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A BILL TO BE ENTITLED
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AN ACT
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relating to public school finance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 42, Education Code, is |
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amended by adding Section 42.009 to read as follows: |
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Sec. 42.009. LIMITATION ON REVENUE DECREASES. |
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(a) Notwithstanding any other provision of this title, a school |
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district is entitled to receive in any school year an amount of |
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state and local maintenance and operations revenue per student in |
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weighted average daily attendance that is not more than ____ |
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percent less than the amount of state and local maintenance and |
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operations revenue per student in weighted average daily attendance |
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received by the district during the preceding school year. |
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(b) Enrichment revenue to which a school district is |
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entitled under Section 42.302 is not included for purposes of |
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determining the amount a school district is entitled to receive |
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under this section. |
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(c) The commissioner shall make adjustments to amounts due |
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to a school district under this chapter or amounts required for a |
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district to comply with Chapter 41 as necessary to comply with the |
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amount a district is entitled to receive under this section. |
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(d) A determination by the commissioner under this section |
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is final and may not be appealed. |
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SECTION 2. Section 42.101(a), Education Code, is amended to |
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read as follows: |
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(a) For each student in average daily attendance, not |
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including the time students spend each day in special education |
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programs in an instructional arrangement other than mainstream or |
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career and technology education programs, for which an additional |
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allotment is made under Subchapter C, a district is entitled to an |
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allotment equal to the lesser of $_______ [$4,765] or the amount |
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that results from the following formula: |
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A = $_______ [$4,765] X (DCR/MCR) |
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where: |
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"A" is the allotment to which a district is entitled; |
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"DCR" is the district's compressed tax rate, which is the |
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product of the state compression percentage, as determined under |
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Section 42.2516, multiplied by the maintenance and operations tax |
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rate adopted by the district for the 2005 tax year; and |
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"MCR" is the state maximum compressed tax rate, which is the |
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product of the state compression percentage, as determined under |
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Section 42.2516, multiplied by $1.50. |
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SECTION 3. Section 42.2516, Education Code, is amended by |
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adding Subsections (b-2) and (b-3) to read as follows: |
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(b-2) If a school district adopts a maintenance and |
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operations tax rate that is below the rate equal to the product of |
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the state compression percentage multiplied by the maintenance and |
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operations tax rate adopted by the district for the 2005 tax year, |
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the commissioner shall reduce the district's entitlement under this |
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section in proportion to the amount by which the adopted rate is |
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less than the rate equal to the product of the state compression |
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percentage multiplied by the rate adopted by the district for the |
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2005 tax year. |
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(b-3) The commissioner shall reduce by ____ percent the |
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total amount of state and local revenue per student in weighted |
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average daily attendance to which a school district is entitled |
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under Subsection (b)(1). |
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SECTION 4. Section 42.253(h), Education Code, is amended to |
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read as follows: |
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(h) If the amount appropriated for the Foundation School |
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Program for the second year of a state fiscal biennium is less than |
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the amount to which school districts are entitled for that year, the |
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commissioner shall certify the amount of the difference to the |
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Legislative Budget Board not later than January 1 of the second year |
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of the state fiscal biennium. The Legislative Budget Board shall |
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propose to the legislature that the certified amount be transferred |
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to the foundation school fund from the economic stabilization fund |
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and appropriated for the purpose of increases in allocations under |
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this subsection. If the legislature fails during the regular |
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session to enact the proposed transfer and appropriation and there |
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are not funds available under Subsection (j), the commissioner |
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shall reduce the total amount of state funds allocated to each |
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district by an amount determined by applying to each district, |
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including a district receiving funds under Section 42.2516, the |
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same percentage reduction so that the total amount of the reduction |
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to all districts [a method under which the application of the same
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number of cents of increase in tax rate in all districts applied to
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the taxable value of property of each district, as determined under
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Subchapter M, Chapter 403, Government Code,] results in an amount |
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[a total levy] equal to the total reduction. The following fiscal |
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year, a district's entitlement under this section is increased by |
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an amount equal to the reduction made under this subsection. |
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SECTION 5. Section 44.004, Education Code, is amended by |
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adding Subsection (g-1) to read as follows: |
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(g-1) If the rate calculated under Section |
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44.004(c)(5)(A)(ii)(b) decreases after the publication of the |
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notice required by this section, the president is not required to |
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publish another notice or call another meeting to discuss and adopt |
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the budget and the proposed lower tax rate. |
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SECTION 6. Section 26.05(a), Tax Code, is amended to read as |
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follows: |
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(a) The governing body of each taxing unit, before the later |
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of September 30 or the 60th day after the date the certified |
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appraisal roll is received by the taxing unit, shall adopt a tax |
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rate for the current tax year and shall notify the assessor for the |
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unit of the rate adopted. The tax rate consists of two components, |
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each of which must be approved separately. The components are: |
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(1) for a taxing unit other than a school district, the |
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rate that, if applied to the total taxable value, will impose the |
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total amount published under Section 26.04(e)(3)(C), less any |
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amount of additional sales and use tax revenue that will be used to |
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pay debt service, or, for a school district, the rate calculated |
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[published] under Section 44.004(c)(5)(A)(ii)(b), Education Code; |
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and |
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(2) the rate that, if applied to the total taxable |
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value, will impose the amount of taxes needed to fund maintenance |
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and operation expenditures of the unit for the next year. |
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SECTION 7. Sections 42.101(a-1) and (a-2), Education Code, |
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are repealed. |
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SECTION 8. The changes in law made by this Act to Chapter |
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42, Education Code, apply beginning with the 2011-2012 school year. |
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SECTION 9. The change in law made by Section 44.004(g-1), |
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Education Code, as added by this Act, applies beginning with |
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adoption of a tax rate for the 2011 tax year. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2011. |