	399	(c) The term "scholastic population" in Subsection (b) or
400	400	any other law governing the apportionment, distribution, and
401	401	transfer of the available school fund means all students of school
402	402	age enrolled in weighted average daily attendance the preceding
403	403	school year in the public elementary and high school grades of
404	404	school districts within or under the jurisdiction of a county of
405	405	this state.
406	406	(c-1) The amount provided to a school district as a result
407	407	of the annual apportionment of the available school fund in
408	408	accordance with Subsection (b) is in addition to amounts to which
409	409	the district is entitled under Chapter 42.
410	410	SECTION 15. Section 45.259(d), Education Code, is amended
411	411	to read as follows:
412	412	(d) If money appropriated for the Foundation School Program
413	413	is used for purposes of this subchapter and as a result there is
414	414	insufficient money to fully fund the Foundation School Program, the
415	415	commissioner shall, to the extent necessary, reduce each school
416	416	district's foundation school fund allocations[, other than any
417	417	portion appropriated from the available school fund,] in the same
418	418	manner provided by Section 42.253(h) for a case in which school
419	419	district entitlements exceed the amount appropriated. The
420	420	following fiscal year, a district's entitlement under Section
421	421	42.253 is increased by an amount equal to the reduction under this
422	422	subsection.
423	423	SECTION 16. The following provisions of the Education Code
424	424	are repealed:
425	425	(1) Section 29.097(g);
426	426	(2) Section 29.098(e);
427	427	(3) Subchapter G, Chapter 29;
428	428	(4) Section 39.233;
429	429	(5) Section 39.234;
430	430	(6) Sections 41.002(e), (f), and (g);
431	431	(7) Section 41.097;
432	432	(8) Section 41.098;
433	433	(9) Section 42.157;
434	434	(10) Section 42.160; and
435	435	(11) Section 42.4101.
436	436	SECTION 17. Except as otherwise provided by this Act, this
437	437	Act takes effect September 1, 2017.