By: Bivins S.B. No. 4
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to public school finance and to public education.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 41.002, Education Code, is amended to
1-4 read as follows:
1-5 Sec. 41.002. EQUALIZED WEALTH LEVEL. (a) A school district
1-6 may not have a wealth per student that exceeds $300,000 [$280,000].
1-7 (b) For [Except as provided by Subsection (c), for] purposes
1-8 of this chapter, the commissioner shall adjust, in accordance with
1-9 Section 42.2521 [by the amount of the decline], the taxable values
1-10 of a school district that, due to factors beyond the control of the
1-11 board of trustees, experiences a rapid decline [from the preceding
1-12 year] in the tax base used in calculating taxable values in excess
1-13 of four percent of the tax base used in the preceding year [that is
1-14 beyond the control of the board of trustees of the district].
1-15 (c) [The amount of money necessary to replace funds made
1-16 unavailable to the Foundation School Program by operation of
1-17 Subsection (b) may be paid only from funds specifically
1-18 appropriated for that purpose. If a sufficient amount of money is
1-19 not appropriated to fully replace funds made unavailable to the
1-20 Foundation School Program by operation of Subsection (b), the
1-21 adjustment to the taxable values of property in each district to
1-22 which Subsection (b) applies shall be modified proportionately to
2-1 the extent necessary so that the amount of funds made unavailable
2-2 is equal to the amount appropriated to replace those funds.]
2-3 [(e)] Notwithstanding Subsection (a), [for the 1997-1998,
2-4 1998-1999, and 1999-2000 school years,] in accordance with a
2-5 determination of the commissioner, the wealth per student that a
2-6 school district may have after exercising an option under Section
2-7 41.003(2) or (3) may not be less than the amount needed to maintain
2-8 state and local revenue in an amount equal to state and local
2-9 revenue per weighted student for maintenance and operation of the
2-10 district for the 1992-1993 school year, as adjusted in accordance
2-11 with Subsection (d), less the district's current year distribution
2-12 per weighted student from the available school fund, other than
2-13 amounts distributed under Chapter 31, if the district imposes an
2-14 effective tax rate for maintenance and operation of the district
2-15 equal to the greater of the district's current tax rate or $1.50 on
2-16 the $100 valuation of taxable property.
2-17 (d) For purposes of Subsection (c):
2-18 (1) the commissioner shall adjust the amount of a
2-19 school district's state and local revenue per weighted student for
2-20 maintenance and operation of the district for the 1992-1993 school
2-21 year by multiplying that amount by the quotient of the equalized
2-22 wealth level divided by 280,000; and
2-23 (2) [This subsection expires September 1, 2000.]
2-24 [(f) For purposes of Subsection (e),] a school district's
2-25 effective tax rate is determined by dividing the total amount of
2-26 taxes collected by the district for the applicable school year less
3-1 any amounts paid into a tax increment fund under Chapter 311, Tax
3-2 Code, by the quotient of the district's taxable value of property,
3-3 as determined under Subchapter M, Chapter 403, Government Code,
3-4 divided by 100. [This subsection expires September 1, 2000.]
3-5 SECTION 2. Subchapter E, Chapter 42, Education Code, is
3-6 amended by adding Section 42.2521 to read as follows:
3-7 Sec. 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
3-8 OF PROPERTY. (a) For purposes of Chapter 41 and this chapter, the
3-9 commissioner may adjust the taxable value of property in a school
3-10 district that, due to factors beyond the control of the board of
3-11 trustees, experiences a rapid decline in the tax base used in
3-12 calculating taxable values in excess of four percent of the tax
3-13 base used in the preceding year.
3-14 (b) The commissioner, to the extent money specifically
3-15 authorized to be used for that purpose is available, may adjust the
3-16 district's taxable values for such losses in value exceeding four
3-17 percent to reflect the local current year taxable value. To the
3-18 extent that a sufficient amount of money is not available to fund
3-19 all adjustments under this section, the commissioner shall reduce
3-20 adjustments in the manner provided by Section 42.253(h) so that the
3-21 total amount of adjustments equals the amount of money available to
3-22 fund the adjustments.
3-23 (c) A decision of the commissioner under this section is
3-24 final.
3-25 SECTION 3. Section 42.253, Education Code, is amended by
3-26 adding Subsection (e-1) to read as follows:
4-1 (e-1) Notwithstanding Subsection (e), for the 1999-2000 and
4-2 2000-2001 school years, the amount to which a district is entitled
4-3 under this section may not exceed the amount to which the district
4-4 would be entitled at the tax rate that, applied to the taxable
4-5 value of property in the district as determined under Subchapter M,
4-6 Chapter 403, Government Code, divided by 100, or, if applicable,
4-7 under Section 42.2521, would impose taxes in an amount that, when
4-8 added to the amount of state funds that would be distributed to the
4-9 district under this chapter for the 1999-2000 or 2000-2001 school
4-10 year using that tax rate, would provide the same amount of state
4-11 funds distributed under Chapter 42 and maintenance and operations
4-12 taxes of the district per student in weighted average daily
4-13 attendance for the 1999-2000 or 2000-2001 school year that was
4-14 available to the district in the 1998-1999 school year. This
4-15 subsection expires September 1, 2001.
4-16 SECTION 4. Section 42.302(a), Education Code, is amended to
4-17 read as follows:
4-18 (a) Each school district is guaranteed a specified amount
4-19 per weighted student in state and local funds for each cent of tax
4-20 effort over that required for the district's local fund assignment
4-21 up to the maximum level specified in this subchapter. The amount
4-22 of state support, subject only to the maximum amount under Section
4-23 42.303, is determined by the formula:
4-24 GYA = (GL X WADA X DTR X 100) - LR
4-25 where:
4-26 "GYA" is the guaranteed yield amount of state funds to be
5-1 allocated to the district;
5-2 "GL" is the dollar amount guaranteed level of state and local
5-3 funds per weighted student per cent of tax effort, which is $23.80
5-4 [$21] or a greater amount for any year provided by appropriation;
5-5 "WADA" is the number of students in weighted average daily
5-6 attendance, which is calculated by dividing the sum of the school
5-7 district's allotments under Subchapters B and C, less any allotment
5-8 to the district for transportation and 50 percent of the adjustment
5-9 under Section 42.102, by the basic allotment for the applicable
5-10 year;
5-11 "DTR" is the district enrichment and facilities tax rate of
5-12 the school district, which is determined by subtracting the amounts
5-13 specified by Subsection (b) from the total amount of taxes
5-14 collected by the school district for the applicable school year and
5-15 dividing the difference by the quotient of the district's taxable
5-16 value of property as determined under Subchapter M, Chapter 403,
5-17 Government Code, divided by 100, or, if applicable, under Section
5-18 42.2521; and
5-19 "LR" is the local revenue, which is determined by multiplying
5-20 "DTR" by the quotient of the district's taxable value of property
5-21 as determined under Subchapter M, Chapter 403, Government Code,
5-22 divided by 100, or, if applicable, under Section 42.2521.
5-23 SECTION 5. Section 46.003(a), Education Code, is amended to
5-24 read as follows:
5-25 (a) For each year, except as provided by Sections 46.005 and
5-26 46.006, a school district is guaranteed a specified amount per
6-1 student in state and local funds for each cent of tax effort, up to
6-2 the maximum rate under Subsection (b), to pay the principal of and
6-3 interest on eligible bonds issued to construct, acquire, renovate,
6-4 or improve an instructional facility. The amount of state support
6-5 is determined by the formula:
6-6 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
6-7 where:
6-8 "FYA" is the guaranteed facilities yield amount of state
6-9 funds allocated to the district for the year;
6-10 "FYL" is the dollar amount guaranteed level of state and
6-11 local funds per student per cent of tax effort, which is $31.65
6-12 [$28] or a greater amount for any year provided by appropriation;
6-13 "ADA" is the number of students in average daily attendance,
6-14 as determined under Section 42.005, in the district;
6-15 "BTR" is the district's bond tax rate for the current year,
6-16 which is determined by dividing the amount of taxes budgeted to be
6-17 collected by the district for payment of eligible bonds by the
6-18 quotient of the district's taxable value of property as determined
6-19 under Subchapter M, Chapter 403, Government Code, divided by 100;
6-20 and
6-21 "DPV" is the district's taxable value of property as
6-22 determined under Subchapter M, Chapter 403, Government Code.
6-23 SECTION 6. Section 46.006, Education Code, is amended to
6-24 read as follows:
6-25 Sec. 46.006. SHORTAGE OR EXCESS OF FUNDS APPROPRIATED FOR
6-26 NEW PROJECTS. (a) If the total amount appropriated for a year for
7-1 new projects is less than the amount of money to which school
7-2 districts applying for state assistance are entitled for that year,
7-3 the commissioner shall rank each school district applying by wealth
7-4 per student. For purposes of this section:
7-5 (1) a district's wealth per student is reduced by 10
7-6 percent if the district is determined to be a fast-growth district
7-7 under Subsection (c); and
7-8 (2) [,] a district's wealth per student before the
7-9 reduction under Subdivision (1), if applicable, is reduced by 10
7-10 percent for each state fiscal biennium in which the district did
7-11 not receive assistance under this chapter.
7-12 (b) The commissioner shall adjust the rankings after making
7-13 the reductions in wealth per student required by Subsection (a)
7-14 [this subsection].
7-15 (c) The commissioner shall annually determine the rate of
7-16 growth in average daily attendance for each school district in the
7-17 state over the three preceding years. The commissioner shall rank
7-18 each school district according to the district's rate of growth,
7-19 beginning with the district with the highest rate. Each district
7-20 that is placed in the top quartile of that ranking is considered a
7-21 fast-growth district for purposes of Subsection (a).
7-22 (d) [(b)] Beginning with the district with the lowest
7-23 adjusted wealth per student that has applied for state assistance
7-24 for the year, the commissioner shall award state assistance to
7-25 districts that have applied for state assistance in ascending order
7-26 of adjusted wealth per student. The commissioner shall award the
8-1 full amount of state assistance to which a district is entitled
8-2 under this chapter, except that the commissioner may award less
8-3 than the full amount to the last district for which any funds are
8-4 available.
8-5 (e) [(c)] Any amount appropriated for the first year of a
8-6 fiscal biennium that is not awarded to a school district may be
8-7 used to provide assistance in the following fiscal year.
8-8 (f) [(d)] In this section, "wealth per student" means a
8-9 school district's taxable value of property as determined under
8-10 Subchapter M, Chapter 403, Government Code, divided by the
8-11 district's average daily attendance as determined under Section
8-12 42.005.
8-13 SECTION 7. Section 21.401, Education Code, is amended to
8-14 read as follows:
8-15 Sec. 21.401. MINIMUM SERVICE REQUIRED. (a) A contract
8-16 between a school district and an educator must be for a minimum of
8-17 10 months' service.
8-18 (a-4) For the 1998-1999 school year, an educator employed
8-19 under a 10-month contract must provide a minimum of 187 days of
8-20 service. This subsection expires September 1, 1999.
8-21 (b) An educator employed under a 10-month contract must
8-22 provide a minimum [number] of 187 days of service [as determined by
8-23 the following formula:]
8-24 [MDS = 185 + (0.33 X (R1 - R2)/(R2/185))]
8-25 [where:]
8-26 ["MDS" is the minimum number of days of service;]
9-1 ["R1" is equal to FSP/ADA as determined under Section 21.402
9-2 for the fiscal year; and]
9-3 ["R2" is equal to FSP/ADA as determined under Section 21.402
9-4 for the 1996-1997 school year].
9-5 [(b-1) Subsection (b) applies beginning with the 1999-2000
9-6 school year. This subsection expires January 1, 2000.]
9-7 (c) [The result of the formula prescribed by Subsection (b)
9-8 shall be rounded to the nearest whole number.]
9-9 [(d)] The commissioner, as provided by Section 25.081(b),
9-10 may reduce the number of days of service required by this section.
9-11 A reduction by the commissioner does not reduce an educator's
9-12 salary.
9-13 SECTION 8. Section 21.402, Education Code, is amended by
9-14 revising sections (a), (b), and (c), and adding new section (q), as
9-15 follows:
9-16 (a) Except as provided by Subsection (d) or (e), a school
9-17 district must pay each classroom teacher or full-time librarian not
9-18 less than the minimum monthly salary, based on the employee's level
9-19 of experience, determined by the following formula:
9-20 MS = SF X FS [(FSP/ADA)]
9-21 where:
9-22 "MS" is the minimum monthly salary;
9-23 "SF" is the applicable salary factor specified by Subsection
9-24 (c); and
9-25 "FS" is the amount, as determined by the commissioner under
9-26 Subsection (b), of state and local funds per weighted student
10-1 available to a district eligible to receive state assistance under
10-2 Section 42.302 with an enrichment and facilities tax rate, as
10-3 defined by Section 42.302, equal to the maximum rate authorized
10-4 under Section 42.303 ["FSP" is the amount appropriated in the
10-5 General Appropriations Act for the fiscal year for the Foundation
10-6 School Program, as determined by the commissioner as provided by
10-7 Subsection (b); and]
10-8 ["ADA" is the total estimated average daily attendance, as
10-9 defined by Section 42.005, used for purposes of the General
10-10 Appropriations Act for the fiscal year].
10-11 (b) Not later than June 1 of each year, the commissioner
10-12 shall determine the amount of state and local funds per weighted
10-13 student available, for purposes of Subsection (a), to a district
10-14 described by that subsection for the following school year
10-15 [appropriated for purposes of Chapter 42 for the state fiscal year
10-16 beginning September 1. The commissioner shall exclude from the
10-17 determination:]
10-18 [(1) amounts designated solely for use in connection
10-19 with school facilities or for payment of principal of and interest
10-20 on bonds; and]
10-21 [(2) local funds received under Subchapter D, Chapter
10-22 41].
10-23 (c) The salary factors per step are as follows:
10-24 Years Experience 0 1 2 3 4
10-25 Salary Factor .5408 .5555 .5701 .5846 .6155
10-26 [.8470] [.8699] [.8928] [.9156] [.9639]
11-1 Years Experience 5 6 7 8 9
11-2 Salary Factor .6483 .6772 .7058 .7328 .7585
11-3 [1.0122] [1.0605] [1.1054] [1.1477] [1.1879]
11-4 Years Experience 10 11 12 13 14
11-5 Salary Factor .7826 .8056 .8272 .8475 .8670
11-6 [1.2256] [1.2616] [1.2955] [1.3273] [1.3578]
11-7 Years Experience 15 16 17 18 19
11-8 Salary Factor .8851 .9024 .9187 .9340 .9487
11-9 [1.3862] [1.4133] [1.4387] [1.4628] [1.4857]
11-10 Years Experience 20 and over
11-11 Salary Factor .9625
11-12 [1.5073]
11-13 (g) For purposes of this section, the amount of state and
11-14 local funds per weighted student, as determined under Subsection
11-15 (b), does not include any amount of state funds designated in the
11-16 General Appropriations Act or another act of the legislature as
11-17 funds intended to provide school district property tax relief.
11-18 SECTION 9. Sections 824.203(a) and (e), Government Code, are
11-19 amended to read as follows:
11-20 (a) Except as provided by Subsections (c), (d), and (e), the
11-21 standard service retirement annuity is an amount computed on the
11-22 basis of the member's average annual compensation for the three
11-23 years of service, whether or not consecutive, in which the member
11-24 received the highest annual compensation, times 2.1 [two] percent
11-25 for each year of service credit in the retirement system.
11-26 (e) The annual standard service retirement annuity for a
12-1 person who immediately before retirement holds a position as a
12-2 classroom teacher or full-time librarian, or the annual death
12-3 benefit annuity based on the service of a member who at the time of
12-4 death held a position as a classroom teacher or full-time
12-5 librarian, may not be less than an amount computed on the basis of
12-6 the minimum annual salary provided by the Education Code for a
12-7 classroom teacher or full-time librarian, multiplied by 2.1 [two]
12-8 percent for each year of service credit in the retirement system.
12-9 SECTION 10. Section 825.402, Government Code, is amended to
12-10 read as follows:
12-11 Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. Except as
12-12 provided by Section 825.4021, the [The] rate of contributions for
12-13 each member of the retirement system is:
12-14 (1) five percent of the member's annual compensation
12-15 or $180, whichever is less, for service rendered after August 31,
12-16 1937, and before September 1, 1957;
12-17 (2) six percent of the first $8,400 of the member's
12-18 annual compensation for service rendered after August 31, 1957, and
12-19 before September 1, 1969;
12-20 (3) six percent of the member's annual compensation
12-21 for service rendered after August 31, 1969, and before the first
12-22 day of the 1977-78 school year;
12-23 (4) 6.65 percent of the member's annual compensation
12-24 for service rendered after the last day of the period described by
12-25 Subdivision (3) and before September 1, 1985; and
12-26 (5) 6.4 percent of the member's annual compensation
13-1 for service rendered after August 31, 1985.
13-2 SECTION 11. Subchapter E, Chapter 825, Government Code, is
13-3 amended by adding Section 825.4021 to read as follows:
13-4 Sec. 825.4021. RATE OF MEMBER CONTRIBUTIONS BY CERTIFIED
13-5 PUBLIC SCHOOL EMPLOYEE. The rate of contributions is:
13-6 (1) zero percent of the minimum salary as defined by
13-7 Section 825.405 for each member of the retirement system who is
13-8 employed as a certified classroom teacher or full-time librarian by
13-9 a public elementary or secondary school for service rendered after
13-10 January 1, 2000;
13-11 (2) 6.4 percent of the aggregate annual compensation
13-12 above the minimum salary as defined by Section 825.405 for each
13-13 member of the retirement system who is employed as a certified
13-14 classroom teacher or full-time librarian by a public elementary or
13-15 secondary school for service rendered after January 1, 2000.
13-16 SECTION 12. Section 825.403(a), Government Code, is amended
13-17 to read as follows:
13-18 (a) Each payroll period, each employer shall deduct from the
13-19 compensation of each member employed by the employer an amount
13-20 equal to the percentage required under Section 825.402 or 825.4021,
13-21 as appropriate, [6.4 percent] of the member's compensation for that
13-22 period.
13-23 SECTION 13. Section 825.404(a), Government Code, is amended
13-24 to read as follows:
13-25 (a) During each fiscal year, the state shall contribute to
13-26 the retirement system an amount equal to:
14-1 (1) six [eight] percent of the aggregate annual
14-2 compensation during that fiscal year of all members of the
14-3 retirement system, other than members employed as certified
14-4 classroom teachers or full-time librarians by public elementary or
14-5 secondary schools;
14-6 (2) 12.4 percent of the minimum salary as defined by
14-7 Section 825.405 during that fiscal year of all members of the
14-8 retirement system who are employed as certified classroom teachers
14-9 or full-time librarians by public elementary or secondary schools,
14-10 or another amount provided by appropriation [during that fiscal
14-11 year];
14-12 (3) six percent of the aggregate annual compensation
14-13 above the minimum salary as defined by Section 825.405, for those
14-14 members employed as certified classroom teachers or full-time
14-15 librarians by public elementary or secondary schools.
14-16 SECTION 14. Section 825.409(a), Government Code, is amended
14-17 to read as follows:
14-18 (a) Each employer shall pick up the employee contribution
14-19 required of each of its employees by Section 825.402 or 825.4021
14-20 [825.403] for all compensation earned after December 31, 1987.
14-21 Employers shall pay to the retirement system the picked-up
14-22 contributions from the same source of funds that is used in paying
14-23 earnings to the employees. Such payments shall be in lieu of
14-24 contributions by the employees. An employer shall pick up these
14-25 contributions by a corresponding reduction in the cash salary of
14-26 the employees, by an offset against a future salary increase, or by
15-1 a combination of a salary reduction and offset against a future
15-2 salary increase. Employees do not have the option of choosing to
15-3 receive the contributed amounts directly instead of having them
15-4 paid by the employer to the retirement system.
15-5 SECTION 15. Section 26.04(c), Tax Code, is amended to read
15-6 as follows:
15-7 (c) An officer or employee designated by the governing body
15-8 shall calculate the effective tax rate and the rollback tax rate
15-9 for the unit, where:
15-10 (1) "Effective tax rate" means a rate expressed in
15-11 dollars per $100 of taxable value calculated according to the
15-12 following formula:
15-13 EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY)
15-14 (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
15-15 ; and
15-16 (2) "Rollback tax rate" means a rate expressed in
15-17 dollars per $100 of taxable value calculated according to:
15-18 (A) the following formula for a taxing unit
15-19 other than a school district:
15-20 ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS
15-21 RATE x 1.08) + CURRENT DEBT RATE
15-22 ; or
15-23 (B) Section 26.08 for a school district.
15-24 SECTION 16. Section 26.08, Tax Code, is amended by adding
15-25 Subsections (j) and (k) to read as follows:
15-26 (j) For purposes of this section, for the 1999 tax year, the
16-1 rollback tax rate of a school district is the sum of:
16-2 (1) the tax rate that, applied to the current total
16-3 value for the district, would impose taxes in an amount that, when
16-4 added to the amount of state funds that would be distributed to the
16-5 district under Chapter 42, Education Code, for the 1999-2000 school
16-6 year using that tax rate, would provide the same amount of state
16-7 funds distributed under Chapter 42 and maintenance and operations
16-8 taxes of the district per student in weighted average daily
16-9 attendance for the 1999-2000 school year that was available to the
16-10 district in the 1998-1999 school year; and
16-11 (2) the district's current debt rate.
16-12 (k) Subsection (j) and this subsection expire September 1,
16-13 2000.
16-14 SECTION 17. (a) Sections 42.251(c) and 42.252(e), Education
16-15 Code, are repealed.
16-16 (b) Section 26.08(f), Tax Code, is repealed.
16-17 SECTION 18. (a) Except as provided by Subsection (b) of
16-18 this section, this Act takes effect September 1, 1999.
16-19 (b) The amendments to Subchapter E, Chapter 825, Government
16-20 Code, made by this Act take effect January 1, 2000, but only if the
16-21 constitutional amendment proposed by __. J.R. No. ____, 76th
16-22 Legislature, Regular Session, 1999, is adopted by the voters. If
16-23 the proposed constitutional amendment is not adopted, the
16-24 amendments to Subchapter E, Chapter 825, Government Code, made by
16-25 this Act have no effect.
16-26 SECTION 19. The importance of this legislation and the
17-1 crowded condition of the calendars in both houses create an
17-2 emergency and an imperative public necessity that the
17-3 constitutional rule requiring bills to be read on three several
17-4 days in each house be suspended, and this rule is hereby suspended.