Bill Text: TX SB233 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the public school finance system.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-12 - Filed [SB233 Detail]

Download: Texas-2025-SB233-Introduced.html

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89R4155 KJE-D
By: Johnson S.B. No. 233

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 7.062(a), Education Code, is amended to
read as follows:
(a) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
divided by the district's average enrollment [daily attendance] as
determined under Section 48.005.
SECTION 2. Section 11.052(f), Education Code, is amended to
read as follows:
(f) If single-member trustee districts are adopted or
approved as provided by this section, the board shall divide the
school district into the appropriate number of trustee districts,
based on the number of members of the board that are to be elected
from single-member trustee districts, and shall number each trustee
district. The trustee districts must be compact and contiguous and
must be as nearly as practicable of equal population. In a district
with 150,000 or more students in average enrollment [daily
attendance], the boundary of a trustee district may not cross a
county election precinct boundary except at a point at which the
boundary of the school district crosses the county election
precinct boundary. Trustee districts must be drawn not later than
the 90th day before the date of the first election of trustees from
those districts.
SECTION 3. Sections 12.106(a), (a-2), and (d), Education
Code, are amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 48 equal to
the amount of funding per student in weighted average enrollment
[daily attendance], excluding the adjustment under Section 48.052,
the funding under Sections 48.101, 48.110, 48.111, and 48.112, and
enrichment funding under Section 48.202(a), to which the charter
holder would be entitled for the school under Chapter 48 if the
school were a school district without a tier one local share for
purposes of Section 48.266.
(a-2) In addition to the funding provided by Subsection (a),
a charter holder is entitled to receive for the open-enrollment
charter school an allotment per student in average enrollment
[daily attendance] in an amount equal to the difference between:
(1) the product of:
(A) the quotient of:
(i) the total amount of funding provided to
eligible school districts under Section 48.101(b) or (c); and
(ii) the total number of students in
average enrollment [daily attendance] in school districts that
receive an allotment under Section 48.101(b) or (c); and
(B) the sum of one and the quotient of:
(i) the total number of students in average
enrollment [daily attendance] in school districts that receive an
allotment under Section 48.101(b) or (c); and
(ii) the total number of students in
average enrollment [daily attendance] in school districts
statewide; and
(2) $125.
(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 enrollment [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.
SECTION 4. Sections 12.263(a), (b), and (c), Education
Code, are amended to read as follows:
(a) Except as otherwise provided by this section, funding
for an adult education program operated under a charter granted
under this subchapter is an amount per participant through the
Foundation School Program equal to the amount of state funding per
student in weighted average enrollment [daily attendance] that
would be allocated under the Foundation School Program for the
student's enrollment [attendance] at an open-enrollment charter
school in accordance with Section 12.106.
(b) For purposes of determining the average enrollment
[daily attendance] of an adult education program operated under a
charter granted under this subchapter, a student is considered to
be in average enrollment [daily attendance, with a 100 percent
attendance rate,] for:
(1) all of the instructional days of the school year,
if the student is enrolled for at least 75 percent of the school
year;
(2) half of the instructional days of the school year,
if the student is enrolled for at least 50 percent but less than 75
percent of the school year;
(3) a quarter of the instructional days of the school
year, if the student is enrolled for at least 25 percent but less
than 50 percent of the school year; or
(4) one-tenth of the instructional days of the school
year, if the student is enrolled for at least 10 percent but less
than 25 percent of the school year.
(c) A student enrolled in an adult education program
operated under a charter granted under this subchapter for less
than 10 percent of a school year may not be counted toward the adult
education program's average enrollment [daily attendance] for that
school year.
SECTION 5. Section 13.051(c), Education Code, is amended to
read as follows:
(c) Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1) the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A) five percent of the district's taxable value
of all property in that district as determined under Subchapter M,
Chapter 403, Government Code; and
(B) $5,000 property value per student in average
enrollment [daily attendance] as determined under Section 48.005;
and
(2) the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 6. Section 13.102, Education Code, is amended to
read as follows:
Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ATTENDANCE]
REQUIREMENTS. A new district may not be created with an area of
less than nine square miles or fewer than 8,000 students in average
enrollment [daily attendance], and a district may not be reduced to
an area of less than nine square miles or fewer than 8,000 students
in average enrollment [daily attendance].
SECTION 7. Section 13.283, Education Code, is amended to
read as follows:
Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments
shall be reduced in direct proportion to any reduction in the
average enrollment [daily attendance] as determined under Section
48.005 of the reorganized school district for the preceding year.
SECTION 8. Section 19.009(d-2), Education Code, is amended
to read as follows:
(d-2) Beginning with the 2009-2010 school year, the
district shall increase the monthly salary of each classroom
teacher, full-time speech pathologist, full-time librarian,
full-time school counselor certified under Subchapter B, Chapter
21, and full-time school nurse employed by the district by the
greater of:
(1) $80; or
(2) the maximum uniform amount that, when combined
with any resulting increases in the amount of contributions made by
the district for social security coverage for the specified
employees or by the district on behalf of the specified employees
under Section 825.405, Government Code, may be provided using an
amount equal to the product of $60 multiplied by the number of
students in weighted average enrollment [daily attendance] in the
district during the 2009-2010 school year.
SECTION 9. Section 25.038, Education Code, is amended to
read as follows:
Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The
receiving school district may charge a tuition fee to the extent
that the district's actual expenditure per student in average
enrollment [daily attendance], as determined by its board of
trustees, exceeds the sum the district benefits from state aid
sources as provided by Section 25.037. However, unless a tuition
fee is prescribed and set out in a transfer agreement before its
execution by the parties, an increase in tuition charge may not be
made for the year of that transfer that exceeds the tuition charge,
if any, of the preceding school year.
SECTION 10. Section 25.045(c), Education Code, is amended
to read as follows:
(c) A student who transfers to another school district under
this section may not be charged tuition. The student is included in
the average enrollment [daily attendance] of the district in which
the student attends school.
SECTION 11. Sections 25.081(e) and (f), Education Code, are
amended to read as follows:
(e) A school district or education program is exempt from
the minimum minutes of operation requirement if the district's or
program's average enrollment [daily attendance] is calculated
under Section 48.005(j).
(f) The commissioner may proportionally reduce the amount
of funding a district receives under Chapter 46, 48, or 49 and the
average enrollment [daily attendance] calculation for the district
if the district operates on a calendar that provides fewer minutes
of operation than required under Subsection (a).
SECTION 12. Section 25.087(d), Education Code, is amended
to read as follows:
(d) A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be
penalized for that absence and shall be counted as if the student
attended school for purposes of funding under Chapter 48
[calculating the average daily attendance of students in the school
district]. A student whose absence is excused under Subsection (b),
(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a
reasonable time to make up school work missed on those days. If the
student satisfactorily completes the school work, the day of
absence shall be counted as a day of compulsory attendance.
SECTION 13. Section 25.111, Education Code, is amended to
read as follows:
Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by
Section 25.112, each school district must employ a sufficient
number of teachers certified under Subchapter B, Chapter 21, to
maintain an average ratio of not less than one teacher for each 20
students in average enrollment [daily attendance].
SECTION 14. Sections 25.112(a) and (b), Education Code, are
amended to read as follows:
(a) Except as otherwise authorized by this section, a school
district may not enroll more than 22 students in a prekindergarten,
kindergarten, first, second, third, or fourth grade class. That
limitation does not apply during:
(1) any 12-week period of the school year selected by
the district, in the case of a district whose average enrollment
[daily attendance] is adjusted under Section 48.005(c); or
(2) the last 12 weeks of any school year in the case of
any other district.
(b) Not later than the 30th day after the first day of the
12-week period for which a district whose average enrollment [daily
attendance] is adjusted under Section 48.005(c) is claiming an
exemption under Subsection (a), the district shall notify the
commissioner in writing that the district is claiming an exemption
for the period stated in the notice.
SECTION 15. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds. The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 48.256, divided by the average enrollment [daily
attendance] in the district. If the contract involves a private
facility, the state share of the total contract cost is that amount
remaining after subtracting the local share. If the contract
involves a public facility, the state share is that amount
remaining after subtracting the local share from the portion of the
contract that involves the costs of instructional and related
services. For purposes of this subsection, "local tax effort"
means the total amount of money generated by taxes imposed for debt
service and maintenance and operation less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 16. Section 29.014(b), Education Code, is amended
to read as follows:
(b) A school district to which this section applies may
operate an extended year program for a period not to exceed 45 days.
[The district's average daily attendance shall be computed for the
regular school year plus the extended year.]
SECTION 17. Section 29.081(f), Education Code, is amended
to read as follows:
(f) The commissioner shall include a student who
successfully completes a course offered through a program under
Subsection (e) in the computation of the district's or school's
average enrollment [daily attendance] for funding purposes. [For a
student who successfully completes a remote course offered through
the program, the commissioner shall include the student in the
computation of the district's or school's average daily attendance
with an attendance rate equal to:
[(1) the district's or school's average attendance
rate for students successfully completing a course offered in
person under the program; or
[(2) if the district or school does not offer courses
in person under the program, the statewide average attendance rate
for students successfully completing a course offered in person
under a program under Subsection (e).]
SECTION 18. Section 29.0822(d), Education Code, is amended
to read as follows:
(d) The commissioner may adopt rules for the administration
of this section, including rules establishing application
requirements. [Subject to Subsection (d-1), the commissioner shall
calculate average daily attendance for students served under this
section. The commissioner shall allow accumulations of hours of
instruction for students whose schedule would not otherwise allow
full state funding. Funding under this subsection shall be
determined based on the number of instructional days in the school
district calendar and a seven-hour school day, but attendance may
be cumulated over a school year, including any summer or vacation
session. The attendance of students who accumulate less than the
number of attendance hours required under this subsection shall be
proportionately reduced for funding purposes. The commissioner
may:
[(1) set maximum funding amounts for an individual
course under this section; and
[(2) limit funding for the attendance of a student
described by Subsection (a)(3) in a course under this section to
funding only for the attendance necessary for the student to earn
class credit that, as a result of attendance requirements under
Section 25.092, the student would not otherwise be able to receive
without retaking the class.]
SECTION 19. Section 29.184(b), Education Code, is amended
to read as follows:
(b) A student who attends career and technology classes at
another school under a contract authorized by Subsection (a) is
included in the average enrollment [daily attendance] of the
district in which the student is regularly enrolled.
SECTION 20. Sections 29.203(a) and (c), Education Code, are
amended to read as follows:
(a) A student who under this subchapter uses a public
education grant to attend a public school in a school district other
than the district in which the student resides is included in the
average enrollment [daily attendance] of the district in which the
student attends school.
(c) A school district is entitled to additional facilities
assistance under Section 48.301 if the district agrees to:
(1) accept a number of students using public education
grants that is at least one percent of the district's average
enrollment [daily attendance] for the preceding school year; and
(2) provide services to each student until the student
either voluntarily decides to attend a school in a different
district or graduates from high school.
SECTION 21. Section 29.403(b), Education Code, is amended
to read as follows:
(b) A student who is enrolled in a program under this
subchapter is included in determining the average enrollment [daily
attendance] under Section 48.005 of the partnering school district.
SECTION 22. Section 29.457(a), Education Code, is amended
to read as follows:
(a) In addition to other funding to which a school district
is entitled under this code, each district in which alleged
offender residents attend school is entitled to an annual allotment
of $5,100 for each resident in average enrollment [daily
attendance] or a different amount for any year provided by
appropriation.
SECTION 23. Section 29.912(c), Education Code, is amended
to read as follows:
(c) The program must enable an eligible school district that
has fewer than 1,600 students in average enrollment [daily
attendance] to partner with at least one other school district
located within a distance of 100 miles to offer a broader array of
robust college and career pathways. Each partnership must:
(1) offer college and career pathways that align with
regional labor market projections for high-wage, high-demand
careers; and
(2) be managed by a coordinating entity that:
(A) has or will have at the time students are
served under the partnership the capacity to effectively coordinate
the partnership;
(B) has entered into a performance agreement
approved by the board of trustees of each partnering school
district that confers on the coordinating entity the same authority
with respect to pathways offered under the partnership provided to
an entity that contracts to operate a district campus under Section
11.174;
(C) is an eligible entity as defined by Section
12.101(a); and
(D) has on the entity's governing board as either
voting or ex officio members, or has on an advisory body,
representatives of each partnering school district and members of
regional higher education and workforce organizations.
SECTION 24. Section 30.003(b), Education Code, is amended
to read as follows:
(b) If the student is admitted to the school for a full-time
program for the equivalent of two long semesters, the district's
share of the cost is an amount equal to the dollar amount of
maintenance and debt service taxes imposed by the district for that
year divided by the district's average enrollment [daily
attendance] for the preceding year.
SECTION 25. Section 30.102(a), Education Code, is amended
to read as follows:
(a) The Texas Juvenile Justice Department is entitled to
receive the state available school fund apportionment based on the
average enrollment [daily attendance] in the department's
educational programs of students who are at least three years of age
and not older than 21 years of age.
SECTION 26. Section 30A.151(f), Education Code, is amended
to read as follows:
(f) For a full-time electronic course program offered
through the state virtual school network for a grade level at or
above grade level three but not above grade level eight, a school
district or open-enrollment charter school is entitled to receive
federal, state, and local funding for a student enrolled in the
program in an amount equal to the funding the district or school
would otherwise receive for a student enrolled in the district or
school. [The district or school may calculate the average daily
attendance of a student enrolled in the program based on:
[(1) hours of contact with the student;
[(2) the student's successful completion of a course;
or
[(3) a method approved by the commissioner.]
SECTION 27. Section 33.157, Education Code, is amended to
read as follows:
Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or
secondary school receiving funding under Section 33.156 shall
participate in a local Communities In Schools program if the number
of students enrolled in the school who are at risk of dropping out
of school is equal to at least 10 percent of the number of students
in average enrollment [daily attendance] at the school, as
determined by the agency.
SECTION 28. Section 37.0061, Education Code, is amended to
read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average enrollment [daily attendance]
for purposes of receipt of state funds under the Foundation School
Program. If the district has a local revenue level greater than the
guaranteed local revenue level but less than the level established
under Section 48.257, the district in which the student is enrolled
on the date a court orders the student to be confined to a juvenile
residential facility shall transfer to the district providing
education services an amount equal to the difference between the
average Foundation School Program costs per student of the district
providing education services and the sum of the state aid and the
money from the available school fund received by the district that
is attributable to the student for the portion of the school year
for which the district provides education services to the student.
SECTION 29. Section 37.008(f), Education Code, is amended
to read as follows:
(f) A student removed to a disciplinary alternative
education program is counted in computing the average enrollment
[daily attendance] of students in the district [for the student's
time in actual attendance in the program].
SECTION 30. Section 37.011(a-4), Education Code, is amended
to read as follows:
(a-4) A school district located in a county considered to be
a county with a population of 125,000 or less under Subsection (a-3)
shall provide educational services to a student who is expelled
from school under this chapter. The district is entitled to count
the student in the district's average enrollment [daily attendance]
for purposes of receipt of state funds under the Foundation School
Program. An educational placement under this section may include:
(1) the district's disciplinary alternative education
program; or
(2) a contracted placement with:
(A) another school district;
(B) an open-enrollment charter school;
(C) an institution of higher education;
(D) an adult literacy council; or
(E) a community organization that can provide an
educational program that allows the student to complete the credits
required for high school graduation.
SECTION 31. Sections 39.027(c) and (f), Education Code, are
amended to read as follows:
(c) The commissioner shall develop and adopt a process for
reviewing the exemption process of a school district or shared
services arrangement that gives an exemption under Subsection
(a)(1) as follows:
(1) to more than five percent of the students in the
special education program, in the case of a district or shared
services arrangement with an average enrollment [daily attendance]
of at least 1,600;
(2) to more than 10 percent of the students in the
special education program, in the case of a district or shared
services arrangement with an average enrollment [daily attendance]
of at least 190 and not more than 1,599; or
(3) to the greater of more than 10 percent of the
students in the special education program or to at least five
students in the special education program, in the case of a district
or shared services arrangement with an average enrollment [daily
attendance] of not more than 189.
(f) In this section, "average enrollment [daily
attendance]" is computed in the manner provided by Section 48.005.
SECTION 32. Section 39.053(g-1), Education Code, is amended
to read as follows:
(g-1) In computing dropout and completion rates such as high
school graduation rates under Subsection (c)(1)(B)(ix), the
commissioner shall exclude:
(1) students who are ordered by a court to attend a
high school equivalency certificate program but who have not yet
earned a high school equivalency certificate;
(2) students who were previously reported to the state
as dropouts, including a student who is reported as a dropout,
reenrolls, and drops out again, regardless of the number of times of
reenrollment and dropping out;
(3) students in attendance who are not in membership
for purposes of average enrollment [daily attendance];
(4) students whose initial enrollment in a school in
the United States in grades 7 through 12 was as an unschooled asylee
or refugee as defined by Section 39.027(a-1);
(5) students who are detained at a county
pre-adjudication or post-adjudication juvenile detention facility
and:
(A) in the district exclusively as a function of
having been detained at the facility but are otherwise not students
of the district in which the facility is located; or
(B) provided services by an open-enrollment
charter school exclusively as the result of having been detained at
the facility;
(6) students who are incarcerated in state jails and
federal penitentiaries as adults and as persons certified to stand
trial as adults; and
(7) students who have suffered a condition, injury, or
illness that requires substantial medical care and leaves the
student:
(A) unable to attend school; and
(B) assigned to a medical or residential
treatment facility.
SECTION 33. Section 39.262(a), Education Code, is amended
to read as follows:
(a) The governor may present a financial award to the
schools or districts that the commissioner determines have
demonstrated the highest levels of sustained success or the
greatest improvement in achieving the education goals. For each
student in average enrollment [daily attendance], each of those
schools or districts is entitled to an amount set for the award for
which the school or district is selected by the commissioner,
subject to any limitation set by the commissioner on the total
amount that may be awarded to a school or district.
SECTION 34. Section 43.001(c), Education Code, is amended
to read as follows:
(c) The term "scholastic population" in Subsection (b) or
any other law governing the apportionment, distribution, and
transfer of the available school fund means all students of school
age [enrolled] in average enrollment [daily attendance] the
preceding school year in the public elementary and high school
grades of school districts within or under the jurisdiction of a
county of this state.
SECTION 35. Section 44.004(c), Education Code, is amended
to read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice." In addition, in reduced type, the
notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
your local property tax database on which you can easily access
information regarding your property taxes, including information
about proposed tax rates and scheduled public hearings of each
entity that taxes your property.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) maintenance and operations;
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 48, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 48 per student in average enrollment
[daily attendance] for the applicable school year that was
available to the district in the preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average enrollment [daily attendance]
in the district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 43, 46, and 48 and dividing
that amount by the number of students in average enrollment [daily
attendance] in the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds, were
approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information: "Increase
(Decrease) in Taxes" expressed in dollars and cents, which is
computed by subtracting the "Taxes Due on Average Residence" for
the preceding tax year from the "Taxes Due on Average Residence" for
the current tax year;
(7) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
(8) contain the following statement in bold print:
"Notice of Voter-Approval Rate: The highest tax rate the district
can adopt before requiring voter approval at an election is (the
school district voter-approval rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the voter-approval rate of (the
school district voter-approval rate)."; and
(9) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 48 in
the succeeding school year.
SECTION 36. Sections 45.0011(a), (d), and (e), Education
Code, are amended to read as follows:
(a) This section applies only to an independent school
district that, at the time of the issuance of obligations and
execution of credit agreements under this section, has:
(1) at least 2,000 students in average enrollment
[daily attendance]; or
(2) a combined aggregate principal amount of at least
$50 million of outstanding bonds and voted but unissued bonds.
(d) A district may not issue bonds to which this section
applies in an amount greater than the greater of:
(1) 25 percent of the sum of:
(A) the aggregate principal amount of all
district debt payable from ad valorem taxes that is outstanding at
the time the bonds are issued; and
(B) the aggregate principal amount of all bonds
payable from ad valorem taxes that have been authorized but not
issued;
(2) $25 million, in a district that has at least 3,500
but not more than 15,000 students in average enrollment [daily
attendance]; or
(3) $50 million, in a district that has more than
15,000 students in average enrollment [daily attendance].
(e) In this section, average enrollment [daily attendance]
is determined in the manner provided by Section 48.005.
SECTION 37. Section 45.006(a), Education Code, is amended
to read as follows:
(a) This section applies only to a school district that:
(1) has an average enrollment [daily attendance] of
less than 10,000; and
(2) is located in whole or part in a municipality with
a population of less than 25,000 that is located in a county with a
population of 200,000 or more bordering another county with a
population of 2.8 million or more.
SECTION 38. Section 45.105(d), Education Code, is amended
to read as follows:
(d) An independent school district that has in its limits a
municipality with a population of 150,000 or more or that contains
at least 170 square miles, has $850 million or more assessed value
of taxable property on the most recent approved tax roll and has a
growth in average enrollment [daily attendance] of 11 percent or
more for each of the preceding five years as determined by the
agency may, in buying school sites or additions to school sites and
in building school buildings, issue and deliver negotiable or
nonnegotiable notes representing all or part of the cost to the
school district of the land or building. The district may secure
the notes by a vendor's lien or deed of trust lien against the land
or building. By resolution or order of the governing body made at
or before the delivery of the notes, the district may set aside and
appropriate as a trust fund, and the sole and only fund, for the
payment of the principal of and interest on the notes that part of
the local school funds, levied and collected by the school district
in that year or subsequent years, as the governing body determines.
The aggregate amount of local school funds set aside in or for any
subsequent year for the retirement of the notes may not exceed, in
any one subsequent year, 10 percent of the local school funds
collected during that year. The district may issue the notes only
if approved by majority vote of the qualified voters voting in an
election conducted in the manner provided by Section 45.003 for
approval of bonds.
SECTION 39. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X AE [ADA] X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"AE" ["ADA"] is the greater of the number of students in
average enrollment [daily attendance], as determined under Section
48.005, in the district or 400;
"BTR" is the district's bond tax rate for the current year,
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, Section 48.258, 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, Section 48.258.
SECTION 40. Section 46.005, Education Code, is amended to
read as follows:
Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The
guaranteed amount of state and local funds for a new project that a
district may be awarded in any state fiscal biennium under Section
46.003 for a school district may not exceed the lesser of:
(1) the amount the actual debt service payments the
district makes in the biennium in which the bonds are issued; or
(2) the greater of:
(A) $100,000; or
(B) the product of the number of students in
average enrollment [daily attendance] in the district multiplied by
$250.
SECTION 41. Section 46.006(g), Education Code, is amended
to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, or, if applicable, Section 48.258,
divided by the district's average enrollment [daily attendance] as
determined under Section 48.005.
SECTION 42. 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 AE [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 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;
"AE" ["ADA"] is the number of students in average enrollment
[daily attendance], as determined under Section 48.005, 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 48.258, 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 48.258.
SECTION 43. Section 48.005, Education Code, is amended to
read as follows:
Sec. 48.005. AVERAGE ENROLLMENT [DAILY ATTENDANCE]. (a)
In this chapter, average enrollment [daily attendance] is:
(1) the average number of students enrolled in the
school district during a school year [quotient of the sum of
attendance for each day of the minimum number of days of instruction
as described under Section 25.081(a) divided by the minimum number
of days of instruction;
[(2) for a district that operates under a flexible
year program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1);
[(3) for a district that operates under a flexible
school day program under Section 29.0822, the average daily
attendance as calculated by the commissioner in accordance with
Sections 29.0822(d) and (d-1)]; or
(2) [(4)] for a district that operates a half-day
program or a full-day program under Section 29.153(c), one-half of
the average enrollment [daily attendance] calculated under
Subdivision (1).
(b) A school district that experiences a decline of two
percent or more in average enrollment [daily attendance] shall be
funded on the basis of:
(1) the actual average enrollment [daily attendance]
of the preceding school year, if the decline is the result of the
closing or reduction in personnel of a military base; or
(2) subject to Subsection (e), an average enrollment
[daily attendance] not to exceed 98 percent of the actual average
enrollment [daily attendance] of the preceding school year, if the
decline is not the result of the closing or reduction in personnel
of a military base.
(c) The commissioner shall adjust the average enrollment
[daily attendance] of a school district that has a significant
percentage of students who are migratory children as defined by 20
U.S.C. Section 6399.
(d) The commissioner may adjust the average enrollment
[daily attendance] of a school district in which a disaster, flood,
extreme weather condition, fuel curtailment, or other calamity has
a significant effect on the district's enrollment [attendance]. In
addition to providing the adjustment for the amount of
instructional days during the semester in which the calamity first
occurred, an adjustment under this section may only be provided
based on a particular calamity for an additional amount of
instructional days equivalent to one school year. The commissioner
may divide the adjustment between two consecutive school years.
(e) For each school year, the commissioner shall adjust the
average enrollment [daily attendance] of school districts that are
entitled to funding on the basis of an adjusted average enrollment
[daily attendance] under Subsection (b)(2) so that:
(1) all districts are funded on the basis of the same
percentage of the preceding year's actual average enrollment [daily
attendance]; and
(2) the total cost to the state does not exceed the
amount specifically appropriated for that year for purposes of
Subsection (b)(2).
(f) An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2).
(g) If a student may receive course credit toward the
student's high school academic requirements and toward the
student's higher education academic requirements for a single
course, including a course provided under Section 28.009 by a
public institution of higher education, the time during which the
student attends the course shall be counted as part of the minimum
number of instructional hours required for a student to be
considered a full-time student in average enrollment [daily
attendance] for purposes of this section.
[(g-1) The commissioner shall adopt rules to calculate
average daily attendance for students participating in a blended
learning program in which classroom instruction is supplemented
with applied workforce learning opportunities, including
participation of students in internships, externships, and
apprenticeships.]
(h) Time [Subject to rules adopted by the commissioner under
Section 48.007(b), time] that a student participates in an
off-campus instructional program provided by an entity other than a
school district or open-enrollment charter school and approved by
the commissioner in accordance with commissioner rule [under
Section 48.007(a)] shall be counted as part of the minimum number of
instructional hours required for a student to be considered a
full-time student in average enrollment [daily attendance] for
purposes of this section.
(i) A district or a charter school operating under Chapter
12 that operates a prekindergarten program is eligible to receive
one-half of average enrollment [daily attendance] under Subsection
(a) if the district's or charter school's prekindergarten program
provides at least 32,400 minutes of instructional time to students.
(j) A district or charter school is eligible to earn full
average enrollment [daily attendance] under Subsection (a) if the
district or school provides at least 43,200 minutes of
instructional time to students enrolled in:
(1) a dropout recovery school or program operating
under Section 12.1141(c) or Section 39.0548;
(2) an alternative education program operating under
Section 37.008;
(3) a school program located at a day treatment
facility, residential treatment facility, psychiatric hospital, or
medical hospital;
(4) a school program offered at a correctional
facility; or
(5) a school operating under Subchapter G, Chapter 12.
(k) A charter school operating under a charter granted under
Chapter 12 before January 1, 2015, is eligible to earn full average
enrollment [daily attendance] under Subsection (a)[, as that
subsection existed immediately before January 1, 2015,] for:
(1) all campuses of the charter school operating
before January 1, 2015; and
(2) any campus or site expansion approved on or after
January 1, 2015, provided that the charter school received an
academic accountability performance rating of C or higher, and the
campus or site expansion is approved by the commissioner.
(l) A school district campus or charter school described by
Subsection (j) may operate more than one program and be eligible for
full average enrollment [daily attendance] for each program if the
programs operated by the district campus or charter school satisfy
all applicable state and federal requirements.
(m) The commissioner shall adopt rules necessary to
implement this section, including rules that:
(1) determine the method to calculate the average
number of students enrolled in a school district during a school
year;
(2) establish the minimum amount of instructional time
per day that allows a school district or charter school to be
eligible for full average enrollment [daily attendance], which may
differ based on the instructional program offered by the district
or charter school;
(3) [(2)] establish the requirements necessary for a
school district or charter school to be eligible for one-half of
average enrollment [daily attendance], which may differ based on
the instructional program offered by the district or charter
school;
(4) [(3)] proportionally reduce the average
enrollment [daily attendance] for a school district if any campus
or instructional program in the district provides fewer than the
required minimum minutes of instruction to students; and
(5) [(4)] allow a grade or course repeated under
Section 28.02124 to qualify for average enrollment [daily
attendance] even if the student previously passed or earned credit
for the grade or course, if the grade or course would otherwise be
eligible.
(n) To assist school districts in implementing this section
as amended by H.B. 2442, [Acts of the] 85th Legislature, Regular
Session, 2017, the commissioner may waive a requirement of this
section or adopt rules to implement this section.
SECTION 44. Sections 48.0051(a) and (b), Education Code,
are amended to read as follows:
(a) The [Subject to Subsection (a-1), the] commissioner
shall adjust the average enrollment [daily attendance] of a school
district or open-enrollment charter school under Section 48.005 in
the manner provided by Subsection (b) if the district or school:
(1) provides the minimum number of minutes of
operational and instructional time required under Section 25.081
and commissioner rules adopted under that section over at least 180
days of instruction; and
(2) offers an additional 30 days of half-day
instruction for students enrolled in prekindergarten through fifth
grade.
(b) For a school district or open-enrollment charter school
described by Subsection (a), the commissioner shall increase the
average enrollment [daily attendance] of the district or school
under Section 48.005 by the amount equal to one-sixth [that results
from the quotient] of the enrollment [sum of attendance] by
students described by Subsection (a)(2) in [for each of] the 30
additional instructional days of half-day instruction [that are
provided divided by 180].
SECTION 45. Section 48.006, Education Code, is amended to
read as follows:
Sec. 48.006. AVERAGE ENROLLMENT [DAILY ATTENDANCE] FOR
DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the
average enrollment [daily attendance] of a school district all or
part of which is located in an area declared a disaster area by the
governor under Chapter 418, Government Code, if the district
experiences a decline in average enrollment [daily attendance] that
is reasonably attributable to the impact of the disaster.
(b) The adjustment must be sufficient to ensure that the
district receives funding comparable to the funding that the
district would have received if the decline in average enrollment
[daily attendance] reasonably attributable to the impact of the
disaster had not occurred.
(c) The commissioner may make the adjustment under this
section for the two-year period following the date of the
governor's initial proclamation or executive order declaring the
state of disaster.
(d) Section 48.005(b)(2) does not apply to a district that
receives an adjustment under this section.
(e) A district that receives an adjustment under this
section may not receive any additional adjustment under Section
48.005(d) for the decline in average enrollment [daily attendance]
on which the adjustment under this section is based.
(f) For purposes of this title, a district's adjusted
average enrollment [daily attendance] under this section is
considered to be the district's average enrollment [daily
attendance] as determined under Section 48.005.
SECTION 46. Sections 48.010(a) and (b), Education Code, are
amended to read as follows:
(a) Not later than July 1 of each year, the commissioner
shall determine for each school district whether the estimated
amount of state and local funding per student in weighted average
enrollment [daily attendance] to be provided to the district under
the Foundation School Program for maintenance and operations for
the following school year is less than the amount provided to the
district for the 2010-2011 school year. If the amount estimated to
be provided is less, the commissioner shall certify the percentage
decrease in funding to be provided to the district.
(b) In making the determinations regarding funding levels
required by Subsection (a), the commissioner shall:
(1) make adjustments as necessary to reflect changes
in a school district's maintenance and operations tax rate;
(2) for a district required to reduce its local
revenue level under Section 48.257, base the determinations on the
district's net funding levels after deducting any amounts required
to be expended by the district to comply with Chapter 49; and
(3) determine a district's weighted average enrollment
[daily attendance] in accordance with this chapter as it existed on
January 1, 2011.
SECTION 47. Section 48.051, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsection (a-1) to
read as follows:
(a) Subject to adjustment under Subsection (a-1), for [For]
each student in average enrollment [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 $7,750 [$6,160] or the amount that
results from the following formula:
A = $7,750 [$6,160] X TR/MCR
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.
(a-1) Beginning with the 2026-2027 school year, the basic
allotment provided to a district under Subsection (a) or (b) is
adjusted annually to increase the allotment by a factor equal to the
average annual percentage increase, if any, in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the United States Department of Labor, to the
allotment for the preceding five years.
(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
enrollment [daily attendance] of the district multiplied by the
amount of the difference between the district's funding under this
chapter per student in average enrollment [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.
SECTION 48. Sections 48.052(a) and (c), Education Code, are
amended to read as follows:
(a) Notwithstanding Section 48.051, a school district that
has fewer than 130 students in average enrollment [daily
attendance] shall be provided a basic allotment on the basis of 130
students in average enrollment [daily attendance] if it offers a
kindergarten through grade 12 program and has preceding or current
year's average enrollment [daily attendance] of at least 90
students or is 30 miles or more by bus route from the nearest high
school district. A district offering a kindergarten through grade 8
program whose preceding or current year's average enrollment [daily
attendance] was at least 50 students or which is 30 miles or more by
bus route from the nearest high school district shall be provided a
basic allotment on the basis of 75 students in average enrollment
[daily attendance]. An average enrollment [daily attendance] of 60
students shall be the basis of providing the basic allotment if a
district offers a kindergarten through grade 6 program and has
preceding or current year's average enrollment [daily attendance]
of at least 40 students or is 30 miles or more by bus route from the
nearest high school district.
(c) Notwithstanding Subsection (a) or Section 48.051, a
school district to which this subsection applies, as provided by
Subsection (b), that has fewer than 130 students in average
enrollment [daily attendance] shall be provided a basic allotment
on the basis of 130 students in average enrollment [daily
attendance] if it offers a kindergarten through grade four program
and has preceding or current year's average enrollment [daily
attendance] of at least 75 students or is 30 miles or more by bus
route from the nearest high school district.
SECTION 49. Section 48.101, 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 enrollment [daily attendance];
(2) "AE" ["ADA"] is the number of students in average
enrollment [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 enrollment [daily attendance] is entitled to an annual
allotment for each student in average enrollment [daily attendance]
based on the following formula:
AA = ((1,600 - AE [ADA]) X .0004) X BA
(c) A school district that offers a kindergarten through
grade 12 program and has less than 5,000 students in average
enrollment [daily attendance] is entitled to an annual allotment
for each student in average enrollment [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 - AE [ADA]) X .000025) X BA.
(d) Instead of the allotment under Subsection (b) or (c)(1),
a school district that has fewer than 300 students in average
enrollment [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 enrollment [daily attendance]
based on the following formula:
AA = ((1,600 - AE [ADA]) X .00047) X BA
SECTION 50. Sections 48.102(a) and (j), Education Code, are
amended to read as follows:
(a) For each student in average enrollment [daily
attendance] in a special education program under Subchapter A,
Chapter 29, in a mainstream instructional arrangement, a school
district is entitled to an annual allotment equal to the basic
allotment, or, if applicable, the sum of the basic allotment and the
allotment under Section 48.101 to which the district is entitled,
multiplied by 1.15. For each full-time equivalent student in
average enrollment [daily attendance] in a special education
program under Subchapter A, Chapter 29, in an instructional
arrangement other than a mainstream instructional arrangement, a
district is entitled to an annual allotment equal to the basic
allotment, or, if applicable, the sum of the basic allotment and the
allotment under Section 48.101 to which the district is entitled,
multiplied by a weight determined according to instructional
arrangement as follows:
Homebound5.0
Hospital class3.0
Speech therapy5.0
Resource room3.0
Self-contained, mild and moderate,
regular campus3.0
Self-contained, severe, regular campus3.0
Off home campus2.7
Nonpublic day school1.7
Vocational adjustment class2.3
(j) A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the basic allotment, or, if applicable, the sum of the basic
allotment and the allotment under Section 48.101 to which the
district is entitled for each full-time equivalent student in
average enrollment [daily attendance], multiplied by the amount
designated for the student's instructional arrangement under this
section[, for each day the program is provided divided by the number
of days in the minimum school year]. The total amount of state
funding for extended year services under this section may not
exceed $10 million per year. A school district may use funds
received under this section only in providing an extended year
program.
SECTION 51. Section 48.105(a), Education Code, is amended
to read as follows:
(a) For each student in average enrollment [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 basic allotment multiplied by:
(1) for an emergent bilingual student, as defined by
Section 29.052:
(A) 0.1; or
(B) 0.15 if the student is in a bilingual
education program using a dual language immersion/one-way or
two-way program model; and
(2) for a student not described by Subdivision (1),
0.05 if the student is in a bilingual education program using a dual
language immersion/two-way program model.
SECTION 52. Sections 48.106(a) and (a-1), Education Code,
are amended to read as follows:
(a) For each full-time equivalent student in average
enrollment [daily attendance] in an approved career and technology
education program in grades 7 through 12, a district is entitled to
an annual allotment equal to the basic allotment, or, if
applicable, the sum of the basic allotment and the allotment under
Section 48.101 to which the district is entitled, multiplied by:
(1) 1.1 for a full-time equivalent student in career
and technology education courses not in an approved program of
study;
(2) 1.28 for a full-time equivalent student in levels
one and two career and technology education courses in an approved
program of study, as identified by the agency; and
(3) 1.47 for a full-time equivalent student in levels
three and four career and technology education courses in an
approved program of study, as identified by the agency.
(a-1) In addition to the amounts under Subsection (a), for
each student in average enrollment [daily attendance], a district
is entitled to $50 for each of the following in which the student is
enrolled:
(1) a campus designated as a P-TECH school under
Section 29.556; or
(2) a campus that is a member of the New Tech Network
and that focuses on project-based learning and work-based
education.
SECTION 53. Section 48.107(a), Education Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), for each student
in average enrollment [daily attendance] who is using a public
education grant under Subchapter G, Chapter 29, to attend school in
a district other than the district in which the student resides, the
district in which the student attends school is entitled to an
annual allotment equal to the basic allotment multiplied by a
weight of 0.1.
SECTION 54. Section 48.108(a), Education Code, is amended
to read as follows:
(a) For each student in average enrollment [daily
attendance] in kindergarten through third grade, a school district
is entitled to an annual allotment equal to the basic allotment
multiplied by 0.1 if the student is:
(1) educationally disadvantaged; or
(2) an emergent bilingual student, as defined by
Section 29.052, and is in a bilingual education or special language
program under Subchapter B, Chapter 29.
SECTION 55. Section 48.109(c), Education Code, is amended
to read as follows:
(c) Not more than five percent of a district's students in
average enrollment [daily attendance] are eligible for funding
under this section.
SECTION 56. Section 48.115(a), Education Code, is amended
to read as follows:
(a) Except as provided by Subsection (a-1), a school
district is entitled to an annual allotment equal to the sum of the
following amounts or a greater amount provided by appropriation:
(1) $10 for each student in average enrollment [daily
attendance], plus $1 for each student in average enrollment [daily
attendance] per every $50 by which the district's maximum basic
allotment under Section 48.051 exceeds $7,750 [$6,160], prorated as
necessary; and
(2) $15,000 per campus.
SECTION 57. Section 48.118(a), Education Code, is amended
to read as follows:
(a) For each full-time equivalent student in average
enrollment [daily attendance] in grades 9 through 12 in a college or
career pathway offered through a partnership under the Rural
Pathway Excellence Partnership (R-PEP) program under Section
29.912, a school district is entitled to an allotment equal to the
basic allotment, or, if applicable, the sum of the basic allotment
and the allotment under Section 48.101 to which the district is
entitled, multiplied by:
(1) 1.15 if the student is educationally
disadvantaged; or
(2) 1.11 if the student is not educationally
disadvantaged.
SECTION 58. Sections 48.152(d) and (e), Education Code, are
amended to read as follows:
(d) For the first school year in which students attend a new
instructional facility, a school district is entitled to an
allotment of $1,000 for each student in average enrollment [daily
attendance] at the facility. For the second school year in which
students attend that instructional facility, a school district is
entitled to an allotment of $1,000 for each additional student in
average enrollment [daily attendance] at the facility.
(e) For purposes of this section, the number of additional
students in average enrollment [daily attendance] at a facility is
the difference between the number of students in average enrollment
[daily attendance] in the current year at that facility and the
number of students in average enrollment [daily attendance] at that
facility in the preceding year.
SECTION 59. Section 48.153, Education Code, is amended to
read as follows:
Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL
PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment
charter school is entitled to $275 for each student in average
enrollment [daily attendance] who:
(1) resides in a residential placement facility; or
(2) is at a district or school or a campus of the
district or school that is designated as a dropout recovery school
under Section 39.0548.
SECTION 60. Sections 48.202(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
48.203, is determined by the formula:
GYA = (GL X WAE [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;
"WAE" ["WADA"] is the number of students in weighted average
enrollment [daily attendance], which is calculated by dividing the
sum of the school district's allotments under Subchapters B and C 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 48.258 or by the quotient of the value of "DPV" as
determined under Section 48.256(d) if that subsection applies to
the district, 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 48.258 or by the quotient of the value of
"DPV" as determined under Section 48.256(d) if that subsection
applies to the district, divided by 100.
(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 the maximum amount of the
basic allotment provided under Section 48.051 for the applicable
school year [6,160, or the 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 the maximum amount of the basic allotment provided
under Section 48.051 for the applicable school year [$6,160, or the
greater amount provided 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 61. Section 48.252(b), Education Code, is amended
to read as follows:
(b) Notwithstanding any other provision of this chapter or
Chapter 49, a school district subject to this section is entitled to
receive for each student in average enrollment [daily attendance]
at the campus or program described by Subsection (a) an amount
equivalent to the difference, if the difference results in
increased funding, between:
(1) the amount described by Section 12.106; and
(2) the amount to which the district would be entitled
under this chapter.
SECTION 62. Section 48.2642(a), Education Code, is amended
to read as follows:
(a) Notwithstanding any other provision of this chapter,
the commissioner shall count toward a school district's or
open-enrollment charter school's average enrollment [daily
attendance] under Section 48.005 each student who graduates early
from high school in the district or school under the Texas First
Early High School Completion Program established under Section
28.0253 for the period in which the student is enrolled at an
eligible institution using state credit awarded under the Texas
First Scholarship Program established under Subchapter K-1,
Chapter 56, based on a 100 percent attendance rate.
SECTION 63. Section 48.273(a)(4), Education Code, is
amended to read as follows:
(4) "Wealth per student" means the taxable property
values reported by the comptroller to the commissioner under
Section 48.256 divided by the number of students in average
enrollment [daily attendance].
SECTION 64. Section 48.277(a), Education Code, is amended
to read as follows:
(a) A school district or open-enrollment charter school is
entitled to receive an annual allotment for each student in average
enrollment [daily attendance] in the amount equal to the
difference, if the difference is greater than zero, that results
from subtracting the total maintenance and operations revenue per
student in average enrollment [daily attendance] for the current
school year from the lesser of:
(1) 103 percent of the district's or school's total
maintenance and operations revenue per student in average
enrollment [daily attendance] for the 2019-2020 school year that
the district or school would have received under former Chapters 41
and 42, as those chapters existed on January 1, 2019; or
(2) 128 percent of the statewide average amount of
maintenance and operations revenue per student in average
enrollment [daily attendance] that would have been provided for the
2019-2020 school year under former Chapters 41 and 42, as those
chapters existed on January 1, 2019.
SECTION 65. Section 49.001(2), Education Code, is amended
to read as follows:
(2) "Weighted average enrollment [daily attendance]"
has the meaning assigned by Section 48.202.
SECTION 66. Section 49.002, Education Code, is amended to
read as follows:
Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A
district with a local revenue level in excess of entitlement may
take any combination of the following actions to reduce the
district's revenue level:
(1) consolidation with another district as provided by
Subchapter B;
(2) detachment of territory as provided by Subchapter
C;
(3) purchase of [average daily] attendance credit as
provided by Subchapter D;
(4) education of nonresident students as provided by
Subchapter E; or
(5) tax base consolidation with another district as
provided by Subchapter F.
SECTION 67. Section 49.003, Education Code, is amended to
read as follows:
Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND
NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [DAILY ATTENDANCE]. In
determining whether a school district has a local revenue level in
excess of entitlement, the commissioner shall use:
(1) the district's final weighted average enrollment
[daily attendance]; and
(2) the amount of attendance credit a district
purchases under Subchapter D or the number of nonresident students
a district educates under Subchapter E for a school year.
SECTION 68. Section 49.158(a), Education Code, is amended
to read as follows:
(a) Sections 49.154 and 49.157 apply only to a district
that:
(1) executes an agreement to purchase attendance
credit necessary to reduce the district's local revenue level to
the level established under Section 48.257;
(2) executes an agreement to purchase attendance
credit and an agreement under Subchapter E to contract for the
education of nonresident students who transfer to and are educated
in the district but who are not charged tuition; or
(3) executes an agreement under Subchapter E to
contract for the education of nonresident students:
(A) to an extent that does not provide more than
10 percent of the reduction in local revenue required for the
district to achieve a local revenue level that is equal to or less
than the level established under Section 48.257; and
(B) under which all revenue paid by the district
to other districts, in excess of the reduction in state aid that
results from counting the weighted average enrollment [daily
attendance] of the students served in the contracting district, is
required to be used for funding a consortium of at least three
districts in a county with a population of less than 40,000 that is
formed to support a technology initiative.
SECTION 69. Section 49.201, Education Code, is amended to
read as follows:
Sec. 49.201. AGREEMENT. The board of trustees of a
district with a local revenue level in excess of entitlement may
execute an agreement to educate the students of another district in
a number that, when the weighted average enrollment [daily
attendance] of the students served is added to the weighted average
enrollment [daily attendance] of the contracting district, is
sufficient, in combination with any other actions taken under this
chapter, to reduce the district's local revenue level to a level
that is equal to or less than the level established under Section
48.257. The agreement is not effective unless the commissioner
certifies that the transfer of weighted average enrollment [daily
attendance] will not result in any of the contracting districts'
local revenue level being greater than the level established under
Section 48.257 and that the agreement requires an expenditure per
student in weighted average enrollment [daily attendance] that is
at least equal to the amount per student in weighted average
enrollment [daily attendance] required under Section 49.153.
SECTION 70. Section 49.203, Education Code, is amended to
read as follows:
Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [WADA] COUNT. For
purposes of Chapter 48, students served under an agreement under
this subchapter are counted only in the weighted average enrollment
[daily attendance] of the district providing the services, except
that students served under an agreement authorized by Section
49.205 are counted in a manner determined by the commissioner.
SECTION 71. Section 49.257(b), Education Code, is amended
to read as follows:
(b) Each component district shall bear a share of the costs
of assessing and collecting taxes in proportion to the component
district's share of weighted average enrollment [daily attendance]
in the consolidated taxing district.
SECTION 72. Section 49.258, Education Code, is amended to
read as follows:
Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing
district shall distribute maintenance tax revenue to the component
districts on the basis of the number of students in weighted average
enrollment [daily attendance] in the component districts.
SECTION 73. Sections 49.305(c) and (d), Education Code, are
amended to read as follows:
(c) If the detachment of whole parcels or items of property
as provided by Subsection (a) would result in a district's local
revenue level that is less than the level established under Section
48.257 by more than the product of $10,000 multiplied by weighted
average enrollment [daily attendance], the commissioner may not
detach the last parcel or item of property and shall detach the next
one or more parcels or items of property in descending order of
taxable value that would result in the school district having a
local revenue level that is equal to or less than the level
established under Section 48.257 by not more than the product of
$10,000 multiplied by weighted average enrollment [daily
attendance].
(d) Notwithstanding Subsections (a), (b), and (c), the
commissioner may detach only a portion of a parcel or item of
property if:
(1) it is not possible under this subchapter to reduce
the district's local revenue level to a level that is equal to or
less than the level established under Section 48.257 unless some or
all of the parcel or item of property is detached and the detachment
of the whole parcel or item would result in the district from which
it is detached having a local revenue level that is less than the
level established under Section 48.257 by more than the product of
$10,000 multiplied by weighted average enrollment [daily
attendance]; or
(2) the commissioner determines that a partial
detachment of that parcel or item of property is preferable to the
detachment of one or more other parcels or items having a lower
taxable value in order to minimize the number of parcels or items of
property to be detached consistent with the purposes of this
chapter.
SECTION 74. Section 49.306(i), Education Code, is amended
to read as follows:
(i) The commissioner may order the annexation of a portion
of a parcel or item of property, including a portion of property
treated as a whole parcel or item under Subsection (h), if:
(1) the annexation of the whole parcel or item would
result in the district eligible to receive it in the appropriate
priority order provided by this section having a local revenue
level greater than the amount by which the product of $10,000
multiplied by weighted average enrollment [daily attendance]
exceeds the taxable value of property necessary to generate
maintenance and operations tax revenue in the amount equal to the
district's entitlement under Section 48.202(a-1)(2); or
(2) the commissioner determines that annexation of
portions of the parcel or item would reduce disparities in district
taxable values of property necessary to generate maintenance and
operations tax revenue in the amount equal to a district's
entitlement under Section 48.202(a-1)(2) more efficiently than
would be possible if the parcel or item were annexed as a whole.
SECTION 75. Section 49.311, Education Code, is amended to
read as follows:
Sec. 49.311. STUDENT ATTENDANCE. A student who is a
resident of real property detached from a school district may
choose to attend school in that district or in the district to which
the property is annexed. For purposes of determining average
enrollment [daily attendance] under Section 48.005, the student
shall be counted in the district to which the property is annexed.
If the student chooses to attend school in the district from which
the property is detached, the state shall withhold any foundation
school funds from the district to which the property is annexed and
shall allocate to the district in which the student is attending
school those funds and the amount of funds equal to the difference
between the state funds the district is receiving for the student
and the district's cost in educating the student.
SECTION 76. Section 49.354(e), Education Code, is amended
to read as follows:
(e) A restored district's proportionate share of fund
balances, personal property, or indebtedness is equal to the
proportion that the number of students in average enrollment [daily
attendance] in the restored district bears to the number of
students in average enrollment [daily attendance] in the
consolidated district.
SECTION 77. Section 403.104(d), Government Code, is amended
to read as follows:
(d) The proportionate share of an independent school
district is determined by multiplying the total amount of the
payment available for distribution to school districts by the ratio
that the average number of [daily attendance for] students who
reside in the county and are enrolled in [who attend] that school
district bears to the average number of [daily attendance for] all
students who reside in the county and are enrolled in [who attend]
any independent school district. However, if there are fewer than
10 independent school districts located in whole or part in the
county and if an independent school district would receive under
this formula less than 10 percent of the total payment available for
distribution to independent school districts, the school
district's share shall be increased to 10 percent of the total
payment and the shares of the school districts that would receive
more than 10 percent under the formula shall be reduced
proportionately, but not to an amount less than 10 percent of the
total payment. [Each independent school district shall develop a
reasonable method for determining the average daily attendance for
students who reside in the county and who attend the school
district.]
SECTION 78. Section 1371.001(4), Government Code, is
amended to read as follows:
(4) "Issuer" means:
(A) a home-rule municipality that:
(i) adopted its charter under Section 5,
Article XI, Texas Constitution;
(ii) has a population of 50,000 or more; and
(iii) has outstanding long-term
indebtedness that is rated by a nationally recognized rating agency
for municipal securities in one of the four highest rating
categories for a long-term obligation;
(B) a conservation and reclamation district
created and organized as a river authority under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(C) a joint powers agency organized and operating
under Chapter 163, Utilities Code;
(D) a metropolitan rapid transit authority,
regional transportation authority, or coordinated county
transportation authority created, organized, or operating under
Chapter 451, 452, or 460, Transportation Code;
(E) a conservation and reclamation district
organized or operating as a navigation district under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution;
(F) a district organized or operating under
Section 59, Article XVI, Texas Constitution, that has all or part of
two or more municipalities within its boundaries;
(G) a state agency, including a state institution
of higher education;
(H) a hospital authority created or operating
under Chapter 262 or 264, Health and Safety Code, in a county that:
(i) has a population of more than 3.3
million; or
(ii) is included, in whole or in part, in a
standard metropolitan statistical area of this state that includes
a county with a population of more than 2.5 million;
(I) a hospital district in a county that has a
population of more than 2.5 million;
(J) a nonprofit corporation organized to
exercise the powers of a higher education loan authority under
Section 53B.47(e), Education Code;
(K) a county:
(i) that has a population of more than 3.3
million; or
(ii) that, on the date of issuance of
obligations under this chapter, has authorized, outstanding, or any
combination of authorized and outstanding, indebtedness of at least
$100 million secured by and payable from the county's ad valorem
taxes and the authorized long-term indebtedness of which is rated
by a nationally recognized rating agency of securities issued by
local governments in one of the four highest rating categories for a
long-term obligation;
(L) an independent school district that has an
average enrollment [daily attendance] of 50,000 or more as
determined under Section 48.005, Education Code;
(M) a municipality or county operating under
Chapter 334, Local Government Code;
(N) a district created under Chapter 335, Local
Government Code;
(O) a junior college district that has a total
headcount enrollment of 40,000 or more based on enrollment in the
most recent regular semester; or
(P) an issuer, as defined by Section 1201.002,
that has:
(i) a principal amount of at least $100
million in outstanding long-term indebtedness, in long-term
indebtedness proposed to be issued, or in a combination of
outstanding or proposed long-term indebtedness; and
(ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the
four highest rating categories for long-term debt instruments by a
nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form
of credit enhancement entered into in connection with the
obligation.
SECTION 79. Section 1431.001(3), Government Code, is
amended to read as follows:
(3) "Eligible school district" means an independent
school district that has an average enrollment [daily attendance]
of 190,000 or more as determined under Section 48.005, Education
Code.
SECTION 80. Section 325.011(a), Local Government Code, is
amended to read as follows:
(a) The district is governed by a board of directors
composed of five members, with two directors appointed by the
commissioners court of the county, two directors appointed by the
governing body of the municipality having the largest population in
the county, and one director appointed by the governing body of the
school district with the largest number of students in average
enrollment [daily attendance] in the county. The board shall
manage the district and administer this chapter.
SECTION 81. Section 1, Article 2688d, Vernon's Texas Civil
Statutes, is amended to read as follows:
Section 1. In all counties of the State where, according to
the preceding annual statistical report of the schools said county
has not more than four (4) school districts, with one (1) of such
districts comprising more than half of the county and having more
than two thousand (2,000) pupils in average enrollment [daily
attendance] in the one (1) district alone, and such district having
an assessed valuation of more than Twenty Million Dollars
($20,000,000) and where there is only one (1) common school
district in such county with an average enrollment [daily
attendance] of less than sixteen (16), the office of county
superintendent is hereby abolished, to be effective at the end of
the term of the incumbent county superintendent, as is now provided
by law.
SECTION 82. The following provisions of the Education Code
are repealed:
(1) Section 29.0822(d-1); and
(2) Section 48.007.
SECTION 83. This Act takes effect September 1, 2025.