Bill Text: TX SB22 | 2011-2012 | 82nd Legislature | Comm Sub


Bill Title: Relating to public school finance and prekindergarten programs.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-23 - Not again placed on intent calendar [SB22 Detail]

Download: Texas-2011-SB22-Comm_Sub.html
 
 
  By: Shapiro  S.B. No. 22
         (In the Senate - Filed March 11, 2011; March 14, 2011, read
  first time and referred to Committee on Finance; April 26, 2011,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 11, Nays 4; April 26, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 22 By:  Shapiro
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to public school finance and prekindergarten programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Effective September 1, 2011, Section 12.106,
  Education Code, is amended by amending Subsection (a) and adding
  Subsection (a-3) to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 42 equal to
  the greater of:
               (1)  the percentage specified by Section 42.2516(i)
  multiplied by the amount of funding per student in weighted average
  daily attendance, excluding enrichment funding under Sections
  42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
  would have been received for the school during the 2009-2010 school
  year under Chapter 42 as it existed on January 1, 2009, and an
  additional amount of the percentage specified by Section 42.2516(i)
  multiplied by $120 for each student in weighted average daily
  attendance; or
               (2)  the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Section 42.302(a), to which the charter holder would be entitled
  for the school under Chapter 42 if the school were a school district
  without a tier one local share for purposes of Section 42.253 and
  without any local revenue for purposes of Section 42.2516.
         (a-3)  In determining funding for an open-enrollment charter
  school under Subsection (a), the commissioner shall apply the
  regular program adjustment factor provided under Section 42.101 to
  calculate the regular program allotment to which a charter school
  is entitled.
         SECTION 2.  Effective September 1, 2016, Subsection (a),
  Section 12.106, Education Code, is amended to read as follows:
         (a)  A charter holder is entitled to receive for the
  open-enrollment charter school funding under Chapter 42 equal to
  [the greater of:
               [(1)     the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Sections 42.302(a-1)(2) and (3), as they existed on January 1,
  2009, that would have been received for the school during the
  2009-2010 school year under Chapter 42 as it existed on January 1,
  2009, and an additional amount of $120 for each student in weighted
  average daily attendance; or
               [(2)]  the amount of funding per student in weighted
  average daily attendance, excluding enrichment funding under
  Section 42.302(a), to which the charter holder would be entitled
  for the school under Chapter 42 if the school were a school district
  without a tier one local share for purposes of Section 42.253 [and
  without any local revenue for purposes of Section 42.2516].
         SECTION 3.  Section 21.402, Education Code, is amended by
  amending Subsection (a) and adding Subsection (i) to read as
  follows:
         (a)  Except as provided by Subsection (d)[, (e),] or (f), a
  school district must pay each classroom teacher, full-time
  librarian, full-time counselor certified under Subchapter B, or
  full-time school nurse not less than the following minimum monthly
  salary, based on the employee's level of experience:
 
Years of Monthly
 
Experience Salary
 
0 2,732
 
1 2,791
 
2 2,849
 
3 2,908
 
4 3,032
 
5 3,156
 
6 3,280
 
7 3,395
 
8 3,504
 
9 3,607
 
10 3,704
 
11 3,796
 
12 3,884
 
13 3,965
 
14 4,043
 
15 4,116
 
16 4,186
 
17 4,251
 
18 4,313
 
19 4,372
 
20 & Over 4,427
  [in addition to other factors, as determined by commissioner rule,
  determined by the following formula:
  [MS = SF x FS
  where:
         ["MS" is the minimum monthly salary;
         ["SF" is the applicable salary factor specified by Subsection
  (c); and
         ["FS" is the amount, as determined by the commissioner under
  Subsection (b), of state and local funds per weighted student,
  including funds provided under Section 42.2516, available to a
  district eligible to receive state assistance under Section 42.302
  with a maintenance and operations tax rate per $100 of taxable value
  equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by $1.50, except that
  the amount of state and local funds per weighted student does not
  include the amount attributable to the increase in the guaranteed
  level made by Chapter 1187, Acts of the 77th Legislature, Regular
  Session, 2001.]
         (i)  Not later than January 1, 2013, the commissioner shall
  review the minimum salary schedule and submit to the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the presiding officer of each legislative standing committee
  with primary jurisdiction over primary and secondary education a
  written report that recommends the method to be used to determine
  the schedule. This subsection expires September 1, 2013.
         SECTION 4.  Section 29.1532, Education Code, is amended by
  amending Subsection (a) and adding Subsections (d) and (e) to read
  as follows:
         (a)  A school district's prekindergarten program shall be
  designed to develop skills necessary for success in the regular
  public school curriculum, including language, mathematics, [and]
  social, and school readiness skills that are aligned with the Texas
  Prekindergarten Guidelines approved by the commissioner.
         (d)  A school district's prekindergarten program must
  demonstrate effectiveness in preparing children for kindergarten
  according to a school readiness certification system established by
  the commissioner.  The commissioner may waive participation in the
  certification system for a school district whose prekindergarten
  program otherwise demonstrates effectiveness in preparing students
  for kindergarten.
         (e)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 5.  Section 29.154, Education Code, is amended to
  read as follows:
         Sec. 29.154.  EVALUATION OF PREKINDERGARTEN PROGRAMS.
  (a)  The commissioner [of education, in consultation with the
  commissioner of human services,] shall:
               (1)  monitor and evaluate prekindergarten programs as
  to their developmental appropriateness and the development of
  school readiness, as aligned with the Texas Prekindergarten
  Guidelines approved by the commissioner and a school readiness
  certification system established by the commissioner;
               (2)  [. The commissioners shall also] evaluate the
  potential for coordination on a statewide basis of prekindergarten
  programs with government-funded early childhood care and education
  programs such as child care administered under Chapter 44, Human
  Resources Code, and federal Head Start programs; and
               (3)  [. That evaluation shall use recommendations
  contained in the report to the 71st Legislature required by Chapter
  717, Acts of the 70th Legislature, Regular Session, 1987. For the
  purpose of providing cost-effective care for children during the
  full workday with developmentally appropriate curriculum, the
  commissioners shall investigate the use of existing child-care
  program sites as prekindergarten sites. Following the evaluation
  required by this section, the commissioners,] in cooperation with
  school districts and other program administrators, [shall]
  integrate programs, staff, and program sites for prekindergarten,
  child-care, and federal Head Start programs to the greatest extent
  possible.
         (b)  The commissioner or an entity acting under a contract
  with the commissioner shall provide technical assistance to
  implement proven school readiness components to a school district
  operating a prekindergarten program under this subchapter that is
  not certified by the commissioner following two consecutive review
  cycles. The commissioner is not required to provide assistance to a
  school district under this subsection if funding is not available.
         (c)  The commissioner may adopt rules as necessary to
  implement this section.
         SECTION 6.  Subsection (a), Section 41.002, Education Code,
  is amended to read as follows:
         (a)  A school district may not have a wealth per student that
  exceeds:
               (1)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to a district with maintenance and operations tax revenue
  per cent of tax effort equal to the maximum amount provided per cent
  under Section 42.101(a) [42.101], for the district's maintenance
  and operations tax effort equal to or less than the rate equal to
  the product of the state compression percentage, as determined
  under Section 42.2516, multiplied by the maintenance and operations
  tax rate adopted by the district for the 2005 tax year;
               (2)  the wealth per student that generates the amount
  of maintenance and operations tax revenue per weighted student
  available to the Austin Independent School District, as determined
  by the commissioner in cooperation with the Legislative Budget
  Board, for the first six cents by which the district's maintenance
  and operations tax rate exceeds the rate equal to the product of the
  state compression percentage, as determined under Section 42.2516,
  multiplied by the maintenance and operations tax rate adopted by
  the district for the 2005 tax year, subject to Section 41.093(b-1);
  or
               (3)  $319,500, for the district's maintenance and
  operations tax effort that exceeds the first six cents by which the
  district's maintenance and operations tax effort exceeds the rate
  equal to the product of the state compression percentage, as
  determined under Section 42.2516, multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year.
         SECTION 7.  Section 42.003, Education Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  A student to whom Subsection (a) does not apply is
  entitled to the benefits of the Foundation School Program if the
  student is enrolled in a prekindergarten class under Section 29.153
  that participates in a school readiness certification system
  established by the commissioner or that has received a waiver from
  participation under Section 29.1532(d).
         (b-1)  For the 2011-2012 and 2012-2013 school years, the
  commissioner may withhold an amount of the total funds appropriated
  for allotments for students described by Subsection (b) to pay the
  costs of school districts' participation in the school readiness
  certification system. This subsection expires September 1, 2013.
         SECTION 8.  The heading to Section 42.101, Education Code,
  is amended to read as follows:
         Sec. 42.101.  BASIC AND REGULAR PROGRAM ALLOTMENTS 
  [ALLOTMENT].
         SECTION 9.  Effective September 1, 2011, Section 42.101,
  Education Code, is amended by amending Subsections (a) and (b) and
  adding Subsections (c) and (c-1) to read as follows:
         (a)  The basic [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 is an amount equal to the lesser of $4,765 or the amount
  that results from the following formula:
  A = $4,765 X (DCR/MCR)
  where:
         "A" is the resulting amount for [allotment to which] a
  district [is entitled];
         "DCR" is the district's compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year; and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50.
         (b)  A greater amount for any school year for the basic
  allotment under Subsection (a) may be provided by appropriation.
         (c)  A school district is entitled to a regular program
  allotment equal to the amount that results from the following
  formula:
  RPA = ADA X AA X RPAF
  where:
         "RPA" is the regular program allotment to which the district
  is entitled;
         "ADA" is the number of students in average daily attendance
  in a district, 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;
         "AA" is the district's adjusted basic allotment, as
  determined under Section 42.102 and, if applicable, as further
  adjusted under Section 42.103; and
         "RPAF" is the regular program adjustment factor, which is
  1.00 or a different amount established by appropriation.
         (c-1)  Notwithstanding Subsection (c), the regular program
  adjustment factor ("RPAF") is 0.98 for the 2011-2012 and 2012-2013
  school years.  This subsection expires September 1, 2013.
         SECTION 10.  Effective September 1, 2015, Subsection (a),
  Section 42.101, Education Code, is amended to read as follows:
         (a)  The basic [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 is an amount equal to the lesser of $4,900 [$4,765] or the
  amount that results from the following formula:
  A = $4,900 [$4,765] X (DCR/MCR)
  where:
         "A" is the resulting amount for [allotment to which] a
  district [is entitled];
         "DCR" is the district's compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year; and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50.
         SECTION 11.  Effective September 1, 2016, Subsection (a),
  Section 42.101, Education Code, is amended to read as follows:
         (a)  The basic [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 is an amount equal to the lesser of $5,000 [$4,765] or the
  amount that results from the following formula:
  A = $5,000 [$4,765] X (DCR/MCR)
  where:
         "A" is the resulting amount for [allotment to which] a
  district [is entitled];
         "DCR" is the district's compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by the maintenance and operations tax
  rate adopted by the district for the 2005 tax year; and
         "MCR" is the state maximum compressed tax rate, which is the
  product of the state compression percentage, as determined under
  Section 42.2516, multiplied by $1.50.
         SECTION 12.  Section 42.105, Education Code, is amended to
  read as follows:
         Sec. 42.105.  SPARSITY ADJUSTMENT. Notwithstanding
  Sections 42.101, 42.102, and 42.103, a school district that has
  fewer than 130 students in average daily attendance shall be
  provided a regular program [an adjusted basic] allotment on the
  basis of 130 students in average daily attendance if it offers a
  kindergarten through grade 12 program and has preceding or current
  year's average 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 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 regular program
  [an adjusted basic] allotment on the basis of 75 students in average
  daily attendance. An average daily attendance of 60 students shall
  be the basis of providing the regular program [adjusted basic]
  allotment if a district offers a kindergarten through grade 6
  program and has preceding or current year's average daily
  attendance of at least 40 students or is 30 miles or more by bus
  route from the nearest high school district.
         SECTION 13.  Subsection (a), Section 42.251, Education Code,
  is amended to read as follows:
         (a)  The sum of the regular program [basic] allotment under
  Subchapter B and the special allotments under Subchapter C,
  computed in accordance with this chapter, constitute the tier one
  allotments. The sum of the tier one allotments and the guaranteed
  yield allotments under Subchapter F, computed in accordance with
  this chapter, constitute the total cost of the Foundation School
  Program.
         SECTION 14.  Subchapter E, Chapter 42, Education Code, is
  amended by adding Section 42.2514 to read as follows:
         Sec. 42.2514.  ADDITIONAL STATE AID FOR TAX INCREMENT
  FINANCING PAYMENTS. For each school year, a school district,
  including a school district that is otherwise ineligible for state
  aid under this chapter, is entitled to state aid in an amount equal
  to the amount the district is required to pay into the tax increment
  fund for a reinvestment zone under Section 311.013(n), Tax Code.
         SECTION 15.  Effective September 1, 2011, Section 42.2516,
  Education Code, is amended by amending Subsections (b), (d), and
  (f-2) and adding Subsections (b-2) and (i) to read as follows:
         (b)  Notwithstanding any other provision of this title, a
  school district that imposes a maintenance and operations tax at a
  rate at least equal to the product of the state compression
  percentage multiplied by the maintenance and operations tax rate
  adopted by the district for the 2005 tax year is entitled to at
  least the amount of state revenue necessary to provide the district
  with the sum of:
               (1)  the percentage specified by Subsection (i) of the
  amount, as calculated under Subsection (e), [the amount] of state
  and local revenue per student in weighted average daily attendance
  for maintenance and operations that the district would have
  received during the 2009-2010 school year under Chapter 41 and this
  chapter, as those chapters existed on January 1, 2009, at a
  maintenance and operations tax rate equal to the product of the
  state compression percentage for that year multiplied by the
  maintenance and operations tax rate adopted by the district for the
  2005 tax year;
               (2)  the percentage specified by Subsection (i) of an
  amount equal to the product of $120 multiplied by the number of
  students in weighted average daily attendance in the district; and
               (3)  [an amount equal to the amount the district is
  required to pay into the tax increment fund for a reinvestment zone
  under Section 311.013(n), Tax Code, in the current tax year; and
               [(4)]  any amount to which the district is entitled
  under Section 42.106.
         (b-2)  If a school district adopts a maintenance and
  operations tax rate that is below the rate equal to the product of
  the state compression percentage multiplied by the maintenance and
  operations tax rate adopted by the district for the 2005 tax year,
  the commissioner shall reduce the district's entitlement under this
  section in proportion to the amount by which the adopted rate is
  less than the rate equal to the product of the state compression
  percentage multiplied by the rate adopted by the district for the
  2005 tax year.
         (d)  In determining the amount to which a district is
  entitled under Subsection (b)(1), the commissioner shall:
               (1)  include the percentage specified by Subsection (i)
  of any amounts received by the district during the 2008-2009 school
  year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
  80th Legislature, Regular Session, 2007 (the General
  Appropriations Act); and
               (2)  for a school district that paid tuition under
  Section 25.039 during the 2008-2009 school year, reduce the amount
  to which the district is entitled by the amount of tuition paid
  during that school year.
         (f-2)  The rules adopted by the commissioner under
  Subsection (f-1) must:
               (1)  require the commissioner to determine, as if this
  section did not exist, the effect under Chapter 41 and this chapter
  of a school district's action described by Subsection (f-1)(1),
  (2), (3), or (4) on the total state revenue to which the district
  would be entitled or the cost to the district of purchasing
  sufficient attendance credits to reduce the district's wealth per
  student to the equalized wealth level; and
               (2)  require an increase or reduction in the amount of
  state revenue to which a school district is entitled under
  Subsection (b)(1) [(b)] that is substantially equivalent to any
  change in total state revenue or the cost of purchasing attendance
  credits that would apply to the district if this section did not
  exist.
         (i)  The percentage to be applied for purposes of Subsections
  (b)(1) and (2) and Subsection (d)(1) is 93.50 percent for the
  2011-2012 school year and 92.35 percent for each subsequent school
  year.  A different percentage for any school year may be established
  by appropriation.
         SECTION 16.  Effective September 1, 2016, the heading to
  Section 42.2516, Education Code, is amended to read as follows:
         Sec. 42.2516.  STATE COMPRESSION PERCENTAGE [ADDITIONAL
  STATE AID FOR TAX REDUCTION].
         SECTION 17.  Effective September 1, 2016, Subsection (a),
  Section 42.2516, Education Code, is amended to read as follows:
         (a)  In this title [section], "state compression percentage"
  means the percentage[, as determined by the commissioner,] of a
  school district's adopted maintenance and operations tax rate for
  the 2005 tax year that serves as the basis for state funding [for
  tax rate reduction under this section].  If the state compression
  percentage is not established by appropriation for a school year,
  the [The] commissioner shall determine the state compression
  percentage for each school year based on the percentage by which a
  district is able to reduce the district's maintenance and
  operations tax rate for that year, as compared to the district's
  adopted maintenance and operations tax rate for the 2005 tax year,
  as a result of state funds appropriated for [distribution under
  this section for] that year from the property tax relief fund
  established under Section 403.109, Government Code, or from another
  funding source available for school district property tax relief.
         SECTION 18.  Effective September 1, 2011, Subsection (a),
  Section 42.25161, 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 the
  percentage specified by Section 42.2516(i) of $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 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 19.  Effective September 1, 2011, Subsection (h),
  Section 42.253, Education Code, is amended to read as follows:
         (h)  If the amount appropriated for the Foundation School
  Program for the second year of a state fiscal biennium is less than
  the amount to which school districts are entitled for that year, the
  commissioner shall certify the amount of the difference to the
  Legislative Budget Board not later than January 1 of the second year
  of the state fiscal biennium. The Legislative Budget Board shall
  propose to the legislature that the certified amount be transferred
  to the foundation school fund from the economic stabilization fund
  and appropriated for the purpose of increases in allocations under
  this subsection.  If the legislature fails during the regular
  session to enact the proposed transfer and appropriation and there
  are not funds available under Subsection (j), the commissioner
  shall adjust [reduce] the total amounts due to each school district
  under this chapter and the total amounts necessary for each school
  district to comply with the requirements of Chapter 41 [amount of
  state funds allocated to each district] by an amount determined by
  applying to each district, including a district receiving funds
  under Section 42.2516, the same percentage adjustment so that the
  total amount of the adjustment to all districts [a method under
  which the application of the same number of cents of increase in tax
  rate in all districts applied to the taxable value of property of
  each district, as determined under Subchapter M, Chapter 403,
  Government Code,] results in an amount [a total levy] equal to the
  total adjustment necessary [reduction]. The following fiscal year:
               (1)  [,] a district's entitlement under this section is
  increased by an amount equal to the adjustment [reduction] made
  under this subsection; and
               (2)  the amount necessary for a district to comply with
  the requirements of Chapter 41 is reduced by an amount equal to the
  adjustment made under this subsection.
         SECTION 20.  Effective September 1, 2016, Subsection (h),
  Section 42.253, Education Code, is amended to read as follows:
         (h)  If the amount appropriated for the Foundation School
  Program for the second year of a state fiscal biennium is less than
  the amount to which school districts are entitled for that year, the
  commissioner shall certify the amount of the difference to the
  Legislative Budget Board not later than January 1 of the second year
  of the state fiscal biennium. The Legislative Budget Board shall
  propose to the legislature that the certified amount be transferred
  to the foundation school fund from the economic stabilization fund
  and appropriated for the purpose of increases in allocations under
  this subsection.  If the legislature fails during the regular
  session to enact the proposed transfer and appropriation and there
  are not funds available under Subsection (j), the commissioner
  shall adjust [reduce] the total amounts due to each school district
  under this chapter and the total amounts necessary for each school
  district to comply with the requirements of Chapter 41 [amount of
  state funds allocated to each district] by an amount determined by
  applying to each district the same percentage adjustment so that
  the total amount of the adjustment to all districts [a method under
  which the application of the same number of cents of increase in tax
  rate in all districts applied to the taxable value of property of
  each district, as determined under Subchapter M, Chapter 403,
  Government Code,] results in an amount [a total levy] equal to the
  total adjustment necessary [reduction]. The following fiscal year:
               (1)  [,] a district's entitlement under this section is
  increased by an amount equal to the adjustment [reduction] made
  under this subsection; and
               (2)  the amount necessary for a district to comply with
  the requirements of Chapter 41 is reduced by an amount equal to the
  adjustment made under this subsection.
         SECTION 21.  Subsection (b), Section 42.260, Education Code,
  is amended to read as follows:
         (b)  For each year, the commissioner shall certify to each
  school district or participating charter school the amount of[:
               [(1)]  additional funds to which the district or school
  is entitled due to the increase made by H.B. No. 3343, Acts of the
  77th Legislature, Regular Session, 2001, to:
               (1) [(A)]  the equalized wealth level under Section
  41.002; or
               (2) [(B)]  the guaranteed level of state and local
  funds per weighted student per cent of tax effort under Section
  42.302[; or
               [(2)     additional state aid to which the district or
  school is entitled under Section 42.2513].
         SECTION 22.  Section 44.004, Education Code, is amended by
  adding Subsection (g-1) to read as follows:
         (g-1)  If the rate calculated under Subsection
  (c)(5)(A)(ii)(b) decreases after the publication of the notice
  required by this section, the president is not required to publish
  another notice or call another meeting to discuss and adopt the
  budget and the proposed lower tax rate.
         SECTION 23.  Subsection (a), Section 26.05, Tax Code, is
  amended to read as follows:
         (a)  The governing body of each taxing unit, before the later
  of September 30 or the 60th day after the date the certified
  appraisal roll is received by the taxing unit, shall adopt a tax
  rate for the current tax year and shall notify the assessor for the
  unit of the rate adopted.  The tax rate consists of two components,
  each of which must be approved separately.  The components are:
               (1)  for a taxing unit other than a school district, the
  rate that, if applied to the total taxable value, will impose the
  total amount published under Section 26.04(e)(3)(C), less any
  amount of additional sales and use tax revenue that will be used to
  pay debt service, or, for a school district, the rate calculated
  [published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
  and
               (2)  the rate that, if applied to the total taxable
  value, will impose the amount of taxes needed to fund maintenance
  and operation expenditures of the unit for the next year.
         SECTION 24.  Effective September 1, 2016, Subsection (i),
  Section 26.08, Tax Code, is amended to read as follows:
         (i)  For purposes of this section, the effective maintenance
  and operations tax rate of a school district is the tax rate that,
  applied to the current total value for the district, would impose
  taxes in an amount that, when added to state funds that would be
  distributed to the district under Chapter 42, Education Code, for
  the school year beginning in the current tax year using that tax
  rate, [including state funds that will be distributed to the
  district in that school year under Section 42.2516, Education
  Code,] would provide the same amount of state funds distributed
  under Chapter 42, Education Code, [including state funds
  distributed under Section 42.2516, Education Code,] and
  maintenance and operations taxes of the district per student in
  weighted average daily attendance for that school year that would
  have been available to the district in the preceding year if the
  funding elements for Chapters 41 and 42, Education Code, for the
  current year had been in effect for the preceding year.
         SECTION 25.  Subsection (n), Section 311.013, Tax Code, is
  amended to read as follows:
         (n)  This subsection applies only to a school district whose
  taxable value computed under Section 403.302(d), Government Code,
  is reduced in accordance with Subdivision (4) of that
  subsection.  In addition to the amount otherwise required to be
  paid into the tax increment fund, the district shall pay into the
  fund an amount equal to the amount by which the amount of taxes the
  district would have been required to pay into the fund in the
  current year if the district levied taxes at the rate the district
  levied in 2005 exceeds the amount the district is otherwise
  required to pay into the fund in the year of the reduction.  This
  additional amount may not exceed the amount the school district
  receives in state aid for the current tax year under Section
  42.2514, Education Code. The school district shall pay the
  additional amount after the district receives the state aid to
  which the district is entitled for the current tax year under
  Section 42.2514, Education Code.
         SECTION 26.  Effective September 1, 2011, the following
  provisions of the Education Code are repealed:
               (1)  Subsections (b), (c), (c-1), (c-2), (c-3), and
  (e), Section 21.402;
               (2)  Section 42.008; and
               (3)  Subsections (a-1) and (a-2), Section 42.101.
         SECTION 27.  (a)  Effective September 1, 2016, the following
  provisions of the Education Code are repealed:
               (1)  Section 41.0041;
               (2)  Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
  (f-1), (f-2), (f-3), and (i), Section 42.2516;
               (3)  Section 42.25161;
               (4)  Subsection (c), Section 42.2523;
               (5)  Subsection (g), Section 42.2524;
               (6)  Subsection (c-1), Section 42.253; and
               (7)  Section 42.261.
         (b)  Effective September 1, 2016, Subsections (i-1) and (j),
  Section 26.08, Tax Code, are repealed.
         SECTION 28.  Except as otherwise provided by this Act, the
  changes in law made by this Act to Chapter 42, Education Code, apply
  beginning with the 2011-2012 school year.
         SECTION 29.  The change in law made by Subsection (g-1),
  Section 44.004, Education Code, as added by this Act, applies
  beginning with adoption of a tax rate for the 2011 tax year.
         SECTION 30.  Except as otherwise provided by this Act:
               (1)  this Act takes effect immediately if it receives a
  vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2011.
 
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