By: Men ndez, et al.	S.B. No. 37

Statutes affected:
Introduced: Education Code 48.051, Education Code 48.005, Education Code 7.062, Education Code 11.052, Education Code 12.106, Education Code 12.263, Education Code 13.051, Education Code 13.102, Education Code 13.283, Education Code 25.038, Education Code 25.045, Education Code 25.081, Education Code 25.087, Education Code 25.111, Education Code 25.112, Education Code 29.008, Education Code 29.014, Education Code 29.081, Education Code 29.0822, Education Code 29.184, Education Code 29.203, Education Code 29.403, Education Code 29.912, Education Code 30.003, Education Code 30.102, Education Code 33.157, Education Code 37.0061, Education Code 37.008, Education Code 39.027, Education Code 39.262, Education Code 43.001, Education Code 44.004, Education Code 45.0011, Education Code 45.006, Education Code 45.105, Education Code 45.003, Education Code 46.005, Education Code 46.006, Education Code 46.032, Education Code 48.0051, Education Code 48.006, Education Code 48.010, Education Code 48.052, Education Code 48.101, Education Code 48.102, Education Code 48.105, Education Code 48.106, Education Code 48.107, Education Code 48.108, Education Code 48.109, Education Code 48.115, Education Code 48.118, Education Code 48.152, Education Code 48.153, Education Code 48.202, Education Code 48.256, Education Code 48.2642, Education Code 48.273, Education Code 48.277, Education Code 49.001, Education Code 49.002, Education Code 49.003, Education Code 49.158, Education Code 49.201, Education Code 49.203, Education Code 49.205, Education Code 49.258, Education Code 49.305, Education Code 49.306, Education Code 49.311, Education Code 49.354, Government Code 403.104, Government Code 1371.001, Government Code 1431.001, Local Government Code 48.005, Tax Code 313.027, Education Code 48.103, Education Code 48.279, Education Code 29.1531, Education Code 29.1532 (Education Code 29, Local Government Code 48, Education Code 12, Education Code 44, Government

	A BILL TO BE ENTITLED
	AN ACT
	Relating to the public school finance system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. BASIC ALLOTMENT
	SECTION 1.01.  Section 48.051, Education Code, is amended by
	amending Subsection (a) and adding Subsection (a-1) to read as
	follows:
	(a)  Subject to adjustment under Subsection (a-1), for [For]
	each student in average daily attendance, not including the time
	students spend each day in special education programs in an
	instructional arrangement other than mainstream or career and
	technology education programs, for which an additional allotment is
	made under Subchapter C, a district is entitled to an allotment
	equal to the lesser of $7,365 [$6,160] or the amount that results
	from the following formula:
	A = $7,365 [$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.
	(a-1)  Beginning with the 2024-2025 school year, the basic
	allotment provided to a district under Subsection (a) or (b) is
	adjusted annually to increase the allotment by the amount that
	results from applying the inflation rate, as determined by the
	comptroller on the basis of changes in the Consumer Price Index for
	All Urban Consumers published by the Bureau of Labor Statistics of
	the United States Department of Labor, to the allotment for the
	preceding school year.
	SECTION 1.02.  Section 48.202(a-1), Education Code, is
	amended to read as follows:
	(a-1)  For purposes of Subsection (a), the dollar amount
	guaranteed level of state and local funds per weighted student per
	cent of tax effort ("GL") for a school district is:
	(1)  the greater of the amount of district tax revenue per
	weighted student per cent of tax effort available to a school
	district at the 96th percentile of wealth per weighted student or
	the amount that results from multiplying 7,365 [6,160], or the
	greater amount provided under Section 48.051(a-1) or (b)
	[48.051(b)], if applicable, by 0.016, for the first eight cents by
	which the district's maintenance and operations tax rate exceeds
	the district's tier one tax rate; and
	(2)  subject to Subsection (f), the amount that results from
	multiplying $7,365 [$6,160], or the greater amount provided under
	Section 48.051(a-1) or (b) [48.051(b)], if applicable, by 0.008,
	for the district's maintenance and operations tax effort that
	exceeds the amount of tax effort described by Subdivision (1).
	ARTICLE 2. ENROLLMENT-BASED FUNDING
	SECTION 2.01.  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: