84R2733 JSL-D
	By: Watson	S.B. No. 244

	A BILL TO BE ENTITLED
	AN ACT
	relating to the elimination of the cost of education adjustment
	under the Foundation School Program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 7.062(c), Education Code, is amended to
	read as follows:
	(c)  Except as otherwise provided by this subsection, if the
	commissioner certifies that the amount appropriated for a state
	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
	the amount to which school districts are entitled under those
	subchapters for that year, the commissioner shall use the excess
	funds, in an amount not to exceed $20 million in any state fiscal
	year, for the purpose of making grants under this section. The use
	of excess funds under this subsection has priority over any
	provision of Chapter 42 that permits or directs the use of excess
	foundation school program funds, including Sections [42.2517,]
	42.2521, 42.2522, and 42.2531. The commissioner is required to use
	excess funds as provided by this subsection only if the
	commissioner is not required to reduce the total amount of state
	funds allocated to school districts under Section 42.253(h).
	SECTION 2.  Section 12.106(a-1), Education Code, is amended
	to read as follows:
	(a-1)  In determining funding for an open-enrollment charter
	school under Subsection (a), adjustments under Sections [42.102,]
	42.103[, 42.104,] and 42.105 are based on the average adjustment
	for the state.
	SECTION 3.  Section 29.014(d), Education Code, is amended to
	read as follows:
	(d)  The basic allotment for a student enrolled in a district
	to which this section applies is adjusted by[:
	[(1)     the cost of education adjustment under Section
	42.102 for the school district in which the district is
	geographically located; and
	[(2)]  the weight for a homebound student under Section
	42.151(a).
	SECTION 4.  Section 41.034(a), Education Code, is amended to
	read as follows:
	(a)  For the first and second school years after creation of
	a consolidated district under this subchapter, the commissioner
	shall adjust allotments to the consolidated district to the extent
	necessary to preserve the effects of an adjustment under Section
	[42.102,] 42.103[,] or 42.105 to which either of the consolidating
	districts would have been entitled but for the consolidation.
	SECTION 5.  Section 42.007(c), Education Code, is amended to
	read as follows:
	(c)  The funding elements must include:
	(1)  a basic allotment for the purposes of Section
	42.101 that, when combined with the guaranteed yield component
	provided by Subchapter F, represents the cost per student of a
	regular education program that meets all mandates of law and
	regulation;
	(2)  [adjustments designed to reflect the variation in
	known resource costs and costs of education beyond the control of
	school districts;
	[(3)]  appropriate program cost differentials and
	other funding elements for the programs authorized under Subchapter
	C, with the program funding level expressed as dollar amounts and as
	weights applied to the basic allotment or adjusted [basic]
	allotment, as applicable, for the appropriate year;
	(3) [(4)]  the maximum guaranteed level of qualified
	state and local funds per student for the purposes of Subchapter F;
	(4) [(5)]  the enrichment [and facilities] tax rate
	under Subchapter F;
	(5) [(6)]  the computation of students in weighted
	average daily attendance under Section 42.302; and
	(6) [(7)]  the amount to be appropriated for the school
	facilities assistance program under Chapter 46.
	SECTION 6.  Section 42.103, Education Code, is amended to
	read as follows:
	Sec. 42.103.  SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a)
	The basic allotment for certain small and mid-sized districts is
	adjusted in accordance with this section. In this section:
	(1)  "AA" is the district's adjusted allotment per
	student;
	(2)  "ADA" is the number of students in average daily
	attendance for which the district is entitled to an allotment under
	Section 42.101; and
	(3)  "BA [ABA]" is the [adjusted] basic allotment
	determined under Section 42.101 [42.102].
	(b)  The basic allotment of a school district that contains
	at least 300 square miles and has not more than 1,600 students in
	average daily attendance is adjusted by applying the formula:
	AA = (1 + ((1,600 - ADA) X .0004)) X BA [ABA]
	(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 formula:
	AA = (1 + ((1,600 - ADA) X .00025)) X BA [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) or (c) for which the
	district is eligible; or
	(2)  AA = (1 + ((5,000 - ADA) X .000025)) X BA [ABA].
	SECTION 7.  Section 42.105, Education Code, as effective
	September 1, 2015, 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 funding
	[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 funding [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 funding
	[the 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 8.  Sections 42.151(a) and (k), Education Code, are
	amended to read as follows:
	(a)  For each student in average 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
	adjusted [basic] allotment, as applicable, multiplied by 1.1. For
	each full-time equivalent student in average 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 adjusted [basic] allotment, as applicable,
	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
	(k)  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 [adjusted] basic allotment or adjusted allotment, as
	applicable, for each full-time equivalent student in average 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 9.  Section 42.152(a), Education Code, is amended to
	read as follows:
	(a)  For each student who is educationally disadvantaged or
	who is a student who does not have a disability and resides in a
	residential placement facility in a district in which the student's
	parent or legal guardian does not reside, a district is entitled to
	an annual allotment equal to the basic allotment or adjusted
	[basic] allotment, as applicable, multiplied by 0.2, and by 2.41
	for each full-time equivalent student who is in a remedial and
	support program under Section 29.081 because the student is
	pregnant.
	SECTION 10.  Section 42.153(a), Education Code, is amended
	to read as follows:
	(a)  For each student in average 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 or adjusted [basic] allotment, as applicable,
	multiplied by 0.1.
	SECTION 11.  Section 42.154(a), Education Code, is amended
	to read as follows:
	(a)  For each full-time equivalent student in average daily
	attendance in an approved career and technology education program
	in grades nine through 12 or in career and technology education
	programs for students with disabilities in grades seven through 12,
	a district is entitled to:
	(1)  an annual allotment equal to the basic allotment
	or adjusted [basic] allotment, as applicable, multiplied by a
	weight of 1.35; and
	(2)  $50, if the student is enrolled in:
	(A)  two or more advanced career and technology
	education classes for a total of three or more credits; or
	(B)  an advanced course as part of a tech-prep
	program under Subchapter T, Chapter 61.
	SECTION 12.  Section 42.156(a), Education Code, is amended
	to read as follows:
	(a)  For each identified student a school district serves in
	a program for gifted and talented students that the district
	certifies to the commissioner as complying with Subchapter D,
	Chapter 29, a district is entitled to an annual allotment equal to
	the district's basic allotment or adjusted [basic] allotment as
	determined under Section 42.101 [42.102] or Section 42.103, as
	applicable, multiplied by .12 for each school year or a greater
	amount provided by appropriation.
	SECTION 13.  Section 42.157(a), Education Code, is amended
	to read as follows:
	(a)  Except as provided by Subsection (b), for each student
	in average 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 or adjusted [basic] allotment, as
	applicable, multiplied by a weight of 0.1.
	SECTION 14.  Section 42.261(a), Education Code, is amended
	to read as follows:
	(a)  Funds appropriated by the legislature for a tax year for
	the purpose of reducing a school district's maintenance and
	operations tax rate and providing state aid under Section 42.2516:
	(1)  [are not excess funds for purposes of Section
	42.2517;
	[(2)]  are not available for purposes of Section
	42.2521 or 42.2522;
	(2) [(3)]  may not be used for purposes of Chapter 46;
	and
	(3) [(4)]  may not be provided by the commissioner to a
	school district for a purpose other than reduction of the
	district's maintenance and operations tax rate.
	SECTION 15.  Section 42.302(a), Education Code, is 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
	42.303, is determined by the formula:
	GYA = (GL X 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;
	"WADA" is the number of students in weighted average daily
	attendance, which is calculated by dividing the sum of the school
	district's allotments under Subchapters B and C, less any allotment
	to the district for transportation and[,] any allotment under
	Section 42.158 or 42.160, [and 50 percent of the adjustment under
	Section 42.102,] 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 42.2521, 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 42.2521, divided by 100.
	SECTION 16.  Section 322.008(b), Government Code, is amended
	to read as follows:
	(b)  The general appropriations bill may include for
	purposes of information the funding elements computed by the
	Legislative Budget Board under Section 42.007, Education Code[,
	excluding the values for each school district calculated under
	Section 42.007(c)(2), Education Code]. If the funding elements are
	included, the funding elements under Section 42.007(c)(2)
	[42.007(c)(3)], Education Code, shall be reported in dollar amounts
	per pupil.
	SECTION 17.  Section 825.405(b), Government Code, is amended
	to read as follows:
	(b)  For purposes of this section:
	(1)  the statutory minimum salary for certain school
	personnel under Section 21.402, Education Code, is the salary
	provided by that section multiplied by the cost of education index
	adjustment adopted by the foundation school fund budget committee
	and contained in Chapter 203, Title 19, Texas Administrative Code,
	as that chapter existed on March 26, 1997, applicable [under
	Section 42.102, Education Code,] to the district in which the
	member is employed; and
	(2)  the statutory minimum salary for members who would
	have been entitled to the minimum salary for certain school
	personnel under former Section 16.056, Education Code, as that
	section existed on January 1, 1995, is a minimum salary computed in
	the same manner as the minimum salary for certain school personnel
	under Section 21.402, Education Code, multiplied by the cost of
	education index adjustment adopted by the foundation school fund
	budget committee and contained in Chapter 203, Title 19, Texas
	Administrative Code, as that chapter existed on March 26, 1997,
	applicable [under Section 42.102, Education Code,] to the district
	in which the member is employed.
	SECTION 18.  The following sections of the Education Code
	are repealed:
	(1)  Section 42.102;
	(2)  Section 42.104; and
	(3)  Section 42.2517.
	SECTION 19.  This Act takes effect September 1, 2015.