89R13571 KJE-D By: Hinojosa of Nueces S.B. No. 2507 A BILL TO BE ENTITLED AN ACT relating to requiring that public schools spend a certain percentage of funding for direct instructional activities, including an indicator for that requirement under the public school financial accountability system. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.082(c), Education Code, is amended to read as follows: (c) The system must [may not] include an indicator under Subsection (b) [or any other performance measure] that[: [(1)] requires a school district to spend at least 60 [65] percent [or any other specified percentage] of district operating funds for direct instructional activities as described by Section 44.0071 [purposes; or [(2) lowers the financial management performance rating of a school district for failure to spend at least 65 percent or any other specified percentage of district operating funds for instructional purposes]. SECTION 2. The heading to Section 44.0071, Education Code, is amended to read as follows: Sec. 44.0071. COMPUTATION OF INSTRUCTIONAL EXPENDITURES RATIO AND INSTRUCTIONAL EMPLOYEES RATIO; MINIMUM RATIO REQUIRED. SECTION 3. Sections 44.0071(a) and (c), Education Code, are amended to read as follows: (a) Each fiscal year, a school district shall compute and report to the commissioner: (1) the percentage of the district's total expenditures for the preceding fiscal year that were used to fund direct instructional activities, which must be at least 60 percent; and (2) the percentage of the district's full-time equivalent employees during the preceding fiscal year whose job function was to directly provide classroom instruction to students, determined by dividing the number of hours spent by employees in providing direct classroom instruction by the total number of hours worked by all district employees. (c) For purposes of this section, the computation of a district's expenditures used to fund direct instructional activities shall include: (1) the salary, including any associated employment taxes, and value of any benefits provided to any district employee who directly provided classroom instruction to students, but only in proportion to the percentage of time spent by the employee in directly providing classroom instruction to students; (2) the cost for the purchase of instructional materials and supplies; (3) the cost of professional and technical services and the renting of educational equipment; and (4) expenses relating to extracurricular and cocurricular activities. SECTION 4. This Act applies beginning with the 2025-2026 school year. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.