| 1 | 1 | | 88R3489 MEW-F |
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| 2 | 2 | | By: Goodwin H.B. No. 1107 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an annual adjustment to the basic allotment under the |
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| 8 | 8 | | Foundation School Program to reflect inflation. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 48.051, Education Code, is amended by |
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| 11 | 11 | | amending Subsection (a) and adding Subsections (a-1), (a-2), and |
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| 12 | 12 | | (a-3) to read as follows: |
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| 13 | 13 | | (a) Subject to adjustment under Subsection (a-1), for [For] |
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| 14 | 14 | | each student in average daily attendance, not including the time |
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| 15 | 15 | | students spend each day in special education programs in an |
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| 16 | 16 | | instructional arrangement other than mainstream or career and |
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| 17 | 17 | | technology education programs, for which an additional allotment is |
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| 18 | 18 | | made under Subchapter C, a district is entitled to an allotment |
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| 19 | 19 | | equal to the lesser of $6,500 [$6,160] or the amount that results |
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| 20 | 20 | | from the following formula: |
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| 21 | 21 | | A = $6,500 [$6,160] X TR/MCR |
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| 22 | 22 | | where: |
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| 23 | 23 | | "A" is the allotment to which a district is entitled; |
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| 24 | 24 | | "TR" is the district's tier one maintenance and operations |
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| 25 | 25 | | tax rate, as provided by Section 45.0032; and |
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| 26 | 26 | | "MCR" is the district's maximum compressed tax rate, as |
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| 27 | 27 | | determined under Section 48.2551. |
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| 28 | 28 | | (a-1) Subject to Subsection (a-3), beginning with the |
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| 29 | 29 | | 2024-2025 school year, the basic allotment provided to a district |
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| 30 | 30 | | under Subsection (a) or (b) is adjusted annually to increase the |
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| 31 | 31 | | allotment by the lesser of: |
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| 32 | 32 | | (1) three percent of the amount of the allotment for |
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| 33 | 33 | | the preceding school year; or |
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| 34 | 34 | | (2) the amount that results from applying the |
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| 35 | 35 | | inflation rate, as determined by the comptroller on the basis of |
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| 36 | 36 | | changes in the Consumer Price Index for All Urban Consumers |
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| 37 | 37 | | published by the Bureau of Labor Statistics of the United States |
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| 38 | 38 | | Department of Labor, to the allotment for the preceding school |
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| 39 | 39 | | year. |
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| 40 | 40 | | (a-2) If the inflation rate for a school year is less than |
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| 41 | 41 | | zero, the inflation rate to be used for purposes of Subsection (a-1) |
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| 42 | 42 | | is zero. |
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| 43 | 43 | | (a-3) The legislature in the General Appropriations Act may |
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| 44 | 44 | | provide for a lesser amount than the amount determined under |
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| 45 | 45 | | Subsection (a-1), provided that the amount is equal to or greater |
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| 46 | 46 | | than the amount provided under Subsection (a). |
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| 47 | 47 | | SECTION 2. Section 48.202(a-1), Education Code, is amended |
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| 48 | 48 | | to read as follows: |
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| 49 | 49 | | (a-1) For purposes of Subsection (a), the dollar amount |
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| 50 | 50 | | guaranteed level of state and local funds per weighted student per |
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| 51 | 51 | | cent of tax effort ("GL") for a school district is: |
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| 52 | 52 | | (1) the greater of the amount of district tax revenue |
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| 53 | 53 | | per weighted student per cent of tax effort available to a school |
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| 54 | 54 | | district at the 96th percentile of wealth per weighted student or |
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| 55 | 55 | | the amount that results from multiplying $6,500 [6,160], or the |
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| 56 | 56 | | greater amount provided under Section 48.051(a-1) or (b) |
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| 57 | 57 | | [48.051(b)], if applicable, by 0.016, for the first eight cents by |
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| 58 | 58 | | which the district's maintenance and operations tax rate exceeds |
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| 59 | 59 | | the district's tier one tax rate; and |
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| 60 | 60 | | (2) subject to Subsection (f), the amount that results |
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| 61 | 61 | | from multiplying $6,500 [$6,160], or the greater amount provided |
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| 62 | 62 | | under Section 48.051(a-1) or (b) [48.051(b)], if applicable, by |
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| 63 | 63 | | 0.008, for the district's maintenance and operations tax effort |
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| 64 | 64 | | that exceeds the amount of tax effort described by Subdivision (1). |
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| 65 | 65 | | SECTION 3. This Act takes effect September 1, 2023. |
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