89R2165 JTZ-D By: Middleton S.B. No. 478 A BILL TO BE ENTITLED AN ACT relating to renaming the basic allotment under the Foundation School Program to the initial allotment. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.106(a-1), Education Code, is amended to read as follows: (a-1) In determining funding for an open-enrollment charter school under Subsection (a), the amount of the allotment under Section 48.102 is based solely on the initial [basic] allotment to which the charter holder is entitled and does not include any amount based on the allotment under Section 48.101. SECTION 2. Section 12.263(f), Education Code, is amended to read as follows: (f) In addition to funding provided under Subsection (a), an eligible entity granted a charter under this subchapter is entitled to receive for the adult education program an annual allotment, provided in accordance with a schedule established by commissioner rule, equal to the maximum initial [basic] allotment under Section 48.051(a) or (b) multiplied by: (1) for each credit earned by a student enrolled in the adult education program during the preceding school year: (A) 0.01 for a course other than a career and technology education course; and (B) 0.02 for a career and technology education course; and (2) 0.1 for each student who successfully completed the adult education program and earned a high school diploma during the preceding school year. SECTION 3. Sections 21.402(a) and (b), Education Code, are amended to read as follows: (a) Except as provided by Subsection (e-1) or (f), a school district must pay each classroom teacher, full-time librarian, full-time school counselor certified under Subchapter B, or full-time school nurse not less than the minimum monthly salary, based on the employee's level of experience in addition to other factors, as determined by commissioner rule, determined by the following formula: MS = SF x FS where: "MS" is the minimum monthly salary; "SF" is the applicable salary factor specified by Subsection (c); and "FS" is the amount, as determined by the commissioner under Subsection (b), of the initial [basic] allotment as provided by Section 48.051(a) or (b) for a school district with a maintenance and operations tax rate at least equal to the state maximum compressed tax rate, as defined by Section 48.051(a). (b) Not later than June 1 of each year, the commissioner shall determine the initial [basic] allotment and resulting monthly salaries to be paid by school districts as provided by Subsection (a). SECTION 4. Section 29.014(d), Education Code, is amended to read as follows: (d) The initial [basic] allotment for a student enrolled in a district to which this section applies is adjusted by the weight for a homebound student under Section 48.102(a). SECTION 5. The heading to Section 48.051, Education Code, is amended to read as follows: Sec. 48.051. INITIAL [BASIC] ALLOTMENT. SECTION 6. Section 48.051(c), Education Code, is amended to read as follows: (c) During any school year for which the maximum amount of the initial [basic] allotment provided under Subsection (a) or (b) is greater than the maximum amount provided for the preceding school year, a school district must use at least 30 percent of the amount, if the amount is greater than zero, that equals the product of the average daily attendance of the district multiplied by the amount of the difference between the district's funding under this chapter per student in average daily attendance for the current school year and the preceding school year to provide compensation increases to full-time district employees other than administrators as follows: (1) 75 percent must be used to increase the compensation paid to classroom teachers, full-time librarians, full-time school counselors certified under Subchapter B, Chapter 21, and full-time school nurses, prioritizing differentiated compensation for classroom teachers with more than five years of experience; and (2) 25 percent may be used as determined by the district to increase compensation paid to full-time district employees. SECTION 7. Sections 48.052(a) and (c), Education Code, are amended to read as follows: (a) Notwithstanding Section 48.051, a school district that has fewer than 130 students in average daily attendance shall be provided an initial [a basic] allotment on the basis of 130 students in average daily attendance if it offers a kindergarten through grade 12 program and has preceding or current year's average daily attendance of at least 90 students or is 30 miles or more by bus route from the nearest high school district. A district offering a kindergarten through grade 8 program whose preceding or current year's average daily attendance was at least 50 students or which is 30 miles or more by bus route from the nearest high school district shall be provided an initial [a basic] allotment on the basis of 75 students in average daily attendance. An average daily attendance of 60 students shall be the basis of providing the initial [basic] allotment if a district offers a kindergarten through grade 6 program and has preceding or current year's average daily attendance of at least 40 students or is 30 miles or more by bus route from the nearest high school district. (c) Notwithstanding Subsection (a) or Section 48.051, a school district to which this subsection applies, as provided by Subsection (b), that has fewer than 130 students in average daily attendance shall be provided an initial [a basic] allotment on the basis of 130 students in average daily attendance if it offers a kindergarten through grade four program and has preceding or current year's average daily attendance of at least 75 students or is 30 miles or more by bus route from the nearest high school district. SECTION 8. Section 48.101, Education Code, is amended to read as follows: Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a) Small and mid-sized districts are entitled to an annual allotment in accordance with this section. In this section: (1) "AA" is the district's annual allotment per student in average daily attendance; (2) "ADA" is the number of students in average daily attendance for which the district is entitled to an allotment under Section 48.051; and (3) "IA" ["BA"] is the initial [basic] allotment determined under Section 48.051. (b) A school district that has fewer than 1,600 students in average daily attendance is entitled to an annual allotment for each student in average daily attendance based on the following formula: AA = ((1,600 - ADA) X .0004) X IA [BA] (c) A school district that offers a kindergarten through grade 12 program and has less than 5,000 students in average daily attendance is entitled to an annual allotment for each student in average daily attendance based on the formula, of the following formulas, that results in the greatest annual allotment: (1) the formula in Subsection (b), if the district is eligible for that formula; or (2) AA = ((5,000 - ADA) X .000025) X IA [BA]. (d) Instead of the allotment under Subsection (b) or (c)(1), a school district that has fewer than 300 students in average daily attendance and is the only school district located in and operating in a county is entitled to an annual allotment for each student in average daily attendance based on the following formula: AA = ((1,600 - ADA) X .00047) X IA [BA] SECTION 9. Sections 48.102(a) and (j), Education Code, are amended to read as follows: (a) For each student in average daily attendance in a special education program under Subchapter A, Chapter 29, in a mainstream instructional arrangement, a school district is entitled to an annual allotment equal to the initial [basic] allotment, or, if applicable, the sum of the initial [basic] allotment and the allotment under Section 48.101 to which the district is entitled, multiplied by 1.15. For each full-time equivalent student in average daily attendance in a special education program under Subchapter A, Chapter 29, in an instructional arrangement other than a mainstream instructional arrangement, a district is entitled to an annual allotment equal to the initial [basic] allotment, or, if applicable, the sum of the initial [basic] allotment and the allotment under Section 48.101 to which the district is entitled, multiplied by a weight determined according to instructional arrangement as follows: Homebound 5.0 Hospital class 3.0 Speech therapy 5.0 Resource room 3.0 Self-contained, mild and moderate, regular campus 3.0 Self-contained, severe, regular campus 3.0 Off home campus 2.7 Nonpublic day school 1.7 Vocational adjustment class 2.3 (j) A school district that provides an extended year program required by federal law for special education students who may regress is entitled to receive funds in an amount equal to 75 percent, or a lesser percentage determined by the commissioner, of the initial [basic] allotment, or, if applicable, the sum of the initial [basic] allotment and the allotment under Section 48.101 to which the district is entitled for each full-time equivalent student in average daily attendance, multiplied by the amount designated for the student's instructional arrangement under this section, for each day the program is provided divided by the number of days in the minimum school year. The total amount of state funding for extended year services under this section may not exceed $10 million per year. A school district may use funds received under this section only in providing an extended year program. SECTION 10. Section 48.103(a), Education Code, is amended to read as follows: (a) Subject to Subsection (b), for each student that a school district serves who has been identified as having dyslexia or a related disorder, the district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 0.1 or a greater amount provided by appropriation. SECTION 11. Sections 48.104(a), (b), (e), and (e-1), Education Code, are amended to read as follows: (a) For each student who does not have a disability and resides in a residential placement facility in a district in which the student's parent or legal guardian does not reside, a district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 0.2 or, if the student is educationally disadvantaged, 0.275. For each full-time equivalent student who is in a remedial and support program under Section 29.081 because the student is pregnant, a district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 2.41. (b) For each student who is educationally disadvantaged and resides in an economically disadvantaged census block group as determined by the commissioner under Subsection (c), a district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by the weight assigned to the student's census block group under Subsection (d). (e) If insufficient data is available for any school year to evaluate the level of economic disadvantage in a census block group, a school district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 0.225 for each student who is educationally disadvantaged and resides in that census block group. (e-1) For each student who is a homeless child or youth as defined by 42 U.S.C. Section 11434a, a school district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by the highest weight provided under Subsection (d). SECTION 12. Section 48.1041(a), Education Code, is amended to read as follows: (a) The commissioner shall establish an advisory committee to advise the agency in adopting rules for the compensatory education allotment under Section 48.104, including: (1) rules establishing the economic criteria described by Section 48.104(c)(5); (2) rules detailing the method to count students who qualify for the allotment in: (A) a dropout recovery school or program; or (B) a residential treatment facility; (3) methods for properly counting students who are homeless within the meaning of "homeless children and youths" under 42 U.S.C. Section 11434a; and (4) rules to determine the appropriate weight by which to adjust the initial [basic] allotment in determining the compensatory allotment for students described by Subdivision (3). SECTION 13. Section 48.105(a), Education Code, is amended to read as follows: (a) For each student in average daily attendance in a bilingual education or special language program under Subchapter B, Chapter 29, a district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by: (1) for an emergent bilingual student, as defined by Section 29.052: (A) 0.1; or (B) 0.15 if the student is in a bilingual education program using a dual language immersion/one-way or two-way program model; and (2) for a student not described by Subdivision (1), 0.05 if the student is in a bilingual education program using a dual language immersion/two-way program model. SECTION 14. Section 48.106(a), Education Code, is amended to read as follows: (a) For each full-time equivalent student in average daily attendance in an approved career and technology education program in grades 7 through 12, a district is entitled to an annual allotment equal to the initial [basic] allotment, or, if applicable, the sum of the initial [basic] allotment and the allotment under Section 48.101 to which the district is entitled, multiplied by: (1) 1.1 for a full-time equivalent student in career and technology education courses not in an approved program of study; (2) 1.28 for a full-time equivalent student in levels one and two career and technology education courses in an approved program of study, as identified by the agency; and (3) 1.47 for a full-time equivalent student in levels three and four career and technology education courses in an approved program of study, as identified by the agency. SECTION 15. Section 48.107(a), Education Code, is amended to read as follows: (a) Except as provided by Subsection (b), for each student in average daily attendance who is using a public education grant under Subchapter G, Chapter 29, to attend school in a district other than the district in which the student resides, the district in which the student attends school is entitled to an annual allotment equal to the initial [basic] allotment multiplied by a weight of 0.1. SECTION 16. Section 48.108(a), Education Code, is amended to read as follows: (a) For each student in average daily attendance in kindergarten through third grade, a school district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 0.1 if the student is: (1) educationally disadvantaged; or (2) an emergent bilingual student, as defined by Section 29.052, and is in a bilingual education or special language program under Subchapter B, Chapter 29. SECTION 17. Section 48.109(a), Education Code, is amended to read as follows: (a) For each identified student a school district serves in a program for gifted and talented students that the district certifies to the commissioner as complying with Subchapter D, Chapter 29, a district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by 0.07 for each school year or a greater amount provided by appropriation. SECTION 18. Section 48.111(a), Education Code, is amended to read as follows: (a) Except as provided by Subsection (c), a school district is entitled to an annual allotment equal to the initial [basic] allotment multiplied by the applicable weight under Subsection (a-1) for each enrolled student equal to the difference, if the difference is greater than zero, that results from subtracting 250 from the difference between the number of students enrolled in the district during the school year immediately preceding the current school year and the number of students enrolled in the district during the school year six years preceding the current school year. SECTION 19. Section 48.115(a), Education Code, is amended to read as follows: (a) Except as provided by Subsection (a-1), a school district is entitled to an annual allotment equal to the sum of the following amounts or a greater amount provided by appropriation: (1) $10 for each student in average daily attendance, plus $1 for each student in average daily attendance per every $50 by which the district's maximum initial [basic] allotment under Section 48.051 exceeds $6,160, prorated as necessary; and (2) $15,000 per campus. SECTION 20. Section 48.118(a), Education Code, is amended to read as follows: (a) For each full-time equivalent student in average daily attendance in grades 9 through 12 in a college or career pathway offered through a partnership under the Rural Pathway Excellence Partnership (R-PEP) program under Section 29.912, a school district is entitled to an allotment equal to the initial [basic] allotment, or, if applicable, the sum of the initial [basic] allotment and the allotment under Section 48.101 to which the district is entitled, multiplied by: (1) 1.15 if the student is educationally disadvantaged; or (2) 1.11 if the student is not educationally disadvantaged. SECTION 21. Section 48.202(a), Education Code, is amended to read as follows: (a) Each school district is guaranteed a specified amount per weighted student in state and local funds for each cent of tax effort over that required for the district's local fund assignment up to the maximum level specified in this subchapter. The amount of state support, subject only to the maximum amount under Section 48.203, is determined by the formula: GYA = (GL X WADA X DTR X 100) - LR where: "GYA" is the guaranteed yield amount of state funds to be allocated to the district; "GL" is the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort, which is an amount described by Subsection (a-1) or a greater amount for any year provided by appropriation; "WADA" is the number of students in weighted average daily attendance, which is calculated by dividing the sum of the school district's allotments under Subchapters B and C by the initial [basic] allotment for the applicable year; "DTR" is the district enrichment tax rate of the school district, which is determined by subtracting the amounts specified by Subsection (b) from the total amount of maintenance and operations taxes collected by the school district for the applicable school year and dividing the difference 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 48.258 or by the quotient of the value of "DPV" as determined under Section 48.256(d) if that subsection applies to the district, divided by 100; and "LR" is the local revenue, which is determined by multiplying "DTR" 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 48.258 or by the quotient of the value of "DPV" as determined under Section 48.256(d) if that subsection applies to the district, divided by 100. SECTION 22. Section 48.251(a), Education Code, is amended to read as follows: (a) The cost of the Foundation School Program for a school district is the total sum of: (1) the sum of the tier one allotments and other funding as follows: (A) the initial [basic] allotment under Subchapter B; (B) the student-based allotments under Subchapter C; and (C) the additional funding under Subchapter D; and (2) the tier two allotment under Subchapter E. SECTION 23. The heading to Section 48.2553, Education Code, is amended to read as follows: Sec. 48.2553. PERMITTED TAX RATE FOR MAINTENANCE OF 2020-2021 SCHOOL YEAR INITIAL [BASIC] ALLOTMENT. SECTION 24. Sections 48.2553(a) and (b), Education Code, are amended to read as follows: (a) Notwithstanding any other provision of this title or Chapter 26, Tax Code, if the maximum amount of the initial [basic] allotment provided under Section 48.051(a) or (b) for a school year is less than the maximum amount provided for the 2020-2021 school year, subject to Subsection (b), a school district may adopt a maintenance and operations tax rate that exceeds the maximum compressed tax rate permitted under Section 48.2551, provided that: (1) the rate adopted by the district was previously approved by voters for a tax year subsequent to the 2005 tax year; and (2) the rate may not exceed the lesser of: (A) $1.17; or (B) the district's maximum compressed tax rate and the additional tax rate necessary to generate the amount of revenue equal to the difference in per student funding. (b) Before adopting a maintenance and operations tax rate under Subsection (a), a school district must receive approval from the agency. To receive approval from the agency under this subsection the district must submit the following information: (1) a statement detailing the loss of funding to the district that resulted from the decline in the maximum amount of the initial [basic] allotment provided under Section 48.051(a) or (b); (2) the proposed additional tax effort and the amount of funding the proposed additional tax effort will generate; (3) evidence that the proposed additional tax effort described by Subdivision (2) had been previously authorized by voters subsequent to the 2005 tax year; and (4) any other information required by the commissioner. SECTION 25. Section 317.005(f), Government Code, is amended to read as follows: (f) The governor or board may adopt an order under this section withholding or transferring any portion of the total amount appropriated to finance the foundation school program for a fiscal year. The governor or board may not adopt such an order if it would result in an allocation of money between particular programs or statutory allotments under the foundation school program contrary to the statutory proration formula provided by Section 48.266(f), Education Code. The governor or board may transfer an amount to the total amount appropriated to finance the foundation school program for a fiscal year and may increase the initial [basic] allotment. The governor or board may adjust allocations of amounts between particular programs or statutory allotments under the foundation school program only for the purpose of conforming the allocations to actual pupil enrollments or attendance. SECTION 26. This Act takes effect September 1, 2025.