| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the public school finance system. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Effective September 1, 2018, Section 12.106, |
|
|
Education Code, is amended by amending Subsection (a-1) and adding |
|
|
Subsections (d) and (e) to read as follows: |
|
|
(a-1) In determining funding for an open-enrollment charter |
|
|
school under Subsection (a): |
|
|
(1) [,] adjustments under Sections 42.102, [42.103,] |
|
|
42.104, and 42.105 are based on the average adjustment for the |
|
|
state; and |
|
|
(2) the adjustment under Section 42.103 is based on |
|
|
the average adjustment for the state that would have been provided |
|
|
under that section as it existed on January 1, 2018. |
|
|
(d) Subject to Subsection (e), in addition to other amounts |
|
|
provided by this section, a charter holder is entitled to receive, |
|
|
for the open-enrollment charter school, funding per student in |
|
|
average daily attendance in an amount equal to the guaranteed level |
|
|
of state and local funds per student per cent of tax effort under |
|
|
Section 46.032(a) multiplied by the lesser of: |
|
|
(1) the state average interest and sinking fund tax |
|
|
rate imposed by school districts for the current year; or |
|
|
(2) a rate that would result in a total amount to which |
|
|
charter schools are entitled under this subsection for the current |
|
|
year equal to $60 million. |
|
|
(e) A charter holder is entitled to receive funding under |
|
|
Subsection (d) only if the most recent overall performance rating |
|
|
assigned to the open-enrollment charter school under Subchapter C, |
|
|
Chapter 39, reflects at least acceptable performance. |
|
|
SECTION 2. Effective September 1, 2023, Sections 42.103(b) |
|
|
and (d), Education Code, are amended to read as follows: |
|
|
(b) The basic allotment of a school district that [contains
|
|
|
at least 300 square miles and] has not more than 1,600 students in |
|
|
average daily attendance is adjusted by applying the formula: |
|
|
AA = (1 + ((1,600 - ADA) X .0004)) X ABA |
|
|
(d) The basic allotment of a school district that offers a |
|
|
kindergarten through grade 12 program and has less than 5,000 |
|
|
students in average daily attendance is adjusted by applying the |
|
|
formula, of the following formulas, that results in the greatest |
|
|
adjusted allotment: |
|
|
(1) the formula in Subsection (b), if [or (c) for
|
|
|
which] the district is eligible for that formula; or |
|
|
(2) AA = (1 + ((5,000 - ADA) X .000025)) X ABA. |
|
|
SECTION 3. Effective September 1, 2018, Section 42.103(c), |
|
|
Education Code, is amended to read as follows: |
|
|
(c) The basic allotment of a school district that contains |
|
|
less than 300 square miles and has not more than 1,600 students in |
|
|
average daily attendance is adjusted by applying the following |
|
|
formulas [formula]: |
|
|
(1) for the fiscal year beginning September 1, 2018: |
|
|
AA = (1 + ((1,600 - ADA) X .000275 [.00025])) X ABA |
|
|
; |
|
|
(2) for the fiscal year beginning September 1, 2019: |
|
|
AA = (1 + ((1,600 - ADA) X .00030)) X ABA |
|
|
; |
|
|
(3) for the fiscal year beginning September 1, 2020: |
|
|
AA = (1 + ((1,600 - ADA) X .000325)) X ABA |
|
|
; |
|
|
(4) for the fiscal year beginning September 1, 2021: |
|
|
AA = (1 + ((1,600 - ADA) X .00035)) X ABA |
|
|
; and |
|
|
(5) for the fiscal year beginning September 1, 2022: |
|
|
AA = (1 + ((1,600 - ADA) X .000375)) X ABA |
|
|
SECTION 4. Chapter 42, Education Code, is amended by adding |
|
|
Subchapter H to read as follows: |
|
|
SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM |
|
|
Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts |
|
|
appropriated for this subchapter, the commissioner may administer a |
|
|
grant program that provides grants to school districts to defray |
|
|
financial hardships resulting from changes made to Chapter 41 and |
|
|
this chapter that apply after the 2016-2017 school year. |
|
|
(b) The commissioner shall award grants under this |
|
|
subchapter to districts as provided by Section 42.452. |
|
|
(c) Except as provided by Subsection (d), funding provided |
|
|
to a district under this subchapter is in addition to all other |
|
|
funding provided under Chapter 41 and this chapter. |
|
|
(d) A district is not eligible for funding under this |
|
|
subchapter for a school year if the district receives for that |
|
|
school year an adjustment of the district's taxable value of |
|
|
property under Section 42.2521. A district may decline an |
|
|
adjustment under Section 42.2521 to maintain eligibility for |
|
|
funding under this subchapter. |
|
|
(e) The commissioner may obtain additional information as |
|
|
needed from a district or other state or local agency to make |
|
|
determinations in awarding grants under this subchapter. |
|
|
Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The |
|
|
commissioner shall award grants to school districts based on the |
|
|
following formula: |
|
|
HG = (PL-CL) X (TR) X (TAHG/TEHG) |
|
|
where: |
|
|
"HG" is the amount of a district's hardship grant; |
|
|
"PL" is the amount of funding under previous law to which a |
|
|
district would be entitled under Chapter 41 and this chapter as |
|
|
those chapters existed on January 1, 2017, determined using current |
|
|
school year data for the district; |
|
|
"CL" is the amount of current law funding under Chapter 41 and |
|
|
this chapter to which a district is entitled; |
|
|
"TR" is a district's maintenance and operations tax rate, as |
|
|
specified by the comptroller's most recent certified report; |
|
|
"TAHG" is the total funding available for grants under |
|
|
Section 42.456 for a school year; and |
|
|
"TEHG" is the sum of the combined amounts for all districts |
|
|
calculated by applying the formula (PL-CL) X (TR) for each |
|
|
district. |
|
|
(b) A school district's hardship grant awarded under this |
|
|
subchapter for a school year may not exceed the lesser of: |
|
|
(1) the amount equal to 10 percent of the total amount |
|
|
of funds available for grants under this subchapter for that school |
|
|
year; or |
|
|
(2) the amount by which "PL" exceeds "CL" for that |
|
|
district for that school year. |
|
|
(c) For purposes of calculating the formula under |
|
|
Subsection (a), the commissioner shall: |
|
|
(1) in determining the values of "PL" and "CL" for a |
|
|
school district, exclude the amount of revenue received by the |
|
|
district as a result of Section 13.054 or an administrative rule |
|
|
related to that section; |
|
|
(2) if the value of (PL-CL) for a school district |
|
|
results in a negative number, use zero for the value of (PL-CL); |
|
|
(3) if a school district's maintenance and operations |
|
|
tax rate ("TR") is greater than $1, use $1 for the value of "TR"; |
|
|
(4) use a maintenance and operations tax rate ("TR") |
|
|
of $1 for each open-enrollment charter school, each special-purpose |
|
|
school district established under Subchapter H, Chapter 11, and the |
|
|
South Texas Independent School District; and |
|
|
(5) if (TAHG/TEHG) equals a value greater than one, |
|
|
use a value of one for (TAHG/TEHG). |
|
|
(d) If funds remain available under this subchapter for a |
|
|
school year after determining initial grant amounts under |
|
|
Subsection (a), as adjusted to reflect the limits imposed by |
|
|
Subsection (b), the commissioner shall reapply the formula as |
|
|
necessary to award all available funds. |
|
|
(e) If the commissioner reapplies the formula in accordance |
|
|
with Subsection (d), a school district that was ineligible under |
|
|
Section 42.455 for a grant during the initial application of the |
|
|
formula for that school year is eligible to receive a grant as a |
|
|
result of the formula reapplication. |
|
|
Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER |
|
|
SCHOOL. An open-enrollment charter school is eligible for a grant |
|
|
under this subchapter in the same manner as a school district. |
|
|
Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY |
|
|
DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education |
|
|
service center or a county department of education is not eligible |
|
|
for a grant under this subchapter. |
|
|
Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except |
|
|
as provided by Section 42.452(e), a school district is not eligible |
|
|
for a grant under this subchapter if for the 2015-2016 school year |
|
|
the district's expenditures per student in weighted average daily |
|
|
attendance, excluding bond debt service payments, capital outlays, |
|
|
and facilities acquisition and construction costs, exceeded an |
|
|
amount that is equal to 120 percent of the state average amount for |
|
|
that school year of expenditures per student in weighted average |
|
|
daily attendance, excluding bond debt service payments, capital |
|
|
outlays, and facilities acquisition and construction costs, as |
|
|
those amounts are determined by the commissioner. |
|
|
Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by |
|
|
the commissioner under this subchapter may not exceed $100 million |
|
|
for the 2017-2018 school year or $50 million for the 2018-2019 |
|
|
school year. |
|
|
Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The |
|
|
commissioner may not adjust the amount of a school district's grant |
|
|
under this subchapter based on revisions to the district's data |
|
|
received after a grant has been awarded. |
|
|
Sec. 42.458. RULES. The commissioner may adopt rules as |
|
|
necessary to administer this subchapter. |
|
|
Sec. 42.459. DETERMINATION FINAL. A determination by the |
|
|
commissioner under this subchapter is final and may not be |
|
|
appealed. |
|
|
Sec. 42.460. EXPIRATION. This subchapter expires September |
|
|
1, 2019. |
|
|
SECTION 5. Effective September 1, 2018, Section 46.032(a), |
|
|
Education Code, is amended to read as follows: |
|
|
(a) Each school district is guaranteed a specified amount |
|
|
per student in state and local funds for each cent of tax effort to |
|
|
pay the principal of and interest on eligible bonds. The amount of |
|
|
state support, subject only to the maximum amount under Section |
|
|
46.034, is determined by the formula: |
|
|
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100)) |
|
|
where: |
|
|
"EDA" is the amount of state funds to be allocated to the |
|
|
district for assistance with existing debt; |
|
|
"EDGL" is the dollar amount guaranteed level of state and |
|
|
local funds per student per cent of tax effort, which is the lesser |
|
|
of: |
|
|
(1) $40 [$35] or a greater amount for any year provided |
|
|
by appropriation; or |
|
|
(2) the amount that would result in a total additional |
|
|
amount of state funds under this subchapter for the current year |
|
|
equal to $60 million in excess of the state funds to which school |
|
|
districts would have been entitled under this section if the |
|
|
guaranteed level amount were $35; |
|
|
"ADA" is the number of students in average daily attendance, |
|
|
as determined under Section 42.005, in the district; |
|
|
"EDTR" is the existing debt tax rate of the district, which is |
|
|
determined by dividing the amount budgeted by the district for |
|
|
payment of eligible bonds by the quotient of the district's taxable |
|
|
value of property as determined under Subchapter M, Chapter 403, |
|
|
Government Code, or, if applicable, under Section 42.2521, divided |
|
|
by 100; and |
|
|
"DPV" is the district's taxable value of property as |
|
|
determined under Subchapter M, Chapter 403, Government Code, or, if |
|
|
applicable, under Section 42.2521. |
|
|
SECTION 6. (a) The amount of $311,000,000 of the |
|
|
unencumbered appropriations from the general revenue fund for the |
|
|
state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts |
|
|
of the 85th Legislature, Regular Session, 2017 (the General |
|
|
Appropriations Act), to the Health and Human Services Commission is |
|
|
transferred to the Texas Education Agency to be used by the agency |
|
|
during that state fiscal biennium as follows: |
|
|
(1) $150,000,000 is allocated to fund financial |
|
|
hardship grants under Subchapter H, Chapter 42, Education Code, as |
|
|
added by this Act; |
|
|
(2) $60,000,000 is allocated to fund payments to |
|
|
open-enrollment charter schools under Section 12.106(d), Education |
|
|
Code, as added by this Act; |
|
|
(3) $60,000,000 is allocated for the existing debt |
|
|
allotment under Section 46.032, Education Code, as amended by this |
|
|
Act; and |
|
|
(4) $41,000,000 is allocated for the small-sized |
|
|
district adjustment under Section 42.103, Education Code, as |
|
|
amended by this Act. |
|
|
(b) The Health and Human Services Commission shall identify |
|
|
the strategies and objectives out of which the transfer under |
|
|
Subsection (a) of this section is to be made. |
|
|
(c) Notwithstanding the sum-certain appropriations |
|
|
specified in Rider 3, Chapter 605 (S.B. 1), Acts of the 85th |
|
|
Legislature, Regular Session, 2017 (the General Appropriations |
|
|
Act), to the bill pattern of the appropriations to the Texas |
|
|
Education Agency, the Legislative Budget Board shall determine the |
|
|
sum-certain appropriation to the Foundation School Program for each |
|
|
year of the state fiscal biennium beginning September 1, 2017, |
|
|
based on the amount specified in that rider, the other provisions of |
|
|
the General Appropriations Act, and other law, including the |
|
|
provisions of this Act. |
|
|
SECTION 7. Effective September 1, 2023, Section 42.103(c), |
|
|
Education Code, is repealed. |
|
|
SECTION 8. Except as otherwise provided by this Act: |
|
|
(1) this Act takes effect September 1, 2017, if this |
|
|
Act receives a vote of two-thirds of all the members elected to each |
|
|
house, as provided by Section 39, Article III, Texas Constitution; |
|
|
and |
|
|
(2) if this Act does not receive the vote necessary for |
|
|
effect on that date, this Act takes effect on the 91st day after the |
|
|
last day of the legislative session. |
|
|
|
|
|
* * * * * |