Bill Text: TX HB2721 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the public school finance system.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2011-03-16 - Referred to Public Education [HB2721 Detail]

Download: Texas-2011-HB2721-Introduced.html

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82R8586 CAE-D
By: Eissler H.B. No. 2721

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 41.002(a), Education Code, is amended to
read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101, for the district's maintenance and operations
tax effort equal to or less than the rate equal to 66 percent of [the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by] the maintenance and operations tax
rate adopted by the district for the 2005 tax year;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district's maintenance
and operations tax rate exceeds the rate equal to 66 percent of [the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by] the maintenance and operations tax
rate adopted by the district for the 2005 tax year, subject to
Section 41.093(b-1); or
(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the first six cents by which the
district's maintenance and operations tax effort exceeds the rate
equal to 66 percent of [the product of the state compression
percentage, as determined under Section 42.2516, multiplied by] the
maintenance and operations tax rate adopted by the district for the
2005 tax year.
SECTION 2. Section 41.093(b-1), Education Code, is amended
to read as follows:
(b-1) If the guaranteed level of state and local funds per
weighted student per cent of tax effort under Section
42.302(a-1)(1) for which state funds are appropriated for a school
year is an amount at least equal to the amount of revenue per
weighted student per cent of tax effort available to the Austin
Independent School District, as determined by the commissioner in
cooperation with the Legislative Budget Board, the commissioner, in
computing the amounts described by Subsections (a)(1) and (2) and
determining the cost of an attendance credit, shall exclude
maintenance and operations tax revenue resulting from the first six
cents by which a district's maintenance and operations tax rate
exceeds the rate equal to 66 percent of [the product of the state
compression percentage, as determined under Section 42.2516,
multiplied by] the maintenance and operations tax rate adopted by
the district for the 2005 tax year.
SECTION 3. Section 42.101(a), Education Code, is amended to
read as follows:
(a) For each student in average daily attendance, not
including the time students spend each day in special education
programs in an instructional arrangement other than mainstream or
career and technology education programs, for which an additional
allotment is made under Subchapter C, a district is entitled to an
allotment equal to the lesser of $4,265 [$4,765] or the amount that
results from the following formula:
A = $4,265 [$4,765] X (DCR/MCR)
where:
"A" is the allotment to which a district is entitled;
"DCR" is the district's compressed tax rate, which is 66
percent of [the product of the state compression percentage, as
determined under Section 42.2516, multiplied by] the maintenance
and operations tax rate adopted by the district for the 2005 tax
year; and
"MCR" is the state maximum compressed tax rate, which is 66
percent of [the product of the state compression percentage, as
determined under Section 42.2516, multiplied by] $1.50.
SECTION 4. Section 42.102, Education Code, is amended by
adding Subsection (c) to read as follows:
(c) Not later than January 1, 2013, the commissioner shall
report to the governor, lieutenant governor, speaker of the house
of representatives, and presiding officer of the standing committee
of each house of the legislature with primary jurisdiction over
public education regarding the effectiveness of the cost of
education adjustment.
SECTION 5. Section 42.25161(a), Education Code, is amended
to read as follows:
(a) The commissioner shall provide South Texas Independent
School District with the amount of state aid necessary to ensure
that the district receives an amount of state and local revenue per
student in weighted average daily attendance that is at least $120
greater than the amount the district would have received per
student in weighted average daily attendance during the 2009-2010
school year under this chapter, as it existed on January 1, 2009, at
a maintenance and operations tax rate equal to 66 percent of [the
product of the state compression percentage multiplied by] the
maintenance and operations tax rate adopted by the district for the
2005 tax year, provided that the district imposes a maintenance and
operations tax at that rate.
SECTION 6. Section 42.252(a), Education Code, is amended to
read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of the amount equal to 66 percent of [the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by] the lesser of:
(1) $1.50; or
(2) the maintenance and operations tax rate adopted by
the district for the 2005 tax year; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
SECTION 7. Section 42.302(a-1), Education Code, is amended
to read as follows:
(a-1) [In this section, "wealth per student" has the meaning
assigned by Section 41.001.] For purposes of Subsection (a), the
dollar amount guaranteed level of state and local funds per
weighted student per cent of tax effort ("GL") for a school district
is:
(1) the greater of the amount of district tax revenue
per weighted student per cent of tax effort that would be available
to the Austin Independent School District, as determined by the
commissioner in cooperation with the Legislative Budget Board, if
the reduction of the limitation on tax increases as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
amount of district tax revenue per weighted student per cent of tax
effort used for purposes of this subdivision in the preceding
school year, for the first six cents by which the district's
maintenance and operations tax rate exceeds 66 percent of [the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by] the maintenance
and operations tax rate adopted by the district for the 2005 tax
year; and
(2) $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (1).
SECTION 8. Sections 45.003(d) and (f), Education Code, are
amended to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate stated in the
proposition. For any year, the maintenance tax rate per $100 of
taxable value adopted by the district may not exceed $1.17 [the rate
equal to the sum of $0.17 and the product of the state compression
percentage, as determined under Section 42.2516, multiplied by
$1.50].
(f) Notwithstanding any other law, a district that levied a
maintenance tax for the 2005 tax year at a rate greater than $1.50
per $100 of taxable value in the district as permitted by special
law may not levy a maintenance tax at a rate that exceeds the rate
per $100 of taxable value that is equal to the sum of $0.17 and 66
percent of [the product of the state compression percentage, as
determined under Section 42.2516, multiplied by] the rate of the
maintenance tax levied by the district for the 2005 tax year.
SECTION 9. Section 46.006(b), Education Code, is amended to
read as follows:
(b) A district's wealth per student is reduced for purposes
of this section if a district has had substantial student
enrollment growth in the preceding five-year period. The reduction
is in addition to any reduction under Subsection (a) and is computed
before the district's wealth per student is reduced under that
subsection, if applicable. A district's wealth per student is
reduced:
(1) by five percent, if the district has an enrollment
growth rate in that period that is 15 [10] percent or more but less
than 20 [15] percent;
(2) by 10 percent, if the district has an enrollment
growth rate in that period that is 20 [15] percent or more but less
than 35 [30] percent; or
(3) by 15 percent, if the district has an enrollment
growth rate in that period that is 35 [30] percent or more.
SECTION 10. Section 46.033, Education Code, is amended to
read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
2010-2011 [final] school year [of the preceding state fiscal
biennium] or taxes levied to pay the principal of and interest on
the bonds were included in the district's audited debt service
collections for that school year; and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 11. Section 46.034(c), Education Code, is amended
to read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the 2010-2011
school year [final school year of the preceding state fiscal
biennium] or the district's audited debt service collections for
that school year, the district may not receive aid in excess of the
amount that, when added to the district's local revenue for the
school year, equals the amount required to pay the principal of and
interest on the bonds.
SECTION 12. The following provisions of the Education Code
are repealed:
(1) Section 41.0041;
(2) Section 42.2516;
(3) Section 42.2523(c);
(4) Section 42.2524(g);
(5) Section 42.253(c-1);
(6) Section 42.261; and
(7) Section 42.302(f).
SECTION 13. This Act takes effect September 1, 2011.