73R11225 ESH/CAS-D
By Ratliff S.B. No. 7
Substitute the following for S.B. No. 7:
By Stiles, et al. C.S.S.B. No. 7
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public school education and finance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1
1-5 SECTION 1.01. Title 2, Education Code, is amended by adding
1-6 Chapter 36 to read as follows:
1-7 CHAPTER 36. EQUALIZED WEALTH LEVEL
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 36.001. DEFINITIONS. In this chapter:
1-10 (1) "Equalized wealth level" means the wealth per
1-11 student in average daily attendance provided by Section 36.002.
1-12 (2) "Wealth per student" means the taxable value of
1-13 property, as determined under Section 11.86, per student in
1-14 weighted average daily attendance.
1-15 (3) "Weighted average daily attendance" has the
1-16 meaning assigned by Section 16.302.
1-17 Sec. 36.002. EQUALIZED WEALTH LEVEL. A school district may
1-18 not have a wealth per student that exceeds $280,000.
1-19 Sec. 36.003. OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL. A
1-20 district with a wealth per student that exceeds the equalized
1-21 wealth level may take any combination of the following actions to
1-22 achieve the equalized wealth level:
1-23 (1) consolidation with another district as provided by
1-24 Subchapter B;
2-1 (2) detachment of territory as provided by Subchapter
2-2 C;
2-3 (3) purchase of average daily attendance credit as
2-4 provided by Subchapter D;
2-5 (4) contracting for the education of nonresident
2-6 students as provided by Subchapter E; or
2-7 (5) tax base consolidation with another district as
2-8 provided by Subchapter F.
2-9 Sec. 36.004. ANNUAL REVIEW OF PROPERTY WEALTH. (a) Not
2-10 later than August 1 of each year, the commissioner of education
2-11 shall review the wealth per student of school districts in the
2-12 state and shall notify each district with wealth per student
2-13 exceeding the equalized wealth level. If, before the following
2-14 November 1, the district has not successfully exercised an option
2-15 under Section 36.003 that reduces the district's wealth per student
2-16 to a level equal to or less than the equalized wealth level, the
2-17 commissioner shall order the consolidation of the district with one
2-18 or more other districts as provided by Subchapter G.
2-19 (b) A school district with a wealth per student that exceeds
2-20 the equalized wealth level may not levy or assess ad valorem taxes
2-21 for the maintenance and operation of the public schools of the
2-22 district for any year after the tax year in which the commissioner
2-23 of education determines that the district exceeds the equalized
2-24 wealth level. A district notified under Subsection (a) may not
2-25 adopt a tax rate for the tax year in which the district receives
2-26 the notice until the commissioner of education certifies that the
2-27 district has achieved the equalized wealth level.
3-1 (c) A consolidation or detachment and annexation under this
3-2 chapter:
3-3 (1) is effective for foundation school program funding
3-4 purposes for the school year that begins in the calendar year in
3-5 which the consolidation or detachment and annexation is agreed to
3-6 or ordered; and
3-7 (2) applies to the ad valorem taxation of property
3-8 beginning with the tax year in which the agreement or order is
3-9 effective.
3-10 Sec. 36.005. COMPTROLLER AND APPRAISAL DISTRICT COOPERATION.
3-11 The chief appraiser of each appraisal district and the comptroller
3-12 shall cooperate with the commissioner and school districts in
3-13 implementing this chapter.
3-14 Sec. 36.006. RULES. (a) The commissioner of education may
3-15 adopt rules necessary for the implementation of this chapter.
3-16 (b) As necessary for the effective and efficient
3-17 administration of this chapter, the commissioner of education may
3-18 extend effective dates and time periods for actions described by
3-19 this chapter.
3-20 Sec. 36.007. COMMISSIONER TO APPROVE SUBSEQUENT BOUNDARY
3-21 CHANGES. A school district that is involved in an action under
3-22 this chapter that results in boundary changes to the district or in
3-23 the consolidation of tax bases is not subject to consolidation,
3-24 detachment, or annexation under Chapter 19 unless the commissioner
3-25 of education certifies that the change will not result in a
3-26 district with a wealth per student that exceeds the equalized
3-27 wealth level.
4-1 Sec. 36.008. TAX ABATEMENTS UNAFFECTED. A tax abatement
4-2 agreement executed by a school district that is involved in
4-3 consolidation or in detachment and annexation of territory under
4-4 this chapter is not affected and applies to the taxation of the
4-5 property covered by the agreement as if executed by the district
4-6 within which the property is included.
4-7 Sec. 36.009. CONTINGENCY. (a) If any of the options
4-8 described by Section 36.003 are held invalid by a final decision of
4-9 a court of competent jurisdiction, a school district is entitled to
4-10 exercise any of the remaining valid options in accordance with a
4-11 schedule approved by the commissioner of education.
4-12 (b) If a court of competent jurisdiction holds invalid each
4-13 of the options provided by Section 36.003, the commissioner shall
4-14 act under Subchapter G to achieve the equalized wealth level.
4-15 SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
4-16 Sec. 36.031. AGREEMENT. The governing boards of any two or
4-17 more school districts may consolidate the districts by agreement in
4-18 accordance with this subchapter to establish a consolidated
4-19 district with a wealth per student equal to or less than the
4-20 equalized wealth level. The agreement is not effective unless the
4-21 commissioner of education certifies that the consolidated district
4-22 will have a wealth per student equal to or less than the equalized
4-23 wealth level.
4-24 Sec. 36.032. GOVERNING LAW. Except to the extent modified
4-25 by the terms of the agreement, the consolidated district is
4-26 governed by the applicable provisions of Subchapter C, Chapter 19.
4-27 The agreement may not be inconsistent with the requirements of this
5-1 subchapter.
5-2 Sec. 36.033. GOVERNANCE PLAN. (a) The agreement among the
5-3 consolidating districts may include a governance plan designed to
5-4 preserve community-based and site-based decision making within the
5-5 consolidated district, including the delegation of specific powers
5-6 of the governing board of the district other than the power to levy
5-7 taxes.
5-8 (b) The governance plan may provide for a transitional board
5-9 of trustees during the first year after consolidation, but
5-10 beginning with the next year the board of trustees must be elected
5-11 from within the boundaries of the consolidated district from
5-12 single-member districts drawn in accordance with the procedures
5-13 provided by Section 23.024.
5-14 Sec. 36.034. EFFECTIVE DATE. A consolidation under this
5-15 subchapter is effective on the date provided by the agreement, but
5-16 not later than the September 1 immediately following execution of
5-17 the agreement.
5-18 Sec. 36.035. INCENTIVE AID. For the first and second school
5-19 years after creation of a consolidated district under this
5-20 subchapter, the district is entitled to receive the total state
5-21 funding under Chapter 16 to which the consolidating districts
5-22 would have been entitled but for the consolidation.
5-23 SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
5-24 Sec. 36.061. AGREEMENT. By agreement of the governing
5-25 boards of any two school districts, territory may be detached from
5-26 one of the districts and attached to the other district if, after
5-27 the action, the wealth per student of each district is equal to or
6-1 less than the equalized wealth level. The agreement is not
6-2 effective unless the commissioner of education certifies that,
6-3 after the action, the wealth per student of each district involved
6-4 will be equal to or less than the equalized wealth level.
6-5 Sec. 36.062. GOVERNING LAW. Except to the extent of any
6-6 conflict with this chapter, the annexation and detachment is
6-7 governed by Chapter 19.
6-8 Sec. 36.063. ALLOCATION OF APPRAISED VALUE OF DIVIDED UNIT.
6-9 If portions of a parcel or other item of property are located in
6-10 different school districts as a result of a detachment and
6-11 annexation under this subchapter, the parcel or other item of
6-12 property shall be appraised for taxation as a unit, and the
6-13 agreement shall allocate the taxable value of the property between
6-14 the districts.
6-15 Sec. 36.064. ALLOCATION OF INDEBTEDNESS. The consolidation
6-16 agreement may allocate to the receiving district any portion of the
6-17 indebtedness of the district from which the territory is detached,
6-18 and the receiving district assumes and is liable for the allocated
6-19 indebtedness.
6-20 Sec. 36.065. EFFECTIVE DATE. A detachment and annexation
6-21 under this subchapter is effective on the date provided by the
6-22 agreement, but not later than the September 1 immediately following
6-23 execution of the agreement.
6-24 Sec. 36.066. NOTICE. As soon as practicable after the
6-25 agreement is executed, the districts involved shall notify each
6-26 affected property owner and the appraisal district in which the
6-27 affected property is located.
7-1 SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
7-2 Sec. 36.091. AGREEMENT. A school district with a wealth per
7-3 student that exceeds the equalized wealth level may execute an
7-4 agreement with the commissioner of education to purchase attendance
7-5 credits in an amount sufficient to reduce the district's wealth per
7-6 student to an amount that is equal to or less than the equalized
7-7 wealth level.
7-8 Sec. 36.092. CREDIT. (a) For each credit purchased, the
7-9 weighted average daily attendance of the purchasing school district
7-10 is increased by one student in weighted average daily attendance
7-11 for purposes of determining whether the district exceeds the
7-12 equalized wealth level.
7-13 (b) A credit is not used in determining a school district's
7-14 scholastic population for purposes of Section 15.01.
7-15 Sec. 36.093. COST. The cost of each credit is an amount
7-16 determined by the commissioner of education to be equal to the
7-17 statewide average of combined state and local revenue per weighted
7-18 student in average daily attendance for the preceding school year.
7-19 Sec. 36.094. PAYMENT. (a) A school district shall pay for
7-20 credits purchased in accordance with a schedule adopted by the
7-21 commissioner of education, with all payments being made not later
7-22 than February 1 of the school year for which the agreement is in
7-23 effect.
7-24 (b) Receipts shall be deposited in the state treasury to the
7-25 credit of the foundation school fund.
7-26 Sec. 36.095. DURATION. An agreement under this section is
7-27 valid for one school year and, subject to Section 36.096, may be
8-1 renewed annually.
8-2 Sec. 36.096. VOTER APPROVAL. (a) After first executing an
8-3 agreement under this section, the board of trustees shall order and
8-4 conduct an election, in the manner provided by Section 19.003, to
8-5 obtain voter approval of the agreement.
8-6 (b) The ballot shall be printed to provide for voting for or
8-7 against the proposition: "Authorizing the board of trustees of
8-8 ________ School District to purchase attendance credits from the
8-9 state with local tax revenues."
8-10 (c) The proposition is approved if the proposition receives
8-11 a favorable vote of a majority of the votes cast. If the
8-12 proposition is approved, the agreement executed by the board is
8-13 ratified, and the board has continuing authority to execute
8-14 agreements under this subchapter on behalf of the district without
8-15 further voter approval.
8-16 SUBCHAPTER E. CONTRACT FOR EDUCATION OF NONRESIDENT STUDENTS
8-17 Sec. 36.121. AGREEMENT. The board of trustees of a district
8-18 with a wealth per student that exceeds the equalized wealth level
8-19 may execute an agreement to educate the students of another
8-20 district in a number that, when the weighted average daily
8-21 attendance of the students served is added to the weighted average
8-22 daily attendance of the contracting district, is sufficient to
8-23 reduce the district's wealth per student to an amount that is equal
8-24 to or less than the equalized wealth level. The agreement is not
8-25 effective unless the commissioner of education certifies that the
8-26 added weighted average daily attendance will result in the
8-27 contracting district's wealth per student being equal to or less
9-1 than the equalized wealth level.
9-2 Sec. 36.122. VOTER APPROVAL. (a) After first executing an
9-3 agreement under this section, the board of trustees shall order and
9-4 conduct an election, in the manner provided by Section 19.003, to
9-5 obtain voter approval of the agreement.
9-6 (b) The ballot shall be printed to provide for voting for or
9-7 against the proposition: "Authorizing the board of trustees of
9-8 ________ School District to educate students of _________ School
9-9 District with local tax revenues."
9-10 (c) The proposition is approved if the proposition receives
9-11 a favorable vote of a majority of the votes cast. If the
9-12 proposition is approved, the agreement executed by the board is
9-13 ratified, and the board has continuing authority to execute
9-14 agreements under this subchapter on behalf of the district without
9-15 further voter approval.
9-16 Sec. 36.123. WADA COUNT. For purposes of Chapter 16,
9-17 students served under an agreement under this subchapter are
9-18 counted only in the weighted average daily attendance of the
9-19 district providing the services.
9-20 SUBCHAPTER F. TAX BASE CONSOLIDATION
9-21 Sec. 36.151. AGREEMENT. The board of trustees of two or
9-22 more school districts may execute an agreement to conduct an
9-23 election on the creation of a consolidated taxing district for the
9-24 maintenance and operation of the component school districts. The
9-25 agreement is subject to approval by the commissioner of education.
9-26 The agreement is not effective unless the commissioner of education
9-27 certifies that the consolidated taxing district will have a wealth
10-1 per student equal to or less than the equalized wealth level.
10-2 Sec. 36.152. DATE OF ELECTION. (a) The agreement must
10-3 provide for the ordering of an election to be held on the same date
10-4 in each district. The date of the election shall be a Tuesday or
10-5 Saturday not more than 45 days after the date of the agreement.
10-6 (b) Section 41.001, Election Code, does not apply to the
10-7 election.
10-8 Sec. 36.153. PROPOSITION. (a) The ballot shall be printed
10-9 to provide for voting for or against the proposition: "Creation of
10-10 a consolidated taxing district composed of the territory of
10-11 _________________________ school districts, and authorizing the
10-12 levy, assessment, and collection of annual ad valorem taxes for the
10-13 maintenance of the public free schools within that taxing district
10-14 at the rate of $_________ on the $100 valuation of taxable
10-15 property."
10-16 (b) The rate to be included in the proposition shall be
10-17 provided by the agreement among the districts but may not exceed
10-18 the maximum rate provided by law for independent school districts.
10-19 Sec. 36.154. APPROVAL. The proposition is approved only if
10-20 the proposition receives a favorable vote of the majority of the
10-21 votes cast within each participating school district.
10-22 Sec. 36.155. CONSOLIDATED TAXING DISTRICT. A consolidated
10-23 taxing district is a school district established for the limited
10-24 purpose of exercising the taxing power authorized by Article VII,
10-25 Section 3, of the Texas Constitution and distributing the revenue
10-26 to its component school districts.
10-27 Sec. 36.156. GOVERNANCE. (a) The consolidated taxing
11-1 district is governed by the boards of the component school
11-2 districts meeting jointly.
11-3 (b) Any action taken by the joint board must receive a
11-4 favorable vote of a majority of a quorum of each component
11-5 district's board of trustees.
11-6 (c) A quorum of the joint board is a quorum of the board of
11-7 trustees of each component district.
11-8 (d) The joint board shall adopt a governance plan setting
11-9 forth the procedures of the board and providing for necessary
11-10 governance of the consolidated taxing district.
11-11 Sec. 36.157. MAINTENANCE TAX. (a) The joint board shall
11-12 levy a maintenance tax for the benefit of the component school
11-13 districts not later than September 1 of each year or as soon
11-14 thereafter as practicable.
11-15 (b) Each component district shall bear a share of the costs
11-16 of assessing and collecting taxes in proportion to the component
11-17 district's share of weighted average daily attendance in the
11-18 consolidated taxing district.
11-19 (c) A component district may not levy an ad valorem tax for
11-20 the maintenance and operation of the schools.
11-21 Sec. 36.158. REVENUE DISTRIBUTION. The consolidated taxing
11-22 district shall distribute tax revenue to the component districts on
11-23 the basis of the number of weighted students in average daily
11-24 attendance in the component districts.
11-25 Sec. 36.159. TAXES OF COMPONENT DISTRICTS. (a) The
11-26 governing board of a component school district of a consolidated
11-27 taxing district may issue bonds and levy, pledge, and collect ad
12-1 valorem taxes sufficient to pay the principal of and interest on
12-2 those bonds as provided by Chapter 20.
12-3 (b) A component district levying an ad valorem tax under
12-4 this section is entitled to the guaranteed yield provided by
12-5 Subchapter H, Chapter 16, for that portion of its tax rate that,
12-6 when added to the maintenance tax levied by the consolidated taxing
12-7 unit, does not exceed the limitation provided by Section 16.303.
12-8 Sec. 36.160. OPTIONAL TOTAL TAX BASE CONSOLIDATION. (a) An
12-9 agreement executed under Section 36.151 may provide for total tax
12-10 base consolidation instead of consolidation for maintenance and
12-11 operation purposes only.
12-12 (b) Under an agreement providing for total tax base
12-13 consolidation:
12-14 (1) the component districts may not levy maintenance
12-15 or bond taxes, except to the extent necessary to retire bonds and
12-16 other obligations issued before the effective date of the
12-17 consolidation; and
12-18 (2) the joint board may issue bonds and levy, pledge,
12-19 and collect ad valorem taxes sufficient to pay the principal of and
12-20 interest on those bonds, and issue refunding bonds, as provided by
12-21 Chapter 20 for independent school districts.
12-22 (c) An agreement providing for total tax base consolidation
12-23 may provide for the consolidated taxing district to assume all or
12-24 part of the indebtedness of all component districts.
12-25 SUBCHAPTER G. CONSOLIDATION BY COMMISSIONER OF EDUCATION
12-26 Sec. 36.181. COMMISSIONER ORDER. If the commissioner of
12-27 education is required under Section 36.004 to order the
13-1 consolidation of districts, the consolidation is governed by this
13-2 subchapter. The commissioner's order shall be effective on a date
13-3 determined by the commissioner, but not later than the earliest
13-4 practicable date after November 1.
13-5 Sec. 36.182. SELECTION CRITERIA. In selecting the districts
13-6 to be consolidated with a district that has a property wealth
13-7 greater than the equalized wealth level, the commissioner shall
13-8 select one or more districts with a wealth per student that, when
13-9 consolidated, will result in a consolidated district with a wealth
13-10 per student equal to or less than the equalized wealth level. In
13-11 achieving that result, the commissioner shall give priority to
13-12 school districts in the following order:
13-13 (1) first, a contiguous district;
13-14 (2) second, the nearest district located in the same
13-15 county;
13-16 (3) third, another district located in the same
13-17 county;
13-18 (4) fourth, a district that will result in a
13-19 consolidated district in which the tax burden on property is
13-20 similar to the existing tax burden in the respective districts; and
13-21 (5) fifth, to the nearest district in proximity.
13-22 Sec. 36.183. PROCEDURE. A decision of the commissioner
13-23 under this subchapter is final and not appealable. The
13-24 Administrative Procedure and Texas Register Act (Article 6252-13a,
13-25 Vernon's Texas Civil Statutes) does not apply to a decision of the
13-26 commissioner under this subchapter.
13-27 Sec. 36.184. GOVERNANCE. Sections 19.057 and 19.058 apply
14-1 to districts consolidated under this subchapter.
14-2 SECTION 1.02. (a) Notwithstanding any provision of Chapter
14-3 36, Education Code, as added by this article, this section applies
14-4 to actions in 1993 to achieve the equalized wealth level.
14-5 (b) The commissioner shall make the determinations of wealth
14-6 per student not later than August 30, 1993. The commissioner may
14-7 use wealth and weighted student data from the current year or the
14-8 preceding school year for purposes of those determinations. The
14-9 commissioner shall immediately notify each district that exceeds
14-10 the equalized wealth level and each district with which the
14-11 commissioner intends to consolidate that district under Subchapter
14-12 G, Chapter 36, Education Code, as added by this Act.
14-13 (c) An agreement among districts under Section 36.003,
14-14 Education Code, as added by this Act must be executed not later
14-15 than September 1, 1993.
14-16 ARTICLE 2
14-17 SECTION 2.01. Chapter 16, Education Code, is reenacted and
14-18 amended to read as follows:
14-19 CHAPTER 16. FOUNDATION SCHOOL PROGRAM
14-20 SUBCHAPTER A. GENERAL PROVISIONS
14-21 Sec. 16.001. State Policy. (a) It is the policy of the
14-22 State of Texas that the provision of public education is a state
14-23 responsibility and that a thorough and efficient system be provided
14-24 and substantially financed through state revenue sources so that
14-25 each student enrolled in the public school system shall have access
14-26 to programs and services that are appropriate to his or her
14-27 educational needs and that are substantially equal to those
15-1 available to any similar student, notwithstanding varying local
15-2 economic factors.
15-3 (b) The public school finance system of the State of Texas
15-4 shall adhere to a standard of neutrality which provides for
15-5 substantially equal access to similar revenue per student at
15-6 similar tax effort, considering all state and local tax revenues of
15-7 districts after acknowledging all legitimate student and district
15-8 cost differences.
15-9 Sec. 16.002. Purpose of Foundation School Program. (a) The
15-10 purposes of the Foundation School Program set forth in this chapter
15-11 are to guarantee that each school district in the state has:
15-12 (1) adequate resources to provide each eligible
15-13 student a basic instructional program and facilities suitable to
15-14 the student's educational needs; and
15-15 (2) access to a substantially equalized program of
15-16 financing in excess of basic costs for certain services, as
15-17 provided by this chapter.
15-18 (b) The Foundation School Program consists of two tiers to
15-19 provide for the purposes specified by Subsection (a) of this
15-20 section. The first tier guarantees sufficient financing for all
15-21 school districts to provide a basic program of education that meets
15-22 accreditation and other legal standards. The second tier provides
15-23 a guaranteed yield system of financing to provide all school
15-24 districts with substantially equal access to funds to provide an
15-25 enriched program and additional funds for facilities.
15-26 Sec. 16.003. Student Eligibility. (a) A student is
15-27 entitled to the benefits of the Foundation School Program if he is
16-1 5 years of age or older and under 21 years of age at the beginning
16-2 of the scholastic year and has not graduated from high school.
16-3 (b) A student to whom Subsection (a) of this section does
16-4 not apply is entitled to the benefits of the Foundation School
16-5 Program if the student is enrolled in a prekindergarten class under
16-6 Section 21.136 of this code.
16-7 (c) The commissioner of education, in consultation with the
16-8 Commissioner of Human Services, shall monitor and evaluate
16-9 prekindergarten programs in the State of Texas as to their
16-10 developmental appropriateness. Furthermore, the commissioner of
16-11 education, in consultation with the Commissioner of Human Services,
16-12 shall evaluate the potential for coordination on a statewide basis
16-13 of prekindergarten programs with government-funded early childhood
16-14 care and education programs such as child care administered under
16-15 Chapter 44 of the Human Resources Code and federal Head Start
16-16 programs. This evaluation shall utilize recommendations contained
16-17 in the report to the 71st Legislature required by Chapter 717, Acts
16-18 of the 70th Legislature, Regular Session, 1987. For the purpose of
16-19 providing cost-effective care for children during the full work day
16-20 with developmentally appropriate curriculum, the commissioners
16-21 shall investigate the use of existing child care program sites as
16-22 prekindergarten sites. Following the evaluation required by this
16-23 section, the commissioners, in cooperation with school districts
16-24 and other program administrators, shall integrate programs, staff,
16-25 and program sites for prekindergarten, child care, and federal Head
16-26 Start programs to the greatest extent possible.
16-27 (d) A child may be enrolled in the first grade if he is at
17-1 least six years of age at the beginning of the scholastic year or
17-2 has been enrolled in the first grade or has completed kindergarten
17-3 in the public schools in another state prior to transferring to a
17-4 Texas public school.
17-5 Sec. 16.005. Administration of the Program. The
17-6 commissioner of education, in accordance with the rules of the
17-7 State Board of Education, shall take such action and require such
17-8 reports consistent with the terms of this chapter as may be
17-9 necessary to implement and administer the Foundation School
17-10 Program.
17-11 Sec. 16.006. Average Daily Attendance. (a) In this
17-12 chapter, average daily attendance is determined by the daily
17-13 attendance as averaged each month of the minimum school year as
17-14 described under Section 16.052(a) of this code.
17-15 (b) A school district that experiences a decline of two
17-16 percent or more in average daily attendance as a result of the
17-17 closing or reduction in personnel of a military base shall be
17-18 funded on the basis of the actual average daily attendance of the
17-19 immediately preceding school year.
17-20 (c) The commissioner of education shall adjust the average
17-21 daily attendance of school districts that have a significant
17-22 percentage of students whose parent or guardian is a migrant
17-23 worker. For the purposes of this subsection, "migrant worker" has
17-24 the meaning assigned by Section 21.5515 of this code.
17-25 (d) The commissioner may adjust the average daily attendance
17-26 of a school district in which a disaster, flood, extreme weather
17-27 condition, fuel curtailment, or other calamity has a significant
18-1 effect on the district's attendance.
18-2 Sec. 16.007. Public Education Information Management System
18-3 (PEIMS). (a) Each school district <and each county education
18-4 district> shall participate in the Public Education Information
18-5 Management System (PEIMS) and shall provide through that system
18-6 information required for the administration of this chapter and of
18-7 other appropriate provisions of this code.
18-8 (b) Each school district shall use a uniform accounting
18-9 system adopted by the commissioner of education for the data
18-10 required to be reported for the Public Education Information
18-11 Management System.
18-12 <(c) The Central Education Agency shall report annually to
18-13 the Legislative Education Board the financial status of each county
18-14 education district. The report shall include the total state and
18-15 local education revenues for each tier of the Foundation School
18-16 Program.>
18-17 Sec. 16.008. EQUALIZED FUNDING ELEMENTS. (a) The
18-18 Legislative Education Board shall adopt rules, subject to
18-19 appropriate notice and opportunity for public comment, for the
18-20 calculation for each year of a biennium of the qualified funding
18-21 elements under Section 16.256(e) of this code necessary to achieve
18-22 the state policy under Section 16.001 of this code not later than
18-23 the 1994-1995 school year and for each school year thereafter.
18-24 (b) Not <Beginning in 1992, not> later than October 1
18-25 preceding each regular session of the legislature, the board shall
18-26 report the equalized funding elements to the foundation school fund
18-27 budget committee, the commissioner of education, and the
19-1 legislature.
19-2 <Sec. 16.009. REVENUE LIMIT. (a) The revenue limit is an
19-3 amount equal to 110 percent of the amount of state and local funds
19-4 guaranteed under the Foundation School Program per student in
19-5 weighted average daily attendance to each school district at a
19-6 total tax rate of $0.25 per $100 of taxable value of property as
19-7 calculated for the 1994-1995 school year.>
19-8 <(b) Not later than April 15, the commissioner of education
19-9 shall estimate the revenue limit for each school district for the
19-10 current school year and shall certify that amount to each school
19-11 district.>
19-12 <(c) Not later than August 15 of each year the commissioner
19-13 of education shall determine as nearly as possible for the current
19-14 school year:>
19-15 <(1) the total amount of state and local funds per
19-16 student in weighted average daily attendance available in each
19-17 school district; and>
19-18 <(2) the total amount of state and local funds per
19-19 student in weighted average daily attendance required for debt
19-20 service in each school district.>
19-21 <(d) The commissioner shall determine the total number of
19-22 students in weighted average daily attendance in school districts
19-23 in which the amount specified in Subsection (c)(1) of this section,
19-24 less the amount specified in Subsection (c)(2) of this section,
19-25 exceeds the revenue limit.>
19-26 <(e) If the total number of students in weighted average
19-27 daily attendance in districts with state and local revenues
20-1 exceeding the revenue limit equals or exceeds two percent of the
20-2 total number of students in weighted average daily attendance for
20-3 the current school year, no school district may levy a tax at a
20-4 rate that would result in an amount of state and local funds,
20-5 excluding funds required for debt service, during the next school
20-6 year that exceeds the revenue limit, except that those districts
20-7 exceeding the revenue limit may maintain during the next school
20-8 year the total amount of state and local funds per student in
20-9 weighted average daily attendance for the current school year. The
20-10 commissioner shall notify those districts in which revenues are
20-11 subject to the limitation imposed in this subsection.>
20-12 <(f) In this section:>
20-13 <(1) "Weighted student in average daily attendance"
20-14 has the meaning assigned in Section 16.302 of this code.>
20-15 <(2) "Taxable value of property" has the meaning
20-16 assigned in Section 11.86 of this code.>
20-17 <Sec. 16.010. DEFINITION. In this chapter, "school
20-18 district" does not include a county education district unless
20-19 expressly included.>
20-20 <Sec. 16.011. NOTICE OF YIELDS TO BE PUBLISHED. (a) Not
20-21 earlier than the 30th day or later than the seventh day before the
20-22 date of adopting a tax rate for the years 1991, 1992, 1993, and
20-23 1994, a school district shall publish the following notice, using
20-24 the yields and tax rates certified by the commissioner:>
20-25 <"NOTICE OF COMPARABLE TAX RATES AND REVENUES>
20-26 <"The legislature has enacted a statute on school funding to
20-27 comply with a court mandate enforcing the state constitution.
21-1 Under prior statutes, the tax rate for last year provides _____ per
21-2 student in state and local revenues. Under this statute, that same
21-3 rate now provides _____ per student in state and local revenues.>
21-4 <"State law only requires a minimum tax rate of _____ for
21-5 county education districts. State law does not require a school
21-6 district to adopt additional taxes. Neither does state law require
21-7 a school district to adopt a tax rate that maximizes the receipt of
21-8 state funds.>
21-9 <"The board of trustees of the _____ School District hereby
21-10 gives notice that it is considering the adoption of a tax rate of
21-11 _____ that will provide _____ per student in state and local
21-12 revenues.">
21-13 <(b) If a district is required to give public notice of a
21-14 hearing under Section 26.06, Tax Code, the notice described by
21-15 Subsection (a) of this section may be included in the required
21-16 notice under Section 26.06, Tax Code.>
21-17 <(c) The notice described by Subsection (a) of this section
21-18 shall be published in the two newspapers with the largest
21-19 circulation within the school district unless only one newspaper is
21-20 in general circulation within the district. The notice may not be
21-21 smaller than one-quarter page of a standard-size or a tabloid-size
21-22 newspaper, and the headline must be 18-point or larger type.>
21-23 <(d) The notice described by Subsection (a) of this section
21-24 must also be included in the tax bill or a separate statement
21-25 accompanying the tax bill.>
21-26 <(e) The commissioner shall adopt rules to implement this
21-27 section.>
22-1 <(f) This section expires January 1, 1995.>
22-2 SUBCHAPTER B. REQUIREMENTS FOR DISTRICT PARTICIPATION IN THE
22-3 FOUNDATION SCHOOL PROGRAM FUND
22-4 Sec. 16.051. Required Compliance. In order to receive
22-5 financial support from the Foundation School Fund, a school
22-6 district must comply with the standards set forth in this
22-7 subchapter.
22-8 Sec. 16.052. OPERATION OF SCHOOLS; TEACHER PREPARATION AND
22-9 STAFF DEVELOPMENT. (a) Each school district must provide for not
22-10 less than 180 days of instruction for students and not less than
22-11 three days of preparation for teachers for each school year, except
22-12 as provided in Subsection (c) of this section.
22-13 (b) Each school district must provide for not less than 20
22-14 hours of staff development training under guidelines provided by
22-15 the commissioner of education. The training provided must include
22-16 technology training and must occur during regular hours of required
22-17 teacher service. On the request of a teacher, a school district
22-18 may credit the teacher compensatory time to be applied toward the
22-19 number of training hours required under this subsection for
22-20 workshops, conferences, or other professional training that the
22-21 teacher has attended.
22-22 (c) The commissioner of education may approve the operation
22-23 of schools for less than the number of days of instruction and
22-24 teacher preparation otherwise required when disasters, floods,
22-25 extreme weather conditions, fuel curtailments, or other calamities
22-26 have caused the closing of the school.
22-27 (d) Each school district may reserve three hours of the
23-1 first preparation day provided each school year under Subsection
23-2 (a) of this section for faculty staff meetings.
23-3 Sec. 16.053. ACCREDITATION. Each school district must be
23-4 accredited by the Central Education Agency.
23-5 Sec. 16.054. Student/Teacher Ratios; Class Size.
23-6 (a) Except as provided by Subsection (b) of this section, each
23-7 school district must employ a sufficient number of certified
23-8 teachers to maintain an average ratio of not less than one teacher
23-9 for each 20 students in average daily attendance.
23-10 (b) A school district may not enroll more than 22 students
23-11 in a kindergarten, first, second, third, or fourth grade class.
23-12 This requirement shall not apply during the last 12 weeks of any
23-13 school year.
23-14 (c) In determining the number of students to enroll in any
23-15 class, a district shall consider the subject to be taught, the
23-16 teaching methodology to be used, and any need for individual
23-17 instruction.
23-18 (d) On application of a school district, the commissioner
23-19 may except the district from the limits in Subsection (b) of this
23-20 section if the commissioner finds the limits work an undue hardship
23-21 on the district. An exception expires at the end of the semester
23-22 for which it is granted, and the commissioner may not grant an
23-23 exception for more than one semester at a time.
23-24 (e) The commissioner shall report to the legislature each
23-25 biennium regarding compliance with this section. The report must
23-26 include:
23-27 (1) a statement of the number of school districts
24-1 granted an exception under Subsection (d) of this section; and
24-2 (2) an estimate of the total cost incurred by school
24-3 districts in that biennium in complying with this section.
24-4 Sec. 16.055. Compensation of Professional and
24-5 Paraprofessional Personnel. (a) A school district must pay each
24-6 employee who is qualified for and employed in a position classified
24-7 under the Texas Public Education Compensation Plan set forth in
24-8 Section 16.056 of this chapter not less than the minimum monthly
24-9 base salary, plus increments for teaching experience, specified for
24-10 the position.
24-11 (b) Contracts for personnel shall be made on the basis of a
24-12 minimum of 10 months' service, which must include the number of
24-13 days of instruction for students and days of preparation for
24-14 personnel required by Section 16.052 of this code. The days of
24-15 preparation required herein shall be conducted by local boards of
24-16 education under rules and regulations established by the State
24-17 Board of Education that are consistent with the state accreditation
24-18 standards for program planning, preparation, and improvement.
24-19 Personnel employed for more than 10 months shall be paid not less
24-20 than the minimum monthly base pay plus increments for experience
24-21 for each month of actual employment. Personnel employed for 11
24-22 months at pay grades 1-11 must render 202 days of service, and
24-23 personnel employed for 12 months at pay grades 1-11 must render 220
24-24 days of service. Personnel employed for 11 months at pay grades
24-25 12-18 must render 207 days of service, and personnel employed for
24-26 12 months at pay grades 12-18 must render 226 days of service.
24-27 However, the number of days of service required by this subsection
25-1 may be reduced by the commissioner under Section 16.052(c) of this
25-2 code, and the reduction shall not reduce the total salaries of
25-3 personnel.
25-4 (c) Notwithstanding Subsection (b) of this section, a
25-5 vocational agriculture teacher employed for 12 months shall render
25-6 226 days of service regardless of pay grade.
25-7 Sec. 16.056. Texas Public Education Compensation Plan.
25-8 (a) School district personnel who are qualified for and employed
25-9 in positions described in Subsection (d) of this section shall be
25-10 paid not less than the monthly base salary, plus increments for
25-11 teaching experience, set forth in Subsection (c) of this section,
25-12 or greater amounts provided by appropriation.
25-13 (b) Each individual shall advance one step per each year of
25-14 experience until step 10 is reached. For each year, up to a
25-15 maximum of two years, of work experience required for certification
25-16 in a vocational field, a vocational teacher who is certified in
25-17 that field is entitled to salary step credit as if the work
25-18 experience were teaching experience.
25-19 (c) SALARY SCHEDULE BY STEPS
25-20 0 1 2 3 4 5 6 7 8 9 10
25-21 1700 1814 1928 2042 2156 2270 2384 2498 2612 2726 2840
25-22 (d) The following positions are entitled to the minimum
25-23 monthly salary set by Subsection (c) of this section for the number
25-24 of annual contract months specified:
25-25 No.
25-26 Months Paid Class Title
25-27 10 Nurse, R.N. and/or
26-1 Bachelor's Degree
26-2 10 Special Education Related
26-3 Service Personnel (other
26-4 than Occupational or
26-5 Physical Therapist),
26-6 Bachelor's Degree
26-7 10 Teacher, Bachelor's Degree
26-8 10 Vocational Teacher,
26-9 11 Bachelor's Degree and/or
26-10 12 Certified in Field
26-11 10 Librarian I, Bachelor's
26-12 Degree
26-13 10 Visiting Teacher I,
26-14 Psychological Associate,
26-15 Bachelor's Degree
26-16 10 Special Education Related
26-17 Service Personnel (other
26-18 than Occupational or
26-19 Physical Therapist),
26-20 Master's Degree
26-21 10 Teacher, Master's Degree
26-22 10 Vocational Teacher,
26-23 11 Master's Degree
26-24 12
26-25 10 Librarian II, Master's
26-26 Degree
26-27 10 Physician, M.D.
27-1 10 Teacher, Bachelor of Laws
27-2 or Doctor of Jurispru-
27-3 dence Degree
27-4 10 Teacher, Doctor's Degree
27-5 10 Special Duty Teacher,
27-6 Master's Degree
27-7 10 Occupational Therapist
27-8 10 Physical Therapist
27-9 10 Educational Diagnostician
27-10 10 Visiting Teacher II,
27-11 Master's Degree
27-12 10 Counselor I, Psychologist
27-13 10 School Social Worker
27-14 10 Supervisor I
27-15 10 Part-time Principal--11 or
27-16 fewer teachers on campus
27-17 10 Instructional/Administra-
27-18 tive Officer I
27-19 10 Assistant Principal--20 or
27-20 more teachers on campus
27-21 10 Instructional/Administra-
27-22 tive Officer II
27-23 11 Principal--19 or fewer
27-24 teachers on campus
27-25 10 Instructional/Administra-
27-26 tive Officer III
27-27 11 Principal--20-49 teachers
28-1 on campus
28-2 11 Instructional/Administra-
28-3 tive Officer IV
28-4 11 Principal--50-99 teachers
28-5 on campus
28-6 12 Principal--100 or more
28-7 teachers on campus
28-8 12 Instructional/Administra-
28-9 tive Officer V
28-10 12 Instructional/Administra-
28-11 tive Officer VI
28-12 12 Superintendent--District
28-13 with 3,000
28-14 or less ADA
28-15 12 Instructional/Administra-
28-16 tive Officer VII
28-17 12 Superintendent--District
28-18 with 3,001-12,500 ADA
28-19 12 Instructional/Administra-
28-20 tive Officer VIII
28-21 12 Superintendent--District
28-22 with 12,501-50,000 ADA
28-23 12 Superintendent--District
28-24 with 50,000 or more ADA
28-25 (e) With the approval of the State Board of Education, the
28-26 commissioner of education may add additional positions and months
28-27 of service to the Texas Public Education Compensation Plan to
29-1 reflect curriculum and program changes authorized by law. With the
29-2 approval of the board, the commissioner shall also develop policies
29-3 for the implementation and administration of the compensation plan.
29-4 (f) Each person employed in the public schools of this state
29-5 who is an educational aide, teacher trainee, or nondegree teacher
29-6 or who is assigned to a position classified under the Texas Public
29-7 Education Compensation Plan must be certified according to the
29-8 certification requirements or standards for each position as
29-9 established by rule adopted by the State Board of Education.
29-10 However, additional certification may not be required of a person
29-11 holding a valid state license as a speech language pathologist or
29-12 audiologist. Persons other than those holding such a license may
29-13 only be employed to render such services if an acceptable licensed
29-14 applicant is not available.
29-15 (g) The State Board of Education shall prescribe the general
29-16 duties and required preparation and education for educational
29-17 aides, teacher trainees, and nondegree teachers and for the
29-18 positions listed in Subsection (d) of this section under the
29-19 circumstances described therein.
29-20 (h) In determining the placement of a teacher on the salary
29-21 schedule under Subsection (c) of this section, a district shall
29-22 credit the teacher for each year of experience, whether or not the
29-23 years are consecutive. Notwithstanding the provision of this
29-24 subsection, no teacher shall be placed on the salary schedule at a
29-25 step above the step where the teacher would have been placed had
29-26 that teacher remained in continuous service.
29-27 Sec. 16.057. Career Ladder Salary Supplement. (a) Except
30-1 as provided by Subsection (c) of this section, each teacher on
30-2 level two, three, or four of a career ladder is entitled to the
30-3 following annual supplement in addition to the minimum salary set
30-4 by this subchapter:
30-5 Level 2 ............. $2,000
30-6 Level 3 ............. $4,000
30-7 Level 4 ............. $6,000
30-8 (b) If the district pays more than the state minimum salary
30-9 prescribed by this subchapter, the teacher is entitled to the
30-10 career ladder supplement in addition to the amount otherwise paid
30-11 by the district for the teacher's step.
30-12 (c) If the allotment under Section 16.158 of this code that
30-13 is designated for support of the career ladder will not fully fund
30-14 the supplements under this section:
30-15 (1) the district may reduce the supplements to not
30-16 less than the following:
30-17 Level 2 ............. $1,500
30-18 Level 3 ............. $3,000
30-19 Level 4 ............. $4,500
30-20 or;
30-21 (2) provide for stricter performance criteria than
30-22 that provided under Section 13.302 of this code, subject to the
30-23 approval of the State Board of Education; or
30-24 (3) take action under both Subdivisions (1) and (2) of
30-25 this subsection.
30-26 SUBCHAPTER C. BASIC ENTITLEMENT
30-27 Sec. 16.101. Basic Allotment. For each student in average
31-1 daily attendance, not including the time students spend each day in
31-2 special education or vocational education programs for which an
31-3 additional allotment is made under Subchapter D of this chapter, a
31-4 district is entitled to an allotment of $2,300 <$2,200 for the
31-5 1991-1992 school year, $2,400 for the 1992-1993 school year, $2,600
31-6 for the 1993-1994 school year, and $2,800 for the 1994-1995 school
31-7 year and thereafter> or a greater amount adopted by the foundation
31-8 school fund budget committee under Section 16.256 of this code <for
31-9 the 1993-1994 school year and each school year thereafter>. A
31-10 greater amount for any school year may be provided by
31-11 appropriation.
31-12 Sec. 16.102. Cost of Education Adjustment. (a) The basic
31-13 allotment for each district is adjusted to reflect the geographic
31-14 variation in known resource costs and costs of education due to
31-15 factors beyond the control of the school district. <Except as
31-16 provided by this section, the adjustment is that provided under
31-17 Section 16.206 of this code.>
31-18 (b) The adjustment <for the 1991-1992 and 1992-1993 school
31-19 years> is the cost of education index and formula adopted in
31-20 December 1990 by the foundation school fund budget committee. <For
31-21 the 1991-1992 and 1992-1993 school years, the commissioner of
31-22 education shall recalculate the cost of education index for school
31-23 districts that are eligible for the adjustment under Section 16.103
31-24 of this code, excluding from the computation the calculation for
31-25 the diseconomies of scale component and substituting a value of
31-26 1.00. This subsection expires September 1, 1993.>
31-27 Sec. 16.103. SMALL DISTRICT ADJUSTMENT. (a) The basic
32-1 allotment for certain small districts is adjusted in accordance
32-2 with Subsections (b) and (c) of this section. In this section:
32-3 (1) "AA" is the district's adjusted allotment per
32-4 student;
32-5 (2) "ADA" is the number of students in average daily
32-6 attendance for which the district is entitled to an allotment under
32-7 Section 16.101 of this code; and
32-8 (3) "ABA" is the adjusted basic allotment determined
32-9 under Section 16.102 of this code.
32-10 (b) The basic allotment <average daily attendance> of a
32-11 school district that contains at least 300 square miles and has not
32-12 more than 1,600 students in average daily attendance is adjusted by
32-13 applying the formula:
32-14 (c) The basic allotment <average daily attendance> of a
32-15 school district that contains less than 300 square miles and has
32-16 not more than 1,600 students in average daily attendance is
32-17 adjusted by applying the formula:
32-18 <(e) This section expires September 1, 1993.>
32-19 Sec. 16.1031. USE OF SMALL DISTRICT ADJUSTMENT IN
32-20 CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
32-21 special allotment under Subchapter D of this chapter for a district
32-22 to which Section 16.103 of this code applies, a district's adjusted
32-23 basic allotment is considered to be the district's adjusted
32-24 allotment determined under Section 16.103. <This section expires
32-25 September 1, 1993.>
32-26 Sec. 16.104. Sparsity Adjustment. Notwithstanding Sections
32-27 16.101, 16.102, and 16.103 of this code, a school district that has
33-1 fewer than 130 students in average daily attendance shall be
33-2 provided an adjusted basic allotment on the basis of 130 average
33-3 daily attendance if it offers a kindergarten through grade 12
33-4 program and has prior or current year's average daily attendance of
33-5 at least 90 students or is 30 miles or more by bus route from the
33-6 nearest high school district. A district offering a kindergarten
33-7 through grade 8 program whose prior or current year's average daily
33-8 attendance was at least 50 students or which is 30 miles or more by
33-9 bus route from the nearest high school district shall be provided
33-10 an adjusted basic allotment on the basis of 75 average daily
33-11 attendance. An average daily attendance of 60 students shall be
33-12 the basis of providing the adjusted basic allotment if a district
33-13 offers a kindergarten through grade 6 program and has prior or
33-14 current year's average daily attendance of at least 40 students or
33-15 is 30 miles or more by bus route from the nearest high school
33-16 district. <This section expires September 1, 1993.>
33-17 SUBCHAPTER D. SPECIAL ALLOTMENTS
33-18 Sec. 16.151. Special Education. (a) For each full-time
33-19 equivalent student in average daily attendance in a special
33-20 education program under Subchapter N, Chapter 21, of this code, a
33-21 district is entitled to an annual allotment equal to the adjusted
33-22 basic allotment multiplied by a weight determined according to
33-23 instructional arrangement as follows:
33-24 Homebound...........................................5.0
33-25 Hospital class......................................5.0
33-26 Speech therapy.....................................7.11
33-27 Resource room.......................................2.7
34-1 Self-contained, mild and moderate, regular campus...2.3
34-2 Self-contained, severe, regular campus..............3.5
34-3 Self-contained, separate campus.....................2.7
34-4 Multidistrict class.................................3.5
34-5 Nonpublic day school................................3.5
34-6 Vocational adjustment class.........................2.3
34-7 Community class.....................................3.5
34-8 Mainstream.........................................0.25
34-9 (b) A special instructional arrangement for handicapped
34-10 students residing in care and treatment facilities, other than
34-11 state schools, whose parents or guardians do not reside in the
34-12 district providing education services shall be established under
34-13 the rules of the State Board of Education. The funding weight for
34-14 this arrangement shall be 5.0 for those students who receive their
34-15 education service on a local school district campus. A special
34-16 instructional arrangement for handicapped students residing in
34-17 state schools shall be established under the rules of the State
34-18 Board of Education with a funding weight of 5.0.
34-19 (c) <(e)> The State Board of Education by rule shall
34-20 prescribe the qualifications an instructional arrangement must meet
34-21 in order to be funded as a particular instructional arrangement
34-22 under this section.
34-23 (d) <(f)> In this section, "full-time equivalent student"
34-24 means 30 hours of contact a week between a special education
34-25 student and special education program personnel.
34-26 (e) <(g)> The State Board of Education shall adopt rules and
34-27 procedures governing contracts for residential placement of special
35-1 education students. The legislature shall provide by appropriation
35-2 for the state's share of the costs of those placements.
35-3 (f) <(h)> Funds allocated under this section, other than an
35-4 indirect cost allotment established under State Board of Education
35-5 rule, must be used in the special education program under
35-6 Subchapter N, Chapter 21, of this code.
35-7 (g) <(i)> In the determination of instructional arrangements
35-8 for students in residential instructional arrangements, the State
35-9 Board of Education shall develop arrangements that encourage
35-10 placement of students in the least restrictive environment
35-11 appropriate for their educational needs.
35-12 (h) <(j)> The Central Education Agency shall encourage the
35-13 placement of students in special education programs in the least
35-14 restrictive environment appropriate for their educational needs.
35-15 The Central Education Agency shall provide transitional support for
35-16 the movement of students from self-contained severe (totally
35-17 self-contained) to self-contained mild and moderate (partially
35-18 self-contained) instructional arrangements. For each student
35-19 placed in a partially self-contained classroom who was placed in a
35-20 totally self-contained classroom for at least two-thirds of the
35-21 prior year, a district will receive $2,500. This payment must be
35-22 used to facilitate the placement of the student in the less
35-23 restrictive environment (partially self-contained classroom). A
35-24 district may not receive more than one support payment for any
35-25 individual student. This support payment shall be forfeited by the
35-26 district if the student is returned to the totally self-contained
35-27 classroom instructional arrangement within one month of placement
36-1 into the partially self-contained classroom or within one year of
36-2 initial reclassification without adequate justification.
36-3 (i) <(k)> A school district that maintains for two
36-4 successive years a ratio of full-time equivalent students placed in
36-5 totally self-contained classrooms to the number of full-time
36-6 equivalent students placed in partially self-contained classrooms
36-7 that is 25 percent higher than the statewide average ratio shall be
36-8 reviewed by the Central Education Agency to determine the
36-9 appropriateness of student placement. To the extent that there are
36-10 net cost savings to the state resulting from the movement of
36-11 students from totally self-contained to partially self-contained,
36-12 as provided in Subsection (h) <(j)> of this section, those net
36-13 savings will be directed to regional education service centers to
36-14 provide technical assistance in accordance with Section 11.33(c) of
36-15 this code regarding the movement of students to less restrictive
36-16 environments to those school districts whose ratio of full-time
36-17 equivalent students placed in totally self-contained classrooms is
36-18 25 percent higher than the statewide average.
36-19 (j) <(l)> A student in a mainstream instructional
36-20 arrangement who is not also in another instructional arrangement as
36-21 provided in Subsection (a) of this section is provided the support
36-22 necessary for the student to remain in the regular classroom. This
36-23 support may include related services as defined in Section 21.502
36-24 of this code, special teaching, or other special education support
36-25 services while in the regular classroom.
36-26 Sec. 16.152. Compensatory Education Allotment. (a) For
36-27 each student who is educationally disadvantaged or who is a
37-1 nonhandicapped student residing in a residential placement facility
37-2 in a district in which the student's parent or legal guardian does
37-3 not reside, a district is entitled to an annual allotment equal to
37-4 the adjusted basic allotment multiplied by 0.2, and by 2.41 for
37-5 each full-time equivalent student who is in a remedial and support
37-6 program under Section 21.557 of this code because the student is
37-7 pregnant.
37-8 (b) For purposes of this section, the number of
37-9 educationally disadvantaged students is determined by averaging the
37-10 best six months' enrollment in the national school lunch program of
37-11 free or reduced-price lunches for the preceding school year.
37-12 (c) Funds allocated under this section, other than an
37-13 indirect cost allotment established under State Board of Education
37-14 rule, which shall not exceed 15 percent, must be used in providing
37-15 remedial and compensatory education programs under Section 21.557
37-16 of this code, and the district must account for the expenditure of
37-17 state funds by program and by campus. Funds allocated under this
37-18 section, other than the indirect cost allotment, shall only be
37-19 expended to improve and enhance programs and services funded under
37-20 the regular education program.
37-21 (d) The Central Education Agency shall evaluate the
37-22 effectiveness of remedial and support programs provided under
37-23 Section 21.557 of this code for students at risk of dropping out of
37-24 school.
37-25 (e) A school district in which the actual dropout rate in
37-26 any school year exceeds the state's dropout rate goal for that year
37-27 under Subsection (a) of Section 11.205 of this code shall, for the
38-1 school year immediately following that school year, allocate a
38-2 percentage of the district's allotment under this section to
38-3 remedial and support programs under Section 21.557 of this code for
38-4 students at risk of dropping out of school. The percentage
38-5 allocated to those programs must be at least equal to the state's
38-6 actual dropout rate for the preceding year. The programs must be
38-7 programs authorized by the State Board of Education. The Central
38-8 Education Agency shall provide to the district technical assistance
38-9 in reducing the district's dropout rate. At the request of a
38-10 district, the commissioner of education may exempt the district
38-11 from the requirements of this section if the commissioner finds
38-12 that special circumstances in the district merit the exemption.
38-13 (f) The commissioner of education may:
38-14 (1) retain a portion of the total amount allotted
38-15 under Subsection (a) of this section that the commissioner
38-16 considers appropriate to finance pilot programs under Section
38-17 11.191 of this code and to finance intensive remedial instruction
38-18 programs and study guides provided under Sections 21.552(b) and (c)
38-19 of this code; and
38-20 (2) reduce each district's tier one allotments in the
38-21 same manner described for a reduction in allotments under Section
38-22 16.254 of this code <allotment proportionately>.
38-23 (g) From the total amount of funds appropriated for
38-24 allotments under this section, the commissioner of education shall,
38-25 each fiscal year, withhold the amount of $10,000,000 and distribute
38-26 that amount for programs under Section 21.114 of this code. The
38-27 program established under that section is required only in school
39-1 districts in which the program is financed by funds distributed
39-2 under this section and any other funds available for the program.
39-3 (h) The commissioner of education shall coordinate the funds
39-4 withheld under Subsection (g) of this section and any other funds
39-5 available for the program and shall distribute those funds. To
39-6 receive funds for the program, a school district must apply to the
39-7 commissioner. The commissioner shall give a preference to the
39-8 districts that apply that have the highest concentration of
39-9 students who are pregnant or who are parents.
39-10 (i) The commissioner of education shall withhold funds
39-11 allocated under this section to a district that fails to timely
39-12 prepare or make available on request of a member of the general
39-13 public the report required under Section 21.557(i) of this code.
39-14 The commissioner may restore withheld funds only when the
39-15 commissioner is satisfied that the district has provided the
39-16 information requested.
39-17 (j) <(i)> After deducting the amount withheld under
39-18 Subsection (g) of this section from the total amount appropriated
39-19 for the allotment under Subsection (a) of this section, the
39-20 commissioner of education shall reduce each district's tier one
39-21 allotments in the same manner described for a reduction in
39-22 allotments under Section 16.254 of this code <allotment under
39-23 Subsection (a) proportionately> and shall allocate funds to each
39-24 district accordingly.
39-25 (k) <(j)> From the total amount of funds appropriated for
39-26 allotments under this section, the commissioner of education shall,
39-27 each fiscal year, withhold the amount of $5,000,000 and distribute
40-1 that amount for programs under Subchapter V, Chapter 21, of this
40-2 code. A program established under that subchapter is required only
40-3 in school districts in which the program is financed by funds
40-4 distributed under this section or other funds distributed by the
40-5 commissioner for a program under that subchapter.
40-6 (l) <(k)> The commissioner of education shall coordinate the
40-7 funds withheld under Subsection (k) <(j)> of this section and any
40-8 other funds available for the program and shall distribute those
40-9 funds. To receive funds for the program, a school district must
40-10 apply to the commissioner. The commissioner shall give a
40-11 preference to the districts that apply that have the highest
40-12 concentration of at-risk students. For each school year that a
40-13 school district receives funds under this section, the district
40-14 shall allocate an amount of local funds for school guidance and
40-15 counseling programs that is equal to or greater than the amount of
40-16 local funds that the school district allocated for that purpose
40-17 during the preceding school year.
40-18 (m) <(l)> After deducting the amount withheld under
40-19 Subsection (k) <(j)> of this section from the total amount
40-20 appropriated for the allotment under Subsection (a) of this
40-21 section, the commissioner of education shall reduce each district's
40-22 tier one allotments in the same manner described for a reduction in
40-23 allotments under Section 16.254 of this code <allotment under
40-24 Subsection (a) on a per pupil basis>.
40-25 Sec. 16.153. BILINGUAL EDUCATION ALLOTMENT. (a) For each
40-26 student in average daily attendance in a bilingual education or
40-27 special language program under Subchapter L, Chapter 21, of this
41-1 code, a district is entitled to an annual allotment equal to the
41-2 adjusted basic allotment multiplied by 0.1.
41-3 (b) Funds allocated under this section, other than an
41-4 indirect cost allotment established under State Board of Education
41-5 rule, must be used in providing bilingual education or special
41-6 language programs under Subchapter L, Chapter 21, of this code.
41-7 (c) A district's bilingual education or special language
41-8 allocation may be used only for program and pupil evaluation,
41-9 instructional materials and equipment, staff development,
41-10 supplemental staff expenses, salary supplements for teachers, and
41-11 other supplies required for quality instruction and smaller class
41-12 size.
41-13 Sec. 16.155. VOCATIONAL EDUCATION ALLOTMENT. (a) For each
41-14 full-time equivalent student in average daily attendance in an
41-15 approved vocational education program in grades nine through 12 or
41-16 in vocational education for the handicapped programs in grades
41-17 seven through 12, a district is entitled to an annual allotment
41-18 equal to the adjusted basic allotment multiplied by a weight of
41-19 1.37.
41-20 (b) In this section, "full-time equivalent student" means 30
41-21 hours of contact a week between a student and vocational education
41-22 program personnel.
41-23 (c) Funds allocated under this section, other than an
41-24 indirect cost allotment established under State Board of Education
41-25 rule, must be used in providing vocational education programs in
41-26 grades nine through 12 or vocational education for the handicapped
41-27 programs in grades seven through 12 under the provisions of
42-1 Sections 21.111, 21.1111, and 21.112 of this code.
42-2 (d) The indirect cost allotment established under board
42-3 rules shall first be effective for the 1991-1992 school year
42-4 consistent with the weight effective that year.
42-5 (e) The commissioner shall conduct a cost-benefit comparison
42-6 between vocational education programs and mathematics and science
42-7 programs.
42-8 (f) <(h)> Out of the total statewide allotment for
42-9 vocational education under this section, the commissioner of
42-10 education shall set aside an amount specified in the General
42-11 Appropriations Act, which may not exceed an amount equal to one
42-12 percent of the total amount appropriated, to support regional
42-13 vocational education planning committees established under Section
42-14 21.115(b) of this code. After deducting the amount set aside under
42-15 this subsection from the total amount appropriated for vocational
42-16 education under this section, the commissioner shall reduce each
42-17 district's tier one allotments <allotment> in the same manner
42-18 described for a reduction in allotments <state funds> under Section
42-19 16.254 <16.254(d)> of this code.
42-20 Sec. 16.156. TRANSPORTATION ALLOTMENT. (a) Each district
42-21 or county operating a transportation system is entitled to
42-22 allotments for transportation costs as provided by this section.
42-23 (b) As used in this section:
42-24 (1) "Regular eligible pupil" means a pupil who resides
42-25 two or more miles from his or her campus of regular attendance,
42-26 measured along the shortest route that may be traveled on public
42-27 roads, and who is not classified as an eligible handicapped pupil.
43-1 (2) "Eligible handicapped pupil" means a pupil who is
43-2 handicapped as defined in Section 21.503 of this code and who would
43-3 be unable to attend classes without special transportation
43-4 services.
43-5 (3) "Linear density" means the average number of
43-6 regular eligible pupils transported daily, divided by the approved
43-7 daily route miles traveled by the respective transportation system.
43-8 (c) Each district or county operating a regular
43-9 transportation system is entitled to an allotment based on the
43-10 daily cost per regular eligible pupil of operating and maintaining
43-11 the regular transportation system and the linear density of that
43-12 system. In determining the cost, the commissioner shall give
43-13 consideration to factors affecting the actual cost of providing
43-14 these transportation services in each district or county. The
43-15 average actual cost is to be computed by the commissioner of
43-16 education and included for consideration by the Foundation School
43-17 Fund Budget Committee and the legislature in the General
43-18 Appropriations Act. The allotment per mile of approved route may
43-19 not exceed the amount set by appropriation.
43-20 (d) A district or county may apply for and on approval of
43-21 the commissioner of education receive an additional amount of up to
43-22 10 percent of its regular transportation allotment to be used for
43-23 the transportation of children living within two miles of the
43-24 school they attend who would be subject to hazardous traffic
43-25 conditions if they walked to school. Each board of trustees shall
43-26 provide to the commissioner the definition of hazardous conditions
43-27 applicable to that district and shall identify the specific
44-1 hazardous areas for which the allocation is requested. A hazardous
44-2 condition exists where no walkway is provided and children must
44-3 walk along or cross a freeway or expressway, an underpass, an
44-4 overpass or a bridge, an uncontrolled major traffic artery, an
44-5 industrial or commercial area, or another comparable condition.
44-6 (e) The <state> commissioner of education may grant an
44-7 amount set by appropriation for private or commercial
44-8 transportation for eligible pupils from isolated areas. The need
44-9 for this type of transportation grant shall be determined on an
44-10 individual basis and the amount granted shall not exceed the actual
44-11 cost. The grants shall be made only in extreme hardship cases, and
44-12 no grants shall be made if the pupils live within two miles of an
44-13 approved school bus route.
44-14 (f) The cost of transporting vocational education students
44-15 from one campus to another inside a district or from a sending
44-16 district to another secondary public school for a vocational
44-17 program or an area vocational school or to an approved
44-18 post-secondary institution under a contract for instruction
44-19 approved by the Central Education Agency shall be reimbursed based
44-20 on the number of actual miles traveled times the district's
44-21 official extracurricular travel per mile rate as set by their local
44-22 board of trustees and approved by the Central Education Agency.
44-23 (g) A school district or county that provides special
44-24 transportation services for eligible handicapped pupils is entitled
44-25 to a state allocation paid on a previous year's cost-per-mile
44-26 basis. The maximum rate per mile allowable shall be set by
44-27 appropriation based on data gathered from the first year of each
45-1 preceding biennium. Districts may use a portion of their support
45-2 allocation to pay transportation costs, if necessary. The
45-3 commissioner of education may grant an amount set by appropriation
45-4 for private transportation to reimburse parents or their agents for
45-5 transporting eligible handicapped pupils. The mileage allowed
45-6 shall be computed along the shortest public road from the pupil's
45-7 home to school and back, morning and afternoon. The need for this
45-8 type transportation shall be determined on an individual basis and
45-9 shall be approved only in extreme hardship cases.
45-10 (h) The allocation for eligible regular students transported
45-11 by the regular transportation system shall be increased by five
45-12 percent for any district or county school board which has complied
45-13 with the provisions of Section 21.173 of this code in accordance
45-14 with rules adopted by the State Board of Education.
45-15 (i) Funds allotted under this section must be used in
45-16 providing transportation services.
45-17 (j) In the case of a district belonging to a county
45-18 transportation system, the district's transportation allotment for
45-19 purposes of determining a district's foundation school program
45-20 allocations shall be determined on the basis of the number of
45-21 approved daily route miles in the district multiplied by the
45-22 allotment per mile to which the county transportation system is
45-23 entitled.
45-24 Sec. 16.158. Career Ladder Allotment. (a) Each district is
45-25 entitled to an allotment for support of the career ladder equal to
45-26 its unadjusted average daily attendance multiplied by $90.
45-27 (b) An allotment under this section may be used only for the
46-1 purposes of career ladder supplements.
46-2 (c) From the funds designated for that purpose, the district
46-3 shall supplement the salary of each teacher above level one on the
46-4 career ladder. The district shall decide the amount of supplement
46-5 to be provided at each career ladder level.
46-6 (d) Money received under this section may not be used to
46-7 supplement the salary of an employee for directing cocurricular or
46-8 extracurricular activities.
46-9 Sec. 16.159. Gifted and Talented Student Allotment.
46-10 (a) For each student a school district serves in a Central
46-11 Education Agency approved program for gifted and talented students
46-12 under Subchapter Q, Chapter 21, of this code or, in the case of a
46-13 district that is developing a program in accordance with standards
46-14 established by the commissioner of education, for each student the
46-15 district identifies as gifted and talented under State Board of
46-16 Education criteria, a district is entitled to an annual allotment
46-17 equal to the district's adjusted basic allotment as determined
46-18 under Section 16.102 or Section 16.103 of this code, as applicable,
46-19 multiplied by .12 for each school year or a greater amount provided
46-20 by appropriation.
46-21 (b) Funds allocated under this section, other than the
46-22 amount that represents the program's share of general
46-23 administrative costs, must be used in providing approved programs
46-24 for gifted and talented students under Subchapter Q, Chapter 21, of
46-25 this code or, in the case of a district that has not yet
46-26 established a program, in developing programs for gifted and
46-27 talented students. Each district must account for the expenditure
47-1 of state funds as provided by rule of the State Board of Education.
47-2 If by the end of the 12th month after receiving an allotment for
47-3 developing a program a district has failed to implement an approved
47-4 program, the district must refund the amount of the allotment to
47-5 the agency within 30 days.
47-6 (c) Not more than five percent of a district's students in
47-7 average daily attendance are eligible for funding under this
47-8 section.
47-9 (d) If the amount of state funds for which school districts
47-10 are eligible under this section exceeds the amount of state funds
47-11 appropriated in any year for the programs, the commissioner of
47-12 education shall reduce each district's tier one allotments in the
47-13 same manner described for a reduction in allotments under Section
47-14 16.254 of this code <allotment on a pro rata basis>.
47-15 (e) If the total amount of funds allotted under this section
47-16 before a date set by rule of the State Board of Education is less
47-17 than the total amount appropriated for a school year, the
47-18 commissioner shall distribute the remainder proportionately to the
47-19 districts that have received an allotment, and no other districts
47-20 are eligible for an allotment for that school year.
47-21 (f) After each district has received allotted funds for this
47-22 program, the State Board of Education may use up to $500,000 of the
47-23 funds allocated under this section for programs such as Future
47-24 Problem Solving Olympics of the Mind, and Academic Decathlon, as
47-25 long as these funds are used to train personnel and provide program
47-26 services. To be eligible for funding under this section, a program
47-27 must be determined by the State Board of Education to provide
48-1 services that are effective and consistent with the state plan for
48-2 gifted and talented education.
48-3 Sec. 16.160. TECHNOLOGY FUNDS. (a) Developmental and
48-4 technology allotment allocations under the provisions of Chapter 14
48-5 are included in the Foundation School Program.
48-6 (b) Each district shall be allotted the amount specified in
48-7 Section 14.063 of this code after deductions by the commissioner of
48-8 education for the purposes of financing programs authorized under
48-9 Subchapter C, Chapter 14, of this code.
48-10 SUBCHAPTER F. ACCOUNTABLE COSTS OF EDUCATION
48-11 Sec. 16.201. Purpose. The accountable costs of education
48-12 studies are designed to support the development of the equalized
48-13 funding elements necessary to provide an efficient state and local
48-14 public school finance system which meets the state policy
48-15 established in Section 16.001 of this code and provides the
48-16 research basis for the equalized funding elements under the
48-17 provisions of Section 16.256 of this code.
48-18 <Sec. 16.202. STUDIES. On a biennial basis, the Legislative
48-19 Education Board and the Legislative Budget Board, with the
48-20 assistance of the Educational Economic Policy Center and the
48-21 Central Education Agency, shall complete each of the following
48-22 studies and develop recommended amounts where appropriate for each
48-23 year of the next biennium:>
48-24 <(1) a study of the fiscal neutrality of the system to
48-25 determine the status of the state and local finance system with
48-26 regard to the policies established under the provisions of Section
48-27 16.001 of this code, including recommendations for adjustments
49-1 necessary to maintain fiscal neutrality;>
49-2 <(2) the accountable costs per student to school
49-3 districts of providing educational programs, personnel, and other
49-4 operating costs that meet accreditation criteria and the provisions
49-5 of law and regulation;>
49-6 <(3) program cost differentials designed by program to
49-7 provide support for the added expense of high-cost courses or
49-8 programs for students participating in such courses or programs,
49-9 with the program funding level expressed as dollar amounts and as
49-10 weights applied to the adjusted basic allotment for the appropriate
49-11 year;>
49-12 <(4) transportation and career ladder allotments;>
49-13 <(5) the levels of tax effort necessary for each tier
49-14 of the Foundation School Program necessary to fulfill the
49-15 requirements of Sections 16.001 and 16.008 of this code; and>
49-16 <(6) capital outlay and debt service requirements and
49-17 formula elements for the requirements of Subchapter I of this
49-18 chapter or other provisions of this chapter.>
49-19 <Sec. 16.203. PROCEDURES. (a) The program cost
49-20 differentials developed jointly by the Legislative Education Board
49-21 and the Legislative Budget Board shall be submitted to the
49-22 foundation school fund budget committee for adoption beginning with
49-23 the 1993-1994 school year. If the foundation school fund budget
49-24 committee fails to adopt by April 1 the program cost differentials
49-25 for the following school year, the commissioner of education, after
49-26 considering the recommendations developed by those boards, shall
49-27 adopt program cost differentials.>
50-1 <(b) The commissioner of education shall provide appropriate
50-2 assistance to the boards for the calculation of the various funding
50-3 elements. Subject to review by the Legislative Education Board,
50-4 the commissioner of education shall retain from the allotments
50-5 under Sections 16.102 and 16.103 of this code and Subchapter D of
50-6 this chapter amounts appropriate to finance necessary additional
50-7 costs for the studies required under this subchapter.>
50-8 <(c) The boards may appoint advisory committees to assist in
50-9 the development of the various funding elements and studies
50-10 required under this subchapter. Advisory committee members serve
50-11 without compensation but are entitled to reimbursement for actual
50-12 and necessary expenses incurred in the performance of their duties.
50-13 Reimbursement shall be from funds available under Subsection (b) of
50-14 this section or from other funds available to the boards.>
50-15 <(d) In the studies relating to program cost differentials
50-16 the boards shall give special consideration to cost factors
50-17 associated with class size, laboratory expenses, materials,
50-18 equipment, teacher training, necessary salary supplementation, and
50-19 special services related to individual courses or groups of
50-20 courses.>
50-21 <Sec. 16.204. ><Naval Military Facility Impact><. (a) The
50-22 model on which a cost of education index is based must specifically
50-23 consider the impact of a significant new naval military facility on
50-24 each district in an impacted region.>
50-25 <(b) If the construction or operation of a significant new
50-26 naval military facility begins during a school year, the
50-27 Legislative Education Board and the Legislative Budget Board shall
51-1 recommend the adjustment of the basic allotment during that school
51-2 year to consider any impact of the facility on the cost of
51-3 education index of the districts in the impacted region.>
51-4 <(c) In this section, "significant new naval military
51-5 facility" and "impacted region" have the meanings assigned by
51-6 Section 4, Article 1, National Defense Impacted Region Assistance
51-7 Act of 1985 (Article 689a-4d, Vernon's Texas Civil Statutes).>
51-8 <(d) This section expires September 1, -1993.>
51-9 Sec. 16.205. Efficiency in Administration Report. (a) The
51-10 commissioner of education shall conduct a study to determine the
51-11 most appropriate and efficient method for reporting and monitoring
51-12 the allocation of resources by school districts.
51-13 (b) The study shall identify the most effective means for
51-14 calculating, monitoring, and reporting the proportion of resources
51-15 that school districts allocate for their administrative costs and
51-16 shall include administrator-teacher ratios.
51-17 (c) The study shall include a description of average
51-18 efficient administrative expenditures by districts with
51-19 consideration of district size and demographics.
51-20 (d) Prior to the beginning of each regular session of the
51-21 legislature, the agency shall provide a report with recommendations
51-22 to the Legislative Education Board and the legislature.
51-23 <(e) The study is an element of the study of accountable
51-24 costs of education under this subchapter.>
51-25 <Sec. 16.206. COST ADJUSTMENTS. (a) The lieutenant
51-26 governor shall appoint five members of the senate and the speaker
51-27 of the house of representatives shall appoint five members of the
52-1 house to a committee to conduct a study of certain costs of
52-2 providing public education as provided by this section. The
52-3 lieutenant governor and the speaker shall make the appointments not
52-4 later than September 1, 1991.>
52-5 <(b) The committee shall examine methods of adjusting for
52-6 specific resource cost variations caused by factors beyond the
52-7 control of school districts. The committee shall recommend
52-8 adjustments for these factors that will provide the most efficient
52-9 service delivery considering optimum district size, enrollment
52-10 growth, and other cost factors. For the purpose of the study, the
52-11 committee shall divide districts and campuses into a variety of
52-12 categories that may include region, size, area, density,
52-13 educational characteristics, and economic conditions.>
52-14 <(c) The committee may appoint one or more advisory panels
52-15 to assist the committee in conducting the study. Advisory panel
52-16 members serve without compensation but are entitled to
52-17 reimbursement for actual and necessary expenses incurred in the
52-18 performance of their duties.>
52-19 <(d) The committee shall recommend adjustments to the
52-20 Foundation School Program for resource cost variations caused by
52-21 factors beyond the control of school districts to the foundation
52-22 school fund budget committee not later than June 1, 1992. The
52-23 adjustments shall include:>
52-24 <(1) an adjustment to account for fast enrollment
52-25 growth and other factors relevant to a district's need for
52-26 facilities; and>
52-27 <(2) appropriate treatment of the calculation of
53-1 weighted students under Section 16.302 of this code.>
53-2 <(e) The foundation school fund budget committee by rule
53-3 shall adopt adjustments to the Foundation School Program for
53-4 resource cost variations beyond the control of school districts to
53-5 apply beginning with the 1993-1994 school year. The foundation
53-6 school fund budget committee shall report the adjustments adopted
53-7 to the legislature and the commissioner of education. If the
53-8 foundation school fund budget committee fails to adopt the
53-9 adjustments by November 1, 1992, the commissioner of education by
53-10 rule shall adopt adjustments not later than December 1, 1992.>
53-11 <(f) The rules adopted under this section apply beginning
53-12 with the 1993-1994 school year. If no rules are adopted under this
53-13 section, the basic allotment calculated under Sections 16.008 and
53-14 16.256(e) of this code shall be increased to reflect the costs
53-15 associated with the adjustments made by the cost of education index
53-16 and formula for the 1992-1993 school year.>
53-17 SUBCHAPTER G. FINANCING THE PROGRAM
53-18 Sec. 16.251. FINANCING; GENERAL RULE. (a) The sum of the
53-19 basic allotment under Subchapter C and<,> the special allotments
53-20 under Subchapter D, computed in accordance with this chapter,
53-21 constitute the tier one allotments. The sum of the tier one
53-22 allotments and the guaranteed yield allotments under Subchapter H,
53-23 computed in accordance with <the provisions of> this chapter,
53-24 constitute the total cost of the Foundation School Program.
53-25 (b) The program shall be financed by:
53-26 (1) ad valorem tax revenue generated by an equalized
53-27 uniform school <county education> district effort;
54-1 (2) ad valorem tax revenue generated by local school
54-2 district effort in excess of the equalized uniform school <county
54-3 education> district effort;
54-4 (3) state available school funds distributed in
54-5 accordance with law; and
54-6 (4) state funds appropriated for the purposes of
54-7 public school education and allocated to each district in an amount
54-8 sufficient to finance the cost of each district's Foundation School
54-9 Program not covered by other funds specified in this subsection.
54-10 (c) The commissioner of education shall compute for each
54-11 school district the total amount, if any, by which the district's
54-12 total revenue is reduced from one school year to the next because
54-13 of a change in the method of finance under this chapter. The
54-14 commissioner shall certify the amount of the reduction to the
54-15 school district for use in determining the school district's
54-16 rollback rate under Section 26.08, Tax Code.
54-17 Sec. 16.252. LOCAL SHARE OF PROGRAM COST (TIER ONE).
54-18 (a) Each school <county education> district's share of the
54-19 Foundation School Program shall be an amount determined by the
54-20 following formula:
54-21 where:
54-22 "LFA" is the school <county education> district's local
54-23 share;
54-24 "TR" is a tax rate which for each hundred dollars of
54-25 valuation is an effective tax rate of $0.86 <$0.72 for the
54-26 1991-1992 school year, $0.82 for the 1992-1993 school year, $0.92
54-27 for the 1993-1994 school year, and $1.00 for each school year
55-1 thereafter>; and
55-2 "DPV" is the taxable value of property in the school <county
55-3 education> district for the prior tax year determined under Section
55-4 11.86 of this code.
55-5 (b) The commissioner of education shall adjust the values
55-6 reported in the official report of the comptroller as required by
55-7 Section 5.09(a), <Property> Tax Code, to reflect reductions in
55-8 taxable value of property resulting from natural or economic
55-9 disaster after January 1 in the year in which the valuations are
55-10 determined. The decision of the commissioner of education shall be
55-11 final. An adjustment does not affect the local fund assignment of
55-12 any other school <county education> district.
55-13 (c) Appeals of district values shall be held pursuant to
55-14 Subsection (e) of Section 11.86 of this code.
55-15 (d) A <county education> district shall raise its total
55-16 local share of the foundation school program. <The funds shall be
55-17 reallocated to the school districts in the county education
55-18 district in the manner prescribed by Subchapter J of this chapter.>
55-19 (e) The commissioner of education shall hear appeals from
55-20 school <county education> districts which have experienced a rapid
55-21 decline in tax base used in calculating the local fund assignment,
55-22 exceeding eight percent of prior year, that is beyond the control
55-23 of the board of trustees of the <county education> district. The
55-24 commissioner of education may adjust the <county education>
55-25 district's taxable values for local fund assignment purposes for
55-26 such losses in value exceeding eight percent and thereby adjust the
55-27 local fund assignment to reflect the local current year taxable
56-1 value. The decision of the commissioner of education shall be
56-2 final. An adjustment does not affect the local fund assignment of
56-3 any other school <county education> district.
56-4 Sec. 16.254. DISTRIBUTION OF FOUNDATION SCHOOL FUND.
56-5 (a) Before September 1 of each odd-numbered year, the <The>
56-6 commissioner of education shall determine for each year of the
56-7 state fiscal biennium <annually>:
56-8 (1) the amount of money necessary to operate a
56-9 Foundation School Program in each school district;
56-10 (2) the amount of local funds each <due the> school
56-11 district must raise to meet its <from the> local fund assignment
56-12 <of the county education district>; and
56-13 (3) the amount of state available school funds
56-14 distributed to each school district.
56-15 (b) The commissioner shall base the determinations under
56-16 Subsection (a) of this section on the estimates provided to the
56-17 legislature under Section 16.2541 of this code for each school
56-18 district for each school year.
56-19 (c) The commissioner of education shall then notify <grant
56-20 to> each school district of the initial amount to which it is
56-21 entitled as a grant from the foundation school fund. The initial
56-22 entitlement is equal to <from the Foundation School Program
56-23 appropriation the amount of funds necessary to provide> the
56-24 difference between Subdivision (1) and the sum of Subdivisions (2)
56-25 and (3) of Subsection (a) of this section.
56-26 (d) <(c)> The commissioner shall approve warrants to each
56-27 school district equaling the amount of its initial entitlement
57-1 except as provided by this section <grant>. Warrants for all money
57-2 expended according to the provisions of this chapter shall be
57-3 approved and transmitted to treasurers or depositories of school
57-4 districts in the same manner as warrants for state apportionment
57-5 are transmitted.
57-6 (e) The commissioner shall compute adjusted entitlements for
57-7 districts as data for the school year becomes available. Not later
57-8 than January 31 of each year, the commissioner shall inform each
57-9 district of its adjusted entitlement for the current school year
57-10 and the amount of difference between the adjusted entitlement and
57-11 the initial entitlement. The commissioner may continue to compute
57-12 adjusted entitlements throughout the remainder of the fiscal year
57-13 as data becomes available.
57-14 (f) The commissioner shall increase or reduce the amount of
57-15 warrants for current year state aid to each school district by the
57-16 amount of difference between the district's adjusted entitlement
57-17 and its initial entitlement, not to exceed the funds appropriated
57-18 for the current fiscal year.
57-19 (g) Not later than January 31 of each odd-numbered year, the
57-20 commissioner shall determine whether the amount of funds
57-21 appropriated for foundation school fund purposes will be sufficient
57-22 to satisfy all estimated payments to be made in the second year of
57-23 the fiscal biennium. If the appropriated funds are not sufficient,
57-24 the commissioner shall certify the amount of difference to the
57-25 foundation school fund budget committee. The committee shall
57-26 propose to the legislature that the certified amount be transferred
57-27 to the foundation school fund from the economic stabilization fund
58-1 or any other available source and appropriated for the purpose of
58-2 increases in payments under this section.
58-3 (h) If the legislature fails to enact a transfer and
58-4 appropriation as proposed in Subsection (g) or fails to appropriate
58-5 additional funds, the commissioner shall reduce the total
58-6 allotments under Subchapters C and D for each district so that the
58-7 resulting computed state aid for the current year for all school
58-8 districts, plus adjustments to payments from prior years authorized
58-9 by this section, equals the amount available for distribution from
58-10 the foundation school fund, and so that each district's share of
58-11 the total reduction of school district allotments is equal to the
58-12 district's share of the taxable value of property, as determined
58-13 under Section 11.86, of all districts in the state. The
58-14 commissioner shall adjust warrants to each school district
58-15 accordingly. The following fiscal year, a district's allotments
58-16 are increased by an amount equal to the reduction in warrants made
58-17 under this subsection.
58-18 (i) If the legislature appropriates all or a portion of the
58-19 funds computed to be required in Subsection (g), the commissioner
58-20 shall increase warrants to districts immediately, not to exceed the
58-21 total funds appropriated.
58-22 (j) The commissioner may adjust the amount of warrants to
58-23 reflect the current year adjusted entitlement if a district is
58-24 egregiously harmed or benefited from an error in the computation of
58-25 the initial entitlement, including the estimates provided under
58-26 Section 16.2541.
58-27 <(d) Notwithstanding any other provision of this chapter, if
59-1 for any year the total state's share of the Foundation School
59-2 Program, as determined under this chapter, exceeds the total amount
59-3 appropriated for that year, the commissioner shall reduce the total
59-4 amount of state funds allocated to each district by an amount
59-5 determined by a method under which the application of the same
59-6 number of cents of increase in tax rate applied to the taxable
59-7 value of property of each district, as determined under Section
59-8 11.86 of this code, results in a levy for each district equal to
59-9 the amount deducted from that district's allocation.>
59-10 <(e) The commissioner of education shall compute for each
59-11 school district the total amount by which the district's allocation
59-12 of state funds is reduced under Subsection (d) of this section and
59-13 shall certify that amount to the district.>
59-14 Sec. 16.2541. ESTIMATES REQUIRED. (a) Not later than
59-15 October 1 of each even-numbered year:
59-16 (1) the Central Education Agency shall submit to the
59-17 foundation school fund budget committee and the legislature an
59-18 estimate of student enrollment by school district for the following
59-19 biennium; and
59-20 (2) the comptroller shall submit to the foundation
59-21 school fund budget committee and the legislature an estimate of the
59-22 total value of all taxable property in the state as determined
59-23 under Section 11.86 for the following biennium.
59-24 (b) The Central Education Agency and the comptroller shall
59-25 update the information provided to the legislature under Subsection
59-26 (a) not later than March 1 of each odd-numbered year.
59-27 Sec. 16.255. Falsification of Records; Report. (a) When,
60-1 in the opinion of the director of school audits of the Central
60-2 Education Agency, audits or reviews of accounting, enrollment, or
60-3 other records of a school district reveal deliberate falsification
60-4 of the records, or violation of the provisions of this chapter,
60-5 whereby the district's share of state funds allocated under the
60-6 authority of this chapter would be, or has been, illegally
60-7 increased, the director shall promptly and fully report the fact to
60-8 the State Board of Education and the state auditor.
60-9 (b) In the event of overallocation of state funds, as
60-10 determined by the State Board of Education or the state auditor by
60-11 reference to the director's report, the Central Education Agency
60-12 shall, by withholding from subsequent allocations of state funds,
60-13 recover from the district an amount, or amounts, equal to the
60-14 overallocation.
60-15 Sec. 16.2551. LIMIT ON ADMINISTRATIVE COSTS. (a) The
60-16 commissioner of education shall determine annually:
60-17 (1) an administrative cost ratio for school districts
60-18 with 1,600 or fewer students in average daily attendance; and
60-19 (2) an administrative cost ratio for school districts
60-20 with more than 1,600 students in average daily attendance.
60-21 (b) The commissioner of education may adjust the
60-22 administrative cost ratio of a district to allow for additional
60-23 administrative costs required by:
60-24 (1) the sparsity of the district; or
60-25 (2) students with special needs.
60-26 (c) Not later than September 1 of each year, the
60-27 commissioner of education shall notify each school district of its
61-1 administrative cost ratio for the following school year.
61-2 (d) Not later than February 1 of each year, based on a
61-3 school district's budget information reported as provided by
61-4 Section 16.007, the commissioner of education shall notify the
61-5 district if the district's budgeted administrative costs for the
61-6 next school year exceed its administrative cost ratio.
61-7 (e) The commissioner of education shall deduct from a school
61-8 district's tier one allotments an amount equal to the amount by
61-9 which the district's administrative costs exceed the amount
61-10 permitted by its administrative cost ratio. The commissioner shall
61-11 make a deduction under this subsection from the foundation school
61-12 fund payments to the district in the school year following the
61-13 school year in which the administrative cost ratio was exceeded.
61-14 If a school district does not receive a tier one allotment, the
61-15 district shall remit an amount equal to the excess to the
61-16 comptroller for deposit to the credit of the foundation school
61-17 fund.
61-18 (f) The commissioner of education may grant a waiver to a
61-19 school district that exceeds its administrative cost ratio if the
61-20 excess is justified by unusual circumstances.
61-21 (g) A school district shall include a statement of any
61-22 amount withheld or remitted under Subsection (e) in:
61-23 (1) the notification to property owners and parents
61-24 required by Section 21.258(a); and
61-25 (2) the district report card required by Section
61-26 21.259.
61-27 (h) In this section:
62-1 (1) "Administrative cost ratio" means a school
62-2 district's administrative costs divided by its instructional costs,
62-3 expressed as a percentage.
62-4 (2) "Administrative costs" includes all operating
62-5 expenses made from funds other than federal funds for general
62-6 administration, instructional administration, school administration
62-7 other than the cost of campus principals, curriculum and staff
62-8 development, communication and dissemination of information, data
62-9 processing services, and as determined by rule by the commissioner
62-10 of education, administrative costs associated with educational
62-11 cooperatives.
62-12 (3) "Instructional costs" includes all operating
62-13 expenses made from funds other than federal funds for the purpose
62-14 of instructing students, for instructional resources and media, and
62-15 for guidance and counseling.
62-16 Sec. 16.256. FOUNDATION SCHOOL FUND BUDGET COMMITTEE. (a)
62-17 The foundation school fund budget committee is composed of the
62-18 governor, the lieutenant governor, and the comptroller <of public
62-19 accounts>.
62-20 (b) On or before November 1 before each regular session of
62-21 the legislature, the budget committee shall determine and certify
62-22 to the comptroller <of public accounts> an amount of money to be
62-23 placed in the foundation school fund for the succeeding biennium
62-24 for the purpose of financing the Foundation School Program as
62-25 described in this code.
62-26 (c) The budget committee may, during the biennium, change
62-27 the estimate of money necessary to finance the Foundation School
63-1 Program.
63-2 (d) The foundation school fund budget committee shall adopt
63-3 rules for the calculation for each year of a biennium of the
63-4 qualified funding elements necessary to achieve the state funding
63-5 policy under Section 16.001 of this code not later than the
63-6 1994-1995 school year and for each year thereafter. In the
63-7 calculation of these funding elements, the committee shall consider
63-8 the report of the Legislative Education Board prescribed under
63-9 Section 16.008 of this code.
63-10 (e) The funding elements shall include:
63-11 (1) a basic allotment for the purposes of Section
63-12 16.101 of this code that represents the cost per student of a
63-13 regular education program that meets the basic criteria for an
63-14 accredited program including all mandates of law and regulation;
63-15 (2) adjustments designed to reflect the variation in
63-16 known resource costs and costs of education beyond the control of
63-17 school districts;
63-18 (3) appropriate program cost differentials and other
63-19 funding elements for the programs authorized under Subchapter D of
63-20 this chapter, with the program funding level expressed as dollar
63-21 amounts and as weights applied to the adjusted basic allotment for
63-22 the appropriate year;
63-23 (4) the maximum guaranteed level of qualified state
63-24 and local funds per student for the purposes of Subchapter H of
63-25 this chapter;
63-26 (5) the enrichment and facilities tax rate under
63-27 Subchapter H of this chapter;
64-1 (6) the formula elements for the funding formulas for
64-2 capital outlay and debt service under the provision of Subchapter I
64-3 of this chapter; and
64-4 (7) the calculation of weighted students in average
64-5 daily attendance under Section 16.302 of this code.
64-6 (f) Not <Beginning in 1992, not> later than November 1
64-7 preceding each regular session of the legislature, the foundation
64-8 school fund budget committee by rule shall adopt and report the
64-9 equalized funding elements calculated under this section to the
64-10 commissioner of education and the legislature. Before the
64-11 committee adopts the elements, the committee or the committee's
64-12 designees shall hold a public hearing on the recommendations of the
64-13 Legislative Education Board.
64-14 <(g) Notwithstanding other provisions of this section, the
64-15 funding elements adopted by the foundation school fund budget
64-16 committee for the 1993-1994 school year and the 1994-1995 school
64-17 year shall provide for appropriate transition from the program in
64-18 effect for the 1992-1993 school year.>
64-19 Sec. 16.258. Effect Of Appraisal Appeal. (a) If the final
64-20 determination of an appeal under Chapter 42, Tax Code, results in a
64-21 reduction in the taxable value of property that exceeds five
64-22 percent of the total taxable value of property in the school
64-23 district for the same tax year determined under Section 11.86 of
64-24 this code, the commissioner of education shall request the
64-25 comptroller to adjust its taxable property value findings for that
64-26 year consistent with the final determination of the appraisal
64-27 appeal.
65-1 (b) If the district would have received a greater amount
65-2 from the foundation school fund for the applicable school year
65-3 using the adjusted value, the commissioner shall add the difference
65-4 to subsequent distributions to the district from the foundation
65-5 school fund. An adjustment does not affect the local fund
65-6 assignment of any other district.
65-7 Sec. 16.260. FOUNDATION SCHOOL FUND TRANSFERS. (a) In this
65-8 section:
65-9 (1) "Category 1 school district" means a school
65-10 district having a wealth of less than one-half of the statewide
65-11 average wealth.
65-12 (2) "Category 2 school district" means a school
65-13 district having a wealth of at least one-half of the statewide
65-14 average wealth per pupil but not more than the statewide average
65-15 wealth.
65-16 (3) "Category 3 school district" means a school
65-17 district having a wealth of more than the statewide average wealth.
65-18 (4) "Wealth" means the taxable property values
65-19 reported by the comptroller to the commissioner of education under
65-20 Section 16.252 of this code divided by the number of students in
65-21 average daily attendance.
65-22 (b) Payments from the foundation school fund to each
65-23 category 1 school district shall be made as follows:
65-24 (1) 21 percent of the yearly entitlement of the
65-25 district shall be paid in two equal installments to be made on or
65-26 before the 25th day of September and October of a fiscal year;
65-27 (2) 57 percent of the yearly entitlement of the
66-1 district shall be paid in six equal installments to be made on or
66-2 before the 25th day of November, December, January, February,
66-3 March, and July; and
66-4 (3) 22 percent of the yearly entitlement of the
66-5 district shall be paid in two equal installments to be made on or
66-6 before the 25th day of April and May.
66-7 (c) Payments from the foundation school fund to each
66-8 category 2 school district shall be made as follows:
66-9 (1) 21 percent of the yearly entitlement of the
66-10 district shall be paid in two equal installments to be made on or
66-11 before the 25th day of September and October of a fiscal year;
66-12 (2) 38 percent of the yearly entitlement of the
66-13 district shall be paid in four equal installments to be made on or
66-14 before the 25th day of November, December, March, and July;
66-15 (3) seven percent of the yearly entitlement of the
66-16 <school> district shall be paid in two equal installments to be
66-17 made on or before the 25th day of January and February;
66-18 (4) 22 percent of the yearly entitlement of the
66-19 <school> district shall be paid in two equal installments to be
66-20 made on or before the 25th day of April and May; and
66-21 (5) 12 percent of the yearly entitlement of the
66-22 <school> district shall be paid in two equal installments to be
66-23 made on or before the 25th day of June and August.
66-24 (d) Payments from the foundation school fund to each
66-25 category 3 school district shall be made as follows:
66-26 (1) 21 percent of the yearly entitlement of the
66-27 district <school> shall be paid in two equal installments to be
67-1 made on or before the 25th day of September and October of a fiscal
67-2 year;
67-3 (2) 57 percent of the yearly entitlement of the
67-4 district <school> shall be paid in six equal installments to be
67-5 made on or before the 25th day of November, December, March, June,
67-6 July, and August; and
67-7 (3) 22 percent of the yearly entitlement of the
67-8 <school> district shall be paid in two equal installments to be
67-9 made on or before the 25th day of April and May.
67-10 (e) The amount of any installment required by this section
67-11 may be modified to provide a school district with the proper amount
67-12 to which the district may be entitled by law and to correct errors
67-13 in the allocation or distribution of funds. If an installment
67-14 under this section is required to be equal to other installments,
67-15 the amount of other installments may be adjusted to provide for
67-16 that equality. A payment under this section is not invalid because
67-17 it is not equal to other installments.
67-18 SUBCHAPTER H. GUARANTEED YIELD PROGRAM (TIER TWO)
67-19 Sec. 16.301. PURPOSE. The purpose of the guaranteed yield
67-20 component of the Foundation School Program is to provide each
67-21 school district with the opportunity to supplement the basic
67-22 program at a level of its own choice and with access to additional
67-23 funds for facilities. An allotment under this subchapter may be
67-24 used for any legal purpose, including capital outlay and debt
67-25 service.
67-26 Sec. 16.302. ALLOTMENT. <(a)> Each school district is
67-27 guaranteed a specified amount per weighted student in state and
68-1 local funds for each cent of tax effort over that required for the
68-2 district's local fund assignment <of the county education district
68-3 in which the school district is located> up to the maximum level
68-4 specified in this subchapter. The amount of state support, subject
68-5 <only> to the maximum amount under Section 16.303 of this code, is
68-6 determined by the formula:
68-7 where:
68-8 "GYA" is the guaranteed yield amount of state funds to be
68-9 allocated to the district;
68-10 "GL" is the dollar amount guaranteed level of state and local
68-11 funds per weighted student per cent of tax effort, which is $22
68-12 <$21.50 for the 1991-1992 school year, $22.50 for the 1992-1993
68-13 school year, $26 for the 1993-1994 school year, and $28 for each
68-14 school year thereafter,> or a greater amount for any year provided
68-15 by appropriation, or a greater amount adopted by the foundation
68-16 school fund budget committee under Section 16.256(d) of this code
68-17 <for the 1993-1994 or 1994-1995 school year or thereafter>;
68-18 "WADA"<, except as provided by Section 16.206 of this code,>
68-19 is the number of weighted students in average daily attendance,
68-20 which is calculated by dividing the sum of the school district's
68-21 allotments under Subchapters C and D of this chapter, less any
68-22 allotments to the district for transportation, career ladder
68-23 supplements, or technology and 50 percent of the adjustment under
68-24 Section 16.102 of this code, by the basic allotment for the
68-25 applicable year;
68-26 "DTR" is the district enrichment and facilities tax rate of
68-27 the school district, which is determined by subtracting the
69-1 district's local fund assignment from <dividing> the total amount
69-2 of taxes collected by the school district for the applicable school
69-3 year and dividing the difference by the quotient of the district's
69-4 taxable value of property as determined under Section 11.86 of this
69-5 code divided by 100; and
69-6 "LR" is the local revenue, which is determined by multiplying
69-7 "DTR" by the quotient of the district's taxable value of property
69-8 as determined under Section 11.86 of this code divided by 100.
69-9 <(b) Beginning with the 1993-1994 school year, if the
69-10 program cost differentials developed jointly by the Legislative
69-11 Education Board and the Legislative Budget Board under Section
69-12 16.203 of this code and the adjustments studied under Section
69-13 16.206 of this code are not adopted by the foundation school fund
69-14 budget committee or the commissioner of education, the amount
69-15 guaranteed under this section is an amount per student rather than
69-16 per weighted student and a school district's average daily
69-17 attendance ("ADA") under Section 16.006 of this code is substituted
69-18 for "WADA" in the formula under Subsection (a) of this section.>
69-19 Sec. 16.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX
69-20 RATE. The district enrichment and facilities tax rate ("DTR")
69-21 under Section 16.302 of this code may not exceed $0.42 per $100 of
69-22 valuation, <$0.45> or a greater amount <for 1993-1994 and 1994-1995
69-23 school years or thereafter as> adopted by the foundation school
69-24 fund budget committee under Section 16.256(d) of this code.
69-25 Sec. 16.304. COMPUTATION OF AID FOR DISTRICT ON MILITARY
69-26 RESERVATION OR AT STATE SCHOOL. State assistance under this
69-27 subchapter for a school district located on a federal military
70-1 installation or at Moody State School is computed using the average
70-2 tax rate and property value per student of school districts in the
70-3 county, as determined by the commissioner of education.
70-4 SUBCHAPTER I. CAPITAL OUTLAY AND DEBT SERVICE
70-5 Sec. 16.401. Inventory of School Facilities. (a) The State
70-6 Board of Education shall establish a statewide inventory of school
70-7 facilities and shall update the inventory on a periodic basis.
70-8 (b) The inventory shall include information on the
70-9 condition, use, type, and replacement cost of public school
70-10 facilities in this state.
70-11 Sec. 16.402. Standards. The State Board of Education shall
70-12 establish standards for adequacy of school facilities. The
70-13 standards shall include requirements related to space, educational
70-14 adequacy, and construction quality. All facilities constructed
70-15 after September 1, 1992, must meet the standards in order to be
70-16 financed with state or local tax funds.
70-17 Sec. 16.403. Advisory Committee. The State Board of
70-18 Education shall appoint a committee composed of 15 persons
70-19 knowledgeable of various aspects of school facility planning,
70-20 construction, renovation, and financing. The advisory committee
70-21 shall provide the board and the commissioner with assistance on the
70-22 development of the inventory system, the creation of facility
70-23 standards, and the conduct of facility research related to current
70-24 and future roles of the state in the provision of financial and
70-25 technical assistance to school districts. The members of the
70-26 committee shall serve without compensation but may be reimbursed
70-27 for actual and necessary expenses.
71-1 <SUBCHAPTER J. COUNTY EDUCATION DISTRICT DISTRIBUTIONS>
71-2 <Sec. 16.501. TIER ONE. (a) The commissioner of education
71-3 shall notify each county education district of the total amount of
71-4 funds that each school district in the county education district is
71-5 entitled to receive under tier one of the Foundation School
71-6 Program.>
71-7 <(b) For tier one, the board of trustees of each county
71-8 education district shall distribute the funds collected from the
71-9 tax levied by the county education district under Section 20.945 of
71-10 this code to the school districts in the county on the basis of the
71-11 component districts' share of the taxable value of property of the
71-12 county education district with the provision that no component
71-13 district shall receive funds in excess of the cost of tier one less
71-14 the distribution of the available school fund.>
71-15 <(c)(1) Notwithstanding Subsection (b) of this section, for
71-16 the 1991-1992, 1992-1993, and 1993-1994 school years, for tier one
71-17 the board of trustees of each county education district shall
71-18 distribute the funds collected from the tax levied by the county
71-19 education district under Section 20.945 of this code to the school
71-20 districts in the county education district as follows:>
71-21 <(A) to those school districts that did not
71-22 receive foundation school funds for the 1990-1991 school year in
71-23 which the amount of revenue per weighted student from local funds
71-24 and the available school fund for the 1990-1991 school year exceeds
71-25 the total amount of revenue per weighted student to which the
71-26 district is entitled under the Foundation School Program at a tax
71-27 rate equal to the maximum tax rate authorized under Section 20.09
72-1 of this code, the county education district shall distribute an
72-2 amount equal to the difference between the amount of revenue per
72-3 weighted student in the district in the 1990-1991 school year from
72-4 local funds and the available school fund and the levy that results
72-5 from the application of the maximum rate authorized under Section
72-6 20.09 of this code to the district's taxable value of property; and>
72-7 <(B) the county education district shall
72-8 apportion the remaining funds collected from the tax levy to each
72-9 school district in the county education district on the basis of
72-10 the component districts' share of the taxable value of property of
72-11 the county education district with the provision that no component
72-12 district shall receive funds in excess of the cost of tier one less
72-13 the distribution of the available school fund.>
72-14 <(2) This subsection expires September 1, 1994.>
72-15 <(d) If the total amount available for distribution by the
72-16 county education district exceeds the county education district's
72-17 local share under Section 16.252 of this code, the county education
72-18 district shall retain the excess amount for distribution in
72-19 succeeding years.>
72-20 <(e) If the total amount available for distribution by the
72-21 county education district is less than the county education
72-22 district's local share under Section 16.252 of this code, the
72-23 distributions shall be made under rules adopted by the commissioner
72-24 of education.>
72-25 <Sec. 16.502. COLLECTION AND DISTRIBUTION SCHEDULES. The
72-26 commissioner of education shall establish a schedule for the
72-27 distribution of funds to each school district under this
73-1 subchapter.>
73-2 <Sec. 16.503. DEFINITION. In this subchapter, "taxable
73-3 value of property" is the value determined under Section 11.86 of
73-4 this code.>
73-5 SECTION 2.02. Sections 14.063(b) and (e), Education Code,
73-6 are amended to read as follows:
73-7 (b) Each school district is entitled to an annual allotment
73-8 for the purposes provided under Section 14.064 of this code equal
73-9 to its unadjusted average daily attendance multiplied by<:>
73-10 <(1)> $30 <for the 1992-1993 school year, or a greater
73-11 amount provided by appropriation;>
73-12 <(2) $35 for the 1993-1994 school year, or a greater
73-13 amount provided by appropriation;>
73-14 <(3) $40 for the 1994-1995 school year, or a greater
73-15 amount provided by appropriation;>
73-16 <(4) $45 for the 1995-1996 school year, or a greater
73-17 amount provided by appropriation; and>
73-18 <(5) $50 for the 1996-1997 school year and for each
73-19 school year thereafter>, or a greater amount provided by
73-20 appropriation.
73-21 (e) If an insufficient amount is available in the fund for
73-22 the state's share of the allotments under Subsection (b) of this
73-23 section, the agency shall reduce each district's allotment in the
73-24 same manner described for a reduction in allotments <by application
73-25 of the formula adopted> under Section 16.254 <16.254(d)> of this
73-26 code.
73-27 SECTION 2.03. Sections 20.09(a) and (b), Education Code, are
74-1 amended to read as follows:
74-2 (a) A <Except as provided by Subsections (c) and (d) of this
74-3 section, a> school district may not impose a total tax rate on the
74-4 $100 valuation of taxable property that <results in a levy that>
74-5 exceeds $1.50 minus the local fund assignment tax rate required
74-6 under Section 16.252 of this code. <the levy that results from
74-7 applying the following rate to the district's taxable value of
74-8 property as determined under Section 11.86 of this code:>
74-9 <(1) $0.78 for the 1991 tax year;>
74-10 <(2) $0.68 for the 1992 tax year;>
74-11 <(3) $0.58 for the 1993 tax year; and>
74-12 <(4) $0.50 for each subsequent tax year.>
74-13 (b) A district may impose taxes under this chapter on the
74-14 residence homestead of a person whose taxes for general elementary
74-15 and secondary public school purposes are limited under Article
74-16 VIII, Section 1-b(d), of the Texas Constitution, only to the extent
74-17 that the imposition, when added to the taxes imposed on the
74-18 homestead by the school <county education> district for the local
74-19 fund assignment, does not increase the person's tax liability for
74-20 those purposes in violation of the constitutional limit.
74-21 SECTION 2.04. Section 26.08, Tax Code, is amended to read
74-22 as follows:
74-23 Sec. 26.08. Election to Limit School Taxes. (a) If the
74-24 governing body of a school district adopts a rate that exceeds the
74-25 sum of the district's effective maintenance rate, the rate of $0.06
74-26 <$0.08>, and the district's current debt rate, the qualified voters
74-27 of the district at <by petition may require that> an election <be>
75-1 held for that purpose must <to> determine whether or not to limit
75-2 the tax rate the governing body may adopt for the following year.
75-3 When increased expenditure of funds by a school district is
75-4 necessary to respond to a disaster, such as a tornado, hurricane,
75-5 flood, or other calamity (not including a drought) which has
75-6 impacted a school district and the governor has requested federal
75-7 disaster assistance for the area in which the school district is
75-8 located, an election <a petition> is not required <valid> under
75-9 this section to repeal a tax increase adopted the next time the
75-10 district adopts a tax rate after the date the disaster occurs.
75-11 (b) The <A petition is valid only if:>
75-12 <(1) it states that it is intended to require an
75-13 election in the school district on the question of limiting the tax
75-14 rate for the following year;>
75-15 <(2) it is signed by a number of qualified voters of
75-16 the school district equal to at least 10 percent of the number of
75-17 qualified voters of the district according to the most recent
75-18 official list of qualified voters not counting the signatures of
75-19 voters gathered by a person who received compensation for
75-20 circulating the petition; and>
75-21 <(3) it is submitted to the governing body on or
75-22 before the 90th day after the date on which the governing body
75-23 adopted the tax rate for the current year.>
75-24 <(c) Not later than the 20th day after the day a petition is
75-25 submitted, the governing body shall determine whether or not the
75-26 petition is valid and pass a resolution stating its finding. If
75-27 the governing body fails to act within the time allowed, the
76-1 petition is treated as if it had been found valid.>
76-2 <(d) If the> governing body <finds that the petition is
76-3 valid (or fails to act within the time allowed), it> shall order
76-4 that the <an> election be held in the school district on a date not
76-5 less than 30 or more than 90 days after the <last> day on which it
76-6 adopted the tax rate <could have acted to approve or disapprove the
76-7 petition>. A state law requiring local elections to be held on a
76-8 specified date does not apply to the election unless a specified
76-9 date falls within the time permitted by this section. At the
76-10 election, the ballots shall be prepared to permit voting for or
76-11 against the proposition: "Limiting the ad valorem tax rate in
76-12 (name of school district) for (the following year)."
76-13 (c) <(e)> If a majority of the qualified voters voting on
76-14 the question in the election favor the proposition, the governing
76-15 body may not adopt a tax rate in the following year that exceeds
76-16 the rollback tax rate calculated for that year using the following
76-17 formula:
76-18 RATE FOR ELECTION YEAR) + $0.06 <$0.08>) + CURRENT DEBT RATE
76-19 where "election year" denotes amounts used in calculating the
76-20 rollback tax rate in the year in which the tax increase that
76-21 required <initiated> the election <referendum> occurred rather than
76-22 the year in which the calculation occurs.
76-23 (d) <(f)> For purposes of this section, local tax funds
76-24 dedicated to a junior college district under Section 20.48(e),
76-25 <Texas> Education Code, shall be eliminated from the calculation of
76-26 the tax rate adopted by the governing body of the school district.
76-27 However, the funds dedicated to the junior college district are
77-1 subject to Section 26.085 of this code.
77-2 (e) <(g)> If a school district is certified by the
77-3 commissioner of education under Section 16.251(c), Education Code,
77-4 to have been subject to a reduction in total revenue for the school
77-5 year ending on August 31 of the tax year:
77-6 (1) the district's effective maintenance and
77-7 operations rate for the tax year is calculated as provided by
77-8 Section 26.012, except that last year's levy is reduced by the
77-9 amount of taxes imposed in the preceding year, if any, to offset
77-10 the amount of any reduction certified by the commissioner of
77-11 education under Section 16.251(c), Education Code, for the school
77-12 year ending on August 31 of the preceding year; and
77-13 (2) the district's rollback tax rate for the tax year
77-14 calculated as provided by Section 26.04 or by Subsection (c) <(e)>
77-15 of this section, as applicable, is increased by the tax rate that,
77-16 if applied to the current total value for the school district,
77-17 would impose taxes in an amount equal to the amount of the
77-18 reduction certified by the commissioner of education under Section
77-19 16.251(c), Education Code, for the school year ending on August 31
77-20 of the tax year.
77-21 (f) <(i)> If a school district, <is certified by the
77-22 commissioner of education> under Section 16.254(h) <16.254(e)>,
77-23 Education Code, is <to have been> subject to a reduction in state
77-24 funds for the school year ending on August 31 of the tax year:
77-25 (1) the district's effective maintenance and
77-26 operations rate for the tax year is calculated as provided by
77-27 Section 26.012, except that last year's levy is reduced by the
78-1 amount of taxes imposed in the preceding year, if any, to offset
78-2 the amount of any reduction in state funds <certified by the
78-3 commissioner of education> under Section 16.254(h), Education Code,
78-4 for the school year ending on August 31 of the preceding year; and
78-5 (2) the district's rollback tax rate for the tax year
78-6 calculated as provided by Section 26.04 or by Subsection (c) <(e)>
78-7 of this section, as applicable, is increased by the tax rate that,
78-8 if applied to the current total value for the school district,
78-9 would impose taxes in an amount equal to the amount of the
78-10 reduction in state funds <certified by the commissioner of
78-11 education> under Section 16.254(h), Education Code, for the school
78-12 year ending on August 31 of the tax year.
78-13 (g) <(j)> In a school district that received distributions
78-14 from an equalization tax imposed under Chapter 18, Education Code,
78-15 the effective rate of that tax as of the date of the county-unit
78-16 system's abolition is added to the district's effective maintenance
78-17 and operations rate under Subsections (a) and (c) <(e)> of this
78-18 section in the calculation of the district's rollback tax rate.
78-19 (h) Notwithstanding Subsection (a), an election to limit
78-20 taxes under this section for the 1993 tax year is not required
78-21 unless the governing body of the school district adopts a tax rate
78-22 that exceeds the sum of:
78-23 (1) the district's effective maintenance rate;
78-24 (2) the rate of $0.06;
78-25 (3) the district's current debt rate; and
78-26 (4) the rate that, applied to the district's current
78-27 total value, would impose taxes in an amount equal to the amount of
79-1 county education district taxes received by the school district for
79-2 the 1992-1993 school year.
79-3 (i) For the 1993 tax year, the rollback tax rate of a school
79-4 district calculated under Subsection (c) is increased by the rate
79-5 that, applied to the district's current total value, would impose
79-6 taxes in an amount equal to the amount of county education district
79-7 taxes received by the school district for the 1992-1993 school
79-8 year.
79-9 (j) This subsection and Subsections (h) and (i) expire
79-10 January 1, 1995.
79-11 ARTICLE 3
79-12 SECTION 3.01. Subchapter H, Chapter 21, Education Code, is
79-13 amended by adding Section 21.259 to read as follows:
79-14 Sec. 21.259. DISTRICT REPORT CARD. (a) Not later than
79-15 December 1 of each year, the Central Education Agency shall prepare
79-16 and distribute to each school district a district report card. A
79-17 district report card must:
79-18 (1) be based on the most current data available;
79-19 (2) for each performance indicator listed in
79-20 Subsection (b) of this section, compare the district to three other
79-21 school districts randomly chosen by the agency that:
79-22 (A) have a similar ratio of taxable property per
79-23 student; and
79-24 (B) have a similar number of students, with
79-25 substantially similar demographics; and
79-26 (3) be clearly and concisely written and without
79-27 extraneous information.
80-1 (b) The performance indicators must compare school districts
80-2 based on:
80-3 (1) student performance on a criterion-referenced
80-4 assessment instrument administered under Section 21.551;
80-5 (2) student performance on a norm-referenced
80-6 assessment instrument administered under Section 21.551;
80-7 (3) dropout rates in grades seven through 12;
80-8 (4) student/teacher ratios in kindergarten through
80-9 grade four;
80-10 (5) administrative, instructional, and total
80-11 expenditures per student; and
80-12 (6) a statement of the amount, if any, by which the
80-13 district exceeded its administrative cost ratio as provided by
80-14 Section 16.2551.
80-15 (c) The commissioner of education shall adopt rules for
80-16 implementing an objective comparison of the performance indicators
80-17 listed in Subsection (b), including the uniform computation of
80-18 dropout rates and administrative and instructional expenditures.
80-19 (d) Not later than the last day of the school year, a school
80-20 district shall deliver a copy of the district's report card to the
80-21 parent of or person standing in parental relation to each student
80-22 in the district with the student's grade notice under Section
80-23 21.722.
80-24 SECTION 3.02. Subchapter O, Chapter 21, Education Code, is
80-25 amended by adding Section 21.562 to read as follows:
80-26 Sec. 21.562. OPTIONAL EXTENDED YEAR PROGRAM. (a) A school
80-27 district may apply to the commissioner of education for approval to
81-1 provide an extended year program for a period not to exceed 45 days
81-2 for students in kindergarten through grade level eight who would
81-3 otherwise not be promoted.
81-4 (b) In order to provide the funding necessary for a program
81-5 approved under this section, with the approval of the commissioner,
81-6 a school district may provide a number of days of instruction for
81-7 students during the regular school term that is up to five days
81-8 less than the number otherwise required under Section 16.052(a).
81-9 (c) The commissioner may adopt rules for the administration
81-10 of programs provided under this section.
81-11 Section 3.03. Section 21.032(c), Education Code, is amended
81-12 to read as follows:
81-13 (c) Unless specifically exempted by Section 21.033 of this
81-14 code, a student enrolled in a public school district must attend an
81-15 extended year program for which the student is eligible that is
81-16 provided by the district for students identified as likely not to
81-17 be promoted to the next grade level or tutorial classes required by
81-18 the district under Section 21.103(b) of this code. A district
81-19 shall provide transportation services to each student required
81-20 under this section to attend an extended year program who would be
81-21 eligible for transportation services during a regular school term.
81-22 A school district is not required to provide transportation
81-23 services to accommodate <such> students required under this section
81-24 to attend tutorial classes.
81-25 ARTICLE 4
81-26 SECTION 4.01. Section 11.86(a), Education Code, is amended
81-27 to read as follows:
82-1 (a) The comptroller shall conduct an annual study using
82-2 comparable sales and generally accepted auditing and sampling
82-3 techniques to determine the total value of all taxable property in
82-4 each <county education> school district <and each of its component
82-5 school districts>. The study shall determine the taxable value of
82-6 all property and of each category of property within the district
82-7 and the productivity value of all land that qualifies for appraisal
82-8 on the basis of its productive capacity and for which the owner has
82-9 applied for and received a productivity appraisal. In conducting
82-10 the study, the comptroller shall review the appraisal standards,
82-11 procedures, and methodology used by each appraisal district to
82-12 determine the taxable value of property in each school district.
82-13 The review must test the validity of the taxable values assigned to
82-14 each category of property by the appraisal district:
82-15 (1) using, if appropriate, samples selected through
82-16 generally accepted sampling techniques; and
82-17 (2) according to generally accepted standard
82-18 valuation, statistical compilation, and analysis techniques. If
82-19 the comptroller finds in the annual study that generally accepted
82-20 appraisal standards and practices were used by the appraisal
82-21 district in valuing a particular category of property, and that the
82-22 taxable values assigned to each category of property by the
82-23 appraisal district are valid, the appraisal roll value of that
82-24 category of property is presumed to represent taxable value. In
82-25 the absence of such a presumption, the comptroller shall estimate
82-26 the taxable value of that category of property using generally
82-27 accepted standard valuation, statistical compilation, and analysis
83-1 techniques. For the purposes of this section, "taxable value"
83-2 means market value less:
83-3 (1) the total dollar amount of any exemptions of part
83-4 but not all of the value of taxable property required by the
83-5 constitution or a statute that a district lawfully granted in the
83-6 year that is the subject of the study;
83-7 (2) the total dollar amount of any exemptions granted
83-8 within a reinvestment zone under agreements authorized by the
83-9 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
83-10 Code);
83-11 (3) the total dollar amount of any captured appraised
83-12 value of property that is located in a reinvestment zone and that
83-13 is eligible for tax increment financing under the Tax Increment
83-14 Financing Act (Chapter 311, Tax Code);
83-15 (4) the total dollar amount of any exemptions granted
83-16 under Section 11.251, Tax Code;
83-17 (5) the difference between the market value and the
83-18 productivity value of land that qualifies for appraisal on the
83-19 basis of its productive capacity, except that the productivity
83-20 value may not exceed the fair market value of the land;
83-21 (6) the portion of the appraised value of residence
83-22 homesteads of the elderly on which school district taxes are not
83-23 imposed in the year that is the subject of the study, calculated as
83-24 if the residence homesteads were appraised at the full value
83-25 required by law;
83-26 (7) a portion of the market value of property not
83-27 otherwise fully taxable by the district at market value because of
84-1 action required by statute or the Texas Constitution that, if the
84-2 tax rate adopted by the district is applied to it, produces an
84-3 amount equal to the difference between the tax that the district
84-4 would have imposed on the property if the property were fully
84-5 taxable at market value and the tax that the district is actually
84-6 authorized to impose on the property; and
84-7 (8) the market value of all tangible personal
84-8 property, other than manufactured homes, owned by a family or
84-9 individual and not held or used for the production of income.
84-10 SECTION 4.02. Section 21.558, Education Code, is amended to
84-11 read as follows:
84-12 Sec. 21.558. COST. The cost of preparing, administering, or
84-13 grading the assessment instruments shall be paid from the
84-14 compensatory aid provided by Section 16.152 of this code, and each
84-15 district shall bear the cost in the same manner described for a
84-16 reduction in allotments under Section 16.254 <on the basis of the
84-17 number of students in the district to whom the instruments are
84-18 administered>. If a district does not receive an allocation of
84-19 compensatory aid, the commissioner of education shall subtract the
84-20 cost from the district's other foundation school fund allocations.
84-21 SECTION 4.03. Section 317.005(f), Government Code, is
84-22 amended to read as follows:
84-23 (f) The governor or board may adopt an order under this
84-24 section withholding or transferring any portion of the total amount
84-25 appropriated to finance the foundation school program for a fiscal
84-26 year. The governor or board may not adopt such an order if it
84-27 would result in an allocation of money between particular programs
85-1 or statutory allotments under the foundation school program
85-2 contrary to the statutory proration formula provided by Section
85-3 16.254(h) <16.254(d)>, Education Code. The governor or board may
85-4 transfer an amount to the total amount appropriated to finance the
85-5 foundation school program for a fiscal year and may increase the
85-6 basic allotment. The governor or board may adjust allocations of
85-7 amounts between particular programs or statutory allotments under
85-8 the foundation school program only for the purpose of conforming
85-9 the allocations to actual pupil enrollments or attendance.
85-10 SECTION 4.04. Section 1.04(12), Tax Code, is amended to read
85-11 as follows:
85-12 (12) "Taxing unit" means a county, an incorporated
85-13 city or town (including a home-rule city), a school district, <a
85-14 county education district,> a special district or authority
85-15 (including a junior college district, a hospital district, a
85-16 district created by or pursuant to the Water Code, a mosquito
85-17 control district, a fire prevention district, or a noxious weed
85-18 control district), or any other political unit of this state,
85-19 whether created by or pursuant to the constitution or a local,
85-20 special, or general law, that is authorized to impose and is
85-21 imposing ad valorem taxes on property even if the governing body of
85-22 another political unit determines the tax rate for the unit or
85-23 otherwise governs its affairs.
85-24 SECTION 4.05. Section 6.02, Tax Code, is amended by amending
85-25 Subsections (b) and (f) and adding Subsection (g) to read as
85-26 follows:
85-27 (b) A taxing unit <other than a county education district>
86-1 that has boundaries extending into two or more counties may choose
86-2 to participate in only one of the appraisal districts. In that
86-3 event, the boundaries of the district chosen extend outside the
86-4 county to the extent of the unit's boundaries. To be effective,
86-5 the choice must be approved by resolution of the board of directors
86-6 of the district chosen. The choice of a school district to
86-7 participate in a single appraisal district does not apply to
86-8 property annexed to the school district under Subchapter C, Chapter
86-9 36, Education Code, unless:
86-10 (1) the school district taxes property other than
86-11 property annexed to the district under Subchapter C, Chapter 36,
86-12 Education Code, in the same county as the annexed property; or
86-13 (2) the annexed property is contiguous to property in
86-14 the school district other than property annexed to the district
86-15 under Subchapter C, Chapter 36, Education Code.
86-16 (f) All costs of operating an appraisal district in
86-17 territory outside the county for which the appraisal district is
86-18 established are allocated to the taxing unit for which the
86-19 appraisal district appraises property in <that chooses to add> that
86-20 territory <to the district>. If the appraisal district appraises
86-21 property in the same territory for two or more taxing units <add
86-22 the same territory to an appraisal district>, costs of operating
86-23 the district in that territory are allocated to the units in the
86-24 proportion the total dollar amount of taxes each unit imposes in
86-25 that territory bears to the total dollar amount of taxes all taxing
86-26 units participating in the appraisal district impose in that
86-27 territory.
87-1 (g) If property is annexed to a school district under
87-2 Subchapter C, Chapter 36, Education Code, the appraisal district
87-3 established for the county in which the property is located shall
87-4 appraise the property for the school district, and the school
87-5 district participates in that appraisal district for purposes of
87-6 the appraisal of that property, except as otherwise permitted by
87-7 Subsection (b). <A county education district that has boundaries
87-8 extending into two or more counties must participate in each
87-9 appraisal district in which one of its component school districts
87-10 participates for purposes of appraisal of the component school
87-11 district's territory.>
87-12 SECTION 4.06. Sections 6.03(c)-(e), Tax Code, are amended to
87-13 read as follows:
87-14 (c) Members of the board of directors are appointed by vote
87-15 of the governing bodies of the incorporated cities and towns, the
87-16 school districts <other than the county education district>, and,
87-17 if entitled to vote, the conservation and reclamation districts
87-18 that participate in the district and of the county. A governing
87-19 body may cast all its votes for one candidate or distribute them
87-20 among candidates for any number of directorships. Conservation and
87-21 reclamation districts are not entitled to vote unless at least one
87-22 conservation and reclamation district in the district delivers to
87-23 the chief appraiser a written request to nominate and vote on the
87-24 board of directors by June 1 of each odd-numbered year. On receipt
87-25 of a request, the chief appraiser shall certify a list by June 15
87-26 of all eligible conservation and reclamation districts that are
87-27 imposing taxes and that participate in the district.
88-1 (d) The voting entitlement of a taxing unit that is entitled
88-2 to vote for directors is determined by dividing the total dollar
88-3 amount of property taxes imposed in the district by the taxing unit
88-4 for the preceding tax year by the sum of the total dollar amount of
88-5 property taxes imposed in the district for that year by each taxing
88-6 unit that is entitled to vote, by multiplying the quotient by
88-7 1,000, and by rounding the product to the nearest whole number.
88-8 That number is multiplied by the number of directorships to be
88-9 filled. <For a school district, the total dollar amount of
88-10 property taxes imposed in the district by the unit is considered to
88-11 be the sum of the taxes imposed by the district and the revenue
88-12 received by the district from the county education district.> A
88-13 taxing unit participating in two or more districts is entitled to
88-14 vote in each district in which it participates, but only the taxes
88-15 imposed in a district are used to calculate voting entitlement in
88-16 that district.
88-17 (e) The chief appraiser shall calculate the number of votes
88-18 to which each taxing unit other than a conservation and reclamation
88-19 district is entitled and shall deliver written notice to each of
88-20 those units of its voting entitlement before October 1 of each
88-21 odd-numbered year. The chief appraiser shall deliver the notice:
88-22 (1) to the county judge and each commissioner of the
88-23 county served by the appraisal district;
88-24 (2) to the presiding officer of the governing body of
88-25 each city or town participating in the appraisal district, to the
88-26 city manager of each city or town having a city manager, and to the
88-27 city secretary or clerk, if there is one, of each city or town that
89-1 does not have a city manager; and
89-2 (3) to the presiding officer of the governing body of
89-3 each school district<, other than the county education district,>
89-4 participating in the district and to the superintendent of those
89-5 school districts.
89-6 SECTION 4.07. Sections 6.06(d) and (h), Tax Code, are
89-7 amended to read as follows:
89-8 (d) Each taxing unit participating in the district<, other
89-9 than a county education district,> is allocated a portion of the
89-10 amount of the budget equal to the proportion that the total dollar
89-11 amount of property taxes imposed in the district by the unit for
89-12 the tax year in which the budget proposal is prepared bears to the
89-13 sum of the total dollar amount of property taxes imposed in the
89-14 district by each participating unit for that year. <For a school
89-15 district, other than a county education district, the total dollar
89-16 amount of property taxes imposed in the district by the unit is
89-17 considered to be the sum of the taxes imposed by the district and
89-18 the revenue received by the district from the county education
89-19 district.> If a taxing unit participates in two or more districts,
89-20 only the taxes imposed in a district are used to calculate the
89-21 unit's cost allocations in that district. If the number of real
89-22 property parcels in a taxing unit is less than 5 percent of the
89-23 total number of real property parcels in the district and the
89-24 taxing unit imposes in excess of 25 percent of the total amount of
89-25 the property taxes imposed in the district by all of the
89-26 participating taxing units for a year, the unit's allocation may
89-27 not exceed a percentage of the appraisal district's budget equal to
90-1 three times the unit's percentage of the total number of real
90-2 property parcels appraised by the district.
90-3 (h) If a newly formed taxing unit or a taxing unit that did
90-4 not impose taxes in the preceding year<, other than a county
90-5 education district,> imposes taxes in any tax year, that unit is
90-6 allocated a portion of the amount budgeted to operate the district
90-7 as if it had imposed taxes in the preceding year, except that the
90-8 amount of taxes the unit imposes in the current year is used to
90-9 calculate its allocation. Before the amount of taxes to be imposed
90-10 for the current year is known, the allocation may be based on an
90-11 estimate to which the district board of directors and the governing
90-12 body of the unit agree, and the payments made after that amount is
90-13 known shall be adjusted to reflect the amount imposed. The
90-14 payments of a newly formed taxing unit that has no source of funds
90-15 are postponed until the unit has received adequate tax or other
90-16 revenues.
90-17 SECTION 4.08. Sections 11.13(d), (e), (m), and (n), Tax
90-18 Code, are amended to read as follows:
90-19 (d) In addition to the exemptions provided by Subsections
90-20 (b) and (c) of this section, an individual who is disabled or is 65
90-21 or older is entitled to an exemption from taxation by a taxing unit
90-22 of a portion (the amount of which is fixed as provided by
90-23 Subsection (e) of this section) of the appraised value of his
90-24 residence homestead if the exemption is adopted either:
90-25 (1) by the governing body of the taxing unit <other
90-26 than a county education district>; or
90-27 (2) by a favorable vote of a majority of the qualified
91-1 voters of the taxing unit at an election called by the governing
91-2 body of a taxing unit <other than a county education district>, and
91-3 the governing body shall call the election on the petition of at
91-4 least 20 percent of the number of qualified voters who voted in the
91-5 preceding election of the taxing unit<; or>
91-6 <(3) by a favorable vote of a majority of the
91-7 qualified voters of a county education district at an election held
91-8 under Section 20.950, Education Code>.
91-9 (e) The amount of an exemption adopted as provided by
91-10 Subsection (d) of this section is $3,000 of the appraised value of
91-11 the residence homestead unless a larger amount is specified by:
91-12 (1) the governing body authorizing the exemption if
91-13 the exemption is authorized as provided by Subdivision (1) of
91-14 Subsection (d) of this section; or
91-15 (2) the petition for the election if the exemption is
91-16 authorized as provided by Subdivision (2) of Subsection (d) of this
91-17 section<; or>
91-18 <(3) the proposition approved at an election held
91-19 under Section 20.950, Education Code>.
91-20 (m) In this section:
91-21 (1) "Disabled" means under a disability for purposes
91-22 of payment of disability insurance benefits under Federal Old-Age,
91-23 Survivors, and Disability Insurance.
91-24 (2) "School district" means a political subdivision
91-25 organized to provide general elementary and secondary public
91-26 education. <"School district" includes a county education district
91-27 established by the consolidation of the local school districts in
92-1 its boundaries for the limited purpose of exercising a portion of
92-2 the taxing power previously authorized by the voters in those
92-3 school districts.> "School district" does not include a junior
92-4 college district or a political subdivision organized to provide
92-5 special education services.
92-6 (n) In addition to any other exemptions provided by this
92-7 section, an individual is entitled to an exemption from taxation by
92-8 a taxing unit <other than a county education district> of a
92-9 percentage of the appraised value of his residence homestead if the
92-10 exemption is adopted by the governing body of the taxing unit
92-11 before May 1 in the manner provided by law for official action by
92-12 the body. If the percentage set by the taxing unit produces an
92-13 exemption in a tax year of less than $5,000 when applied to a
92-14 particular residence homestead, the individual is entitled to an
92-15 exemption of $5,000 of the appraised value. The percentage adopted
92-16 by the taxing unit may not exceed 20 percent. <In addition to any
92-17 other exemptions provided by this section, an individual is
92-18 entitled to an exemption from taxation by a county education
92-19 district of a percentage of the appraised value of his residence
92-20 homestead if the exemption is adopted by the voters of the district
92-21 at an election held in the district for that purpose under Section
92-22 20.946, Education Code.> If the percentage set by the voters
92-23 produces an exemption in a tax year of less than $5,000 when
92-24 applied to a particular residence homestead, the individual is
92-25 entitled to an exemption of $5,000 of the appraised value. The
92-26 percentage adopted by the voters may not exceed 20 percent.
92-27 SECTION 4.09. Sections 11.14(c) and (e), Tax Code, are
93-1 amended to read as follows:
93-2 (c) The governing body of a taxing unit, <other than a
93-3 county education district,> by resolution or order, depending upon
93-4 the method prescribed by law for official action by that governing
93-5 body, may provide for taxation of tangible personal property
93-6 exempted under Subsection (a). <The voters of a county education
93-7 district, by an election held under Section 20.951, Education Code,
93-8 may provide for taxation of tangible personal property exempted
93-9 under Subsection (a).> If a taxing unit provides for taxation of
93-10 tangible personal property as provided by this subsection, the
93-11 exemption prescribed by Subsection (a) does not apply to that unit.
93-12 (e) A political subdivision <other than a county education
93-13 district> choosing to tax property otherwise made exempt by this
93-14 section, pursuant to Article VIII, Section 1(e), of the Texas
93-15 Constitution, may not do so until the governing body of the
93-16 political subdivision has held a public hearing on the matter,
93-17 after having given notice of the hearing at the times and in the
93-18 manner required by this subsection, and has found that the action
93-19 will be in the public interest of all the residents of that
93-20 political subdivision. At the hearing, all interested persons are
93-21 entitled to speak and present evidence for or against taxing the
93-22 property. Not later than the 30th day prior to the date of a
93-23 hearing held under this subsection, notice of the hearing must be:
93-24 (1) published in a newspaper having general
93-25 circulation in the political subdivision and in a section of the
93-26 newspaper other than the advertisement section;
93-27 (2) not less than one-half of one page in size; and
94-1 (3) republished on not less than three separate days
94-2 during the period beginning with the 10th day prior to the hearing
94-3 and ending with the actual date of the hearing.
94-4 SECTION 4.10. Section 21.01, Tax Code, is amended to read as
94-5 follows:
94-6 Sec. 21.01. Real Property. Real property is taxable by a
94-7 taxing unit if located in the unit on January 1, except as provided
94-8 by Subchapter C, Chapter 36, Education Code.
94-9 SECTION 4.11. Section 25.25, Tax Code, is amended by adding
94-10 Subsection (h) to read as follows:
94-11 (h) The chief appraiser shall change the appraisal records
94-12 and school district appraisal rolls promptly to reflect the
94-13 detachment and annexation of property among school districts under
94-14 Subchapter C, Chapter 36, Education Code.
94-15 SECTION 4.12. The following provisions are repealed:
94-16 (1) Section 1.05 and Subchapter G, Chapter 20,
94-17 Education Code;
94-18 (2) Sections 6.061(f), 26.12(e), and 312.002(e) and
94-19 (f), Tax Code.
94-20 SECTION 4.13. Effective September 1, 1993, each county
94-21 education district created under Section 2, Chapter 20, Acts of the
94-22 72nd Legislature, Regular Session, 1991, is abolished.
94-23 SECTION 4.14. (a) On August 31, 1993, each county education
94-24 district shall transfer its funds to its component school districts
94-25 in the manner provided by rule of the commissioner of education.
94-26 (b) On September 1, 1993, any assets of a county education
94-27 district other than funds are transferred to its component school
95-1 districts in the manner and amounts provided by rule of the
95-2 commissioner of education.
95-3 (c) On September 1, 1993, the contracts and other
95-4 liabilities of a county education district are transferred to its
95-5 component school districts in the manner and amounts, including
95-6 joint obligations, provided by rule of the commissioner of
95-7 education.
95-8 (d) The records of the board of a county education district
95-9 shall be maintained as provided by rule of the commissioner of
95-10 education.
95-11 (e) The component school districts of a county education
95-12 district abolished by this Act may collect and use or distribute
95-13 taxes imposed by the county education district that are delinquent
95-14 in the manner provided by rule of the commissioner of education.
95-15 SECTION 4.15. To the extent that the reenactment of Chapter
95-16 16, Education Code, by this Act conflicts with another enactment of
95-17 the 73rd Legislature, Regular Session, 1993, amending a provision
95-18 of that chapter, the other enactment prevails without regard to the
95-19 relative dates of enactment.
95-20 ARTICLE 5
95-21 SECTION 5.01. (a) Article 1 of this Act and this article
95-22 take effect immediately.
95-23 (b) Article 4 of this Act takes effect September 1, 1993.
95-24 (c) Except as provided by Section 5.02 of this Act, Articles
95-25 2 and 3 of this Act apply beginning with the 1993-1994 school year.
95-26 (d) This Act applies to taxes imposed on or after January 1,
95-27 1993.
96-1 SECTION 5.02. (a) Section 16.2551, Education Code, as added
96-2 by this Act, applies to school district administrative costs
96-3 beginning with the 1994-1995 school year. Not later than September
96-4 1, 1993, the commissioner of education shall notify each school
96-5 district of its administrative cost ratio for the 1994-1995 school
96-6 year, as provided by Section 16.2551, Education Code, as added by
96-7 this Act. Not later than February 1, 1994, based on a school
96-8 district's budget information for the 1994-1995 school year
96-9 reported to the commissioner of education, the commissioner shall
96-10 notify each district whose budgeted administrative costs for the
96-11 1994-1995 school year exceed its administrative cost ratio. A
96-12 school district that exceeds its administrative cost ratio for the
96-13 1994-1995 school year is subject to a reduction in foundation
96-14 school fund payments as provided by Section 16.2551, Education
96-15 Code, as added by this Act, in the 1995-1996 school year.
96-16 (b) The commissioner of education shall adopt rules under
96-17 Section 21.259(c), Education Code, as added by this Act, not later
96-18 than January 1, 1994. The first district report card under Section
96-19 21.259, Education Code, as added by this Act, is due on or before
96-20 December 1, 1994.
96-21 SECTION 5.03. The importance of this legislation and the
96-22 crowded condition of the calendars in both houses create an
96-23 emergency and an imperative public necessity that the
96-24 constitutional rule requiring bills to be read on three several
96-25 days in each house be suspended, and this rule is hereby suspended,
96-26 and that this Act take effect and be in force according to its
96-27 terms, and it is so enacted.