88R14473 KJE-D
By: Middleton S.B. No. 1704
A BILL TO BE ENTITLED
AN ACT
relating to the state compression percentage and a school
district's maximum compressed tax rate under the public school
finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 48.255(b), Education Code, is amended to
read as follows:
(b) The state compression percentage is the lower of:
(1) 93 percent, or a lower percentage set by
appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.01 [1.025]/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
SECTION 2. Section 48.2551(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), a district's
maximum compressed rate ("MCR") is the lesser of:
(1) the rate determined by the following applicable
formula:
(A) if "DPV" exceeds "PYDPV" by an amount equal
to or greater than one [2.5] percent:
MCR = (1.01 [1.025]((PYDPV+E) X PYMCR))/DPV; or
(B) if Paragraph (A) does not apply:
MCR = PYMCR; or
(2) the product of the state compression percentage,
as determined under Section 48.255, for the current tax year,
multiplied by $1.00.
SECTION 3. Section 48.2552(b), Education Code, is amended
to read as follows:
(b) If a school district's maximum compressed rate as
calculated under Section 48.2551(b) would be less than 60 [90]
percent of another school district's maximum compressed rate, the
district's maximum compressed rate is the value at which the
district's maximum compressed rate would be equal to 60 [90]
percent of the other district's maximum compressed rate.
SECTION 4. This Act takes effect September 1, 2023.