Texas 2023 - 88th Regular

Texas House Bill HB5170 Compare Versions

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1	1	By: Dutton H.B. No. 5170
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to public school finance and public education.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 30.003, Education Code, is amended by
9	9	adding Subsection (b-1) and amending Subsection (f-1) to read as
10	10	follows:
11	11	(b-1) For purposes of subsection (b), the maintenance and
12	12	debt service taxes imposed by the district is reduced by the
13	13	district's amount of local revenue in excess of entitlement for
14	14	that year under Section 48.257.
15	15	(f-1) The commissioner shall determine the total amount
16	16	that the Texas School for the Blind and Visually Impaired and the
17	17	Texas School for the Deaf would have received from school districts
18	18	in accordance with this section if the following provisions had not
19	19	reduced the districts' share of the cost of providing education
20	20	services:
21	21	(1) H.B. No. 1, Acts of the 79th Legislature, 3rd
22	22	Called Session, 2006;
23	23	(2) Section 45.0032;
24	24	(3) Section 48.255; and
25	25	(4) Section 48.2551.; and
26	26	(5) Section 30.003 (b-1).
27	27	Section 2. Section 46.003, Education Code, is amended by
28	28	amending Subsection (a) to read as follows:
29	29	Sec. 46.003. SCHOOL FACILITIES ALLOTMENT. (a) For each
30	30	year, except as provided by Sections 46.005 and 46.006, a school
31	31	district is guaranteed a specified amount per student in state and
32	32	local funds for each cent of tax effort, up to the maximum rate
33	33	under Subsection (b), to pay the principal of and interest on
34	34	eligible bonds issued to construct, acquire, renovate, or improve
35	35	an instructional facility. The amount of state support is
36	36	determined by the formula:
37	37	FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
38	38	where:
39	39	"FYA" is the guaranteed facilities yield amount of state
40	40	funds allocated to the district for the year;
41	41	"FYL" is the dollar amount guaranteed level of state and
42	42	local funds per student per cent of tax effort, which is $4535 or a
43	43	greater amount for any year provided by appropriation;
44	44	"ADA" is the greater of the number of students in average
45	45	daily attendance, as determined under Section 48.005, in the
46	46	district or 400;
47	47	"BTR" is the district's bond tax rate for the current year,
48	48	which is determined by dividing the amount budgeted by the district
49	49	for payment of eligible bonds by the quotient of the district's
50	50	taxable value of property as determined under Subchapter M, Chapter
51	51	403, Government Code, or, if applicable, Section 48.258, divided by
52	52	100; and
53	53	"DPV" is the district's taxable value of property as
54	54	determined under Subchapter M, Chapter 403, Government Code, or, if
55	55	applicable, Section 48.258.
56	56	Section 3. Section 46.032, Education Code, is amended by
57	57	amending Subsection (a) to read as follows:
58	58	Sec. 46.032. ALLOTMENT. (a) Each school district is
59	59	guaranteed a specified amount per student in state and local funds
60	60	for each cent of tax effort to pay the principal of and interest on
61	61	eligible bonds. The amount of state support, subject only to the
62	62	maximum amount under Section 46.034, is determined by the formula:
63	63	EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
64	64	where:
65	65	"EDA" is the amount of state funds to be allocated to the
66	66	district for assistance with existing debt;
67	67	"EDGL" is the dollar amount guaranteed level of state and
68	68	local funds per student per cent of tax effort, which is the lesser
69	69	of:
70	70	(1) $4540 or a greater amount for any year provided by
71	71	appropriation; or
72	72	(2) the amount that would result in a total additional
73	73	amount of state funds under this subchapter for the current year
74	74	equal to $60 million in excess of the state funds to which school
75	75	districts would have been entitled under this section if the
76	76	guaranteed level amount were $35;
77	77	"ADA" is the number of students in average daily attendance,
78	78	as determined under Section 48.005, in the district;
79	79	"EDTR" is the existing debt tax rate of the district, which is
80	80	determined by dividing the amount budgeted by the district for
81	81	payment of eligible bonds by the quotient of the district's taxable
82	82	value of property as determined under Subchapter M, Chapter 403,
83	83	Government Code, or, if applicable, under Section 48.258, divided
84	84	by 100; and
85	85	"DPV" is the district's taxable value of property as
86	86	determined under Subchapter M, Chapter 403, Government Code, or, if
87	87	applicable, under Section 48.258.
88	88	Section 4. Section 48.0071, Education Code, is amended by
89	89	amending Subsection (d) as follows:
90	90	(d) This section expires September 1, 2023.
91	91	Section 5. Section 48.051, Education Code, is amended by
92	92	amending Subsection (a) and adding Subsection (e) to read as
93	93	follows:
94	94	(a) For each student in average daily attendance, not
95	95	including the time students spend each day in special education
96	96	programs in an instructional arrangement other than mainstream or
97	97	career and technology education programs, for which an additional
98	98	allotment is made under Subchapter C, a district is entitled to an
99	99	allotment equal to the lesser of $6,210160 or the amount that
100	100	results from the following formula:
101	101	A = $6,210160 X TR/MCR X IF
102	102	where:
103	103	"A" is the allotment to which a district is entitled;
104	104	"TR" is the district's tier one maintenance and operations
105	105	tax rate, as provided by Section 45.0032.; and
106	106	"MCR" is the district's maximum compressed tax rate, as
107	107	determined under Section 48.2551.; and
108	108	"IF" is the statewide inflation factor determined under
109	109	Section 48.0512.
110	110	(b) A greater amount for any school year may be provided by
111	111	appropriation.
112	112	(c) During any school year for which the maximum amount of
113	113	the basic allotment provided under Subsection (a) or (b) is greater
114	114	than the maximum amount provided for the preceding school year, a
115	115	school district must use at least 30 percent of the amount, if the
116	116	amount is greater than zero, that equals the product of the average
117	117	daily attendance of the district multiplied by the amount of the
118	118	difference between the district's funding under this chapter per
119	119	student in average daily attendance for the current school year and
120	120	the preceding school year to provide compensation increases to
121	121	full-time district employees other than administrators as follows:
122	122	(1) 75 percent must be used to increase the
123	123	compensation paid to classroom teachers, full-time librarians,
124	124	full-time school counselors certified under Subchapter B, Chapter
125	125	21, and full-time school nurses, prioritizing differentiated
126	126	compensation for classroom teachers with more than five years of
127	127	experience; and
128	128	(2) 25 percent may be used as determined by the
129	129	district to increase compensation paid to full-time district
130	130	employees.
131	131	(c-1) A school district employee who received a salary
132	132	increase under Subsection (c) from a school district for the
133	133	2019-2020 school year is, as long as the employee remains employed
134	134	by the same district and the district is receiving at least the same
135	135	amount of funding as the amount of funding the district received for
136	136	the 2019-2020 school year, entitled to salary that is at least equal
137	137	to the salary the employee received for the 2019-2020 school year.
138	138	This subsection does not apply if the board of trustees of the
139	139	school district at which the employee is employed:
140	140	(1) complies with Sections 21.4021, 21.4022, and
141	141	21.4032 in reducing the employee's salary; and
142	142	(2) has adopted a resolution declaring a financial
143	143	exigency for the district under Section 44.011.
144	144	(c-2) A reduction in the salary of a school district
145	145	employee described by Subsection (c-1) is subject to the rights
146	146	granted to the employee under this code.
147	147	(d) In this section, "compensation" includes benefits such
148	148	as insurance premiums.
149	149	(e) For purposes of calculating the amount of the required
150	150	compensation increases under Subsection (c), increases to an
151	151	allotment under Sections 48.111, 48.115, 48.151, 48.152, 48.252,
152	152	and 48.277 are excluded from the calculation.
153	153	Section 6. Section 48.0512, Education Code, is added to
154	154	read as follows:
155	155	Sec. 48.0512. INFLATION FACTOR FOR BASIC ALLOTMENT. (a) In
156	156	the second year of each biennium, the basic allotment under Section
157	157	48.051 is adjusted by a factor equivalent to the average annual
158	158	percentage increase in the Texas Consumer Price Index for the
159	159	preceding 10-year period.
160	160	(b) In school years where an adjustment under Subsection (a)
161	161	would result in a reduction to the basic allotment, then the basic
162	162	allotment would equal the value for the first year of the biennium.
163	163	Section 7. Section 48.101, Education Code, is amended by
164	164	amending Subsection (a) to read as follows:
165	165	(a) Small and mid-sized districts are entitled to an annual
166	166	allotment in accordance with this section. In this section:
167	167	(1) "AA" is the district's annual allotment per
168	168	student in average daily attendance;
169	169	(2) "ADA" is the number of students in average daily
170	170	attendance for which the district is entitled to an allotment under
171	171	Section 48.051, excluding students counted in average daily
172	172	attendance under Section 48.0071(b) for districts eligible to
173	173	operate virtual programs under Section 48.007(c); and
174	174	(3) "BA" is the basic allotment determined under
175	175	Section 48.051.
176	176	Section 8. Section 48.110, Education Code, is amended by
177	177	amending Subsection (d) to read as follows:
178	178	(d) For each annual graduate in a cohort described by
179	179	Subsection (b) who demonstrates college, career, or military
180	180	readiness as described by Subsection (f) in excess of the minimum
181	181	number of students determined for the applicable district cohort
182	182	under Subsection (c), a school district is entitled to an annual
183	183	outcomes bonus of:
184	184	(1) if the annual graduate is educationally
185	185	disadvantaged, $5,000;
186	186	(2) if the annual graduate is not educationally
187	187	disadvantaged, $3,000; and
188	188	(3) if the annual graduate is enrolled in a special
189	189	education program under Subchapter A, Chapter 29, $42,000,
190	190	regardless of whether the annual graduate is educationally
191	191	disadvantaged.
192	192	Section 9. Section 48.111, Education Code, is amended by
193	193	amending Subsections (a), (c), (c-1), (d), (d-1), (d-2), and (d-3)
194	194	to read as follows:
195	195	(a) Except as provided by Subsection (c), a A school
196	196	district is entitled to an annual allotment equal to the basic
197	197	allotment multiplied by the applicable weight under Subsection
198	198	(a-1) for each enrolled student equal to the difference, if the
199	199	difference is greater than zero, that results from subtracting 250
200	200	from the difference between the number of students enrolled in the
201	201	district during the school year immediately preceding the current
202	202	school year and the number of students enrolled in the district
203	203	during the school year six years preceding the current school year.
204	204	(a-1) For purposes of Subsection (a), the agency shall
205	205	assign the following weights:
206	206	(1) 0.48 for each student enrolled at a district in the
207	207	top 40 percent of districts, as determined based on the number of
208	208	students calculated under Subsection (a);
209	209	(2) 0.33 for each student enrolled at a district in the
210	210	middle 30 percent of districts, as determined based on the number of
211	211	students calculated under Subsection (a); and
212	212	(3) 0.18 for each student enrolled at a district in the
213	213	bottom 30 percent of districts, as determined based on the number of
214	214	students calculated under Subsection (a).
215	215	(a-2) Notwithstanding Subsection (a-1), for the 2021-2022
216	216	school year, instead of using the weights under that subsection,
217	217	the agency shall substitute the following weights:
218	218	(1) 0.45 for each student enrolled at a district in the
219	219	top 40 percent of districts, as determined based on the number of
220	220	students calculated under Subsection (a);
221	221	(2) 0.30 for each student enrolled at a district in the
222	222	middle 30 percent of districts, as determined based on the number of
223	223	students calculated under Subsection (a); and
224	224	(3) 0.15 for each student enrolled at a district in the
225	225	bottom 30 percent of districts, as determined based on the number of
226	226	students calculated under Subsection (a).
227	227	(a-3) Subsection (a-2) and this subsection expire September
228	228	1, 2024.
229	229	(b) For purposes of Subsection (a), in determining the
230	230	number of students enrolled in a school district, the commissioner
231	231	shall exclude students enrolled in the district who receive
232	232	full-time instruction through the state virtual school network
233	233	under Chapter 30A.
234	234	(c) Notwithstanding Subsection (a), the total amount that
235	235	may be used to provide allotments under Subsection (a) may not
236	236	exceed $320 million. If the total amount of allotments to which
237	237	districts are entitled under Subsection (a) for a school year
238	238	exceeds the amount permitted under this subsection, the
239	239	commissioner shall proportionately reduce each district's
240	240	allotment under this section.
241	241	(c-1) Notwithstanding Subsection (c), the total amount that
242	242	may be used to provide allotments under Subsection (a) may not
243	243	exceed:
244	244	(1) for the 2021-2022 school year, $270 million;
245	245	(2) for the 2022-2023 school year, $310 million; and
246	246	(3) for the 2023-2024 school year, $315 million.
247	247	(c-2) Subsection (c-1) and this subsection expire September
248	248	1, 2025.
249	249	(d) Subject to the limitation under Subsection (d-1), for
250	250	the 2021-2022 school year, the agency shall provide to each school
251	251	district, regardless of whether the district is entitled to an
252	252	allotment under Subsection (a) for the 2021-2022 school year, an
253	253	amount equal to the difference, if the difference is greater than
254	254	zero, between the amount of the allotment for the 2019-2020 school
255	255	year under this section, as this section existed on September 1,
256	256	2019, and the amount of the allotment for the 2021-2022 school year.
257	257	(d-1) The total amount that may be used to provide funding
258	258	under Subsection (d) may not exceed $40 million. If the total amount
259	259	of funding to which districts are entitled under Subsection (d) for
260	260	a school year exceeds the amount permitted under this subsection,
261	261	the commissioner shall proportionately reduce each district's
262	262	amount under Subsection (d).
263	263	(d-2) The amounts to which school districts are entitled
264	264	under Subsection (d) are not subject to the amount limitations
265	265	described by Subsections (c) and (c-1).
266	266	(d-3) Subsections (d), (d-1), (d-2), and this subsection
267	267	expire September 1, 2023.
268	268	Section 10. Section 48.202, Education Code, is amended by
269	269	amending Subsection (a-1) to read as follows:
270	270	(a-1) For purposes of Subsection (a), the dollar amount
271	271	guaranteed level of state and local funds per weighted student per
272	272	cent of tax effort ("GL") for a school district is:
273	273	(1) the greater of the amount of district tax revenue
274	274	per weighted student per cent of tax effort available to a school
275	275	district at the 96th percentile of wealth per weighted student or
276	276	the amount that results from multiplying $6,2106,160, or the
277	277	greater amount provided under Section 48.051(b), if applicable, by
278	278	0.016, for the first eight cents by which the district's
279	279	maintenance and operations tax rate exceeds the district's tier one
280	280	tax rate; and
281	281	(2) subject to Subsection (f), the amount that results
282	282	from multiplying $6,210$6,160, or the greater amount provided under
283	283	Section 48.051(b), if applicable, by 0.008, for the district's
284	284	maintenance and operations tax effort that exceeds the amount of
285	285	tax effort described by Subdivision (1).
286	286	Section 11. Section 48.252, Education Code, is amended by
287	287	adding Subsection (b-1) to read as follows:
288	288	(b-1) For purposes of calculating an amount under (b)(2),
289	289	the agency shall calculate the amount to which the district would be
290	290	entitled to under this Chapter using the enrichment tax rate as
291	291	defined under Section 45.0032(b) for the school year prior to the
292	292	district entering into a contract to operate a district campus as
293	293	provided by Section 11.174.
294	294	Section 12. Section 48.257, Education Code, is amended by
295	295	adding Subsections (h) and (i) as follows:
296	296	(h) Subsection (i) applies only to a school district:
297	297	(1) for which Subsection (a) applies for the current
298	298	school year,
299	299	(2) that received an allotment under Section 48.277
300	300	for the 2023-2024 school year, and
301	301	(3) that adopted a maintenance and operations tax rate
302	302	for the 2022-2023 school year of at least the district's maximum
303	303	compressed tax rate under Section 48.2551 plus five cents per $100
304	304	valuation of taxable property.
305	305	(i) Notwithstanding Subsections (a) through (g), if a
306	306	district's maintenance and operations revenue per student in
307	307	average daily attendance after the required reduction under
308	308	Subsection (a) would be less than the district's 2023-2024
309	309	maintenance and operations revenue per student in average daily
310	310	attendance, excluding Sections 48.278, 48.279, and 48.281, the
311	311	agency shall decrease the amount of the required reduction under
312	312	Subsection (a) by an amount of local funds necessary to provide
313	313	additional revenue up to the district's maintenance and operations
314	314	revenue per student in average daily attendance for the 2023-2024
315	315	school year.
316	316	Section 13. Section 49.201, Education Code, is amended to
317	317	read as follows:
318	318	Sec. 49.201. AGREEMENT. The board of trustees of a district
319	319	with a local revenue level in excess of entitlement may execute an
320	320	agreement to educate the students of another district in a number
321	321	that, when the weighted average daily attendance of the students
322	322	served is added to the weighted average daily attendance of the
323	323	contracting district, is sufficient, in combination with any other
324	324	actions taken under this chapter, to reduce the district's local
325	325	revenue level to a level that is equal to or less than the level
326	326	established under Section 48.257. The agreement is not effective
327	327	unless the commissioner certifies that the transfer of weighted
328	328	average daily attendance will not result in any of the contracting
329	329	districts' local revenue level being greater than the level
330	330	established under Section 48.257 and that the agreement requires an
331	331	expenditure per student in weighted average daily attendance that
332	332	is at least equal to the amount per student in weighted average
333	333	daily attendance required under Section 49.153, unless it is
334	334	determined by the commissioner that a quality educational program
335	335	can be delivered at a lesser amount. The commissioner may approve a
336	336	special financial arrangement between districts if that
337	337	arrangement serves the best educational interests of the state.
338	338	Section 14. This Act takes effect September 1, 2023.