EDUCATION CODE
CHAPTER 42. FOUNDATION SCHOOL PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
§ 42.001. STATE POLICY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) It is the policy of this state that the provision of
public education is a state responsibility and that a thorough and
efficient system be provided and substantially financed through
state revenue sources so that each student enrolled in the public
school system shall have access to programs and services that are
appropriate to the student's educational needs and that are
substantially equal to those available to any similar student,
notwithstanding varying local economic factors.
(b) The public school finance system of this state shall
adhere to a standard of neutrality that provides for substantially
equal access to similar revenue per student at similar tax effort,
considering all state and local tax revenues of districts after
acknowledging all legitimate student and district cost
differences.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The purposes of the Foundation School Program set forth
in this chapter are to guarantee that each school district in the
state has:
(1) adequate resources to provide each eligible
student a basic instructional program and facilities suitable to
the student's educational needs; and
(2) access to a substantially equalized program of
financing in excess of basic costs for certain services, as
provided by this chapter.
(b) The Foundation School Program consists of:
(1) two tiers that in combination provide for:
(A) sufficient financing for all school
districts to provide a basic program of education that is rated
academically acceptable or higher under Section 39.072 and meets
other applicable legal standards; and
(B) substantially equal access to funds to
provide an enriched program; and
(2) a facilities component as provided by Chapter 46.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.09, eff. Sept. 1,
1999.
§ 42.003. STUDENT ELIGIBILITY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A student is entitled to the benefits of the Foundation
School Program if the student is 5 years of age or older and under 21
years of age on September 1 of the school year and has not graduated
from high school.
(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.
(c) A child may be enrolled in the first grade if the child
is at least six years of age at the beginning of the school year of
the district or has been enrolled in the first grade or has
completed kindergarten in the public schools in another state
before transferring to a public school in this state.
(d) Notwithstanding Subsection (a), a student younger than
five years of age is entitled to the benefits of the Foundation
School Program if:
(1) the student performs satisfactorily on the
assessment instrument administered under Section 39.023(a) to
students in the third grade; and
(2) the district has adopted a policy for admitting
students younger than five years of age.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.004. ADMINISTRATION OF THE PROGRAM.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The commissioner, in accordance with the rules of the State
Board of Education, shall take such action and require such reports
consistent with this chapter as may be necessary to implement and
administer the Foundation School Program.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.005. AVERAGE DAILY ATTENDANCE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In this chapter, average daily attendance is:
(1) the quotient of the sum of attendance for each day
of the minimum number of days of instruction as described under
Section 25.081(a) divided by the minimum number of days of
instruction; or
(2) for a district that operates under a flexible year
program under Section 29.0821, the quotient of the sum of
attendance for each actual day of instruction as permitted by
Section 29.0821(b)(1) divided by the number of actual days of
instruction as permitted by Section 29.0821(b)(1).
(a-1) Expired.
(b) A school district that experiences a decline of two
percent or more in average daily attendance shall be funded on the
basis of:
(1) the actual average daily attendance of the
preceding school year, if the decline is the result of the closing
or reduction in personnel of a military base; or
(2) subject to Subsection (e), an average daily
attendance not to exceed 98 percent of the actual average daily
attendance of the preceding school year, if the decline is not the
result of the closing or reduction in personnel of a military base.
(c) The commissioner shall adjust the average daily
attendance of a school district that has a significant percentage
of students who are migratory children as defined by 20 U.S.C.
Section 6399.
(d) The commissioner may adjust the average daily
attendance of a school district in which a disaster, flood, extreme
weather condition, fuel curtailment, or other calamity has a
significant effect on the district's attendance.
(e) For each school year, the commissioner shall adjust the
average daily attendance of school districts that are entitled to
funding on the basis of an adjusted average daily attendance under
Subsection (b)(2) so that:
(1) all districts are funded on the basis of the same
percentage of the preceding year's actual average daily attendance;
and
(2) the total cost to the state does not exceed the
amount specifically appropriated for that year for purposes of
Subsection (b)(2).
(f) An open-enrollment charter school is not entitled to
funding based on an adjustment under Subsection (b)(2).
(g) If a student may receive course credit toward the
student's high school academic requirements and toward the
student's higher education academic requirements for a single
course, the time during which the student attends the course may not
be counted as part of the minimum number of instructional hours
required for a student to be considered a full-time student in
average daily attendance for purposes of this section. This
subsection expires September 1, 2004.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 12, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 924, § 1, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1156, § 3, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 220, § 2, eff. Sept. 1, 2003; Acts 2003,
78th Leg., ch. 824, § 3, eff. June 20, 2003.
§ 42.006. PUBLIC EDUCATION INFORMATION MANAGEMENT
SYSTEM (PEIMS).
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Each school district shall participate in the Public
Education Information Management System (PEIMS) and shall provide
through that system information required for the administration of
this chapter and of other appropriate provisions of this code.
(b) Each school district shall use a uniform accounting
system adopted by the commissioner for the data required to be
reported for the Public Education Information Management System.
(c) Annually, the commissioner shall review the Public
Education Information Management System and shall repeal or amend
rules that require school districts to provide information through
the Public Education Information Management System that is not
necessary. In reviewing and revising the Public Education
Information Management System, the commissioner shall develop
rules to ensure that the system:
(1) provides useful, accurate, and timely information
on student demographics and academic performance, personnel, and
school district finances;
(2) contains only the data necessary for the
legislature and the agency to perform their legally authorized
functions in overseeing the public education system; and
(3) does not contain any information related to
instructional methods, except as required by federal law.
(d) The commissioner's rules must ensure that the Public
Education Information Management System links student performance
data to other related information for purposes of efficient and
effective allocation of scarce school resources, to the extent
practicable using existing agency resources and appropriations.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 903, § 2, eff. Sept. 1,
2003.
§ 42.007. EQUALIZED FUNDING ELEMENTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The Legislative Budget Board shall adopt rules, subject
to appropriate notice and opportunity for public comment, for the
calculation for each year of a biennium of the qualified funding
elements, in accordance with Subsection (c), necessary to achieve
the state policy under Section 42.001.
(b) Before each regular session of the legislature, the
board shall report the equalized funding elements to the
commissioner and the legislature.
(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 adjusted basic allotment for the appropriate
year;
(4) the maximum guaranteed level of qualified state
and local funds per student for the purposes of Subchapter F;
(5) the enrichment and facilities tax rate under
Subchapter F;
(6) the computation of students in weighted average
daily attendance under Section 42.302; and
(7) the amount to be appropriated for the school
facilities assistance program under Chapter 46.
(d) The board shall conduct a study on the funding elements
each biennium, as appropriate. The study must include a
determination of the projected cost to the state in the next state
fiscal biennium of ensuring the ability of each school district to
maintain existing programs without increasing property tax rates.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 13, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.10, eff. Sept. 1, 1999.
SUBCHAPTER B. BASIC ENTITLEMENT
§ 42.101. BASIC ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
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 of
$2,537. A greater amount for any school year may be provided by
appropriation.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 14, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.11, eff. Sept. 1, 1999.
§ 42.102. COST OF EDUCATION ADJUSTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The basic allotment for each district is adjusted to
reflect the geographic variation in known resource costs and costs
of education due to factors beyond the control of the school
district.
(b) The cost of education adjustment is 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.
(c) Repealed by Acts 1997, 75th Leg., ch. 1071, § 30,
eff. Sept. 1, 1997.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 15, 30, eff. Sept.
1, 1997.
§ 42.103. SMALL AND MID-SIZED DISTRICT ADJUSTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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) "ABA" is the adjusted basic allotment determined
under Section 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 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 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 ABA.
(e) The commissioner may make the adjustment authorized by
Subsection (d)(2) only if the district's wealth per student does
not exceed the equalized wealth level under Section 41.002. For
purposes of this subsection, a district's wealth per student is
determined in the manner provided by Section 41.001, except that
the adjustment provided by Subsection (d)(2) is not used in
computing the number of students in weighted average daily
attendance.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 553, § 1, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 1276, § 6.008, eff. Sept. 1,
2003.
§ 42.104. USE OF SMALL OR MID-SIZED DISTRICT ADJUSTMENT
IN CALCULATING SPECIAL ALLOTMENTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
In determining the amount of a special allotment under
Subchapter C for a district to which Section 42.103 applies, a
district's adjusted basic allotment is considered to be the
district's adjusted allotment determined under Section 42.103.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.105. SPARSITY ADJUSTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
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 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 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 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.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
For purposes of this chapter, the taxable value of property
of a school district that contracts for students residing in the
district to be educated in another district under Section 25.039(a)
is adjusted by applying the formula:
ADPV = DPV - (TN/.015)
where:
"ADPV" is the district's adjusted taxable value of property;
"DPV" is the taxable value of property in the district for the
preceding tax year determined under Subchapter M, Chapter 403,
Government Code; and
"TN" is the total amount of tuition required to be paid by the
district under Section 25.039 for the school year for which the
adjustment is made, not to exceed the amount specified by
commissioner rule under Section 25.039(b).
Added by Acts 1999, 76th Leg., ch. 396, § 1.12, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 1069, § 2, eff. Sept.
1, 2003.
SUBCHAPTER C. SPECIAL ALLOTMENTS
§ 42.151. SPECIAL EDUCATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 adjusted basic
allotment 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 adjusted basic allotment
multiplied by a weight determined according to instructional
arrangement as follows:
Homebound 5.0
Hospital class 3.0
Speech therapy 5.0
Resource room 3.0
Self-contained, mild and moderate,
regular campus 3.0
Self-contained, severe, regular campus 3.0
Off home campus 2.7
Nonpublic day school 1.7
Vocational adjustment class 2.3
(b) A special instructional arrangement for students with
disabilities residing in care and treatment facilities, other than
state schools, whose parents or guardians do not reside in the
district providing education services shall be established under
the rules of the State Board of Education. The funding weight for
this arrangement shall be 4.0 for those students who receive their
education service on a local school district campus. A special
instructional arrangement for students with disabilities residing
in state schools shall be established under the rules of the State
Board of Education with a funding weight of 2.8.
(c) For funding purposes, the number of contact hours
credited per day for each student in the off home campus
instructional arrangement may not exceed the contact hours credited
per day for the multidistrict class instructional arrangement in
the 1992-1993 school year.
(d) For funding purposes the contact hours credited per day
for each student in the resource room; self-contained, mild and
moderate; and self-contained, severe, instructional arrangements
may not exceed the average of the statewide total contact hours
credited per day for those three instructional arrangements in the
1992-1993 school year.
(e) The State Board of Education by rule shall prescribe the
qualifications an instructional arrangement must meet in order to
be funded as a particular instructional arrangement under this
section. In prescribing the qualifications that a mainstream
instructional arrangement must meet, the board shall establish
requirements that students with disabilities and their teachers
receive the direct, indirect, and support services that are
necessary to enrich the regular classroom and enable student
success.
(f) In this section, "full-time equivalent student" means
30 hours of contact a week between a special education student and
special education program personnel.
(g) The State Board of Education shall adopt rules and
procedures governing contracts for residential placement of
special education students. The legislature shall provide by
appropriation for the state's share of the costs of those
placements.
(h) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule, must be used in the special education program under
Subchapter A, Chapter 29.
(i) The agency shall encourage the placement of students in
special education programs, including students in residential
instructional arrangements, in the least restrictive environment
appropriate for their educational needs.
(j) Each year, the agency shall make and disseminate to each
school district a list of those districts that maintain for two
successive years a ratio of full-time equivalent students placed in
partially or totally self-contained classrooms to the number of
full-time equivalent students placed in resource room or mainstream
instructional arrangements that is 25 percent higher than the
statewide average ratio.
(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.
(l) From the total amount of funds appropriated for special
education under this section, the commissioner shall withhold an
amount specified in the General Appropriations Act, and distribute
that amount to school districts for programs under Section 29.014.
The program established under that section is required only in
school districts in which the program is financed by funds
distributed under this subsection and any other funds available for
the program. After deducting the amount withheld under this
subsection from the total amount appropriated for special
education, the commissioner shall reduce each district's allotment
proportionately and shall allocate funds to each district
accordingly.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 545, § 1, eff. Sept. 1,
2003.
§ 42.152. COMPENSATORY EDUCATION ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 adjusted basic allotment
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.
(b) For purposes of this section, the number of
educationally disadvantaged students is determined:
(1) by averaging the best six months' enrollment in the
national school lunch program of free or reduced-price lunches for
the preceding school year; or
(2) in the manner provided by commissioner rule, if no
campus in the district participated in the national school lunch
program of free or reduced-price lunches during the preceding
school year.
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost allotment
established under State Board of Education rule, which may not
exceed 15 percent, may be used to meet the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081 or an alternative education program established
under Section 37.008 or to support a program eligible under Title I
of the Elementary and Secondary Education Act of 1965, as provided
by Pub. L. No. 103-382 and its subsequent amendments, and by federal
regulations implementing that Act, at a campus at which at least 40
percent of the students are educationally disadvantaged. In
meeting the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29. 081, a district's
compensatory education allotment shall be used for costs
supplementary to the regular education program, such as costs for
program and student evaluation, instructional materials and
equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or an open-enrollment charter school must
use funds allocated under Subsection (a) for a purpose authorized
in this subsection but is not otherwise subject to Subchapter C,
Chapter 29. Notwithstanding any other provisions of this section:
(1) to ensure that a sufficient amount of the funds
allotted under this section are available to supplement
instructional programs and services, no more than 18 percent of the
funds allotted under this section may be used to fund disciplinary
alternative education programs established under Section 37.008;
(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district's board and a
district's site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008, provided that:
(A) the district in its petition reports the
number of students in each grade level, by demographic subgroup,
not making satisfactory progress under the state's assessment
system; and
(B) the commissioner makes the waiver request
information available annually to the public on the agency's
website; and
(3) for purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
Text of subsec. (c-1) as added by Acts 2003, 78th Leg., ch. 253,
§ 1
(c-1) Notwithstanding Subsection (c), funds allocated under
this section may be used to fund in proportion to the percentage of
students served by the program that meet the criteria in Section
29.081(d) or (g):
(1) an accelerated reading instruction program under
Section 28.006(g); or
(2) a program for treatment of students who have
dyslexia or a related disorder as required by Section 38.003.
Text of subsec. (c-1) as added by Acts 2003, 78th Leg., ch. 783,
§ 2
(c-1) Notwithstanding Subsection (c), funds allocated under
this section may be used to fund a district's mentoring services
program under Section 29.089.
(d) The agency shall evaluate the effectiveness of
accelerated instruction and support programs provided under
Section 29.081 for students at risk of dropping out of school.
(e) The commissioner may:
(1) retain a portion of the total amount allotted
under Subsection (a) that the commissioner considers appropriate to
finance intensive accelerated instruction programs and study
guides provided under Sections 39.024(b) and (c); and
(2) reduce each district's tier one allotments in the
same manner described for a reduction in allotments under Section
42.253.
(f) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold an amount to be determined by the commissioner, but
not less than $10,000,000, and distribute that amount for programs
under Section 29.085. In distributing those funds, preference
shall be given to a school district that received funds for a
program under Section 29.085 for the preceding school year. The
program established under that section is required only in school
districts in which the program is financed by funds distributed
under this section and any other funds available for the program.
(g) The commissioner shall coordinate the funds withheld
under Subsection (f) and any other funds available for the program
and shall distribute those funds. To receive funds for the program,
a school district must apply to the commissioner. The commissioner
shall give a preference to the districts that apply that have the
highest concentration of students who are pregnant or who are
parents.
(h) After deducting the amount withheld under Subsection
(f) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's tier
one allotments in the same manner described for a reduction in
allotments under Section 42.253 and shall allocate funds to each
district accordingly.
(i) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold $7,500,000 or a greater amount as determined in the
General Appropriations Act and distribute that amount for programs
under Subchapter A, Chapter 33. A program established under that
subchapter is required only in school districts in which the
program is financed by funds distributed under this section or
other funds distributed by the commissioner for a program under
that subchapter. In distributing those funds, preference shall be
given to a school district that received funds for a program under
this subsection for the preceding school year.
(j) The commissioner shall coordinate the funds withheld
under Subsection (i) and any other funds available for the program
and shall distribute those funds. To receive funds for the program,
a school district must apply to the commissioner. The commissioner
shall give a preference to the districts that apply that have the
highest concentration of at-risk students. For each school year
that a school district receives funds under this section, the
district shall allocate an amount of local funds for school
guidance and counseling programs that is equal to or greater than
the amount of local funds that the school district allocated for
that purpose during the preceding school year.
(k) After deducting the amount withheld under Subsection
(i) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's tier
one allotments in the same manner described for a reduction in
allotments under Section 42.253.
(l) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold the amount of $2.5 million for transfer to the
investment capital fund under Section 7.024.
(m) From the total amount of funds appropriated for
allotments under this section, the commissioner may withhold an
amount not exceeding $1 million each fiscal year and distribute the
funds to school districts that incur unanticipated expenditures
resulting from a significant increase in the enrollment of students
who do not have disabilities and who reside in residential
placement facilities.
(n) After deducting the amount withheld under Subsection
(l) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's
allotment under Subsection (a) proportionately and shall allocate
funds to each district accordingly.
(o) After deducting the amount withheld under Subsection
(m) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's
allotment under Subsection (a) proportionately.
(p) The commissioner shall:
(1) withhold, from the total amount of funds
appropriated for allotments under this section, an amount
sufficient to finance extended year programs under Section 29.082
not to exceed five percent of the amounts allocated under this
section; and
(2) give priority to applications for extended year
programs to districts with high concentrations of educationally
disadvantaged students.
(q) The State Board of Education, with the assistance of the
comptroller, shall develop and implement by rule reporting and
auditing systems for district and campus expenditures of
compensatory education funds to ensure that compensatory education
funds, other than the indirect cost allotment, are spent only to
supplement the regular education program as required by Subsection
(c). The reporting requirements shall be managed electronically to
minimize local administrative costs. A district shall submit the
report required by this subsection not later than the 150th day
after the last day permissible for resubmission of information
required under Section 42.006.
(q-1) The commissioner shall develop a system to identify
school districts that are at high risk of having used compensatory
education funds other than in compliance with Subsection (c) or of
having inadequately reported compensatory education expenditures.
If a review of the report submitted under Subsection (q), using the
risk-based system, indicates that a district is not at high risk of
having misused compensatory education funds or of having
inadequately reported compensatory education expenditures, the
district may not be required to perform a local audit of
compensatory education expenditures and is not subject to on-site
monitoring under this section.
(q-2) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having misused compensatory education funds, the
commissioner shall notify the district of that determination. The
district must respond to the commissioner not later than the 30th
day after the date the commissioner notifies the district of the
commissioner's determination. If the district's response does not
change the commissioner's determination that the district is at
high risk of having misused compensatory education funds or if the
district does not respond in a timely manner, the commissioner
shall:
(1) require the district to conduct a local audit of
compensatory education expenditures for the current or preceding
school year;
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures; or
(3) both require a local audit and order on-site
monitoring.
(q-3) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having inadequately reported compensatory education
expenditures, the commissioner may require agency staff to assist
the district in following the proper reporting methods or amending
a district or campus improvement plan under Subchapter F, Chapter
11. If the district does not take appropriate corrective action
before the 45th day after the date the agency staff notifies the
district of the action the district is expected to take, the
commissioner may:
(1) require the district to conduct a local audit of
the district's compensatory education expenditures; or
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures.
(q-4) The commissioner, in the year following a local audit
of compensatory education expenditures, shall withhold from a
district's foundation school fund payment an amount equal to the
amount of compensatory education funds the agency determines were
not used in compliance with Subsection (c). The commissioner shall
release to a district funds withheld under this subsection when the
district provides to the commissioner a detailed plan to spend
those funds in compliance with Subsection (c).
(r) The commissioner shall grant a one-year exemption from
the requirements of Subsections (q)-(q-4) to a school district in
which the group of students who have failed to perform
satisfactorily in the preceding school year on an assessment
instrument required under Section 39.023(a), (c), or (l)
subsequently performs on those assessment instruments at a level
that meets or exceeds a level prescribed by commissioner rule. Each
year the commissioner, based on the most recent information
available, shall determine if a school district is entitled to an
exemption for the following school year and notify the district of
that determination.
(s) Subsection (r) applies beginning with the 2003-2004
school year. This subsection expires September 1, 2004.
(t) A reduction made under this section or the General
Appropriations Act in the allotment under this section does not
affect the computation of students in weighted average daily
attendance for purposes of Subchapter F.
Text of subsection (u) effective until September 1, 2005
(u) For the 2003-2004 and 2004-2005 school years,
notwithstanding the allotments and reductions otherwise required
or permitted by this section or Section 39.031, the legislature may
in the General Appropriations Act reduce the total amount of
funding for the compensatory education allotment by not more than
the sum of all of the changes, made to programs funded through
deductions to the compensatory education allotment to which a
district is otherwise entitled under Subsection (a), under H.B. No.
1, Acts of the 78th Legislature, Regular Session, 2003. After
deducting the amount of a reduction made as provided by this
subsection from the total amount computed for the allotment under
Subsection (a), the commissioner shall:
(1) reduce each district's tier one allotments in the
same manner described for a reduction in allotments under Section
42.253; and
(2) allocate funds to each district accordingly.
Text of subsection (v) effective until September 1, 2005
(v) This subsection and Subsection (u) expire on September
1, 2005.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 16, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.13, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 725, § 11, eff. June 13, 2001; Acts
2001, 77th Leg., ch. 1156, § 4, 12, eff; Sept. 1, 2001; Acts
2003, 78th Leg., ch. 201, § 30, eff. Sept. 1, 2003; Acts 2003,
78th Leg., ch. 253, § 1, eff. sept. 1, 2003; Acts 2003, 78th
Leg., ch. 783, § 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch.
785, § 57, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 903,
§ 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, §
6.009, eff. Sept. 1, 2003.
§ 42.153. BILINGUAL EDUCATION ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 adjusted basic allotment multiplied by 0.1.
(b) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule, must be used in providing bilingual education or special
language programs under Subchapter B, Chapter 29, and must be
accounted for under existing agency reporting and auditing
procedures.
(c) A district's bilingual education or special language
allocation may be used only for program and student evaluation,
instructional materials and equipment, staff development,
supplemental staff expenses, salary supplements for teachers, and
other supplies required for quality instruction and smaller class
size.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.154. CAREER AND TECHNOLOGY EDUCATION ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 an annual allotment equal to the adjusted
basic allotment multiplied by a weight of 1.35.
(b) In this section, "full-time equivalent student" means
30 hours of contact a week between a student and career and
technology education program personnel.
(c) Funds allocated under this section, other than an
indirect cost allotment established under State Board of Education
rule, must be used in providing career and technology education
programs in grades nine through 12 or career and technology
education programs for students with disabilities in grades seven
through 12 under Sections 29.182, 29.183, and 29.184.
(d) The commissioner shall conduct a cost-benefit
comparison between career and technology education programs and
mathematics and science programs.
(e) Out of the total statewide allotment for career and
technology education under this section, the commissioner shall set
aside an amount specified in the General Appropriations Act, which
may not exceed an amount equal to one percent of the total amount
appropriated, to support regional career and technology education
planning. After deducting the amount set aside under this
subsection from the total amount appropriated for career and
technology education under this section, the commissioner shall
reduce each district's tier one allotments in the same manner
described for a reduction in allotments under Section 42.253.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 201, § 31, eff. Sept. 1,
2003.
§ 42.155. TRANSPORTATION ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Each district or county operating a transportation
system is entitled to allotments for transportation costs as
provided by this section.
(b) As used in this section:
(1) "Regular eligible student" means a student who
resides two or more miles from the student's campus of regular
attendance, measured along the shortest route that may be traveled
on public roads, and who is not classified as a student eligible for
special education services.
(2) "Eligible special education student" means a
student who is eligible for special education services under
Section 29.003 and who would be unable to attend classes without
special transportation services.
(3) "Linear density" means the average number of
regular eligible students transported daily, divided by the
approved daily route miles traveled by the respective
transportation system.
(c) Each district or county operating a regular
transportation system is entitled to an allotment based on the
daily cost per regular eligible student of operating and
maintaining the regular transportation system and the linear
density of that system. In determining the cost, the commissioner
shall give consideration to factors affecting the actual cost of
providing these transportation services in each district or county.
The average actual cost is to be computed by the commissioner and
included for consideration by the legislature in the General
Appropriations Act. The allotment per mile of approved route may
not exceed the amount set by appropriation.
(d) A district or county may apply for and on approval of the
commissioner receive an additional amount of up to 10 percent of its
regular transportation allotment to be used for the transportation
of children living within two miles of the school they attend who
would be subject to hazardous traffic conditions if they walked to
school. Each board of trustees shall provide to the commissioner
the definition of hazardous conditions applicable to that district
and shall identify the specific hazardous areas for which the
allocation is requested. A hazardous condition exists where no
walkway is provided and children must walk along or cross a freeway
or expressway, an underpass, an overpass or a bridge, an
uncontrolled major traffic artery, an industrial or commercial
area, or another comparable condition.
(e) The commissioner may grant an amount set by
appropriation for private or commercial transportation for
eligible students from isolated areas. The need for this type of
transportation grant shall be determined on an individual basis and
the amount granted shall not exceed the actual cost. The grants may
be made only in extreme hardship cases. A grant may not be made if
the students live within two miles of an approved school bus route.
(f) The cost of transporting career and technology
education students from one campus to another inside a district or
from a sending district to another secondary public school for a
career and technology program or an area career and technology
school or to an approved post-secondary institution under a
contract for instruction approved by the agency shall be reimbursed
based on the number of actual miles traveled times the district's
official extracurricular travel per mile rate as set by the board of
trustees and approved by the agency.
(g) A school district or county that provides special
transportation services for eligible special education students is
entitled to a state allocation paid on a previous year's
cost-per-mile basis. The maximum rate per mile allowable shall be
set by appropriation based on data gathered from the first year of
each preceding biennium. Districts may use a portion of their
support allocation to pay transportation costs, if necessary. The
commissioner may grant an amount set by appropriation for private
transportation to reimburse parents or their agents for
transporting eligible special education students. The mileage
allowed shall be computed along the shortest public road from the
student's home to school and back, morning and afternoon. The need
for this type transportation shall be determined on an individual
basis and shall be approved only in extreme hardship cases.
(h) Funds allotted under this section must be used in
providing transportation services.
(i) In the case of a district belonging to a county
transportation system, the district's transportation allotment for
purposes of determining a district's foundation school program
allocations is determined on the basis of the number of approved
daily route miles in the district multiplied by the allotment per
mile to which the county transportation system is entitled.
(j) The Texas School for the Deaf is entitled to an
allotment under this section. The commissioner shall determine the
appropriate allotment.
(k) Notwithstanding any other provision of this section,
the commissioner may not reduce the allotment to which a district or
county is entitled under this section because the district or
county provides transportation for an eligible student to and from
a child-care facility, as defined by Section 42. 002, Human
Resources Code, or a grandparent's residence instead of the
student's residence, as authorized by Section 34.007, if the
transportation is provided within the approved routes of the
district or county for the school the student attends.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 17, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 169, § 4, eff. Sept. 1, 2001;
Acts 2003, 78th Leg., ch. 201, § 32, eff. Sept. 1, 2003.
§ 42.156. GIFTED AND TALENTED STUDENT ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 adjusted basic allotment as determined under Section
42.102 or Section 42.103, as applicable, multiplied by .12 for each
school year or a greater amount provided by appropriation.
(b) Funds allocated under this section, other than the
amount that represents the program's share of general
administrative costs, must be used in providing programs for gifted
and talented students under Subchapter D, Chapter 29, including
programs sanctioned by International Baccalaureate and Advanced
Placement, or in developing programs for gifted and talented
students. Each district must account for the expenditure of state
funds as provided by rule of the State Board of Education. If by the
end of the 12th month after receiving an allotment for developing a
program a district has failed to implement a program, the district
must refund the amount of the allotment to the agency within 30
days.
(c) Not more than five percent of a district's students in
average daily attendance are eligible for funding under this
section.
(d) If the amount of state funds for which school districts
are eligible under this section exceeds the amount of state funds
appropriated in any year for the programs, the commissioner shall
reduce each district's tier one allotments in the same manner
described for a reduction in allotments under Section 42.253.
(e) If the total amount of funds allotted under this section
before a date set by rule of the State Board of Education is less
than the total amount appropriated for a school year, the
commissioner shall transfer the remainder to any program for which
an allotment under Section 42.152 may be used.
(f) After each district has received allotted funds for this
program, the State Board of Education may use up to $500,000 of the
funds allocated under this section for programs such as MATHCOUNTS,
Future Problem Solving, Odyssey of the Mind, and Academic
Decathlon, as long as these funds are used to train personnel and
provide program services. To be eligible for funding under this
subsection, a program must be determined by the State Board of
Education to provide services that are effective and consistent
with the state plan for gifted and talented education.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.157. PUBLIC EDUCATION GRANT ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 adjusted basic allotment multiplied by a weight of 0.1.
(b) The total number of allotments under this section to
which a district is entitled may not exceed the number by which the
number of students using public education grants to attend school
in the district exceeds the number of students who reside in the
district and use public education grants to attend school in
another district.
Added by Acts 1997, 75th Leg., ch. 722, § 5, eff. Sept. 1, 1997.
§ 42.158. NEW INSTRUCTIONAL FACILITY ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A school district is entitled to an additional allotment
as provided by this section for operational expenses associated
with opening a new instructional facility.
(b) For the first school year in which students attend a new
instructional facility, a school district is entitled to an
allotment of $250 for each student in average daily attendance at
the facility. For the second school year in which students attend
that instructional facility, a school district is entitled to an
allotment of $250 for each additional student in average daily
attendance at the facility.
(c) For purposes of this section, the number of additional
students in average daily attendance at a facility is the
difference between the number of students in average daily
attendance in the current year at that facility and the number of
students in average daily attendance at that facility in the
preceding year.
(d) The amount appropriated for allotments under this
section may not exceed $25 million in a school year. If the total
amount of allotments to which districts are entitled under this
section for a school year exceeds the amount appropriated for
allotments under this section, the commissioner shall reduce each
district's allotment under this section in the manner provided by
Section 42.253(h).
(e) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits. A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
(f) The commissioner may adopt rules necessary to implement
this section.
(g) In this section, "instructional facility" has the
meaning assigned by Section 46.001.
Added by Acts 1999, 76th Leg., ch. 396, § 1.14, eff. Sept. 1,
1999.
SUBCHAPTER E. FINANCING THE PROGRAM
§ 42.251. FINANCING; GENERAL RULE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The sum of the 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.
(b) The program shall be financed by:
(1) ad valorem tax revenue generated by an equalized
uniform school district effort;
(2) ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;
(3) state available school funds distributed in
accordance with law; and
(4) state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
(c) Repealed by Acts 1999, 76th Leg., ch. 396, § 3.01(a),
eff. Sept. 1, 1999.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.15, 3.01(a), eff.
Sept. 1, 1999.
§ 42.2511. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Notwithstanding any other provision of this chapter, a
school district is entitled to additional state aid to the extent
that state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter M, Chapter 403, Government Code, does not fully
compensate the district for ad valorem tax revenue lost due to the
increase in the homestead exemption under Section 1-b(c), Article
VIII, Texas Constitution, as proposed by H.J.R. No. 4, 75th
Legislature, Regular Session, 1997, and the additional limitation
on tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997.
(b) The commissioner, using information provided by the
comptroller, shall compute the amount of additional state aid to
which a district is entitled under this section. A determination by
the commissioner under this section is final and may not be
appealed.
Added by Acts 1997, 75th Leg., ch. 592, § 1.03, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 396, § 1.16, eff.
Sept. 1, 1999.
§ 42.2512. ADDITIONAL STATE AID FOR PROFESSIONAL STAFF
SALARIES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) 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, as determined by the commissioner, equal
to the difference, if any, between:
(1) an amount equal to the product of $3,000
multiplied by the number of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B,
Chapter 21, and full-time school nurses employed by the district
and entitled to a minimum salary under Section 21.402; and
(2) an amount equal to 80 percent of the amount of
additional funds to which the district is entitled due to the
increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
Session, 1999, to:
(A) the equalized wealth level under Section
41.002;
(B) the basic allotment under Section 42.101;
and
(C) the guaranteed level of state and local funds
per weighted student per cent of tax effort under Section 42.302.
(b) A determination by the commissioner under this section
is final and may not be appealed.
(c) The commissioner may adopt rules to implement this
section.
Added by Acts 1999, 76th Leg., ch. 396, § 1.17, eff. Sept. 1,
1999.
§ 42.2514. ADDITIONAL STATE AID FOR SCHOOL EMPLOYEE
BENEFITS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In this section, "participating charter school" means
an open-enrollment charter school that participates in the uniform
group coverage program established under Article 3.50-7, Insurance
Code.
(b) For each school year, a school district, including a
school district that is otherwise ineligible for state aid under
this chapter, or a participating charter school is entitled to
state aid in an amount, as determined by the commissioner, equal to
the difference, if any, between:
(1) the amount determined by multiplying the amount of
$900 or the amount specified in the General Appropriations Act for
that year for purposes of the state contribution under Section 9,
Article 3.50-7, Insurance Code, by the number of district or school
employees who participate in a group health coverage plan provided
by or through the district or school; and
(2) an amount equal to 75 percent of the amount of:
(A) 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:
(i) the equalized wealth level under
Section 41.002; and
(ii) the guaranteed level of state and
local funds per weighted student per cent of tax effort under
Section 42.302; or
(B) additional state aid to which the district is
entitled under Section 42.2513.
(c) A school district or participating charter school may
use state aid received under this section only to pay contributions
under a group health coverage plan for district or school
employees.
(d) A determination by the commissioner under this section
is final and may not be appealed.
(e) The commissioner may adopt rules to implement this
section.
Added by Acts 2001, 77th Leg., ch. 1187, § 2.05, eff. Sept. 1,
2002.
§ 42.2515. ADDITIONAL STATE AID FOR AD VALOREM TAX
CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) 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 of all tax credits credited against ad valorem taxes of the
district in that year under Subchapter D, Chapter 313, Tax Code.
(b) The commissioner may adopt rules to implement and
administer this section.
Added by Acts 2001, 77th Leg., ch. 1505, § 6, eff. Jan. 1, 2002.
§ 42.2517. EXCESS FUNDS FOR COST OF EDUCATION
ADJUSTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If the commissioner determines that the amount
appropriated for purposes of the Foundation School Program exceeds
the amount to which school districts are entitled under this
chapter, the commissioner may:
(1) adjust each district's cost of education
adjustment under Section 42.102 to reflect current uncontrollable
variations in the cost of education, particularly the cost of
providing salaries and benefits to classroom teachers; and
(2) provide funding under this chapter based on the
cost of education index adjusted under Subdivision (1).
(b) If the amount available under Subsection (a) is not
sufficient to provide funding based on the cost of education index
adjusted under Subsection (a)(1), the commissioner shall rank
districts by the increase in the cost of education adjustment
applicable to each district under this section and shall provide
funding under this section to districts in descending order of the
amount of increase in the cost of education adjustment applicable
to districts under this section, beginning with the district that
has the greatest increase in the cost of education adjustment,
until no funds are available for purposes of this section.
Added by Acts 2003, 78th Leg., ch. 201, § 33, eff. Sept. 1, 2003.
§ 42.252. LOCAL SHARE OF PROGRAM COST (TIER ONE).
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 $0.86; 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.
(b) The commissioner shall adjust the values reported in the
official report of the comptroller as required by Section 5.09(a),
Tax Code, to reflect reductions in taxable value of property
resulting from natural or economic disaster after January 1 in the
year in which the valuations are determined. The decision of the
commissioner is final. An adjustment does not affect the local fund
assignment of any other school district.
(c) Appeals of district values shall be held pursuant to
Section 403.303, Government Code.
(d) A school district must raise its total local share of
the Foundation School Program to be eligible to receive foundation
school fund payments.
(e) Repealed by Acts 1999, 76th Leg., ch. 396, § 3.01(a),
eff. Sept. 1, 1999.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 18, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 3.01(a), eff. Sept. 1,
1999.
§ 42.2521. ADJUSTMENT FOR RAPID DECLINE IN TAXABLE VALUE
OF PROPERTY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) For purposes of Chapters 41 and 46 and this chapter, and
to the extent money specifically authorized to be used under this
section is available, the commissioner shall adjust the taxable
value of property in a school district that, due to factors beyond
the control of the board of trustees, experiences a rapid decline in
the tax base used in calculating taxable values in excess of four
percent of the tax base used in the preceding year.
(b) To the extent that a sufficient amount of money is not
available to fund all adjustments under this section, the
commissioner shall reduce adjustments in the manner provided by
Section 42.253(h) so that the total amount of adjustments equals
the amount of money available to fund the adjustments.
(c) A decision of the commissioner under this section is
final and may not be appealed.
Added by Acts 1999, 76th Leg., ch. 396, § 1.18, eff. Sept. 1,
1999.
§ 42.2522. ADJUSTMENT FOR OPTIONAL HOMESTEAD EXEMPTION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In any school year, the commissioner may not provide
funding under this chapter based on a school district's taxable
value of property computed in accordance with Section
403.302(d)(2), Government Code, unless:
(1) funds are specifically appropriated for purposes
of this section; or
(2) the commissioner determines that the total amount
of state funds appropriated for purposes of the Foundation School
Program for the school year exceeds the amount of state funds
distributed to school districts in accordance with Section 42.253
based on the taxable values of property in school districts
computed in accordance with Section 403.302(d), Government Code,
without any deduction for residence homestead exemptions granted
under Section 11.13(n), Tax Code.
(b) In making a determination under Subsection (a)(2), the
commissioner shall:
(1) notwithstanding Section 42.253(b), reduce the
entitlement under this chapter of a school district whose final
taxable value of property is higher than the estimate under Section
42.254 and make payments to school districts accordingly; and
(2) give priority to school districts that, due to
factors beyond the control of the board of trustees, experience a
rapid decline in the tax base used in calculating taxable values in
excess of four percent of the tax base used in the preceding year.
(c) In the first year of a state fiscal biennium, before
providing funding as provided by Subsection (a)(2), the
commissioner shall ensure that sufficient appropriated funds for
purposes of the Foundation School Program are available for the
second year of the biennium, including funds to be used for purposes
of Section 42.2521.
(d) If the commissioner determines that the amount of funds
available under Subsection (a)(1) or (2) does not at least equal the
total amount of state funding to which districts would be entitled
if state funding under this chapter were based on the taxable values
of property in school districts computed in accordance with Section
403.302(d)(2), Government Code, the commissioner may, to the extent
necessary, provide state funding based on a uniform lesser fraction
of the deduction under Section 403.302(d)(2), Government Code.
(e) The commissioner shall notify school districts as soon
as practicable as to the availability of funds under this section.
For purposes of computing a rollback tax rate under Section 26.08,
Tax Code, a district shall adjust the district's tax rate limit to
reflect assistance received under this section.
Added by Acts 1999, 76th Leg., ch. 396, § 1.18, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1158, § 3, eff. Sept.
1, 2001.
§ 42.253. DISTRIBUTION OF FOUNDATION SCHOOL FUND.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled under Subchapter F;
(3) the amount of money allocated to the district from
the available school fund;
(4) the amount of each district's tier one local share
under Section 42.252; and
(5) the amount of each district's tier two local share
under Section 42.302.
(b) Except as provided by this subsection, the commissioner
shall base the determinations under Subsection (a) on the estimates
provided to the legislature under Section 42.254, or, if the
General Appropriations Act provides estimates for that purpose, on
the estimates provided under that Act, for each school district for
each school year. The commissioner shall reduce the entitlement of
each district that has a final taxable value of property for the
second year of a state fiscal biennium that is higher than the
estimate under Section 42.254 or the General Appropriations Act, as
applicable. A reduction under this subsection may not reduce the
district's entitlement below the amount to which it is entitled at
its actual taxable value of property.
(c) Each school district is entitled to an amount equal to
the difference for that district between the sum of Subsections
(a)(1) and (a)(2) and the sum of Subsections (a)(3), (a)(4), and
(a)(5).
(d) The commissioner shall approve warrants to each school
district equaling the amount of its entitlement except as provided
by this section. Warrants for all money expended according to this
chapter shall be approved and transmitted to treasurers or
depositories of school districts in the same manner that warrants
for state payments are transmitted. The total amount of the
warrants issued under this section may not exceed the total amount
appropriated for Foundation School Program purposes for that fiscal
year.
(e) The commissioner shall recompute the amount to which the
district is entitled under Subsection (c) if a school district's
tax rate is less than the limit authorized under this subsection.
The amount to which a district is entitled under this section may
not exceed the amount to which the district would be entitled at the
district's tax rate for the final year of the preceding biennium, or
a different tax rate provided by appropriation. The commissioner
shall recompute the amount to which a district is entitled to the
extent necessary under this section. The commissioner shall
approve warrants to the school in the amount that results from the
new computation. An amount equal to the difference between the
initial allocation and the amount of the warrants shall be
transferred to a special account in the foundation school fund
known as the reserve account.
Text of subsec. (e-1) effective until September 1, 2009
(e-1) For the 2003-2004, 2004-2005, 2005-2006, 2006-2007,
2007-2008, or 2008-2009 school year, the limit authorized under
Subsection (e) is increased by an amount equal to the portion of a
school district's maintenance and operations tax for that year
necessary for the district, when added to state funds received
under this chapter for that portion of the tax, to comply with
Section 3, Article 3.50-9, Insurance Code. For the 2005-2006 and
2007-2008 school years, the limit authorized under Subsection (e)
does not include any portion of a school district's maintenance and
operations tax rate for which the limit under Subsection (e)
applicable to the district was increased under this subsection.
The commissioner may adopt rules necessary to administer this
subsection. A determination of the commissioner under this
subsection is final and may not be appealed. This subsection
expires September 1, 2009.
(e-2) Expired September 1, 2001.
(f) Amounts transferred to the reserve account under
Subsection (e) shall be used in the succeeding fiscal year to
finance increases in allocations to school districts under
Subsection (i). If the amount in the reserve account is less than
the amount of the increases under Subsection (i) for the second year
of a state fiscal biennium, 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 Subsection (h).
(g) If a school district demonstrates to the satisfaction of
the commissioner that the estimate of the district's tax rate,
student enrollment, or taxable value of property used in
determining the amount of state funds to which the district is
entitled are so inaccurate as to result in undue financial hardship
to the district, the commissioner may adjust funding to that
district in that school year to the extent that funds are available
for that year, including funds in the reserve account. Funds in the
reserve account may not be used under this subsection until any
reserve funds have been used for purposes of Subsection (f).
(h) If the legislature fails during the regular session to
enact the transfer and appropriation proposed under Subsection (f)
and there are not funds available under Subsection (j), the
commissioner shall reduce the total amount of state funds allocated
to each district by an amount determined by 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 a total levy equal to the total reduction. The
following fiscal year, a district's entitlement under this section
is increased by an amount equal to the reduction made under this
subsection.
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under the allocation formulas in this chapter
for the current school year and shall compare that amount with the
amount of the warrants issued to each district for that year. If
the amount of the warrants differs from the amount to which a
district is entitled because of variations in the district's tax
rate, student enrollment, or taxable value of property, the
commissioner shall adjust the district's entitlement for the next
fiscal year accordingly.
(j) The legislature may appropriate funds necessary for
increases under Subsection (i) from funds that the comptroller, at
any time during the fiscal year, finds are available.
(k) The commissioner shall compute for each school district
the total amount by which the district's allocation of state funds
is increased or reduced under Subsection (i) and shall certify that
amount to the district.
(l) In this section, the number of students in weighted
average daily attendance is calculated in the manner provided by
Section 42.302.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 19, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.19, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1187, § 2.06, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 201, § 34, eff. Sept. 1, 2003.
§ 42.2531. ADJUSTMENT BY COMMISSIONER.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The commissioner may make adjustments to amounts due to
a school district under this chapter or Chapter 46, or to amounts
necessary for a district to comply with the requirements of Chapter
41, as provided by this section.
(b) A school district that has a major taxpayer, as
determined by the commissioner, that because of a protest of the
valuation of the taxpayer's property fails to pay all or a portion
of the ad valorem taxes due to the district may apply to the
commissioner to have the district's taxable value of property or ad
valorem tax collections adjusted for purposes of this chapter or
Chapter 41 or 46. The commissioner may make the adjustment only to
the extent the commissioner determines that making the adjustment
will not:
(1) in the fiscal year in which the adjustment is made,
cause the amount to which school districts are entitled under this
chapter to exceed the amount appropriated for purposes of the
Foundation School Program for that year; and
(2) if the adjustment is made in the first year of a
state fiscal biennium, cause the amount to which school districts
are entitled under this chapter for the second year of the biennium
to exceed the amount appropriated for purposes of the Foundation
School Program for that year.
(c) The commissioner shall recover the benefit of any
adjustment made under this section by making offsetting adjustments
in the school district's taxable value of property or ad valorem tax
collections for purposes of this chapter or Chapter 41 or 46 on a
final determination of the taxable value of property that was the
basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
(d) This section does not require the commissioner to make
any requested adjustment. A determination by the commissioner
under this section is final and may not be appealed.
Added by Acts 2001, 77th Leg., ch. 1156, § 5, eff. Sept. 1, 2001.
§ 42.254. ESTIMATES REQUIRED.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Not later than October 1 of each even-numbered year:
(1) the agency shall submit to the legislature an
estimate of the tax rate and student enrollment of each school
district for the following biennium; and
(2) the comptroller shall submit to the legislature an
estimate of the total taxable value of all property in the state as
determined under Subchapter M, Chapter 403, Government Code, for
the following biennium.
(b) The agency and the comptroller shall update the
information provided to the legislature under Subsection (a) not
later than March 1 of each odd-numbered year.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 20, eff. Sept. 1,
1997.
§ 42.255. FALSIFICATION OF RECORDS; REPORT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
When, in the opinion of the agency's director of school
audits, audits or reviews of accounting, enrollment, or other
records of a school district reveal deliberate falsification of the
records, or violation of the provisions of this chapter, through
which the district's share of state funds allocated under the
authority of this chapter would be, or has been, illegally
increased, the director shall promptly and fully report the fact to
the State Board of Education, the state auditor, and the
appropriate county attorney, district attorney, or criminal
district attorney.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.257. EFFECT OF APPRAISAL APPEAL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If the final determination of an appeal under Chapter
42, Tax Code, results in a reduction in the taxable value of
property that exceeds five percent of the total taxable value of
property in the school district for the same tax year determined
under Subchapter M, Chapter 403, Government Code, the commissioner
shall request the comptroller to adjust its taxable property value
findings for that year consistent with the final determination of
the appraisal appeal.
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. An adjustment does not affect the local fund
assignment of any other district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.258. RECOVERY OF OVERALLOCATED FUNDS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If a school district has received an overallocation of
state funds, the agency shall, by withholding from subsequent
allocations of state funds or by requesting and obtaining a refund,
recover from the district an amount equal to the overallocation.
(b) If a district fails to comply with a request for a refund
under Subsection (a), the agency shall certify to the comptroller
that the amount constitutes a debt for purposes of Section 403.055,
Government Code. The agency shall provide to the comptroller the
amount of the overallocation and any other information required by
the comptroller. The comptroller may certify the amount of the debt
to the attorney general for collection.
(c) Any amounts recovered under this section shall be
deposited in the foundation school fund.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.259. FOUNDATION SCHOOL FUND TRANSFERS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In this section:
(1) "Category 1 school district" means a school
district having a wealth per student of less than one-half of the
statewide average wealth per student.
(2) "Category 2 school district" means a school
district having a wealth per student of at least one-half of the
statewide average wealth per student but not more than the
statewide average wealth per student.
(3) "Category 3 school district" means a school
district having a wealth per student of more than the statewide
average wealth per student.
(4) "Wealth per student" means the taxable property
values reported by the comptroller to the commissioner under
Section 42.252 divided by the number of students in average daily
attendance.
(b) Payments from the foundation school fund to each
category 1 school district shall be made as follows:
(1) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 80 percent of the yearly entitlement of the
district shall be paid in eight equal installments to be made on or
before the 25th day of October, November, December, January, March,
May, June, and July; and
(3) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of February.
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the fifth
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1).
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the fifth
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1).
(e) The amount of any installment required by this section
may be modified to provide a school district with the proper amount
to which the district may be entitled by law and to correct errors
in the allocation or distribution of funds. If an installment under
this section is required to be equal to other installments, the
amount of other installments may be adjusted to provide for that
equality. A payment under this section is not invalid because it is
not equal to other installments.
(f) Except as provided by Subsection (c)(8) or (d)(3), any
previously unpaid additional funds from prior years owed to a
district shall be paid to the district together with the September
payment of the current year entitlement.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1995, 74th Leg., ch. 426, § 31, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 165, § 6.03, eff. Sept. 1, 1997;
Acts 2003, 78th Leg., ch. 201, § 35, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1310, § 4, eff. June 20, 2003.
§ 42.260. USE OF CERTAIN FUNDS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In this section, "participating charter school" has the
meaning assigned by Section 42.2514.
(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:
(A) the equalized wealth level under Section
41.002; or
(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.
(c) Notwithstanding any other provision of this code, a
school district or participating charter school may use the
following amount of funds only to pay contributions under a group
health coverage plan for district or school employees:
(1) an amount equal to 75 percent of the amount
certified for the district or school under Subsection (b); or
(2) if the following amount is less than the amount
specified by Subdivision (1), the sum of:
(A) the amount determined by multiplying the
amount of $900 or the amount specified in the General
Appropriations Act for that year for purposes of the state
contribution under Section 9, Article 3.50-7, Insurance Code, by
the number of district or school employees who participate in a
group health coverage plan provided by or through the district or
school; and
(B) the difference between the amount necessary
for the district or school to comply with Section 3, Article 3.50-9,
Insurance Code, for the school year and the amount the district or
school is required to use to provide health coverage under Section 2
of that article for that year.
(d) A determination by the commissioner under this section
is final and may not be appealed.
(e) The commissioner may adopt rules to implement this
section.
Added by Acts 2001, 77th Leg., ch. 1187, § 2.08, eff. Sept. 1,
2002.
SUBCHAPTER F. GUARANTEED YIELD PROGRAM
§ 42.301. PURPOSE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The purpose of the guaranteed yield component of the
Foundation School Program is to provide each school district with
the opportunity to provide the basic program and to supplement that
program at a level of its own choice. An allotment under this
subchapter may be used for any legal purpose other than capital
outlay or debt service.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.20, eff. Sept. 1,
1999.
§ 42.302. ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 $27.14
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, any allotment under Section
42.158, 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.
(b) In computing the district enrichment tax rate of a
school district, the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of:
(1) the district's local fund assignment under Section
42.252; or
(2) taxes paid into a tax increment fund under Chapter
311, Tax Code.
(c) For purposes of this section, school district taxes for
which credit is granted under Section 31.035, 31.036, or 31.037,
Tax Code, are considered taxes collected by the school district as
if the taxes were paid when the credit for the taxes was granted.
(d) For purposes of this section, the total amount of
maintenance and operations taxes collected for an applicable school
year by a school district with alternate tax dates, as authorized by
Section 26.135, Tax Code, is the amount of taxes collected on or
after January 1 of the year in which the school year begins and not
later than December 31 of the same year.
(e) For purposes of this section, school district taxes for
which credit is granted under Subchapter D, Chapter 313, Tax Code,
are considered taxes collected by the school district as if the
taxes were paid when the credit for the taxes was granted.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 21, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 637, § 3, eff. Aug. 30, 1999;
Acts 1999, 76th Leg., ch. 396, § 1.20, eff. Sept. 1, 1999; Acts
2001, 77th Leg., ch. 320, § 1, eff. Sept. 1, 2001; Acts 2001,
77th Leg., ch. 1187, § 2.09, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1187, § 2.10, eff. Sept. 1, 2002; Acts 2001, 77th
Leg., ch. 1505, § 8, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch.
1275, § 2(21), eff. Sept. 1, 2003.
§ 42.303. LIMITATION ON ENRICHMENT TAX RATE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The district enrichment tax rate ("DTR") under Section 42.302
may not exceed $0.64 per $100 of valuation, or a greater amount for
any year provided by appropriation.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 21, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.20, eff. Sept. 1, 1999.
§ 42.304. COMPUTATION OF AID FOR DISTRICT ON MILITARY
RESERVATION OR AT STATE SCHOOL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
State assistance under this subchapter for a school district
located on a federal military installation or at Moody State School
is computed using the average tax rate and property value per
student of school districts in the county, as determined by the
commissioner.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER G. SCHOOL FACILITIES INVENTORY AND STANDARDS
§ 42.352. STANDARDS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The State Board of Education shall establish standards for
adequacy of school facilities. The standards shall include
requirements related to space, educational adequacy, and
construction quality. All facilities constructed after September
1, 1992, must meet the standards in order to be financed with state
or local tax funds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 42.4101. ADDITIONAL ASSISTANCE FOR DISTRICTS WITH
STUDENTS USING PUBLIC EDUCATION GRANTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A district is entitled to additional assistance under
this section as provided by Section 29.203(c).
(b) The amount of additional assistance under this section
is computed by subtracting the number of students residing in the
district and using public education grants to attend school in
another district for the year in which the assistance is granted
from the number of students using public education grants to attend
school in the district for that year and multiplying the difference
by $266.
(c) If a district to which this section applies is entitled
to the maximum amount of assistance under Section 42.406, the
maximum is increased by the amount of additional assistance to
which the district is entitled under this section.
Added by Acts 1997, 75th Leg., ch. 722, § 6, eff. Sept. 1, 1997.
