bill swaps special ed funding weights for seven tiers

The text as introduced · 2,902 words

89R2434 KJE-F

By: Menéndez
S.B. No. 149

A BILL TO BE ENTITLED

AN ACT

relating to special education funding under the Foundation School

Program.

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

SECTION 1. Section 8.051(d), Education Code, is amended to

read as follows:

(d) Each regional education service center shall maintain

core services for purchase by school districts and campuses. The

core services are:

(1) training and assistance in:

(A) teaching each subject area assessed under

Section 39.023; and

(B) providing instruction in personal financial

literacy as required under Section 28.0021;

(2) training and assistance in providing each program

that qualifies for a funding allotment under Section 48.102,

48.1021, 48.103, 48.104, 48.105, or 48.109;

(3) assistance specifically designed for a school

district or campus assigned an unacceptable performance rating

under Section 39.054;

(4) training and assistance to teachers,

administrators, members of district boards of trustees, and members

of site-based decision-making committees;

(5) assistance specifically designed for a school

district that is considered out of compliance with state or federal

special education requirements, based on the agency's most recent

compliance review of the district's special education programs; and

(6) assistance in complying with state laws and rules.

SECTION 2. Section 29.002, Education Code, is amended to

read as follows:

Sec. 29.002. DEFINITION. In this subchapter, "special

services" means:

(1) special education instruction, which may be

provided by professional and supported by paraprofessional

personnel in a general education setting [ the regular classroom ] or

in a special education setting, as defined by commissioner rule [ an

instructional arrangement described by Section 48.102 ]; and

(2) related services, which are developmental,

corrective, supportive, or evaluative services, not instructional

in nature, that may be required for the student to benefit from

special education instruction and for implementation of a student's

individualized education program.

SECTION 3. Section 29.014(d), Education Code, is amended to

read as follows:

(d) The basic allotment for a student enrolled in a district

to which this section applies is adjusted by the tier of intensity

of service defined in accordance with [ weight for a homebound

student under ] Section 48.102 and designated by commissioner rule

for use under this section [ 48.102(a) ].

SECTION 4. Section 29.022(u)(3), Education Code, is amended

to read as follows:

(3) "Self-contained classroom" does not include a

classroom that is a resource room as defined by commissioner rule

[ instructional arrangement under Section 48.102 ].

SECTION 5. Section 29.316(c), Education Code, is amended to

read as follows:

(c) Not later than August 31 of each year, the agency, the

division, and the center jointly shall prepare and post on the

agency's, the division's, and the center's respective Internet

websites a report on the language acquisition of children eight

years of age or younger who are deaf or hard of hearing. The report

must:

(1) include:

(A) existing data reported in compliance with

federal law regarding children with disabilities; and

(B) information relating to the language

acquisition of children who are deaf or hard of hearing and also

have other disabilities;

(2) state for each child:

(A) the educational setting [ instructional

arrangement ] used with the child, as defined by commissioner rule

[ described by Section 48.102 ], including the time the child spends

on average in a general education setting [ mainstream instructional

arrangement ];

(B) the specific language acquisition services

provided to the child, including:

(i) the time spent providing those

services; and

(ii) a description of any hearing

amplification used in the delivery of those services, including:

(a) the type of hearing amplification

used;

(b) the period of time in which the

child has had access to the hearing amplification; and

(c) the average amount of time the

child uses the hearing amplification each day;

(C) the tools or assessments used to assess the

child's language acquisition and the results obtained;

(D) the preferred unique communication mode used

by the child at home; and

(E) the child's age, race, and gender, the age at

which the child was identified as being deaf or hard of hearing, and

any other relevant demographic information the commissioner

determines to likely be correlated with or have an impact on the

child's language acquisition;

(3) compare progress in English literacy made by

children who are deaf or hard of hearing to progress in that subject

made by children of the same age who are not deaf or hard of hearing,

by appropriate age range; and

(4) be redacted as necessary to comply with state and

federal law regarding the confidentiality of student medical or

educational information.

SECTION 6. Subchapter A, Chapter 48, Education Code, is

amended by adding Section 48.0055 to read as follows:

Sec. 48.0055. ENROLLMENT-BASED FUNDING. The commissioner

by rule shall establish the method for determining average

enrollment for purposes of funding provided based on average

enrollment under Chapter 46 and this chapter.

SECTION 7. Section 48.051(a), Education Code, is amended to

read as follows:

(a) For each student in average daily attendance, not

including the time students spend each day in career and technology

education programs or in special education programs receiving

special education services in a setting [ an instructional

arrangement ] other than a general education setting [ mainstream or

career and technology education programs ], for which an additional

allotment is made under Subchapter C, a school 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.

SECTION 8. Section 48.102, Education Code, is amended to

read as follows:

Sec. 48.102. SPECIAL EDUCATION. (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 the weight

assigned under Subsection (c) to the highest tier of intensity of

service for which the student qualifies [ 1.15 ].

(a-1) Notwithstanding Subsection (a), for the 2026-2027 and

2027-2028 school years, the amount of an allotment under this

section shall be determined in accordance with Section 48.1022.

This subsection expires September 1, 2028. [ For each full-time

equivalent student in average daily attendance in a special

education program under Subchapter A, Chapter 29, in an

instructional arrangement other than a mainstream instructional

arrangement, a district is entitled to an annual allotment equal to

the basic allotment, or, 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:

[ 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) The commissioner by rule shall define seven tiers of

intensity of service for use in determining funding under this

section. The commissioner must include one tier specifically

addressing students receiving special education services in

residential placement [ 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 by commissioner rule. 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 by commissioner rule with a

funding weight of 2.8 ].

(c) The weights assigned to the seven tiers of intensity of

service defined under Subsection (b) are, from least to most

intense, 0.6, 0.85, 1, 1.45, 1.75, 2, and 2, or other weights

provided by appropriation. [ 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 commissioner 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 commissioner 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 commissioner shall adopt rules and procedures

governing contracts for residential and day program placement of

[ special education ] students receiving special education services .

(e) [ The legislature shall provide by appropriation for the

state's share of the costs of those placements.

[ (h) ] At least 55 percent of the funds allocated under this

section must be used in the special education program under

Subchapter A, Chapter 29.

(f) [ (i) ] The agency shall ensure [ encourage ] the placement

of students in special education programs, including students in

residential placement [ instructional arrangements ], in the least

restrictive environment appropriate for their educational needs.

(g) [ (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 highest tier of intensity of service for which

the student qualifies [ 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 $20 [ $10 ] million per year. A school district may use funds

received under this section only in providing an extended year

program.

(h) [ (k) ] 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.

(i) Not later than December 1 of each even-numbered year,

the commissioner shall submit to the Legislative Budget Board, for

purposes of the allotment under this section, proposed weights for

the tiers of intensity of service for the next state fiscal

biennium. The commissioner must include information regarding the

selection of the proposed weights. In developing the proposed

weights, the commissioner shall consult with school district

superintendents and chief financial officers, the continuing

advisory committee appointed under Section 29.006, and other

relevant stakeholders.

SECTION 9. Subchapter C, Chapter 48, Education Code, is

amended by adding Sections 48.1021, 48.1022, and 48.1023 to read as

follows:

Sec. 48.1021. SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.

(a) For each six-week period in which a student in a special

education program under Subchapter A, Chapter 29, receives eligible

special education services, a school district is entitled to an

allotment in the amount assigned under Subsection (c) to the

service group for which the student is eligible.

(a-1) Notwithstanding Subsection (a), for the 2026-2027 and

2027-2028 school years, the amount of an allotment under this

section shall be determined in accordance with Section 48.1022.

This subsection expires September 1, 2028.

(b) The commissioner by rule shall establish four service

groups for use in determining funding under this section. In

establishing the groups, the commissioner must consider:

(1) the level of services, equipment, and technology

required to meet the needs of students receiving special education

services; and

(2) services that meet the needs of students receiving

special education services and were previously eligible for

reimbursement through the school health and related services

program.

(c) The amounts assigned to the four service groups

established under Subsection (b) are, from lowest to highest level

of service, $100, $350, $650, and $1,000, or other amounts provided

by appropriation.

(d) A school district is entitled to receive an allotment

under this section for each service group for which a student is

eligible.

(e) A school district is entitled to the full amount of an

allotment under this section for a student receiving eligible

special education services during any part of a six-week period.

(f) At least 55 percent of the funds allocated under this

section must be used for a special education program under

Subchapter A, Chapter 29.

(g) Not later than December 1 of each even-numbered year,

the commissioner shall submit to the Legislative Budget Board, for

purposes of the allotment under this section, proposed amounts of

funding for the service groups for the next state fiscal biennium.

The commissioner must include information regarding the selection

of the proposed amounts. In developing the proposed amounts, the

commissioner shall consult with school district superintendents

and chief financial officers, the continuing advisory committee

appointed under Section 29.006, and other relevant stakeholders.

Sec. 48.1022. SPECIAL EDUCATION TRANSITION FUNDING. (a)

For the 2026-2027 and 2027-2028 school years, the commissioner may

adjust weights or amounts provided under Section 48.102 or 48.1021

as necessary to ensure compliance with requirements regarding

maintenance of state financial support under 20 U.S.C. Section

1412(a)(18) and maintenance of local financial support under

applicable federal law.

(b) For the 2026-2027 and 2027-2028 school years, the

commissioner shall determine the formulas through which school

districts receive funding under Sections 48.102 and 48.1021. In

determining the formulas, the commissioner may combine the methods

of funding under those sections with the method of funding provided

by Section 48.102, as it existed on January 1, 2025.

(c) For the 2028-2029 school year, the commissioner may

adjust the weights or amounts set for purposes of Section 48.102 or

48.1021. Before making an adjustment under this subsection, the

commissioner shall:

(1) submit the proposed adjustment to the secretary of

state for publication in the Texas Register and must receive notice

of publication; and

(2) notify in writing and must receive approval from

the Legislative Budget Board.

(d) Notwithstanding any other provision of this section,

the sum of funding provided under Sections 48.102 and 48.1021 for

the 2026-2027 or for the 2027-2028 school year as adjusted under

this section may not exceed the sum of:

(1) funding that would have been provided under

Section 48.102, as it existed on January 1, 2025; and

(2) the amount set by the legislature in the General

Appropriations Act.

(e) Each school district and open-enrollment charter school

shall report to the agency information necessary to implement this

section.

(f) The agency shall provide technical assistance to school

districts and open-enrollment charter schools to ensure a

successful transition in funding formulas for special education.

(g) This section expires September 1, 2030.

Sec. 48.1023. SPECIAL EDUCATION TRANSITION HOLD HARMLESS

FUNDING. (a) For the 2026-2027, 2027-2028, 2028-2029, and

2029-2030 school years, each school district is entitled to receive

funding under Sections 48.102 and 48.1021 in a total amount at least

equal to the amount of funding the district was entitled to receive

under Section 48.102 for the 2025-2026 school year.

(b) The commissioner shall adjust a school district's

entitlement under Sections 48.102 and 48.1021 as necessary to

comply with this section.

(c) This section expires September 1, 2030.

SECTION 10. Sections 48.103(a) and (c), Education Code, are

amended to read as follows:

(a) Subject to Subsection (b), for each student that a

school district serves who has been identified as having dyslexia

or a related disorder, the district is entitled to an annual

allotment equal to the basic allotment multiplied by 0.5 [ 0.1 ] or a

greater amount provided by appropriation.

(c) A school district may receive funding for a student

under each provision of this section , [ and ] Section 48.102 , and

Section 48.1021 for which [ if ] the student qualifies [ satisfies the

requirements of both sections ].

SECTION 11. This Act takes effect September 1, 2026.