Texas Education Code - Section 42.2516. Additional State Aid For Tax Reduction
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§ 42.2516. ADDITIONAL STATE AID FOR TAX REDUCTION. (a)
In this section, "state compression percentage" means the
percentage, as determined by the commissioner, of a school
district's adopted maintenance and operations tax rate for the 2005
tax year that serves as the basis for state funding for tax rate
reduction under this section. The commissioner shall determine the
state compression percentage for each school year based on the
percentage by which a district is able to reduce the district's
maintenance and operations tax rate for that year, as compared to
the district's adopted maintenance and operations tax rate for the
2005 tax year, as a result of state funds appropriated for
distribution under this section for that year from the property tax
relief fund established under Section 403.109, Government Code, or
from another funding source available for school district property
tax relief.
Text of subsec. (a-1) effective until September 1, 2009
(a-1) Subsection (a) applies beginning with the state
fiscal year ending August 31, 2009. For the state fiscal year
ending August 31, 2007, the state compression percentage is 88.67
percent. For the state fiscal year ending August 31, 2008, the
state compression percentage is 66.67 percent. This subsection
expires September 1, 2009.
(b) Subject to Subsections (g) and (h), but notwithstanding
any other provision of this title, a school district is entitled to
state revenue necessary to provide the district with the sum of:
(1) the amount of state revenue necessary to maintain
state and local revenue per student in weighted average daily
attendance in the amount equal to the greater of:
(A) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district available to the district for the
2005-2006 school year;
(B) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate adopted by the district for the 2005 tax year; or
(C) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operations of the district to which the district would have been
entitled for the 2006-2007 school year under this chapter, as it
existed on January 1, 2006, or, if the district would have been
subject to Chapter 41, as that chapter existed on January 1, 2006,
the amount to which the district would have been entitled under that
chapter, based on the funding elements in effect for the 2005-2006
school year, if the district imposed a maintenance and operations
tax at the rate equal to the rate described by Section 26.08(i) or
(k)(1), Tax Code, as applicable, for the 2006 tax year;
(2) an amount equal to the product of $2,500
multiplied by the number of classroom teachers, full-time
librarians, full-time counselors certified under Subchapter B,
Chapter 21, and full-time school nurses employed by the district
and entitled to a minimum salary under Section 21.402; and
(3) an amount equal to the product of $275 multiplied
by the number of students in average daily attendance in grades nine
through 12 in the district.
(c) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall include:
(1) any amounts described by Rider 69, page III-19,
Chapter 1369, Acts of the 79th Legislature, Regular Session, 2005
(the General Appropriations Act);
(2) for a school district that received additional
revenue for the 2005-2006 school year as a result of an agreement
under Subchapter E, Chapter 41:
(A) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(A), the amount of that
additional revenue retained by the district for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue available to the district for that school year
exceeded the total maintenance and operations revenue that would
have been available to the district for that school year if the
district had not entered into the agreement, less any amount the
district paid to another entity under the agreement; or
(B) if the amount of state revenue to which the
district is entitled under Subsection (b) is computed based on the
amount described by Subsection (b)(1)(B) or (C), the amount of the
additional revenue that would have been retained by the district
for the 2006-2007 school year if the district had entered into the
agreement on the same terms as under the agreement for the 2005-2006
school year, which is the amount by which the total maintenance and
operations revenue that would have been available to the district
for the 2006-2007 school year if the district had entered into the
agreement exceeds the total maintenance and operations revenue that
would have been available to the district for that school year if
the district had not entered into the agreement and had imposed a
maintenance and operations tax at the rate of $1.50 on the $100
valuation of taxable property, less any amount the district would
have paid to another entity under the agreement;
(3) any amount necessary to reflect an adjustment made
by the commissioner under Section 42.005;
(4) any amount necessary to reflect an adjustment made
by the commissioner under Section 42.2521; and
(5) any amount necessary to reflect an adjustment made
by the commissioner under Section 42.2531.
(d) If, for the 2006-2007 or a subsequent school year, a
school district enters into an agreement under Subchapter E,
Chapter 41, the commissioner shall reduce the amount of state
revenue to which the district is entitled under Subsection (b) for
that school year by an amount equal to any additional revenue for
that school year that the district receives and retains as a result
of that agreement, which is the amount by which the total
maintenance and operations revenue available to the district
exceeds the total maintenance and operations revenue that would
have been available to the district if the district had not entered
into the agreement and had imposed a maintenance and operations tax
at the maximum rate permitted under Section 45.003(d), less any
amount the district pays to another entity under the agreement.
(e) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
is not included in making a determination under Subsection (b)(1).
(f) For purposes of determining the amount of revenue to
which a school district is entitled under this section, the
commissioner shall use the average tax collection rate for the
district for the 2003, 2004, and 2005 tax years.
(g) If a school district adopts a maintenance and operations
tax rate that is below the rate equal to the product of the state
compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the adopted rate is
less than the rate equal to the product of the state compression
percentage multiplied by the rate adopted by the district for the
2005 tax year.
(h) Notwithstanding any other provision of this title, if
the amount of state and local revenue per student in weighted
average daily attendance for the maintenance and operations of the
district available to the district in a school year as a result of
increases to the equalized wealth level under Section 41.002, the
basic allotment under Section 42.101, and the guaranteed level
under Section 42.302 made by H.B. No. 1, Acts of the 79th
Legislature, 3rd Called Session, 2006, exceeds the amount to which
a district is entitled under Subsection (b) for that school year,
the commissioner must:
(1) reduce the amount of state aid provided to the
district for that school year by an amount equal to the excess
revenue, as determined by the commissioner; or
(2) for a district with a wealth per student greater
than the applicable amount described by Section 41.002(a), require
the district to purchase a number of attendance credits for that
school year at a cost equal to the amount of excess revenue, as
determined by the commissioner.
(i) A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level and that is entitled to state revenue under this section may
receive that revenue through an adjustment against the total amount
of attendance credits required to be purchased under Subchapter D,
Chapter 41, or the total number of nonresident students required to
be educated under Subchapter E, Chapter 41, as determined by the
commissioner.
(j) If a school district reduces its maintenance and
operations tax rate by an amount less than the rate equal to the
product of the difference between the state compression percentage
for the preceding year and the state compression percentage for the
year of the reduction, multiplied by the maintenance and operations
tax rate adopted by the district for the 2005 tax year, the
commissioner may not reduce the amount to which the district is
entitled under this section on the basis of the additional revenue
collected by the district.
(k) The commissioner may adopt rules necessary to
administer this section.
(l) A determination by the commissioner under this section
is final and may not be appealed.
Added by Acts 2006, 79th Leg., 3rd C.S., ch. 5, § 1.04, eff. May
26, 2006.
Section: 42.158 42.251 42.2511 42.2512 42.2513 42.2514 42.2515 42.2516 42.2517 42.2521 42.2522 42.253 42.2531 42.254
Last modified: August 10, 2007
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