bill funding schools on average enrollment, not attendance

The text as introduced · 14,384 words

89R2973 KJE-F

By: Landgraf
H.B. No. 236

A BILL TO BE ENTITLED

AN ACT

relating to the use of average enrollment for purposes of the public

school finance system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 48.005, Education Code, is amended to

read as follows:

Sec. 48.005. AVERAGE ENROLLMENT [ DAILY ATTENDANCE ]. (a)

In this chapter, average enrollment [ daily attendance ] is:

(1) the average number of students enrolled in the

school district during a school year [ 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;

[ (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);

[ (3) for a district that operates under a flexible

school day program under Section 29.0822, the average daily

attendance as calculated by the commissioner in accordance with

Sections 29.0822(d) and (d-1) ]; or

(2) [ (4) ] for a district that operates a half-day

program or a full-day program under Section 29.153(c), one-half of

the average enrollment [ daily attendance ] calculated under

Subdivision (1).

(b) A school district that experiences a decline of two

percent or more in average enrollment [ daily attendance ] shall be

funded on the basis of:

(1) the actual average enrollment [ 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 enrollment

[ daily attendance ] not to exceed 98 percent of the actual average

enrollment [ 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 enrollment

[ 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 enrollment

[ 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 enrollment [ attendance ]. In

addition to providing the adjustment for the amount of

instructional days during the semester in which the calamity first

occurred, an adjustment under this section may only be provided

based on a particular calamity for an additional amount of

instructional days equivalent to one school year. The commissioner

may divide the adjustment between two consecutive school years.

(e) For each school year, the commissioner shall adjust the

average enrollment [ daily attendance ] of school districts that are

entitled to funding on the basis of an adjusted average enrollment

[ 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 enrollment [ 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, including a course provided under Section 28.009 by a

public institution of higher education, the time during which the

student attends the course shall be counted as part of the minimum

number of instructional hours required for a student to be

considered a full-time student in average enrollment [ daily

attendance ] for purposes of this section.

[ (g-1) The commissioner shall adopt rules to calculate

average daily attendance for students participating in a blended

learning program in which classroom instruction is supplemented

with applied workforce learning opportunities, including

participation of students in internships, externships, and

apprenticeships. ]

(h) Time [ Subject to rules adopted by the commissioner under

Section 48.007(b), time ] that a student participates in an

off-campus instructional program provided by an entity other than a

school district or open-enrollment charter school and approved by

the commissioner in accordance with commissioner rule [ under

Section 48.007(a) ] shall be counted as part of the minimum number of

instructional hours required for a student to be considered a

full-time student in average enrollment [ daily attendance ] for

purposes of this section.

(i) A district or a charter school operating under Chapter

12 that operates a prekindergarten program is eligible to receive

one-half of average enrollment [ daily attendance ] under Subsection

(a) if the district's or charter school's prekindergarten program

provides at least 32,400 minutes of instructional time to students.

(j) A district or charter school is eligible to earn full

average enrollment [ daily attendance ] under Subsection (a) if the

district or school provides at least 43,200 minutes of

instructional time to students enrolled in:

(1) a dropout recovery school or program operating

under Section 12.1141(c) or Section 39.0548;

(2) an alternative education program operating under

Section 37.008;

(3) a school program located at a day treatment

facility, residential treatment facility, psychiatric hospital, or

medical hospital;

(4) a school program offered at a correctional

facility; or

(5) a school operating under Subchapter G, Chapter 12.

(k) A charter school operating under a charter granted under

Chapter 12 before January 1, 2015, is eligible to earn full average

enrollment [ daily attendance ] under Subsection (a), as that

subsection existed immediately before January 1, 2015, for:

(1) all campuses of the charter school operating

before January 1, 2015; and

(2) any campus or site expansion approved on or after

January 1, 2015, provided that the charter school received an

academic accountability performance rating of C or higher, and the

campus or site expansion is approved by the commissioner.

(l) A school district campus or charter school described by

Subsection (j) may operate more than one program and be eligible for

full average enrollment [ daily attendance ] for each program if the

programs operated by the district campus or charter school satisfy

all applicable state and federal requirements.

(m) The commissioner shall adopt rules necessary to

implement this section, including rules that:

(1) determine the method to calculate the average

number of students enrolled in a school district during a school

year;

(2) establish the minimum amount of instructional time

per day that allows a school district or charter school to be

eligible for full average enrollment [ daily attendance ], which may

differ based on the instructional program offered by the district

or charter school;

(3) [ (2) ] establish the requirements necessary for a

school district or charter school to be eligible for one-half of

average enrollment [ daily attendance ], which may differ based on

the instructional program offered by the district or charter

school;

(4) [ (3) ] proportionally reduce the average

enrollment [ daily attendance ] for a school district if any campus

or instructional program in the district provides fewer than the

required minimum minutes of instruction to students; and

(5) [ (4) ] allow a grade or course repeated under

Section 28.02124 to qualify for average enrollment [ daily

attendance ] even if the student previously passed or earned credit

for the grade or course, if the grade or course would otherwise be

eligible.

(n) To assist school districts in implementing this section

as amended by H.B. 2442, [ Acts of the ] 85th Legislature, Regular

Session, 2017, the commissioner may waive a requirement of this

section or adopt rules to implement this section.

SECTION 2. Section 7.062(a), Education Code, is amended to

read as follows:

(a) In this section, "wealth per student" means a school

district's taxable value of property as determined under Subchapter

M, Chapter 403, Government Code, or, if applicable, Section 48.258,

divided by the district's average enrollment [ daily attendance ] as

determined under Section 48.005.

SECTION 3. Section 11.052(f), Education Code, is amended to

read as follows:

(f) If single-member trustee districts are adopted or

approved as provided by this section, the board shall divide the

school district into the appropriate number of trustee districts,

based on the number of members of the board that are to be elected

from single-member trustee districts, and shall number each trustee

district. The trustee districts must be compact and contiguous and

must be as nearly as practicable of equal population. In a district

with 150,000 or more students in average enrollment [ daily

attendance ], the boundary of a trustee district may not cross a

county election precinct boundary except at a point at which the

boundary of the school district crosses the county election

precinct boundary. Trustee districts must be drawn not later than

the 90th day before the date of the first election of trustees from

those districts.

SECTION 4. Sections 12.106(a), (a-2), and (d), Education

Code, are amended to read as follows:

(a) A charter holder is entitled to receive for the

open-enrollment charter school funding under Chapter 48 equal to

the amount of funding per student in weighted average enrollment

[ daily attendance ], excluding the adjustment under Section 48.052,

the funding under Sections 48.101, 48.110, 48.111, and 48.112, and

enrichment funding under Section 48.202(a), to which the charter

holder would be entitled for the school under Chapter 48 if the

school were a school district without a tier one local share for

purposes of Section 48.266.

(a-2) In addition to the funding provided by Subsection (a),

a charter holder is entitled to receive for the open-enrollment

charter school an allotment per student in average enrollment

[ daily attendance ] in an amount equal to the difference between:

(1) the product of:

(A) the quotient of:

(i) the total amount of funding provided to

eligible school districts under Section 48.101(b) or (c); and

(ii) the total number of students in

average enrollment [ daily attendance ] in school districts that

receive an allotment under Section 48.101(b) or (c); and

(B) the sum of one and the quotient of:

(i) the total number of students in average

enrollment [ daily attendance ] in school districts that receive an

allotment under Section 48.101(b) or (c); and

(ii) the total number of students in

average enrollment [ daily attendance ] in school districts

statewide; and

(2) $125.

(d) Subject to Subsection (e), in addition to other amounts

provided by this section, a charter holder is entitled to receive,

for the open-enrollment charter school, funding per student in

average enrollment [ daily attendance ] in an amount equal to the

guaranteed level of state and local funds per student per cent of

tax effort under Section 46.032(a) multiplied by the lesser of:

(1) the state average interest and sinking fund tax

rate imposed by school districts for the current year; or

(2) a rate that would result in a total amount to which

charter schools are entitled under this subsection for the current

year equal to $60 million.

SECTION 5. Sections 12.263(a), (b), and (c), Education

Code, are amended to read as follows:

(a) Except as otherwise provided by this section, funding

for an adult education program operated under a charter granted

under this subchapter is an amount per participant through the

Foundation School Program equal to the amount of state funding per

student in weighted average enrollment [ daily attendance ] that

would be allocated under the Foundation School Program for the

student's enrollment [ attendance ] at an open-enrollment charter

school in accordance with Section 12.106.

(b) For purposes of determining the average enrollment

[ daily attendance ] of an adult education program operated under a

charter granted under this subchapter, a student is considered to

be in average enrollment [ daily attendance, with a 100 percent

attendance rate, ] for:

(1) all of the instructional days of the school year,

if the student is enrolled for at least 75 percent of the school

year;

(2) half of the instructional days of the school year,

if the student is enrolled for at least 50 percent but less than 75

percent of the school year;

(3) a quarter of the instructional days of the school

year, if the student is enrolled for at least 25 percent but less

than 50 percent of the school year; or

(4) one-tenth of the instructional days of the school

year, if the student is enrolled for at least 10 percent but less

than 25 percent of the school year.

(c) A student enrolled in an adult education program

operated under a charter granted under this subchapter for less

than 10 percent of a school year may not be counted toward the adult

education program's average enrollment [ daily attendance ] for that

school year.

SECTION 6. Section 13.051(c), Education Code, is amended to

read as follows:

(c) Territory that does not have residents may be detached

from a school district and annexed to another school district if:

(1) the total taxable value of the property in the

territory according to the most recent certified appraisal roll for

each school district is not greater than:

(A) five percent of the district's taxable value

of all property in that district as determined under Subchapter M,

Chapter 403, Government Code; and

(B) $5,000 property value per student in average

enrollment [ daily attendance ] as determined under Section 48.005;

and

(2) the school district from which the property will

be detached does not own any real property located in the territory.

SECTION 7. Section 13.102, Education Code, is amended to

read as follows:

Sec. 13.102. MINIMUM AREA AND ENROLLMENT [ ATTENDANCE ]

REQUIREMENTS. A new district may not be created with an area of

less than nine square miles or fewer than 8,000 students in average

enrollment [ daily attendance ], and a district may not be reduced to

an area of less than nine square miles or fewer than 8,000 students

in average enrollment [ daily attendance ].

SECTION 8. Section 13.283, Education Code, is amended to

read as follows:

Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments

shall be reduced in direct proportion to any reduction in the

average enrollment [ daily attendance ] as determined under Section

48.005 of the reorganized school district for the preceding year.

SECTION 9. Section 19.009(d-2), Education Code, is amended

to read as follows:

(d-2) Beginning with the 2009-2010 school year, the

district shall increase the monthly salary of each classroom

teacher, full-time speech pathologist, full-time librarian,

full-time school counselor certified under Subchapter B, Chapter

21, and full-time school nurse employed by the district by the

greater of:

(1) $80; or

(2) the maximum uniform amount that, when combined

with any resulting increases in the amount of contributions made by

the district for social security coverage for the specified

employees or by the district on behalf of the specified employees

under Section 825.405, Government Code, may be provided using an

amount equal to the product of $60 multiplied by the number of

students in weighted average enrollment [ daily attendance ] in the

district during the 2009-2010 school year.

SECTION 10. Section 25.038, Education Code, is amended to

read as follows:

Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. The

receiving school district may charge a tuition fee to the extent

that the district's actual expenditure per student in average

enrollment [ daily attendance ], as determined by its board of

trustees, exceeds the sum the district benefits from state aid

sources as provided by Section 25.037. However, unless a tuition

fee is prescribed and set out in a transfer agreement before its

execution by the parties, an increase in tuition charge may not be

made for the year of that transfer that exceeds the tuition charge,

if any, of the preceding school year.

SECTION 11. Section 25.045(c), Education Code, is amended

to read as follows:

(c) A student who transfers to another school district under

this section may not be charged tuition. The student is included in

the average enrollment [ daily attendance ] of the district in which

the student attends school.

SECTION 12. Sections 25.081(e) and (f), Education Code, are

amended to read as follows:

(e) A school district or education program is exempt from

the minimum minutes of operation requirement if the district's or

program's average enrollment [ daily attendance ] is calculated

under Section 48.005(j).

(f) The commissioner may proportionally reduce the amount

of funding a district receives under Chapter 46, 48, or 49 and the

average enrollment [ daily attendance ] calculation for the district

if the district operates on a calendar that provides fewer minutes

of operation than required under Subsection (a).

SECTION 13. Section 25.087(d), Education Code, is amended

to read as follows:

(d) A student whose absence is excused under Subsection (b),

(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) may not be

penalized for that absence and shall be counted as if the student

attended school for purposes of funding under Chapter 48

[ calculating the average daily attendance of students in the school

district ]. A student whose absence is excused under Subsection (b),

(b-1), (b-2), (b-4), (b-5), (b-7), (b-8), or (c) shall be allowed a

reasonable time to make up school work missed on those days. If the

student satisfactorily completes the school work, the day of

absence shall be counted as a day of compulsory attendance.

SECTION 14. Section 25.111, Education Code, is amended to

read as follows:

Sec. 25.111. STUDENT/TEACHER RATIOS. Except as provided by

Section 25.112, each school district must employ a sufficient

number of teachers certified under Subchapter B, Chapter 21, to

maintain an average ratio of not less than one teacher for each 20

students in average enrollment [ daily attendance ].

SECTION 15. Sections 25.112(a) and (b), Education Code, are

amended to read as follows:

(a) Except as otherwise authorized by this section, a school

district may not enroll more than 22 students in a prekindergarten,

kindergarten, first, second, third, or fourth grade class. That

limitation does not apply during:

(1) any 12-week period of the school year selected by

the district, in the case of a district whose average enrollment

[ daily attendance ] is adjusted under Section 48.005(c); or

(2) the last 12 weeks of any school year in the case of

any other district.

(b) Not later than the 30th day after the first day of the

12-week period for which a district whose average enrollment [ daily

attendance ] is adjusted under Section 48.005(c) is claiming an

exemption under Subsection (a), the district shall notify the

commissioner in writing that the district is claiming an exemption

for the period stated in the notice.

SECTION 16. Section 29.008(b), Education Code, is amended

to read as follows:

(b) Except as provided by Subsection (c), costs of an

approved contract for residential placement may be paid from a

combination of federal, state, and local funds. The local share of

the total contract cost for each student is that portion of the

local tax effort that exceeds the district's local fund assignment

under Section 48.256, divided by the average enrollment [ daily

attendance ] in the district. If the contract involves a private

facility, the state share of the total contract cost is that amount

remaining after subtracting the local share. If the contract

involves a public facility, the state share is that amount

remaining after subtracting the local share from the portion of the

contract that involves the costs of instructional and related

services. For purposes of this subsection, "local tax effort"

means the total amount of money generated by taxes imposed for debt

service and maintenance and operation less any amounts paid into a

tax increment fund under Chapter 311, Tax Code.

SECTION 17. Section 29.014(b), Education Code, is amended

to read as follows:

(b) A school district to which this section applies may

operate an extended year program for a period not to exceed 45 days.

[ The district's average daily attendance shall be computed for the

regular school year plus the extended year. ]

SECTION 18. Section 29.081(f), Education Code, is amended

to read as follows:

(f) The commissioner shall include a student who

successfully completes a course offered through a program under

Subsection (e) in the computation of the district's or school's

average enrollment [ daily attendance ] for funding purposes. [ For a

student who successfully completes a remote course offered through

the program, the commissioner shall include the student in the

computation of the district's or school's average daily attendance

with an attendance rate equal to:

[ (1) the district's or school's average attendance

rate for students successfully completing a course offered in

person under the program; or

[ (2) if the district or school does not offer courses

in person under the program, the statewide average attendance rate

for students successfully completing a course offered in person

under a program under Subsection (e). ]

SECTION 19. Section 29.0822(d), Education Code, is amended

to read as follows:

(d) The commissioner may adopt rules for the administration

of this section, including rules establishing application

requirements. [ Subject to Subsection (d-1), the commissioner shall

calculate average daily attendance for students served under this

section. The commissioner shall allow accumulations of hours of

instruction for students whose schedule would not otherwise allow

full state funding. Funding under this subsection shall be

determined based on the number of instructional days in the school

district calendar and a seven-hour school day, but attendance may

be cumulated over a school year, including any summer or vacation

session. The attendance of students who accumulate less than the

number of attendance hours required under this subsection shall be

proportionately reduced for funding purposes. The commissioner

may:

[ (1) set maximum funding amounts for an individual

course under this section; and

[ (2) limit funding for the attendance of a student

described by Subsection (a)(3) in a course under this section to

funding only for the attendance necessary for the student to earn

class credit that, as a result of attendance requirements under

Section 25.092, the student would not otherwise be able to receive

without retaking the class. ]

SECTION 20. Section 29.184(b), Education Code, is amended

to read as follows:

(b) A student who attends career and technology classes at

another school under a contract authorized by Subsection (a) is

included in the average enrollment [ daily attendance ] of the

district in which the student is regularly enrolled.

SECTION 21. Sections 29.203(a) and (c), Education Code, are

amended to read as follows:

(a) A student who under this subchapter uses a public

education grant to attend a public school in a school district other

than the district in which the student resides is included in the

average enrollment [ daily attendance ] of the district in which the

student attends school.

(c) A school district is entitled to additional facilities

assistance under Section 48.301 if the district agrees to:

(1) accept a number of students using public education

grants that is at least one percent of the district's average

enrollment [ daily attendance ] for the preceding school year; and

(2) provide services to each student until the student

either voluntarily decides to attend a school in a different

district or graduates from high school.

SECTION 22. Section 29.403(b), Education Code, is amended

to read as follows:

(b) A student who is enrolled in a program under this

subchapter is included in determining the average enrollment [ daily

attendance ] under Section 48.005 of the partnering school district.

SECTION 23. Section 29.457(a), Education Code, is amended

to read as follows:

(a) In addition to other funding to which a school district

is entitled under this code, each district in which alleged

offender residents attend school is entitled to an annual allotment

of $5,100 for each resident in average enrollment [ daily

attendance ] or a different amount for any year provided by

appropriation.

SECTION 24. Section 29.912(c), Education Code, is amended

to read as follows:

(c) The program must enable an eligible school district that

has fewer than 1,600 students in average enrollment [ daily

attendance ] to partner with at least one other school district

located within a distance of 100 miles to offer a broader array of

robust college and career pathways. Each partnership must:

(1) offer college and career pathways that align with

regional labor market projections for high-wage, high-demand

careers; and

(2) be managed by a coordinating entity that:

(A) has or will have at the time students are

served under the partnership the capacity to effectively coordinate

the partnership;

(B) has entered into a performance agreement

approved by the board of trustees of each partnering school

district that confers on the coordinating entity the same authority

with respect to pathways offered under the partnership provided to

an entity that contracts to operate a district campus under Section

11.174;

(C) is an eligible entity as defined by Section

12.101(a); and

(D) has on the entity's governing board as either

voting or ex officio members, or has on an advisory body,

representatives of each partnering school district and members of

regional higher education and workforce organizations.

SECTION 25. Section 30.003(b), Education Code, is amended

to read as follows:

(b) If the student is admitted to the school for a full-time

program for the equivalent of two long semesters, the district's

share of the cost is an amount equal to the dollar amount of

maintenance and debt service taxes imposed by the district for that

year divided by the district's average enrollment [ daily

attendance ] for the preceding year.

SECTION 26. Section 30.102(a), Education Code, is amended

to read as follows:

(a) The Texas Juvenile Justice Department is entitled to

receive the state available school fund apportionment based on the

average enrollment [ daily attendance ] in the department's

educational programs of students who are at least three years of age

and not older than 21 years of age.

SECTION 27. Section 30A.151(f), Education Code, is amended

to read as follows:

(f) For a full-time electronic course program offered

through the state virtual school network for a grade level at or

above grade level three but not above grade level eight, a school

district or open-enrollment charter school is entitled to receive

federal, state, and local funding for a student enrolled in the

program in an amount equal to the funding the district or school

would otherwise receive for a student enrolled in the district or

school. [ The district or school may calculate the average daily

attendance of a student enrolled in the program based on:

[ (1) hours of contact with the student;

[ (2) the student's successful completion of a course;

or

[ (3) a method approved by the commissioner. ]

SECTION 28. Section 33.157, Education Code, is amended to

read as follows:

Sec. 33.157. PARTICIPATION IN PROGRAM. An elementary or

secondary school receiving funding under Section 33.156 shall

participate in a local Communities In Schools program if the number

of students enrolled in the school who are at risk of dropping out

of school is equal to at least 10 percent of the number of students

in average enrollment [ daily attendance ] at the school, as

determined by the agency.

SECTION 29. Section 37.0061, Education Code, is amended to

read as follows:

Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN

JUVENILE RESIDENTIAL FACILITIES. A school district that provides

education services to pre-adjudicated and post-adjudicated

students who are confined by court order in a juvenile residential

facility operated by a juvenile board is entitled to count such

students in the district's average enrollment [ daily attendance ]

for purposes of receipt of state funds under the Foundation School

Program. If the district has a local revenue level greater than the

guaranteed local revenue level but less than the level established

under Section 48.257, the district in which the student is enrolled

on the date a court orders the student to be confined to a juvenile

residential facility shall transfer to the district providing

education services an amount equal to the difference between the

average Foundation School Program costs per student of the district

providing education services and the sum of the state aid and the

money from the available school fund received by the district that

is attributable to the student for the portion of the school year

for which the district provides education services to the student.

SECTION 30. Section 37.008(f), Education Code, is amended

to read as follows:

(f) A student removed to a disciplinary alternative

education program is counted in computing the average enrollment

[ daily attendance ] of students in the district [ for the student's

time in actual attendance in the program ].

SECTION 31. Section 37.011(a-4), Education Code, is amended

to read as follows:

(a-4) A school district located in a county considered to be

a county with a population of 125,000 or less under Subsection (a-3)

shall provide educational services to a student who is expelled

from school under this chapter. The district is entitled to count

the student in the district's average enrollment [ daily attendance ]

for purposes of receipt of state funds under the Foundation School

Program. An educational placement under this section may include:

(1) the district's disciplinary alternative education

program; or

(2) a contracted placement with:

(A) another school district;

(B) an open-enrollment charter school;

(C) an institution of higher education;

(D) an adult literacy council; or

(E) a community organization that can provide an

educational program that allows the student to complete the credits

required for high school graduation.

SECTION 32. Sections 39.027(c) and (f), Education Code, are

amended to read as follows:

(c) The commissioner shall develop and adopt a process for

reviewing the exemption process of a school district or shared

services arrangement that gives an exemption under Subsection

(a)(1) as follows:

(1) to more than five percent of the students in the

special education program, in the case of a district or shared

services arrangement with an average enrollment [ daily attendance ]

of at least 1,600;

(2) to more than 10 percent of the students in the

special education program, in the case of a district or shared

services arrangement with an average enrollment [ daily attendance ]

of at least 190 and not more than 1,599; or

(3) to the greater of more than 10 percent of the

students in the special education program or to at least five

students in the special education program, in the case of a district

or shared services arrangement with an average enrollment [ daily

attendance ] of not more than 189.

(f) In this section, "average enrollment [ daily

attendance ]" is computed in the manner provided by Section 48.005.

SECTION 33. Section 39.053(g-1), Education Code, is amended

to read as follows:

(g-1) In computing dropout and completion rates such as high

school graduation rates under Subsection (c)(1)(B)(ix), the

commissioner shall exclude:

(1) students who are ordered by a court to attend a

high school equivalency certificate program but who have not yet

earned a high school equivalency certificate;

(2) students who were previously reported to the state

as dropouts, including a student who is reported as a dropout,

reenrolls, and drops out again, regardless of the number of times of

reenrollment and dropping out;

(3) students in attendance who are not in membership

for purposes of average enrollment [ daily attendance ];

(4) students whose initial enrollment in a school in

the United States in grades 7 through 12 was as an unschooled asylee

or refugee as defined by Section 39.027(a-1);

(5) students who are detained at a county

pre-adjudication or post-adjudication juvenile detention facility

and:

(A) in the district exclusively as a function of

having been detained at the facility but are otherwise not students

of the district in which the facility is located; or

(B) provided services by an open-enrollment

charter school exclusively as the result of having been detained at

the facility;

(6) students who are incarcerated in state jails and

federal penitentiaries as adults and as persons certified to stand

trial as adults; and

(7) students who have suffered a condition, injury, or

illness that requires substantial medical care and leaves the

student:

(A) unable to attend school; and

(B) assigned to a medical or residential

treatment facility.

SECTION 34. Section 39.262(a), Education Code, is amended

to read as follows:

(a) The governor may present a financial award to the

schools or districts that the commissioner determines have

demonstrated the highest levels of sustained success or the

greatest improvement in achieving the education goals. For each

student in average enrollment [ daily attendance ], each of those

schools or districts is entitled to an amount set for the award for

which the school or district is selected by the commissioner,

subject to any limitation set by the commissioner on the total

amount that may be awarded to a school or district.

SECTION 35. Section 43.001(c), Education Code, is amended

to read as follows:

(c) The term "scholastic population" in Subsection (b) or

any other law governing the apportionment, distribution, and

transfer of the available school fund means all students of school

age [ enrolled ] in average enrollment [ daily attendance ] the

preceding school year in the public elementary and high school

grades of school districts within or under the jurisdiction of a

county of this state.

SECTION 36. Section 44.004(c), Education Code, is amended

to read as follows:

(c) The notice of public meeting to discuss and adopt the

budget and the proposed tax rate may not be smaller than one-quarter

page of a standard-size or a tabloid-size newspaper, and the

headline on the notice must be in 18-point or larger type. Subject

to Subsection (d), the notice must:

(1) contain a statement in the following form:

"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE

"The (name of school district) will hold a public meeting at

(time, date, year) in (name of room, building, physical location,

city, state). The purpose of this meeting is to discuss the school

district's budget that will determine the tax rate that will be

adopted. Public participation in the discussion is invited." The

statement of the purpose of the meeting must be in bold type. In

reduced type, the notice must state: "The tax rate that is

ultimately adopted at this meeting or at a separate meeting at a

later date may not exceed the proposed rate shown below unless the

district publishes a revised notice containing the same information

and comparisons set out below and holds another public meeting to

discuss the revised notice." In addition, in reduced type, the

notice must state: "Visit Texas.gov/PropertyTaxes to find a link to

your local property tax database on which you can easily access

information regarding your property taxes, including information

about proposed tax rates and scheduled public hearings of each

entity that taxes your property.";

(2) contain a section entitled "Comparison of Proposed

Budget with Last Year's Budget," which must show the difference,

expressed as a percent increase or decrease, as applicable, in the

amounts budgeted for the preceding fiscal year and the amount

budgeted for the fiscal year that begins in the current tax year for

each of the following:

(A) maintenance and operations;

(B) debt service; and

(C) total expenditures;

(3) contain a section entitled "Total Appraised Value

and Total Taxable Value," which must show the total appraised value

and the total taxable value of all property and the total appraised

value and the total taxable value of new property taxable by the

district in the preceding tax year and the current tax year as

calculated under Section 26.04, Tax Code;

(4) contain a statement of the total amount of the

outstanding and unpaid bonded indebtedness of the school district;

(5) contain a section entitled "Comparison of Proposed

Rates with Last Year's Rates," which must:

(A) show in rows the tax rates described by

Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of

property, for columns entitled "Maintenance & Operations,"

"Interest & Sinking Fund," and "Total," which is the sum of

"Maintenance & Operations" and "Interest & Sinking Fund":

(i) the school district's "Last Year's

Rate";

(ii) the "Rate to Maintain Same Level of

Maintenance & Operations Revenue & Pay Debt Service," which:

(a) in the case of "Maintenance &

Operations," is the tax rate that, when applied to the current

taxable value for the district, as certified by the chief appraiser

under Section 26.01, Tax Code, and as adjusted to reflect changes

made by the chief appraiser as of the time the notice is prepared,

would impose taxes in an amount that, when added to state funds to

be distributed to the district under Chapter 48, would provide the

same amount of maintenance and operations taxes and state funds

distributed under Chapter 48 per student in average enrollment

[ daily attendance ] for the applicable school year that was

available to the district in the preceding school year; and

(b) in the case of "Interest & Sinking

Fund," is the tax rate that, when applied to the current taxable

value for the district, as certified by the chief appraiser under

Section 26.01, Tax Code, and as adjusted to reflect changes made by

the chief appraiser as of the time the notice is prepared, and when

multiplied by the district's anticipated collection rate, would

impose taxes in an amount that, when added to state funds to be

distributed to the district under Chapter 46 and any excess taxes

collected to service the district's debt during the preceding tax

year but not used for that purpose during that year, would provide

the amount required to service the district's debt; and

(iii) the "Proposed Rate";

(B) contain fourth and fifth columns aligned with

the columns required by Paragraph (A) that show, for each row

required by Paragraph (A):

(i) the "Local Revenue per Student," which

is computed by multiplying the district's total taxable value of

property, as certified by the chief appraiser for the applicable

school year under Section 26.01, Tax Code, and as adjusted to

reflect changes made by the chief appraiser as of the time the

notice is prepared, by the total tax rate, and dividing the product

by the number of students in average enrollment [ daily attendance ]

in the district for the applicable school year; and

(ii) the "State Revenue per Student," which

is computed by determining the amount of state aid received or to be

received by the district under Chapters 43, 46, and 48 and dividing

that amount by the number of students in average enrollment [ daily

attendance ] in the district for the applicable school year; and

(C) contain an asterisk after each calculation

for "Interest & Sinking Fund" and a footnote to the section that, in

reduced type, states "The Interest & Sinking Fund tax revenue is

used to pay for bonded indebtedness on construction, equipment, or

both. The bonds, and the tax rate necessary to pay those bonds, were

approved by the voters of this district.";

(6) contain a section entitled "Comparison of Proposed

Levy with Last Year's Levy on Average Residence," which must:

(A) show in rows the information described by

Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns

entitled "Last Year" and "This Year":

(i) "Average Market Value of Residences,"

determined using the same group of residences for each year;

(ii) "Average Taxable Value of Residences,"

determined after taking into account the limitation on the

appraised value of residences under Section 23.23, Tax Code, and

after subtracting all homestead exemptions applicable in each year,

other than exemptions available only to disabled persons or persons

65 years of age or older or their surviving spouses, and using the

same group of residences for each year;

(iii) "Last Year's Rate Versus Proposed

Rate per $100 Value"; and

(iv) "Taxes Due on Average Residence,"

determined using the same group of residences for each year; and

(B) contain the following information: "Increase

(Decrease) in Taxes" expressed in dollars and cents, which is

computed by subtracting the "Taxes Due on Average Residence" for

the preceding tax year from the "Taxes Due on Average Residence" for

the current tax year;

(7) contain the following statement in bold print:

"Under state law, the dollar amount of school taxes imposed on the

residence of a person 65 years of age or older or of the surviving

spouse of such a person, if the surviving spouse was 55 years of age

or older when the person died, may not be increased above the amount

paid in the first year after the person turned 65, regardless of

changes in tax rate or property value.";

(8) contain the following statement in bold print:

"Notice of Voter-Approval Rate: The highest tax rate the district

can adopt before requiring voter approval at an election is (the

school district voter-approval rate determined under Section

26.08, Tax Code). This election will be automatically held if the

district adopts a rate in excess of the voter-approval rate of (the

school district voter-approval rate)."; and

(9) contain a section entitled "Fund Balances," which

must include the estimated amount of interest and sinking fund

balances and the estimated amount of maintenance and operation or

general fund balances remaining at the end of the current fiscal

year that are not encumbered with or by corresponding debt

obligation, less estimated funds necessary for the operation of the

district before the receipt of the first payment under Chapter 48 in

the succeeding school year.

SECTION 37. Sections 45.0011(a), (d), and (e), Education

Code, are amended to read as follows:

(a) This section applies only to an independent school

district that, at the time of the issuance of obligations and

execution of credit agreements under this section, has:

(1) at least 2,000 students in average enrollment

[ daily attendance ]; or

(2) a combined aggregate principal amount of at least

$50 million of outstanding bonds and voted but unissued bonds.

(d) A district may not issue bonds to which this section

applies in an amount greater than the greater of:

(1) 25 percent of the sum of:

(A) the aggregate principal amount of all

district debt payable from ad valorem taxes that is outstanding at

the time the bonds are issued; and

(B) the aggregate principal amount of all bonds

payable from ad valorem taxes that have been authorized but not

issued;

(2) $25 million, in a district that has at least 3,500

but not more than 15,000 students in average enrollment [ daily

attendance ]; or

(3) $50 million, in a district that has more than

15,000 students in average enrollment [ daily attendance ].

(e) In this section, average enrollment [ daily attendance ]

is determined in the manner provided by Section 48.005.

SECTION 38. Section 45.006(a), Education Code, is amended

to read as follows:

(a) This section applies only to a school district that:

(1) has an average enrollment [ daily attendance ] of

less than 10,000; and

(2) is located in whole or part in a municipality with

a population of less than 25,000 that is located in a county with a

population of 200,000 or more bordering another county with a

population of 2.8 million or more.

SECTION 39. Section 45.105(d), Education Code, is amended

to read as follows:

(d) An independent school district that has in its limits a

municipality with a population of 150,000 or more or that contains

at least 170 square miles, has $850 million or more assessed value

of taxable property on the most recent approved tax roll and has a

growth in average enrollment [ daily attendance ] of 11 percent or

more for each of the preceding five years as determined by the

agency may, in buying school sites or additions to school sites and

in building school buildings, issue and deliver negotiable or

nonnegotiable notes representing all or part of the cost to the

school district of the land or building. The district may secure

the notes by a vendor's lien or deed of trust lien against the land

or building. By resolution or order of the governing body made at

or before the delivery of the notes, the district may set aside and

appropriate as a trust fund, and the sole and only fund, for the

payment of the principal of and interest on the notes that part of

the local school funds, levied and collected by the school district

in that year or subsequent years, as the governing body determines.

The aggregate amount of local school funds set aside in or for any

subsequent year for the retirement of the notes may not exceed, in

any one subsequent year, 10 percent of the local school funds

collected during that year. The district may issue the notes only

if approved by majority vote of the qualified voters voting in an

election conducted in the manner provided by Section 45.003 for

approval of bonds.

SECTION 40. Section 46.003(a), Education Code, is amended

to read as follows:

(a) For each year, except as provided by Sections 46.005 and

46.006, a school district is guaranteed a specified amount per

student in state and local funds for each cent of tax effort, up to

the maximum rate under Subsection (b), to pay the principal of and

interest on eligible bonds issued to construct, acquire, renovate,

or improve an instructional facility. The amount of state support

is determined by the formula:

FYA = (FYL X AE [ ADA ] X BTR X 100) - (BTR X (DPV/100))

where:

"FYA" is the guaranteed facilities yield amount of state

funds allocated to the district for the year;

"FYL" is the dollar amount guaranteed level of state and

local funds per student per cent of tax effort, which is $35 or a

greater amount for any year provided by appropriation;

"AE" [ "ADA" ] is the greater of the number of students in

average enrollment [ daily attendance ], as determined under Section

48.005, in the district or 400;

"BTR" is the district's bond tax rate for the current year,

which is determined by dividing the amount budgeted by the district

for payment of eligible bonds by the quotient of the district's

taxable value of property as determined under Subchapter M, Chapter

403, Government Code, or, if applicable, Section 48.258, divided by

100; and

"DPV" is the district's taxable value of property as

determined under Subchapter M, Chapter 403, Government Code, or, if

applicable, Section 48.258.

SECTION 41. Section 46.005, Education Code, is amended to

read as follows:

Sec. 46.005. LIMITATION ON GUARANTEED AMOUNT. The

guaranteed amount of state and local funds for a new project that a

district may be awarded in any state fiscal biennium under Section

46.003 for a school district may not exceed the lesser of:

(1) the amount the actual debt service payments the

district makes in the biennium in which the bonds are issued; or

(2) the greater of:

(A) $100,000; or

(B) the product of the number of students in

average enrollment [ daily attendance ] in the district multiplied by

$250.

SECTION 42. Section 46.006(g), Education Code, is amended

to read as follows:

(g) In this section, "wealth per student" means a school

district's taxable value of property as determined under Subchapter

M, Chapter 403, Government Code, or, if applicable, Section 48.258,

divided by the district's average enrollment [ daily attendance ] as

determined under Section 48.005.

SECTION 43. Section 46.032(a), Education Code, is amended

to read as follows:

(a) Each school district is guaranteed a specified amount

per student in state and local funds for each cent of tax effort to

pay the principal of and interest on eligible bonds. The amount of

state support, subject only to the maximum amount under Section

46.034, is determined by the formula:

EDA = (EDGL X AE [ ADA ] X EDTR X 100) - (EDTR X (DPV/100))

where:

"EDA" is the amount of state funds to be allocated to the

district for assistance with existing debt;

"EDGL" is the dollar amount guaranteed level of state and

local funds per student per cent of tax effort, which is the lesser

of:

(1) $40 or a greater amount for any year provided by

appropriation; or

(2) the amount that would result in a total additional

amount of state funds under this subchapter for the current year

equal to $60 million in excess of the state funds to which school

districts would have been entitled under this section if the

guaranteed level amount were $35;

"AE" [ "ADA" ] is the number of students in average enrollment

[ daily attendance ], as determined under Section 48.005, in the

district;

"EDTR" is the existing debt tax rate of the district, which is

determined by dividing the amount budgeted by the district for

payment of eligible bonds 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 48.258, divided

by 100; and

"DPV" is the district's taxable value of property as

determined under Subchapter M, Chapter 403, Government Code, or, if

applicable, under Section 48.258.

SECTION 44. Sections 48.0051(a) and (b), Education Code,

are amended to read as follows:

(a) The [ Subject to Subsection (a-1), the ] commissioner

shall adjust the average enrollment [ daily attendance ] of a school

district or open-enrollment charter school under Section 48.005 in

the manner provided by Subsection (b) if the district or school:

(1) provides the minimum number of minutes of

operational and instructional time required under Section 25.081

and commissioner rules adopted under that section over at least 180

days of instruction; and

(2) offers an additional 30 days of half-day

instruction for students enrolled in prekindergarten through fifth

grade.

(b) For a school district or open-enrollment charter school

described by Subsection (a), the commissioner shall increase the

average enrollment [ daily attendance ] of the district or school

under Section 48.005 by the amount equal to one-sixth [ that results

from the quotient ] of the enrollment [ sum of attendance ] by

students described by Subsection (a)(2) in [ for each of ] the 30

additional instructional days of half-day instruction [ that are

provided divided by 180 ].

SECTION 45. Section 48.006, Education Code, is amended to

read as follows:

Sec. 48.006. AVERAGE ENROLLMENT [ DAILY ATTENDANCE ] FOR

DISTRICTS IN DISASTER AREA. (a) The commissioner may adjust the

average enrollment [ daily attendance ] of a school district all or

part of which is located in an area declared a disaster area by the

governor under Chapter 418, Government Code, if the district

experiences a decline in average enrollment [ daily attendance ] that

is reasonably attributable to the impact of the disaster.

(b) The adjustment must be sufficient to ensure that the

district receives funding comparable to the funding that the

district would have received if the decline in average enrollment

[ daily attendance ] reasonably attributable to the impact of the

disaster had not occurred.

(c) The commissioner may make the adjustment under this

section for the two-year period following the date of the

governor's initial proclamation or executive order declaring the

state of disaster.

(d) Section 48.005(b)(2) does not apply to a district that

receives an adjustment under this section.

(e) A district that receives an adjustment under this

section may not receive any additional adjustment under Section

48.005(d) for the decline in average enrollment [ daily attendance ]

on which the adjustment under this section is based.

(f) For purposes of this title, a district's adjusted

average enrollment [ daily attendance ] under this section is

considered to be the district's average enrollment [ daily

attendance ] as determined under Section 48.005.

SECTION 46. Sections 48.010(a) and (b), Education Code, are

amended to read as follows:

(a) Not later than July 1 of each year, the commissioner

shall determine for each school district whether the estimated

amount of state and local funding per student in weighted average

enrollment [ daily attendance ] to be provided to the district under

the Foundation School Program for maintenance and operations for

the following school year is less than the amount provided to the

district for the 2010-2011 school year. If the amount estimated to

be provided is less, the commissioner shall certify the percentage

decrease in funding to be provided to the district.

(b) In making the determinations regarding funding levels

required by Subsection (a), the commissioner shall:

(1) make adjustments as necessary to reflect changes

in a school district's maintenance and operations tax rate;

(2) for a district required to reduce its local

revenue level under Section 48.257, base the determinations on the

district's net funding levels after deducting any amounts required

to be expended by the district to comply with Chapter 49; and

(3) determine a district's weighted average enrollment

[ daily attendance ] in accordance with this chapter as it existed on

January 1, 2011.

SECTION 47. Sections 48.051(a) and (c), Education Code, are

amended to read as follows:

(a) For each student in average enrollment [ daily

attendance ], not including the time students spend each day in

special education programs in an instructional arrangement other

than mainstream or career and technology education programs, for

which an additional allotment is made under Subchapter C, a

district is entitled to an allotment equal to the lesser of $6,160

or the amount that results from the following formula:

A = $6,160 X TR/MCR

where:

"A" is the allotment to which a district is entitled;

"TR" is the district's tier one maintenance and operations

tax rate, as provided by Section 45.0032; and

"MCR" is the district's maximum compressed tax rate, as

determined under Section 48.2551.

(c) During any school year for which the maximum amount of

the basic allotment provided under Subsection (a) or (b) is greater

than the maximum amount provided for the preceding school year, a

school district must use at least 30 percent of the amount, if the

amount is greater than zero, that equals the product of the average

enrollment [ daily attendance ] of the district multiplied by the

amount of the difference between the district's funding under this

chapter per student in average enrollment [ daily attendance ] for

the current school year and the preceding school year to provide

compensation increases to full-time district employees other than

administrators as follows:

(1) 75 percent must be used to increase the

compensation paid to classroom teachers, full-time librarians,

full-time school counselors certified under Subchapter B, Chapter

21, and full-time school nurses, prioritizing differentiated

compensation for classroom teachers with more than five years of

experience; and

(2) 25 percent may be used as determined by the

district to increase compensation paid to full-time district

employees.

SECTION 48. Sections 48.052(a) and (c), Education Code, are

amended to read as follows:

(a) Notwithstanding Section 48.051, a school district that

has fewer than 130 students in average enrollment [ daily

attendance ] shall be provided a basic allotment on the basis of 130

students in average enrollment [ daily attendance ] if it offers a

kindergarten through grade 12 program and has preceding or current

year's average enrollment [ 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 enrollment [ daily

attendance ] was at least 50 students or which is 30 miles or more by

bus route from the nearest high school district shall be provided a

basic allotment on the basis of 75 students in average enrollment

[ daily attendance ]. An average enrollment [ daily attendance ] of 60

students shall be the basis of providing the basic allotment if a

district offers a kindergarten through grade 6 program and has

preceding or current year's average enrollment [ daily attendance ]

of at least 40 students or is 30 miles or more by bus route from the

nearest high school district.

(c) Notwithstanding Subsection (a) or Section 48.051, a

school district to which this subsection applies, as provided by

Subsection (b), that has fewer than 130 students in average

enrollment [ daily attendance ] shall be provided a basic allotment

on the basis of 130 students in average enrollment [ daily

attendance ] if it offers a kindergarten through grade four program

and has preceding or current year's average enrollment [ daily

attendance ] of at least 75 students or is 30 miles or more by bus

route from the nearest high school district.

SECTION 49. Section 48.101, Education Code, is amended to

read as follows:

Sec. 48.101. SMALL AND MID-SIZED DISTRICT ALLOTMENT. (a)

Small and mid-sized districts are entitled to an annual allotment

in accordance with this section. In this section:

(1) "AA" is the district's annual allotment per

student in average enrollment [ daily attendance ];

(2) "AE" [ "ADA" ] is the number of students in average

enrollment [ daily attendance ] for which the district is entitled to

an allotment under Section 48.051; and

(3) "BA" is the basic allotment determined under

Section 48.051.

(b) A school district that has fewer than 1,600 students in

average enrollment [ daily attendance ] is entitled to an annual

allotment for each student in average enrollment [ daily attendance ]

based on the following formula:

AA = ((1,600 - AE [ ADA ]) X .0004) X BA

(c) A school district that offers a kindergarten through

grade 12 program and has less than 5,000 students in average

enrollment [ daily attendance ] is entitled to an annual allotment

for each student in average enrollment [ daily attendance ] based on

the formula, of the following formulas, that results in the

greatest annual allotment:

(1) the formula in Subsection (b), if the district is

eligible for that formula; or

(2) AA = ((5,000 - AE [ ADA ]) X .000025) X BA.

(d) Instead of the allotment under Subsection (b) or (c)(1),

a school district that has fewer than 300 students in average

enrollment [ daily attendance ] and is the only school district

located in and operating in a county is entitled to an annual

allotment for each student in average enrollment [ daily attendance ]

based on the following formula:

AA = ((1,600 - AE [ ADA ]) X .00047) X BA

SECTION 50. Sections 48.102(a) and (j), Education Code, are

amended to read as follows:

(a) For each student in average enrollment [ daily

attendance ] in a special education program under Subchapter A,

Chapter 29, in a mainstream instructional arrangement, a school

district is entitled to an annual allotment equal to the basic

allotment, or, if applicable, the sum of the basic allotment and the

allotment under Section 48.101 to which the district is entitled,

multiplied by 1.15. For each full-time equivalent student in

average enrollment [ daily attendance ] in a special education

program under Subchapter A, Chapter 29, in an instructional

arrangement other than a mainstream instructional arrangement, a

district is entitled to an annual allotment equal to the basic

allotment, or, if applicable, the sum of the basic allotment and the

allotment under Section 48.101 to which the district is entitled,

multiplied by a weight determined according to instructional

arrangement as follows:

Homebound5.0

Hospital class3.0

Speech therapy5.0

Resource room3.0

Self-contained, mild and moderate,

regular campus3.0

Self-contained, severe, regular campus3.0

Off home campus2.7

Nonpublic day school1.7

Vocational adjustment class2.3

(j) 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 basic allotment, or, if applicable, the sum of the basic

allotment and the allotment under Section 48.101 to which the

district is entitled for each full-time equivalent student in

average enrollment [ daily attendance ], multiplied by the amount

designated for the student's instructional arrangement under this

section[ , for each day the program is provided divided by the number

of days in the minimum school year ]. The total amount of state

funding for extended year services under this section may not

exceed $10 million per year. A school district may use funds

received under this section only in providing an extended year

program.

SECTION 51. Section 48.105(a), Education Code, is amended

to read as follows:

(a) For each student in average enrollment [ daily

attendance ] in a bilingual education or special language program

under Subchapter B, Chapter 29, a district is entitled to an annual

allotment equal to the basic allotment multiplied by:

(1) for an emergent bilingual student, as defined by

Section 29.052:

(A) 0.1; or

(B) 0.15 if the student is in a bilingual

education program using a dual language immersion/one-way or

two-way program model; and

(2) for a student not described by Subdivision (1),

0.05 if the student is in a bilingual education program using a dual

language immersion/two-way program model.

SECTION 52. Sections 48.106(a) and (a-1), Education Code,

are amended to read as follows:

(a) For each full-time equivalent student in average

enrollment [ daily attendance ] in an approved career and technology

education program in grades 7 through 12, a district is entitled to

an annual allotment equal to the basic allotment, or, if

applicable, the sum of the basic allotment and the allotment under

Section 48.101 to which the district is entitled, multiplied by:

(1) 1.1 for a full-time equivalent student in career

and technology education courses not in an approved program of

study;

(2) 1.28 for a full-time equivalent student in levels

one and two career and technology education courses in an approved

program of study, as identified by the agency; and

(3) 1.47 for a full-time equivalent student in levels

three and four career and technology education courses in an

approved program of study, as identified by the agency.

(a-1) In addition to the amounts under Subsection (a), for

each student in average enrollment [ daily attendance ], a district

is entitled to $50 for each of the following in which the student is

enrolled:

(1) a campus designated as a P-TECH school under

Section 29.556; or

(2) a campus that is a member of the New Tech Network

and that focuses on project-based learning and work-based

education.

SECTION 53. Section 48.107(a), Education Code, is amended

to read as follows:

(a) Except as provided by Subsection (b), for each student

in average enrollment [ daily attendance ] who is using a public

education grant under Subchapter G, Chapter 29, to attend school in

a district other than the district in which the student resides, the

district in which the student attends school is entitled to an

annual allotment equal to the basic allotment multiplied by a

weight of 0.1.

SECTION 54. Section 48.108(a), Education Code, is amended

to read as follows:

(a) For each student in average enrollment [ daily

attendance ] in kindergarten through third grade, a school district

is entitled to an annual allotment equal to the basic allotment

multiplied by 0.1 if the student is:

(1) educationally disadvantaged; or

(2) an emergent bilingual student, as defined by

Section 29.052, and is in a bilingual education or special language

program under Subchapter B, Chapter 29.

SECTION 55. Section 48.109(c), Education Code, is amended

to read as follows:

(c) Not more than five percent of a district's students in

average enrollment [ daily attendance ] are eligible for funding

under this section.

SECTION 56. Section 48.115(a), Education Code, is amended

to read as follows:

(a) Except as provided by Subsection (a-1), a school

district is entitled to an annual allotment equal to the sum of the

following amounts or a greater amount provided by appropriation:

(1) $10 for each student in average enrollment [ daily

attendance ], plus $1 for each student in average enrollment [ daily

attendance ] per every $50 by which the district's maximum basic

allotment under Section 48.051 exceeds $6,160, prorated as

necessary; and

(2) $15,000 per campus.

SECTION 57. Section 48.118(a), Education Code, is amended

to read as follows:

(a) For each full-time equivalent student in average

enrollment [ daily attendance ] in grades 9 through 12 in a college or

career pathway offered through a partnership under the Rural

Pathway Excellence Partnership (R-PEP) program under Section

29.912, a school district is entitled to an allotment equal to the

basic allotment, or, if applicable, the sum of the basic allotment

and the allotment under Section 48.101 to which the district is

entitled, multiplied by:

(1) 1.15 if the student is educationally

disadvantaged; or

(2) 1.11 if the student is not educationally

disadvantaged.

SECTION 58. Sections 48.152(d) and (e), Education Code, are

amended to read as follows:

(d) For the first school year in which students attend a new

instructional facility, a school district is entitled to an

allotment of $1,000 for each student in average enrollment [ 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 $1,000 for each additional student in

average enrollment [ daily attendance ] at the facility.

(e) For purposes of this section, the number of additional

students in average enrollment [ daily attendance ] at a facility is

the difference between the number of students in average enrollment

[ daily attendance ] in the current year at that facility and the

number of students in average enrollment [ daily attendance ] at that

facility in the preceding year.

SECTION 59. Section 48.153, Education Code, is amended to

read as follows:

Sec. 48.153. DROPOUT RECOVERY SCHOOL AND RESIDENTIAL

PLACEMENT FACILITY ALLOTMENT. A school district or open-enrollment

charter school is entitled to $275 for each student in average

enrollment [ daily attendance ] who:

(1) resides in a residential placement facility; or

(2) is at a district or school or a campus of the

district or school that is designated as a dropout recovery school

under Section 39.0548.

SECTION 60. Section 48.202(a), Education Code, is amended

to read as follows:

(a) Each school district is guaranteed a specified amount

per weighted student in state and local funds for each cent of tax

effort over that required for the district's local fund assignment

up to the maximum level specified in this subchapter. The amount of

state support, subject only to the maximum amount under Section

48.203, is determined by the formula:

GYA = (GL X WAE [ WADA ] X DTR X 100) - LR

where:

"GYA" is the guaranteed yield amount of state funds to be

allocated to the district;

"GL" is the dollar amount guaranteed level of state and local

funds per weighted student per cent of tax effort, which is an

amount described by Subsection (a-1) or a greater amount for any

year provided by appropriation;

"WAE" [ "WADA" ] is the number of students in weighted average

enrollment [ daily attendance ], which is calculated by dividing the

sum of the school district's allotments under Subchapters B and C 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 48.258 or by the quotient of the value of "DPV" as

determined under Section 48.256(d) if that subsection applies to

the district, 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 48.258 or by the quotient of the value of

"DPV" as determined under Section 48.256(d) if that subsection

applies to the district, divided by 100.

SECTION 61. Section 48.252(b), Education Code, is amended

to read as follows:

(b) Notwithstanding any other provision of this chapter or

Chapter 49, a school district subject to this section is entitled to

receive for each student in average enrollment [ daily attendance ]

at the campus or program described by Subsection (a) an amount

equivalent to the difference, if the difference results in

increased funding, between:

(1) the amount described by Section 12.106; and

(2) the amount to which the district would be entitled

under this chapter.

SECTION 62. Section 48.2642(a), Education Code, is amended

to read as follows:

(a) Notwithstanding any other provision of this chapter,

the commissioner shall count toward a school district's or

open-enrollment charter school's average enrollment [ daily

attendance ] under Section 48.005 each student who graduates early

from high school in the district or school under the Texas First

Early High School Completion Program established under Section

28.0253 for the period in which the student is enrolled at an

eligible institution using state credit awarded under the Texas

First Scholarship Program established under Subchapter K-1,

Chapter 56, based on a 100 percent attendance rate.

SECTION 63. Section 48.273(a)(4), Education Code, is

amended to read as follows:

(4) "Wealth per student" means the taxable property

values reported by the comptroller to the commissioner under

Section 48.256 divided by the number of students in average

enrollment [ daily attendance ].

SECTION 64. Section 48.277(a), Education Code, is amended

to read as follows:

(a) A school district or open-enrollment charter school is

entitled to receive an annual allotment for each student in average

enrollment [ daily attendance ] in the amount equal to the

difference, if the difference is greater than zero, that results

from subtracting the total maintenance and operations revenue per

student in average enrollment [ daily attendance ] for the current

school year from the lesser of:

(1) 103 percent of the district's or school's total

maintenance and operations revenue per student in average

enrollment [ daily attendance ] for the 2019-2020 school year that

the district or school would have received under former Chapters 41

and 42, as those chapters existed on January 1, 2019; or

(2) 128 percent of the statewide average amount of

maintenance and operations revenue per student in average

enrollment [ daily attendance ] that would have been provided for the

2019-2020 school year under former Chapters 41 and 42, as those

chapters existed on January 1, 2019.

SECTION 65. Section 49.001(2), Education Code, is amended

to read as follows:

(2) "Weighted average enrollment [ daily attendance ]"

has the meaning assigned by Section 48.202.

SECTION 66. Section 49.002, Education Code, is amended to

read as follows:

Sec. 49.002. OPTIONS TO REDUCE LOCAL REVENUE LEVEL. A

district with a local revenue level in excess of entitlement may

take any combination of the following actions to reduce the

district's revenue level:

(1) consolidation with another district as provided by

Subchapter B;

(2) detachment of territory as provided by Subchapter

C;

(3) purchase of [ average daily ] attendance credit as

provided by Subchapter D;

(4) education of nonresident students as provided by

Subchapter E; or

(5) tax base consolidation with another district as

provided by Subchapter F.

SECTION 67. Section 49.003, Education Code, is amended to

read as follows:

Sec. 49.003. INCLUSION OF ATTENDANCE CREDIT AND

NONRESIDENTS IN WEIGHTED AVERAGE ENROLLMENT [ DAILY ATTENDANCE ]. In

determining whether a school district has a local revenue level in

excess of entitlement, the commissioner shall use:

(1) the district's final weighted average enrollment

[ daily attendance ]; and

(2) the amount of attendance credit a district

purchases under Subchapter D or the number of nonresident students

a district educates under Subchapter E for a school year.

SECTION 68. Section 49.158(a), Education Code, is amended

to read as follows:

(a) Sections 49.154 and 49.157 apply only to a district

that:

(1) executes an agreement to purchase attendance

credit necessary to reduce the district's local revenue level to

the level established under Section 48.257;

(2) executes an agreement to purchase attendance

credit and an agreement under Subchapter E to contract for the

education of nonresident students who transfer to and are educated

in the district but who are not charged tuition; or

(3) executes an agreement under Subchapter E to

contract for the education of nonresident students:

(A) to an extent that does not provide more than

10 percent of the reduction in local revenue required for the

district to achieve a local revenue level that is equal to or less

than the level established under Section 48.257; and

(B) under which all revenue paid by the district

to other districts, in excess of the reduction in state aid that

results from counting the weighted average enrollment [ daily

attendance ] of the students served in the contracting district, is

required to be used for funding a consortium of at least three

districts in a county with a population of less than 40,000 that is

formed to support a technology initiative.

SECTION 69. Section 49.201, Education Code, is amended to

read as follows:

Sec. 49.201. AGREEMENT. The board of trustees of a

district with a local revenue level in excess of entitlement may

execute an agreement to educate the students of another district in

a number that, when the weighted average enrollment [ daily

attendance ] of the students served is added to the weighted average

enrollment [ daily attendance ] of the contracting district, is

sufficient, in combination with any other actions taken under this

chapter, to reduce the district's local revenue level to a level

that is equal to or less than the level established under Section

48.257. The agreement is not effective unless the commissioner

certifies that the transfer of weighted average enrollment [ daily

attendance ] will not result in any of the contracting districts'

local revenue level being greater than the level established under

Section 48.257 and that the agreement requires an expenditure per

student in weighted average enrollment [ daily attendance ] that is

at least equal to the amount per student in weighted average

enrollment [ daily attendance ] required under Section 49.153.

SECTION 70. Section 49.203, Education Code, is amended to

read as follows:

Sec. 49.203. WEIGHTED AVERAGE ENROLLMENT [ WADA ] COUNT. For

purposes of Chapter 48, students served under an agreement under

this subchapter are counted only in the weighted average enrollment

[ daily attendance ] of the district providing the services, except

that students served under an agreement authorized by Section

49.205 are counted in a manner determined by the commissioner.

SECTION 71. Section 49.257(b), Education Code, is amended

to read as follows:

(b) Each component district shall bear a share of the costs

of assessing and collecting taxes in proportion to the component

district's share of weighted average enrollment [ daily attendance ]

in the consolidated taxing district.

SECTION 72. Section 49.258, Education Code, is amended to

read as follows:

Sec. 49.258. REVENUE DISTRIBUTION. The consolidated taxing

district shall distribute maintenance tax revenue to the component

districts on the basis of the number of students in weighted average

enrollment [ daily attendance ] in the component districts.

SECTION 73. Sections 49.305(c) and (d), Education Code, are

amended to read as follows:

(c) If the detachment of whole parcels or items of property

as provided by Subsection (a) would result in a district's local

revenue level that is less than the level established under Section

48.257 by more than the product of $10,000 multiplied by weighted

average enrollment [ daily attendance ], the commissioner may not

detach the last parcel or item of property and shall detach the next

one or more parcels or items of property in descending order of

taxable value that would result in the school district having a

local revenue level that is equal to or less than the level

established under Section 48.257 by not more than the product of

$10,000 multiplied by weighted average enrollment [ daily

attendance ].

(d) Notwithstanding Subsections (a), (b), and (c), the

commissioner may detach only a portion of a parcel or item of

property if:

(1) it is not possible under this subchapter to reduce

the district's local revenue level to a level that is equal to or

less than the level established under Section 48.257 unless some or

all of the parcel or item of property is detached and the detachment

of the whole parcel or item would result in the district from which

it is detached having a local revenue level that is less than the

level established under Section 48.257 by more than the product of

$10,000 multiplied by weighted average enrollment [ daily

attendance ]; or

(2) the commissioner determines that a partial

detachment of that parcel or item of property is preferable to the

detachment of one or more other parcels or items having a lower

taxable value in order to minimize the number of parcels or items of

property to be detached consistent with the purposes of this

chapter.

SECTION 74. Section 49.306(i), Education Code, is amended

to read as follows:

(i) The commissioner may order the annexation of a portion

of a parcel or item of property, including a portion of property

treated as a whole parcel or item under Subsection (h), if:

(1) the annexation of the whole parcel or item would

result in the district eligible to receive it in the appropriate

priority order provided by this section having a local revenue

level greater than the amount by which the product of $10,000

multiplied by weighted average enrollment [ daily attendance ]

exceeds the taxable value of property necessary to generate

maintenance and operations tax revenue in the amount equal to the

district's entitlement under Section 48.202(a-1)(2); or

(2) the commissioner determines that annexation of

portions of the parcel or item would reduce disparities in district

taxable values of property necessary to generate maintenance and

operations tax revenue in the amount equal to a district's

entitlement under Section 48.202(a-1)(2) more efficiently than

would be possible if the parcel or item were annexed as a whole.

SECTION 75. Section 49.311, Education Code, is amended to

read as follows:

Sec. 49.311. STUDENT ATTENDANCE. A student who is a

resident of real property detached from a school district may

choose to attend school in that district or in the district to which

the property is annexed. For purposes of determining average

enrollment [ daily attendance ] under Section 48.005, the student

shall be counted in the district to which the property is annexed.

If the student chooses to attend school in the district from which

the property is detached, the state shall withhold any foundation

school funds from the district to which the property is annexed and

shall allocate to the district in which the student is attending

school those funds and the amount of funds equal to the difference

between the state funds the district is receiving for the student

and the district's cost in educating the student.

SECTION 76. Section 49.354(e), Education Code, is amended

to read as follows:

(e) A restored district's proportionate share of fund

balances, personal property, or indebtedness is equal to the

proportion that the number of students in average enrollment [ daily

attendance ] in the restored district bears to the number of

students in average enrollment [ daily attendance ] in the

consolidated district.

SECTION 77. Section 403.104(d), Government Code, is amended

to read as follows:

(d) The proportionate share of an independent school

district is determined by multiplying the total amount of the

payment available for distribution to school districts by the ratio

that the average number of [ daily attendance for ] students who

reside in the county and are enrolled in [ who attend ] that school

district bears to the average number of [ daily attendance for ] all

students who reside in the county and are enrolled in [ who attend ]

any independent school district. However, if there are fewer than

10 independent school districts located in whole or part in the

county and if an independent school district would receive under

this formula less than 10 percent of the total payment available for

distribution to independent school districts, the school

district's share shall be increased to 10 percent of the total

payment and the shares of the school districts that would receive

more than 10 percent under the formula shall be reduced

proportionately, but not to an amount less than 10 percent of the

total payment. [ Each independent school district shall develop a

reasonable method for determining the average daily attendance for

students who reside in the county and who attend the school

district. ]

SECTION 78. Section 1371.001(4), Government Code, is

amended to read as follows:

(4) "Issuer" means:

(A) a home-rule municipality that:

(i) adopted its charter under Section 5,

Article XI, Texas Constitution;

(ii) has a population of 50,000 or more; and

(iii) has outstanding long-term

indebtedness that is rated by a nationally recognized rating agency

for municipal securities in one of the four highest rating

categories for a long-term obligation;

(B) a conservation and reclamation district

created and organized as a river authority under Section 52,

Article III, or Section 59, Article XVI, Texas Constitution;

(C) a joint powers agency organized and operating

under Chapter 163, Utilities Code;

(D) a metropolitan rapid transit authority,

regional transportation authority, or coordinated county

transportation authority created, organized, or operating under

Chapter 451, 452, or 460, Transportation Code;

(E) a conservation and reclamation district

organized or operating as a navigation district under Section 52,

Article III, or Section 59, Article XVI, Texas Constitution;

(F) a district organized or operating under

Section 59, Article XVI, Texas Constitution, that has all or part of

two or more municipalities within its boundaries;

(G) a state agency, including a state institution

of higher education;

(H) a hospital authority created or operating

under Chapter 262 or 264, Health and Safety Code, in a county that:

(i) has a population of more than 3.3

million; or

(ii) is included, in whole or in part, in a

standard metropolitan statistical area of this state that includes

a county with a population of more than 2.5 million;

(I) a hospital district in a county that has a

population of more than 2.5 million;

(J) a nonprofit corporation organized to

exercise the powers of a higher education loan authority under

Section 53B.47(e), Education Code;

(K) a county:

(i) that has a population of more than 3.3

million; or

(ii) that, on the date of issuance of

obligations under this chapter, has authorized, outstanding, or any

combination of authorized and outstanding, indebtedness of at least

$100 million secured by and payable from the county's ad valorem

taxes and the authorized long-term indebtedness of which is rated

by a nationally recognized rating agency of securities issued by

local governments in one of the four highest rating categories for a

long-term obligation;

(L) an independent school district that has an

average enrollment [ daily attendance ] of 50,000 or more as

determined under Section 48.005, Education Code;

(M) a municipality or county operating under

Chapter 334, Local Government Code;

(N) a district created under Chapter 335, Local

Government Code;

(O) a junior college district that has a total

headcount enrollment of 40,000 or more based on enrollment in the

most recent regular semester; or

(P) an issuer, as defined by Section 1201.002,

that has:

(i) a principal amount of at least $100

million in outstanding long-term indebtedness, in long-term

indebtedness proposed to be issued, or in a combination of

outstanding or proposed long-term indebtedness; and

(ii) some amount of long-term indebtedness

outstanding or proposed to be issued that is rated in one of the

four highest rating categories for long-term debt instruments by a

nationally recognized rating agency for municipal securities,

without regard to the effect of any credit agreement or other form

of credit enhancement entered into in connection with the

obligation.

SECTION 79. Section 1431.001(3), Government Code, is

amended to read as follows:

(3) "Eligible school district" means an independent

school district that has an average enrollment [ daily attendance ]

of 190,000 or more as determined under Section 48.005, Education

Code.

SECTION 80. Section 325.011(a), Local Government Code, is

amended to read as follows:

(a) The district is governed by a board of directors

composed of five members, with two directors appointed by the

commissioners court of the county, two directors appointed by the

governing body of the municipality having the largest population in

the county, and one director appointed by the governing body of the

school district with the largest number of students in average

enrollment [ daily attendance ] in the county. The board shall

manage the district and administer this chapter.

SECTION 81. Section 1, Article 2688d, Vernon's Texas Civil

Statutes, is amended to read as follows:

Section 1. In all counties of the State where, according to

the preceding annual statistical report of the schools said county

has not more than four (4) school districts, with one (1) of such

districts comprising more than half of the county and having more

than two thousand (2,000) pupils in average enrollment [ daily

attendance ] in the one (1) district alone, and such district having

an assessed valuation of more than Twenty Million Dollars

($20,000,000) and where there is only one (1) common school

district in such county with an average enrollment [ daily

attendance ] of less than sixteen (16), the office of county

superintendent is hereby abolished, to be effective at the end of

the term of the incumbent county superintendent, as is now provided

by law.

SECTION 82. The following provisions of the Education Code

are repealed:

(1) Section 29.0822(d-1); and

(2) Section 48.007.

SECTION 83. This Act takes effect September 1, 2025.