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Texas Education Code - Section 46.003. School Facilities Allotment

Legal Research Home > Texas Lawyer > Education Code > Texas Education Code - Section 46.003. School Facilities Allotment

§ 46.003. SCHOOL FACILITIES ALLOTMENT.  (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 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;
	"ADA" is the greater of the number of students in average 
daily attendance, as determined under Section 42.005, 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 42.2521, 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 42.2521.
	(b)  The bond tax rate under Subsection (a) may not exceed 
the rate that would be necessary for the current year, using state 
funds under Subsection (a), to make payments of principal and 
interest on the bonds for which the tax is pledged.
	(c)  To enable the district to collect local funds sufficient 
to pay the district's share of the debt service, a district may levy 
a bond tax at a rate higher than the maximum rate for which it may 
receive state assistance.
	(d)  The amount budgeted by a district for payment of 
eligible bonds may include:
		(1)  bond taxes collected in the current school year;                         
		(2)  bond taxes collected in a preceding school year in 
excess of the amount necessary to pay the district's share of actual 
debt service on bonds in that year, provided that the taxes were not 
used to generate other state financial assistance for the district;  
or
		(3)  maintenance and operations taxes collected in the 
current school year or a preceding school year in excess of the 
amount eligible to be used to generate other state financial 
assistance for the district.
	(e)  Bonds are eligible to be paid with state and local funds 
under this section if:
		(1)  taxes to pay the principal of and interest on the 
bonds were first levied in the 1997-1998 school year or a later 
school year;  and
		(2)  the bonds do not have a weighted average maturity 
of less than eight years.
	(f)  A district may use state funds received under this 
section only to pay the principal of and interest on the bonds for 
which the district received the funds.
	(g)  The board of trustees and voters of a school district 
shall determine district needs concerning construction, 
acquisition, renovation, or improvement of instructional 
facilities.
	(h)  To receive state assistance under this subchapter, a 
school district must apply to the commissioner in accordance with 
rules adopted by the commissioner before issuing bonds that will be 
paid with state assistance.  Until the bonds are fully paid or the 
instructional facility is sold:
		(1)  a school district is entitled to continue 
receiving state assistance without reapplying to the commissioner;  
and
		(2)  the guaranteed level of state and local funds per 
student per cent of tax effort applicable to the bonds may not be 
reduced below the level provided for the year in which the bonds 
were issued.

Added by Acts 1997, 75th Leg., ch. 592, § 1.04, eff. Sept. 1, 
1997.  Amended by Acts 1999, 76th Leg., ch. 396, § 1.24, eff. 
Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1156, § 6, eff. Sept. 1, 
2001.

Last modified: August 10, 2007