Bill Text: TX HB3671 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the public school finance system.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2015-03-19 - Referred to Public Education [HB3671 Detail]

Download: Texas-2015-HB3671-Introduced.html

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84R11276 JSL-F
By: Walle H.B. No. 3671

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. Section 29.918(a), Education Code, is amended to
read as follows:
(a) Notwithstanding Section [39.234 or] 42.152, a school
district or open-enrollment charter school with a high dropout
rate, as determined by the commissioner, must submit a plan to the
commissioner describing the manner in which the district or charter
school intends to use the compensatory education allotment under
Section 42.152 [and the high school allotment under Section 42.160]
for developing and implementing research-based strategies for
dropout prevention. The district or charter school shall submit
the plan not later than December 1 of each school year preceding the
school year in which the district or charter school will receive the
compensatory education allotment or high school allotment to which
the plan applies.
SECTION 2. Section 39.0233(a), Education Code, is amended
to read as follows:
(a) The agency, in coordination with the Texas Higher
Education Coordinating Board, shall adopt a series of questions to
be included in an end-of-course assessment instrument administered
under Section 39.023(c) to be used for purposes of Section 51.3062.
The questions adopted under this subsection must be developed in a
manner consistent with any college readiness standards adopted
under Section [Sections 39.233 and] 51.3062.
SECTION 3. Section 41.002(a), Education Code, is amended to
read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b), for the district's maintenance and
operations tax effort equal to or less than the rate equal to the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district's maintenance
and operations tax rate exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year, subject to Section 41.093(b-1);
or
(3) $544,000 for the 2015-2016 school year and
$584,000 for the 2016-2017 and subsequent school years [$319,500],
for the district's maintenance and operations tax effort that
exceeds the first six cents by which the district's maintenance and
operations tax effort exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year.
SECTION 4. Subchapter A, Chapter 42, Education Code, is
amended by adding Sections 42.010 and 42.013 to read as follows:
Sec. 42.010. COMPREHENSIVE REVIEW OF PUBLIC SCHOOL FINANCE
WEIGHTS, ALLOTMENTS, AND ADJUSTMENTS. (a) The agency shall
conduct a comprehensive review of weights, allotments, and
adjustments under the public school finance system, including all
current weights, allotments, and adjustments provided under this
chapter and any additional weights, allotments, and adjustments
that the agency determines may be appropriate. The review must
determine the effectiveness of existing weights, allotments, and
adjustments in fulfilling the mission of the public education
system stated in Section 4.001(a) and furthering the state policy
stated in Section 42.001. At a minimum, the review must determine
how closely and appropriately each of the following elements
reflects and provides financing for costs beyond the control of
school districts:
(1) adjustments for costs related to the geographic
variation in known resource costs and costs of education,
controlling for the impact of unequalized wealth and hold-harmless
provisions, and properly reflecting the impact of high
concentrations of poverty on the compensation that school districts
must pay to attract and retain teachers of comparable or
appropriate quality;
(2) adjustments for costs related to the size and
diseconomies of scale of school districts;
(3) adjustments for costs related to the varying
instructional needs and characteristics of students and the extent
to which the adjustments provide each student with access to
programs and services that are appropriate to the student's
educational needs;
(4) other factors, in addition to economic status,
that correlate to at-risk status and the need for compensatory
education, and the degree to which those factors correspond to
additional educational costs; and
(5) the manner in which the cost adjustments are
applied to and affect the overall school finance system.
(b) The review of the adjustments described in Subsection
(a)(1) must:
(1) address all uncontrollable costs that can
reasonably be quantified;
(2) consider the qualifications, experience, and
turnover rate of personnel and the impact of those factors on
student achievement in considering the adequacy and comparability
of salaries;
(3) properly address the impact of factors that have a
large impact on certain types of school districts, such as extreme
isolation, regardless of general state impact;
(4) include only factors for which a rational economic
argument can be made;
(5) be carefully constructed to make sure that a cost
factor does not significantly affect more than one variable; and
(6) not be artificially adjusted to meet predetermined
outcomes and must not use arbitrary limits.
(c) In determining whether any additional weights,
allotments, and adjustments are appropriate under the public school
finance system, as required by Subsection (a), the agency shall
include consideration of an additional weight for educational
services provided to students in prekindergarten on a half-day
basis and on a full-day basis.
(d) The agency may contract with one or more consultants if
necessary to enable the agency to perform its duties under this
section.
(e) The Legislative Budget Board, the comptroller, the
state auditor, and any other state agency, official, or personnel
shall cooperate with the agency in carrying out its duties under
this section.
(f) Not later than December 1, 2016, the agency shall
provide a report that:
(1) states the findings of the review conducted under
this section; and
(2) includes recommendations for updated weights,
allotments, and adjustments and any other statutory changes
considered appropriate by the agency.
(g) This section expires January 1, 2017.
Sec. 42.013. STUDY OF LEGISLATION ON SCHOOL FUNDING. (a)
After each legislative session, the commissioner shall conduct a
study assessing the manner in which any statute enacted or amended
during that legislative session affects the equalized wealth level
of a school district under Chapter 41 or the foundation school
program under this chapter and whether the standard of neutrality
described under Section 42.001(b) is maintained.
(b) The study under this section must:
(1) include an analysis of the effects of legislation
on each school district in the state; and
(2) indicate how a school district compares to other
districts with respect to:
(A) property wealth per weighted student;
(B) revenue per weighted student;
(C) tax effort; and
(D) revenue per cent of tax effort.
(c) The commissioner shall issue a report on the study's
findings to the governor, the lieutenant governor, the speaker of
the house of representatives, and the legislature. The
commissioner shall make the report available to the public on the
agency's Internet website.
SECTION 5. Section 42.101, Education Code, as effective
September 1, 2015, is amended by amending Subsection (a) and adding
Subsection (c) to read as follows:
(a) Except as provided by Subsection (c), for [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 $5,440 [$4,765] or the amount that results
from the following formula:
A = $5,440 [$4,765] X (DCR/MCR)
where:
"A" is the allotment to which a district is entitled;
"DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
"MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
(c) For a school district that would be entitled under this
section to a basic allotment of more than $6,500 for each student in
average daily attendance, the commissioner shall adjust the
district's basic allotment by a factor of 0.9239.
SECTION 6. Effective September 1, 2016, Section 42.101(a),
Education Code, as effective September 1, 2015, is amended to read
as follows:
(a) Except as provided by Subsection (c), for [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 $5,840 [$4,765] or the amount that results
from the following formula:
A = $5,840 [$4,765] X (DCR/MCR)
where:
"A" is the allotment to which a district is entitled;
"DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
"MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
SECTION 7. Sections 42.152(a) and (c), Education Code, are
amended to read as follows:
(a) For each student who is educationally disadvantaged or
who is a student who does not have a disability and resides in a
residential placement facility in a district in which the student's
parent or legal guardian does not reside, a district is entitled to
an annual allotment equal to the adjusted basic allotment
multiplied by 0.25 [0.2], and by 2.41 for each full-time equivalent
student who is in a compensatory, intensive, or accelerated
[remedial and support] program under Section 29.081 because the
student is pregnant.
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other
students. Specifically, the funds, other than an indirect cost
allotment established under State Board of Education rule, which
may not exceed 25 [45] percent, may be used to meet the costs of
providing a compensatory, intensive, or accelerated instruction
program under Section 29.081 or a disciplinary alternative
education program established under Section 37.008, to pay the
costs associated with placing students in a juvenile justice
alternative education program established under Section 37.011, or
to support a program eligible under Title I of the Elementary and
Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
and its subsequent amendments, and by federal regulations
implementing that Act, at a campus at which at least 40 percent of
the students are educationally disadvantaged. In meeting the
costs of providing a compensatory, intensive, or accelerated
instruction program under Section 29.081, a district's
compensatory education allotment shall be used for costs
supplementary to the regular education program, such as costs for
program and student evaluation, instructional materials and
equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or an open-enrollment charter school must
use funds allocated under Subsection (a) for a purpose authorized
in this subsection but is not otherwise subject to Subchapter C,
Chapter 29. For purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
SECTION 8. Section 42.153(a), Education Code, is amended to
read as follows:
(a) For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the adjusted basic allotment multiplied by 0.25 [0.1].
SECTION 9. Sections 42.2516(b) and (i), Education Code, as
effective until September 1, 2017, are amended to read as follows:
(b) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) the percentage specified by Subsection (i) of the
amount, as calculated under Subsection (e), of state and local
revenue per student in weighted average daily attendance for
maintenance and operations that the district would have received
during the 2009-2010 school year under Chapter 41 and this chapter,
as those chapters existed on January 1, 2009, at a maintenance and
operations tax rate equal to the product of the state compression
percentage for that year multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
and
(2) [the percentage specified by Subsection (i) of an
amount equal to the product of $120 multiplied by the number of
students in weighted average daily attendance in the district; and
[(3)] any amount to which the district is entitled
under Section 42.106.
(i) The percentage to be applied for purposes of Subsection
[Subsections] (b)(1) [and (2)] and Subsection (d)(1) is 92.35
[100.00] percent for the 2015-2016 [2011-2012] school year and
84.70 [92.35] percent for the 2016-2017 [2012-2013] school
year. [For the 2013-2014 school year and each subsequent school
year, the legislature by appropriation shall establish the
percentage reduction to be applied.]
SECTION 10. Sections 42.302(a) and (a-1), Education Code,
are amended to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount
of state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158 [or 42.160], and 50 percent of the adjustment under Section
42.102, by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference 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
"LR" is the local revenue, which is determined by multiplying
"DTR" 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.
(a-1) [In this section, "wealth per student" has the meaning
assigned by Section 41.001.] 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 that would be
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, if the reduction of the limitation on tax increases as
provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not
apply, [or the amount of district tax revenue per weighted student
per cent of tax effort used for purposes of this subdivision in the
preceding school year,] for the first six cents by which the
district's maintenance and operations tax rate exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
and
(2) $54.40 for the 2015-2016 school year and $58.40
for the 2016-2017 and subsequent school years [$31.95], for the
district's maintenance and operations tax effort that exceeds the
amount of tax effort described by Subdivision (1).
SECTION 11. The following provisions of the Education Code
are repealed:
(1) Section 29.097(g);
(2) Section 29.098(e);
(3) Section 39.233;
(4) Section 39.234; and
(5) Section 42.160.
SECTION 12. Except as otherwise provided by this Act, this
Act takes effect September 1, 2015.