Bill Text: TX HB21 | 2017 | 85th Legislature 1st Special Session | Comm Sub
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Bill Title: Relating to public school finance, including funding for the recruitment and retention of teachers and the support of participants in the public school employees group insurance program.
Spectrum: Moderate Partisan Bill (Republican 36-11)
Status: (Passed) 2017-08-16 - See remarks for effective date [HB21 Detail]
Download: Texas-2017-HB21-Comm_Sub.html
Bill Title: Relating to public school finance, including funding for the recruitment and retention of teachers and the support of participants in the public school employees group insurance program.
Spectrum: Moderate Partisan Bill (Republican 36-11)
Status: (Passed) 2017-08-16 - See remarks for effective date [HB21 Detail]
Download: Texas-2017-HB21-Comm_Sub.html
By: Huberty, et al. | H.B. No. 21 | |
(Senate Sponsor - Taylor of Galveston) | ||
(In the Senate - Received from the House August 8, 2017; | ||
August 8, 2017, read first time and referred to Committee on | ||
Education; August 11, 2017, reported adversely, with favorable | ||
Committee Substitute by the following vote: Yeas 9, Nays 1; | ||
August 11, 2017, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 21 | By: Taylor of Galveston |
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relating to the public school finance system. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Effective September 1, 2018, Section 12.106, | ||
Education Code, is amended by amending Subsection (a-1) and adding | ||
Subsections (d) and (e) to read as follows: | ||
(a-1) In determining funding for an open-enrollment charter | ||
school under Subsection (a): | ||
(1) [ |
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42.104, and 42.105 are based on the average adjustment for the | ||
state; and | ||
(2) the adjustment under Section 42.103 is based on | ||
the average adjustment for the state that would have been provided | ||
under that section as it existed on January 1, 2018. | ||
(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 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. | ||
(e) A charter holder is entitled to receive funding under | ||
Subsection (d) only if the most recent overall performance rating | ||
assigned to the open-enrollment charter school under Subchapter C, | ||
Chapter 39, reflects at least acceptable performance. | ||
SECTION 2. Effective September 1, 2023, Sections 42.103(b) | ||
and (d), Education Code, are amended to read as follows: | ||
(b) The basic allotment of a school district that [ |
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average daily attendance is adjusted by applying the formula: | ||
AA = (1 + ((1,600 - ADA) X .0004)) X ABA | ||
(d) The basic allotment of a school district that offers a | ||
kindergarten through grade 12 program and has less than 5,000 | ||
students in average daily attendance is adjusted by applying the | ||
formula, of the following formulas, that results in the greatest | ||
adjusted allotment: | ||
(1) the formula in Subsection (b), if [ |
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(2) AA = (1 + ((5,000 - ADA) X .000025)) X ABA. | ||
SECTION 3. Effective September 1, 2018, Section 42.103(c), | ||
Education Code, is amended to read as follows: | ||
(c) The basic allotment of a school district that contains | ||
less than 300 square miles and has not more than 1,600 students in | ||
average daily attendance is adjusted by applying the following | ||
formulas [ |
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(1) for the fiscal year beginning September 1, 2018: | ||
AA = (1 + ((1,600 - ADA) X .000275 [ |
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; | ||
(2) for the fiscal year beginning September 1, 2019: | ||
AA = (1 + ((1,600 - ADA) X .00030)) X ABA | ||
; | ||
(3) for the fiscal year beginning September 1, 2020: | ||
AA = (1 + ((1,600 - ADA) X .000325)) X ABA | ||
; | ||
(4) for the fiscal year beginning September 1, 2021: | ||
AA = (1 + ((1,600 - ADA) X .00035)) X ABA | ||
; and | ||
(5) for the fiscal year beginning September 1, 2022: | ||
AA = (1 + ((1,600 - ADA) X .000375)) X ABA | ||
SECTION 4. Chapter 42, Education Code, is amended by adding | ||
Subchapter H to read as follows: | ||
SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM | ||
Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts | ||
appropriated for this subchapter, the commissioner may administer a | ||
grant program that provides grants to school districts to defray | ||
financial hardships resulting from changes made to Chapter 41 and | ||
this chapter that apply after the 2016-2017 school year. | ||
(b) The commissioner shall award grants under this | ||
subchapter to districts as provided by Section 42.452. | ||
(c) Except as provided by Subsection (d), funding provided | ||
to a district under this subchapter is in addition to all other | ||
funding provided under Chapter 41 and this chapter. | ||
(d) A district is not eligible for funding under this | ||
subchapter for a school year if the district receives for that | ||
school year an adjustment of the district's taxable value of | ||
property under Section 42.2521. A district may decline an | ||
adjustment under Section 42.2521 to maintain eligibility for | ||
funding under this subchapter. | ||
(e) The commissioner may obtain additional information as | ||
needed from a district or other state or local agency to make | ||
determinations in awarding grants under this subchapter. | ||
Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The | ||
commissioner shall award grants to school districts based on the | ||
following formula: | ||
HG = (PL-CL) X (TR) X (TAHG/TEHG) | ||
where: | ||
"HG" is the amount of a district's hardship grant; | ||
"PL" is the amount of funding under previous law to which a | ||
district would be entitled under Chapter 41 and this chapter as | ||
those chapters existed on January 1, 2017, determined using current | ||
school year data for the district; | ||
"CL" is the amount of current law funding under Chapter 41 and | ||
this chapter to which a district is entitled; | ||
"TR" is a district's maintenance and operations tax rate, as | ||
specified by the comptroller's most recent certified report; | ||
"TAHG" is the total funding available for grants under | ||
Section 42.456 for a school year; and | ||
"TEHG" is the sum of the combined amounts for all districts | ||
calculated by applying the formula (PL-CL) X (TR) for each | ||
district. | ||
(b) A school district's hardship grant awarded under this | ||
subchapter for a school year may not exceed the lesser of: | ||
(1) the amount equal to 10 percent of the total amount | ||
of funds available for grants under this subchapter for that school | ||
year; or | ||
(2) the amount by which "PL" exceeds "CL" for that | ||
district for that school year. | ||
(c) For purposes of calculating the formula under | ||
Subsection (a), the commissioner shall: | ||
(1) in determining the values of "PL" and "CL" for a | ||
school district, exclude the amount of revenue received by the | ||
district as a result of Section 13.054 or an administrative rule | ||
related to that section; | ||
(2) if the value of (PL-CL) for a school district | ||
results in a negative number, use zero for the value of (PL-CL); | ||
(3) if a school district's maintenance and operations | ||
tax rate ("TR") is greater than $1, use $1 for the value of "TR"; | ||
(4) use a maintenance and operations tax rate ("TR") | ||
of $1 for each open-enrollment charter school, each special-purpose | ||
school district established under Subchapter H, Chapter 11, and the | ||
South Texas Independent School District; and | ||
(5) if (TAHG/TEHG) equals a value greater than one, | ||
use a value of one for (TAHG/TEHG). | ||
(d) If funds remain available under this subchapter for a | ||
school year after determining initial grant amounts under | ||
Subsection (a), as adjusted to reflect the limits imposed by | ||
Subsection (b), the commissioner shall reapply the formula as | ||
necessary to award all available funds. | ||
(e) If the commissioner reapplies the formula in accordance | ||
with Subsection (d), a school district that was ineligible under | ||
Section 42.455 for a grant during the initial application of the | ||
formula for that school year is eligible to receive a grant as a | ||
result of the formula reapplication. | ||
Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER | ||
SCHOOL. An open-enrollment charter school is eligible for a grant | ||
under this subchapter in the same manner as a school district. | ||
Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY | ||
DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education | ||
service center or a county department of education is not eligible | ||
for a grant under this subchapter. | ||
Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except | ||
as provided by Section 42.452(e), a school district is not eligible | ||
for a grant under this subchapter if for the 2015-2016 school year | ||
the district's expenditures per student in weighted average daily | ||
attendance, excluding bond debt service payments, capital outlays, | ||
and facilities acquisition and construction costs, exceeded an | ||
amount that is equal to 120 percent of the state average amount for | ||
that school year of expenditures per student in weighted average | ||
daily attendance, excluding bond debt service payments, capital | ||
outlays, and facilities acquisition and construction costs, as | ||
those amounts are determined by the commissioner. | ||
Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by | ||
the commissioner under this subchapter may not exceed $100 million | ||
for the 2017-2018 school year or $50 million for the 2018-2019 | ||
school year. | ||
Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The | ||
commissioner may not adjust the amount of a school district's grant | ||
under this subchapter based on revisions to the district's data | ||
received after a grant has been awarded. | ||
Sec. 42.458. RULES. The commissioner may adopt rules as | ||
necessary to administer this subchapter. | ||
Sec. 42.459. DETERMINATION FINAL. A determination by the | ||
commissioner under this subchapter is final and may not be | ||
appealed. | ||
Sec. 42.460. EXPIRATION. This subchapter expires September | ||
1, 2019. | ||
SECTION 5. Effective September 1, 2018, 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 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 [ |
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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; | ||
"ADA" is the number of students in average daily attendance, | ||
as determined under Section 42.005, 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 42.2521, 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 42.2521. | ||
SECTION 6. (a) The amount of $311,000,000 of the | ||
unencumbered appropriations from the general revenue fund for the | ||
state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts | ||
of the 85th Legislature, Regular Session, 2017 (the General | ||
Appropriations Act), to the Health and Human Services Commission is | ||
transferred to the Texas Education Agency to be used by the agency | ||
during that state fiscal biennium as follows: | ||
(1) $150,000,000 is allocated to fund financial | ||
hardship grants under Subchapter H, Chapter 42, Education Code, as | ||
added by this Act; | ||
(2) $60,000,000 is allocated to fund payments to | ||
open-enrollment charter schools under Section 12.106(d), Education | ||
Code, as added by this Act; | ||
(3) $60,000,000 is allocated for the existing debt | ||
allotment under Section 46.032, Education Code, as amended by this | ||
Act; and | ||
(4) $41,000,000 is allocated for the small-sized | ||
district adjustment under Section 42.103, Education Code, as | ||
amended by this Act. | ||
(b) The Health and Human Services Commission shall identify | ||
the strategies and objectives out of which the transfer under | ||
Subsection (a) of this section is to be made. | ||
(c) Notwithstanding the sum-certain appropriations | ||
specified in Rider 3, Chapter 605 (S.B. 1), Acts of the 85th | ||
Legislature, Regular Session, 2017 (the General Appropriations | ||
Act), to the bill pattern of the appropriations to the Texas | ||
Education Agency, the Legislative Budget Board shall determine the | ||
sum-certain appropriation to the Foundation School Program for each | ||
year of the state fiscal biennium beginning September 1, 2017, | ||
based on the amount specified in that rider, the other provisions of | ||
the General Appropriations Act, and other law, including the | ||
provisions of this Act. | ||
SECTION 7. Effective September 1, 2023, Section 42.103(c), | ||
Education Code, is repealed. | ||
SECTION 8. Except as otherwise provided by this Act: | ||
(1) this Act takes effect September 1, 2017, if this | ||
Act receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution; | ||
and | ||
(2) if this Act does not receive the vote necessary for | ||
effect on that date, this Act takes effect on the 91st day after the | ||
last day of the legislative session. | ||
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