Senate Research Center   S.B. 4
By: Bivins
As Filed


Currently, Texas law regulates public school finance. S.B. 4 is a
comprehensive school finance, property tax relief, teacher pay raise,
omnibus package. S.B. 4 and the corresponding appropriations would provide
a total of $2.5 billion for children, teachers, local school districts, and
the taxpayers of this state.  


As proposed, S.B. 4 regulates public school finance and public education.


This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 


SECTION 1. Amends Section 41.002, Education Code, to prohibit a school
district from having a wealth per student that exceeds $300,000, rather
than $200,000. Requires the commissioner of education (commissioner) to
adjust, in accordance with Section 42.2521, the taxable value of a school
district that, due to factors beyond the control of the board of trustees,
experiences a rapid decline in the tax base used in calculating taxable
values in excess of four percent of the tax base used in the preceding
year. Requires the commissioner to adjust the amount of a school district's
state and local revenue per weighted student for maintenance and operation
of the district for the 1992-1993 school year by using a certain formula.
Deletes text regarding amount of decline and except as provided by
Subsection (c).Deletes text regarding certain funds. Makes conforming

SECTION 2. Amends Chapter 42E, Education Code, by adding Section 42.2521,
as follows: 

Authorizes the commissioner  to adjust the taxable value of property in a
school district that experience a rapid decline in the tax base. Authorizes
the commissioner, to the extent money specifically authorized to be used
for that purpose is available to adjust the district's taxable value for
such losses in value exceeding four percent to reflect the local current
year taxable value. Requires the commissioner to reduce adjustments in the
manner provided by Section 42.253(h) so that the total amount of
adjustments equals the amount of money available to fund the adjustment.
Provides that a decision made under this section is final.  

SECTION 3. Amends Section 42.253, Education Code, by adding Subsection
(e-1), to prohibits the amount to which a district is entitled under this
section from exceeding a certain amount to which the district would be
entitled at a certain tax rate. Provides that this subsection expires
September 1, 2001. 

SECTION 4. Amends Section 42.302(a), Education Code, to redefine "GL,"
"DTR," and "LR" 

SECTION 5. Amends Section 46.003, Education Code, to redefine "FYA" and

 SECTION 6. Amends Section 46.006, Education Code, to provide that a
district's wealth per student is reduced by 10 percent if the district is
determined  to be a fast-growth district under Subsection (c) and before
the reduction under Subdivision (1), if applicable. Requires the
commissioner to annually determine the rate of growth in average daily
attendance for each school district in the state over the three preceding
years. Requires the commissioner to rank each school district according to
the district's rate of growth, beginning with the district with the highest
rate. Provides that each district that is placed in the top quartile of
that ranking is considered a fast-growth district for purposes of
Subsection (a). Makes conforming changes.  

SECTION 7. Amends Section 21.401, Education Code, to require an educator
employed under a 10month contract to provide a minimum of 187 days of
service. Deletes text regarding a certain formula. Makes conforming

SECTION 8. Amends Section 21.402, Education Code, to amend Subsections (a),
(b), and (c) and add Subsection (q), to set forth a certain formula for
teacher and full-time librarian pay. Redefines "FS." Requires the
commissioner to determine the amount of state and local funds per weighted
student available, for purposes of Subsection (a), to a district described
by that subsection for the following school year. Sets forth certain salary
factors per student. Provides that the amount of state and local funds per
weighted student, as determined under Subsection (b), does not include any
amount of state funds designated in the General Appropriations Act or
another act of the legislature as funds intended to provide school district
property tax relief. Deletes text regarding FSD, ADA, and requiring the
commissioner to exclude certain amounts. 

SECTION 9. Amends Sections 824.203(a) and (e), Government Code, to provide
that the standard service retirement annuity is an amount computed on the
basis of the member's average annual compensation for the years of service,
whether or not consecutive, in which the member received the highest annual
compensation, times 2.1 percent, rather than two percent, for each year of
service credit in the Teacher Retirement System of Texas (TRS). Makes a
conforming change.  

SECTION 10. Amends Section 825.402, Government Code, to provide that except
as provided by Section 825.4021, the rate of contribution for each member
of the TRS is a certain amount.  

SECTION 11. Amends Chapter 825E, Government Code, by adding Section
825.4021, as follows: 

EMPLOYEE. Sets forth the rate of members contributions. 

SECTION 12. Amends Section 825.403(a), Government Code, to require each
employer, each payroll period, to deduct from the compensation of each
member employed by the employer an amount equal to the percentage required
under Section 825.402 or 825.4021, as appropriate, rather than 6.4 percent,
of the member's compensation for that period. 

SECTION 13. Amends Section 825.404(a), Government Code, to require the
state, during each fiscal year, to contribute to the retirement system an
amount equal to a certain percentage. 

SECTION 14. Amends Section 825.409(a), Government Code, to make a
conforming change.  

SECTION 15. Amends Section 26.04(c), Tax Code, to redefine "effective tax
rate," and "rollback tax rate." 

SECTION 16. Amends Section 26.08, Tax Code, by adding subsections (j) and
(k), to set forth the rollback tax rate. Provides that Subsection (j) and
this subsection expire September 1, 2000. 

SECTION 18. Effective date: September 1, 1999, except as provided by
Subsection (b) of this section. Provides that the amendments to Chapter
825E-, Government Code, made by this Act take effect January 1, 2000, but
only if the constitutional amendment proposed by __. J.R. No.__, 76th
Legislature, Regular Session, 1999, is adopted by the voters. Provides that
the amendments to Chapter 825E, Government Code, made by this Act have no
effect, if the proposed constitutional amendment is not adopted.  
SECTION. 19. Emergency clause.