Bill Text: TX HB116 | 2023 | 88th Legislature 4th Special Session | Introduced
Bill Title: Relating to the basic allotment and guaranteed yield under the public school finance system, certain allotments under the Foundation School Program, determination of a school district's assets to liabilities ratio under the public school financial accountability rating system, and credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-11-21 - Filed [HB116 Detail]
Download: Texas-2023-HB116-Introduced.html
| By: Guillen | H.B. No. 116 | |
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| relating to the basic allotment and guaranteed yield under the | ||
| public school finance system, certain allotments under the | ||
| Foundation School Program, determination of a school district's | ||
| assets to liabilities ratio under the public school financial | ||
| accountability rating system, and credit for prepayment of the | ||
| amount required to be paid by a school district for the purchase of | ||
| attendance credit under the public school finance system. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 48.051, Education Code, is amended by | ||
| amending Subsection (a) and adding Subsection (c-3) to read as | ||
| follows: | ||
| (a) For each student in average daily attendance, not | ||
| including the time students spend each day in special education | ||
| programs in an instructional arrangement other than mainstream or | ||
| career and technology education programs, for which an additional | ||
| allotment is made under Subchapter C, a district is entitled to an | ||
| allotment equal to the lesser of $8,000 [ |
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| results from the following formula: | ||
| A = $8,000 [ |
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| where: | ||
| "A" is the allotment to which a district is entitled; | ||
| "TR" is the district's tier one maintenance and operations | ||
| tax rate, as provided by Section 45.0032; and | ||
| "MCR" is the district's maximum compressed tax rate, as | ||
| determined under Section 48.2551. | ||
| (b) A greater amount for any school year may be provided by | ||
| appropriation. | ||
| (c) During any school year for which the maximum amount of | ||
| the basic allotment provided under Subsection (a) or (b) is greater | ||
| than the maximum amount provided for the preceding school year, a | ||
| school district must use at least 30 percent of the amount, if the | ||
| amount is greater than zero, that equals the product of the average | ||
| daily attendance of the district multiplied by the amount of the | ||
| difference between the district's funding under this chapter per | ||
| student in average daily attendance for the current school year and | ||
| the preceding school year to provide compensation increases to | ||
| full-time district employees other than administrators as follows: | ||
| (1) 75 percent must be used to increase the | ||
| compensation paid to classroom teachers, full-time librarians, | ||
| full-time school counselors certified under Subchapter B, Chapter | ||
| 21, and full-time school nurses, prioritizing differentiated | ||
| compensation for classroom teachers with more than five years of | ||
| experience; and | ||
| (2) 25 percent may be used as determined by the | ||
| district to increase compensation paid to full-time district | ||
| employees. | ||
| (c-1) A school district employee who received a salary | ||
| increase under Subsection (c) from a school district for the | ||
| 2019-2020 school year is, as long as the employee remains employed | ||
| by the same district and the district is receiving at least the same | ||
| amount of funding as the amount of funding the district received for | ||
| the 2019-2020 school year, entitled to salary that is at least equal | ||
| to the salary the employee received for the 2019-2020 school year. | ||
| This subsection does not apply if the board of trustees of the | ||
| school district at which the employee is employed: | ||
| (1) complies with Sections 21.4021, 21.4022, and | ||
| 21.4032 in reducing the employee's salary; and | ||
| (2) has adopted a resolution declaring a financial | ||
| exigency for the district under Section 44.011. | ||
| (c-2) A reduction in the salary of a school district | ||
| employee described by Subsection (c-1) is subject to the rights | ||
| granted to the employee under this code. | ||
| (c-3) Subsection (c)(1) does not apply to a school district | ||
| employee subject to Section 48.310 or Section 48.311. | ||
| (d) In this section, "compensation" includes benefits such | ||
| as insurance premiums. | ||
| SECTION 2. Section 48.202(a-1), Education Code, is amended | ||
| to read as follows: | ||
| (a-1) For purposes of Subsection (a), the dollar amount | ||
| guaranteed level of state and local funds per weighted student per | ||
| cent of tax effort ("GL") for a school district is: | ||
| (1) the greater of the amount of district tax revenue | ||
| per weighted student per cent of tax effort available to a school | ||
| district at the 96th percentile of wealth per weighted student or | ||
| the amount that results from multiplying $8,000 [ |
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| greater amount provided under Section 48.051(b), if applicable, by | ||
| 0.016, for the first eight cents by which the district's | ||
| maintenance and operations tax rate exceeds the district's tier one | ||
| tax rate; and | ||
| (2) subject to Subsection (f), the amount that results | ||
| from multiplying $8,000 [ |
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| under Section 48.051(b), if applicable, by 0.008, for the | ||
| district's maintenance and operations tax effort that exceeds the | ||
| amount of tax effort described by Subdivision (1). | ||
| SECTION 3. Section 48.101, Subchapter C, Chapter 48, | ||
| Education Code, is amended to read as follows: | ||
| Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a) | ||
| Small and mid-sized districts are entitled to an annual allotment | ||
| in accordance with this section. In this section: | ||
| (1) "AA" is the district's annual allotment per | ||
| student in average daily attendance; | ||
| (2) "ADA" is the number of students in average daily | ||
| attendance for which the district is entitled to an allotment under | ||
| Section 48.051; and | ||
| (3) "BA" is the basic allotment determined under | ||
| Section 48.051. | ||
| (b) A school district that has fewer than 1,600 students in | ||
| average daily attendance is entitled to an annual allotment for | ||
| each student in average daily attendance based on the following | ||
| formula: | ||
| AA = ((1,600 - ADA) X |
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| (c) A school district that offers a kindergarten through | ||
| grade 12 program and has less than 5,000 students in average daily | ||
| attendance is entitled to an annual allotment for each student in | ||
| average daily attendance based on the formula, of the following | ||
| formulas, that results in the greatest annual allotment: | ||
| (1) the formula in Subsection (b), if the district is | ||
| eligible for that formula; or | ||
| (2) AA = ((5,000 - ADA) X |
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| (d) Instead of the allotment under Subsection (b) or (c)(1), | ||
| a school district that has fewer than 300 students in average daily | ||
| attendance and is the only school district located in and operating | ||
| in a county is entitled to an annual allotment for each student in | ||
| average daily attendance based on the following formula: | ||
| AA = ((1,600 - ADA) X |
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| SECTION 4. Subchapter G, Chapter 48, Education Code, is | ||
| amended by adding Sections 48.310 and 48.311 to read as follows: | ||
| Sec. 48.310. TEACHER RETENTION ALLOTMENT. (a) In this | ||
| section, "classroom teacher" has the meaning assigned by Section | ||
| 5.001, except that the term also includes a person who is not | ||
| required to hold a certificate issued under Subchapter B, Chapter | ||
| 21, who otherwise meets the definition of a classroom teacher under | ||
| that section. | ||
| (b) A school district is entitled to an annual allotment for | ||
| each classroom teacher employed by the district in the school year | ||
| for which the allotment is provided as follows: | ||
| (1) if the district has 10,000 or fewer students | ||
| enrolled for that school year, $10,000 per classroom teacher; and | ||
| (2) if the district has more than 10,000 students | ||
| enrolled for that school year, $3,000 per classroom teacher. | ||
| (b-1) In addition to the amount under Subsection (b)(2), a | ||
| school district described by that subdivision is entitled to an | ||
| allotment in the amount equal to $7,000 multiplied by the result of | ||
| dividing 10,000 by 14.5 if the school district received an | ||
| allotment in a previous school year under: | ||
| (1) Subsection (b)(1); or | ||
| (2) Section 48.311(b)(1), as that section existed on | ||
| the date it was enacted. | ||
| (c) For the 2024-2025 school year, a school district shall | ||
| use money received under Subsection (b) to increase the salary | ||
| provided to each classroom teacher in the district for that year | ||
| over the salary the teacher received or would have received if | ||
| employed by the district in the 2023-2024 school year by at least | ||
| the amount received per classroom teacher under Subsection (b). | ||
| (d) For the 2025-2026 and each subsequent school year, a | ||
| school district shall use money received under Subsection (b) to | ||
| maintain the salary increases for classroom teachers provided under | ||
| Subsection (c). Any additional funding generated for a school | ||
| district under this section may only be used for the compensation of | ||
| classroom teachers employed by the district. | ||
| (e) Notwithstanding any other law, the commissioner shall | ||
| exclude the funding to which a school district is entitled under | ||
| this section for purposes of: | ||
| (1) determining the amount by which the district must | ||
| reduce the district's tier one revenue level under Section 48.257; | ||
| and | ||
| (2) calculating a school district's maintenance and | ||
| operations revenue under Section 48.277(a). | ||
| Sec. 48.311. TEACHER RETENTION BONUS FOR 2023-2024 SCHOOL | ||
| YEAR. (a) In this section, "classroom teacher" has the meaning | ||
| assigned by Section 48.310. | ||
| (b) A school district is entitled to a one-time payment for | ||
| each classroom teacher employed by the district during the | ||
| 2023-2024 school year in the following amount: | ||
| (1) if the district has 10,000 or fewer students | ||
| enrolled for that school year, $10,000 per classroom teacher; and | ||
| (2) if the district has more than 10,000 students | ||
| enrolled for that school year, $3,000 per classroom teacher. | ||
| (c) A school district shall use money received under | ||
| Subsection (b) to provide a bonus payment in the amount received per | ||
| classroom teacher under Subsection (b) to each classroom teacher in | ||
| the district as part of the teacher's salary payment for December | ||
| 2023, if feasible, and if not feasible, then the district shall | ||
| provide the bonus payment as part of the teacher's salary payment | ||
| for the first month in which it is feasible. The bonus payment made | ||
| under this subsection is in addition to the salary and wages to | ||
| which the classroom teacher is otherwise entitled for the 2023-2024 | ||
| school year. | ||
| (d) Notwithstanding any other law, the commissioner shall | ||
| exclude the funding to which a school district is entitled under | ||
| this section for purposes of: | ||
| (1) determining the amount by which the district must | ||
| reduce the district's tier one revenue level under Section 48.257; | ||
| and | ||
| (2) calculating a school district's maintenance and | ||
| operations revenue under Section 48.277(a). | ||
| (e) A bonus payment made under this section is included in | ||
| salary and wages for service for purposes of Section 822.201, | ||
| Government Code. | ||
| (f) This section expires September 1, 2024. | ||
| SECTION 5. Section 822.201(b), Government Code, is amended | ||
| to read as follows: | ||
| (b) "Salary and wages" as used in Subsection (a) means: | ||
| (1) normal periodic payments of money for service the | ||
| right to which accrues on a regular basis in proportion to the | ||
| service performed; | ||
| (2) amounts by which the member's salary is reduced | ||
| under a salary reduction agreement authorized by Chapter 610; | ||
| (3) amounts that would otherwise qualify as salary and | ||
| wages under Subdivision (1) but are not received directly by the | ||
| member pursuant to a good faith, voluntary written salary reduction | ||
| agreement in order to finance payments to a deferred compensation | ||
| or tax sheltered annuity program specifically authorized by state | ||
| law or to finance benefit options under a cafeteria plan qualifying | ||
| under Section 125 of the Internal Revenue Code of 1986, if: | ||
| (A) the program or benefit options are made | ||
| available to all employees of the employer; and | ||
| (B) the benefit options in the cafeteria plan are | ||
| limited to one or more options that provide deferred compensation, | ||
| group health and disability insurance, group term life insurance, | ||
| dependent care assistance programs, or group legal services plans; | ||
| (4) performance pay awarded to an employee by a school | ||
| district as part of a total compensation plan approved by the board | ||
| of trustees of the district and meeting the requirements of | ||
| Subsection (e); | ||
| (5) the benefit replacement pay a person earns under | ||
| Subchapter H, Chapter 659, except as provided by Subsection (c); | ||
| (6) stipends paid to teachers in accordance with | ||
| former Section 21.410, 21.411, 21.412, or 21.413, Education Code; | ||
| (7) amounts by which the member's salary is reduced or | ||
| that are deducted from the member's salary as authorized by | ||
| Subchapter J, Chapter 659; | ||
| (8) a merit salary increase made under Section 51.962, | ||
| Education Code; | ||
| (9) amounts received under the relevant parts of the | ||
| educator excellence awards program under Subchapter O, Chapter 21, | ||
| Education Code, or a mentoring program under Section 21.458, | ||
| Education Code, that authorize compensation for service; | ||
| (10) salary amounts designated as health care | ||
| supplementation by an employee under Subchapter D, Chapter 22, | ||
| Education Code; | ||
| (11) to the extent required by Sections 3401(h) and | ||
| 414(u)(12), Internal Revenue Code of 1986, differential wage | ||
| payments received by an individual from an employer on or after | ||
| January 1, 2009, while the individual is performing qualified | ||
| military service as defined by Section 414(u), Internal Revenue | ||
| Code of 1986; [ |
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| (12) increased compensation paid to a teacher by a | ||
| school district using funds received by the district under the | ||
| teacher incentive allotment under Section 48.112, Education Code; | ||
| and | ||
| (13) any increase in the payment of money made to a | ||
| classroom teacher by a school district from funds allotted to the | ||
| district under Section 48.310, Education Code. | ||
| SECTION 6. Section 48.102, Education Code, is amended by | ||
| adding Subsection (a-1) to read as follows: | ||
| (a-1) A school district that for the 2023-2024 school year | ||
| spent a greater amount for students in a special education program | ||
| under Subchapter A, Chapter 29, than the amount the district | ||
| received from the allotment under this section is entitled to | ||
| additional funding for the 2024-2025 school year in an amount equal | ||
| to twice the amount of the difference between the total of those | ||
| amounts. This subsection expires September 1, 2025. | ||
| SECTION 7. Section 39.082(c), Education Code, is amended to | ||
| read as follows: | ||
| (c) The system may not include an indicator under Subsection | ||
| (b) or any other performance measure that: | ||
| (1) requires a school district to spend at least 65 | ||
| percent or any other specified percentage of district operating | ||
| funds for instructional purposes; [ |
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| (2) lowers the financial management performance | ||
| rating of a school district for failure to spend at least 65 percent | ||
| or any other specified percentage of district operating funds for | ||
| instructional purposes; or | ||
| (3) for a school district required to reduce its local | ||
| revenue level under Section 48.257, includes in determining the | ||
| district's ratio of assets to liabilities any amount required to be | ||
| expended by the district to comply with Chapter 49. | ||
| SECTION 8. Subchapter D, Chapter 49, Education Code, is | ||
| amended by adding Section 49.1541 to read as follows: | ||
| Sec. 49.1541. CREDIT FOR PREPAYMENT. (a) If a school | ||
| district elects to pay for attendance credit purchased in the | ||
| manner provided by Section 49.154(a)(2), the total amount required | ||
| under Section 49.153 for the district to purchase credit under this | ||
| subchapter for any school year is reduced at a rate of one percent | ||
| for each full 30-day period remaining until August 15 of the school | ||
| year for which the agreement is in effect on the date the district | ||
| pays in one payment the total amount required to be paid by the | ||
| district. | ||
| (b) A reduction under Subsection (a) shall be made after | ||
| making any reduction to which the district is entitled under | ||
| Section 49.157 or another provision of this chapter. | ||
| SECTION 9. A bonus payment made to a classroom teacher, as | ||
| defined by Section 48.310, Education Code, as added by this Act, by | ||
| a school district with money received by the district under Section | ||
| 48.311, Education Code, as added by this Act, as that section | ||
| existed prior to its expiration, shall be included in salary and | ||
| wages for service for purposes of Section 822.201, Government Code, | ||
| as amended by this Act, regardless of the date the payment was made. | ||
| SECTION 10. (a) Except as provided by Subsection (b) of | ||
| this section, this Act applies beginning with the 2024-2025 school | ||
| year. | ||
| (b) Section 48.311, Education Code, as added by this Act, | ||
| and Section 49.1541, Education Code, as added by this Act, apply | ||
| beginning with the 2023-2024 school year. | ||
| SECTION 11. This Act takes effect immediately if it | ||
| receives a vote of two-thirds of all the members elected to each | ||
| house, as provided by Section 39, Article III, Texas Constitution. | ||
| If this Act does not receive the vote necessary for immediate | ||
| effect, this Act takes effect on the 91st day after the last day of | ||
| the legislative session. | ||
