86R13968 GCB-D
By: Calanni H.B. No. 3915
A BILL TO BE ENTITLED
AN ACT
relating to the guaranteed yield and the school facilities
allotment under the Foundation School Program and to a school
district's rollback tax rate for the 2019 tax year.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.302(a-1), Education Code, is amended
to read as follows:
(a-1) 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) the amount of district tax revenue per weighted
student per cent of tax effort 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) [$31.95], for the district's maintenance and operations tax
effort that exceeds the amount of tax effort described by
Subdivision (1).
SECTION 2. Section 46.003(a), Education Code, is amended to
read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X WADA [ADA] X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the amount
of district tax revenue per weighted student per cent of tax effort
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) [$35 or a greater amount for any year
provided by appropriation];
"WADA" ["ADA"] is the greater of the number of students in
weighted average daily attendance, as defined by Section 42.302
[determined under Section 42.005], in the district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter M, Chapter
403, Government Code, or, if applicable, Section 42.2521, divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, Section 42.2521.
SECTION 3. Section 46.032(a), Education Code, is amended to
read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X WADA [ADA] X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the amount
of district tax revenue per weighted student per cent of tax effort
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) [the lesser of:
[(1) $40 or a greater amount for any year provided by
appropriation; or
[(2) the amount that would result in a total
additional amount of state funds under this subchapter for the
current year equal to $60 million in excess of the state funds to
which school districts would have been entitled under this section
if the guaranteed level amount were $35];
"WADA" ["ADA"] is the number of students in weighted average
daily attendance, as defined by Section 42.302 [determined under
Section 42.005], in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter M, Chapter 403,
Government Code, or, if applicable, under Section 42.2521, divided
by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521.
SECTION 4. Section 26.08, Tax Code, is amended by adding
Subsection (i-1) to read as follows:
(i-1) For purposes of Subsection (i), any change from the
preceding school year to the current school year in the amount of
state funds distributed to a school district under the guaranteed
yield allotment under Section 42.302, Education Code, is not
considered to be a change in a funding element for Chapter 42,
Education Code. The amount of state funds distributed under
Chapter 42, Education Code, and maintenance and operations taxes of
the district per student in weighted average daily attendance for
that school year that would have been available to the district in
the preceding year if the funding elements for Chapters 41 and 42,
Education Code, for the current year had been in effect for the
preceding year is computed on the basis of the amount actually
distributed under the guaranteed yield allotment under Section
42.302, Education Code, in the preceding school year. This
subsection expires December 31, 2019.
SECTION 5. Section 26.08(i-1), Tax Code, as added by this
Act, applies to the ad valorem tax rate of a school district only
for the 2019 tax year.
SECTION 6. This Act takes effect September 1, 2019.