Texas Education Code Title 2, Chapter 42 - Foundation School Program

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 42.001 - State Policy
  (a) It is the policy of this state that the provision of public education is a state responsibility and that a thorough and efficient system...
• Texas Section 42.002 - Purposes Of Foundation School Program
  (a) The purposes of the Foundation School Program set forth in this chapter are to guarantee that each school district in the state has: (1)...
• Texas Section 42.003 - Student Eligibility
  (a) A student is entitled to the benefits of the Foundation School Program if, on September 1 of the school year, the student: (1) is...
• Texas Section 42.004 - Administration Of The Program
  The commissioner, in accordance with the rules of the State Board of Education, shall take such action and require such reports consistent with this chapter...
• Texas Section 42.005 - Average Daily Attendance
  (a) In this chapter, average daily attendance is: (1) the quotient of the sum of attendance for each day of the minimum number of days...
• Texas Section 42.0051 - Average Daily Attendance For Districts In Disaster Area
  (a) From funds specifically appropriated for the purpose or other funds available to the commissioner for that purpose, the commissioner shall adjust the average daily...
• Texas Section 42.0052 - Off-campus Programs Approved For Purposes Of Average Daily Attendance
  (a) The commissioner may, based on criteria developed by the commissioner, approve instructional programs provided off campus by an entity other than a school district...
• Texas Section 42.006 - Public Education Information Management System (Peims)
  Sec. 42.006. PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM (PEIMS). (a) Each school district shall participate in the Public Education Information Management System (PEIMS) and shall provide...
• Texas Section 42.007 - Equalized Funding Elements
  (a) The Legislative Budget Board shall adopt rules, subject to appropriate notice and opportunity for public comment, for the calculation for each year of a...

SUBCHAPTER B BASIC ENTITLEMENT

• Texas Section 42.009 - Determination Of Funding Levels
  (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...
• Texas Section 42.101 - Basic Allotment
  (a) For each student in average daily attendance, not including the time students spend each day in special education programs in an instructional arrangement other...
• Texas Section 42.102 - Cost Of Education Adjustment
  (a) The basic allotment for each district is adjusted to reflect the geographic variation in known resource costs and costs of education due to factors...
• Texas Section 42.103 - Small And Mid-sized District Adjustment
  (a) The basic allotment for certain small and mid-sized districts is adjusted in accordance with this section. In this section: (1) "AA" is the district's...
• Texas Section 42.104 - Use Of Small Or Mid-sized District Adjustment In Calculating Special Allotments
  In determining the amount of a special allotment under Subchapter C for a district to which Section 42.103 applies, a district's adjusted basic allotment is...
• Texas Section 42.105 - Sparsity Adjustment
  (a) Notwithstanding Sections 42.101, 42.102, and 42.103, a school district that has fewer than 130 students in average daily attendance shall be provided an adjusted...

SUBCHAPTER C SPECIAL ALLOTMENTS

• Texas Section 42.106 - Tuition Allotment For Districts Not Offering All Grade Levels
  A school district that contracts for students residing in the district to be educated in another district under Section 25.039(a) is entitled to receive an...
• Texas Section 42.151 - Special Education
  (a) For each student in average daily attendance in a special education program under Subchapter A, Chapter 29, in a mainstream instructional arrangement, a school...
• Texas Section 42.152 - Compensatory Education Allotment
  (a) For each student who is educationally disadvantaged or who is a student who does not have a disability and resides in a residential placement...
• Texas Section 42.153 - Bilingual Education Allotment
  (a) For each student in average daily attendance in a bilingual education or special language program under Subchapter B, Chapter 29, a district is entitled...
• Texas Section 42.154 - Career And Technology Education Allotment
  (a) For each full-time equivalent student in average daily attendance in an approved career and technology education program in grades nine through 12 or in...
• Texas Section 42.1541 - Indirect Cost Allotments
  (a) The State Board of Education shall by rule increase the indirect cost allotments established under Sections 42.151(h), 42.152(c), 42.153(b), and 42.154(a-1) and (c) and...
• Texas Section 42.155 - Transportation Allotment
  (a) Each district or county operating a transportation system is entitled to allotments for transportation costs as provided by this section. (b) As used in...
• Texas Section 42.156 - Gifted And Talented Student Allotment
  (a) For each identified student a school district serves in a program for gifted and talented students that the district certifies to the commissioner as...
• Texas Section 42.157 - Public Education Grant Allotment
  (a) Except as provided by Subsection (b), for each student in average daily attendance who is using a public education grant under Subchapter G, Chapter...
• Texas Section 42.158 - New Instructional Facility Allotment
  (a) A school district is entitled to an additional allotment as provided by this section for operational expenses associated with opening a new instructional facility....

SUBCHAPTER E FINANCING THE PROGRAM

• Texas Section 42.160 - High School Allotment
  (a) A school district is entitled to an annual allotment of $275 for each student in average daily attendance in grades 9 through 12 in...
• Texas Section 42.251 - Financing; General Rule
  Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of the basic allotment under Subchapter B and the special allotments under Subchapter C, computed in accordance...
• Texas Section 42.2513 - Additional State Aid For Staff Salary Increases
  (a) A school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an...
• Texas Section 42.2514 - Additional State Aid For Tax Increment Financing Payments
  For each school year, a school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state...
• Texas Section 42.2515 - Additional State Aid For Ad Valorem Tax Credits Under Texas Economic Development Act
  (a) For each school year, a school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to...
• Texas Section 42.2516 - Additional State Aid For Tax Reduction
  Sec. 42.2516. ADDITIONAL STATE AID FOR TAX REDUCTION. (a) In this title, "state compression percentage" means the percentage of a school district's adopted maintenance and...
• Texas Section 42.2516 - State Compression Percentage
  (a) In this title, "state compression percentage" means the percentage of a school district's adopted maintenance and operations tax rate for the 2005 tax year...
• Texas Section 42.25161 - Additional State Aid For South Texas Independent School District
  (a) The commissioner shall provide South Texas Independent School District with the amount of state aid necessary to ensure that the district receives an amount...
• Texas Section 42.2517 - Excess Funds For Cost Of Education Adjustment
  (a) If the commissioner determines that the amount appropriated for purposes of the Foundation School Program exceeds the amount to which school districts are entitled...
• Texas Section 42.2518 - Additional State Aid For Homestead Exemption And Limitation On Tax Increases
  (a) For the 2015-2016 and 2016-2017 school years, a school district is entitled to additional state aid to the extent that state and local revenue...
• Texas Section 42.2518 - Additional State Aid For Homestead Exemption And Limitation On Tax Increases
  (a) Beginning with the 2017-2018 school year, a school district is entitled to additional state aid to the extent that state and local revenue under...
• Texas Section 42.252 - Local Share Of Program Cost (Tier One)
  Sec. 42.252. LOCAL SHARE OF PROGRAM COST (TIER ONE). (a) Each school district's share of the Foundation School Program is determined by the following formula:...
• Texas Section 42.2521 - Adjustment For Rapid Decline In Taxable Value Of Property
  (a) For purposes of Chapters 41 and 46 and this chapter, and to the extent money specifically authorized to be used under this section is...
• Texas Section 42.2522 - Adjustment For Optional Homestead Exemption
  (a) In any school year, the commissioner may not provide funding under this chapter based on a school district's taxable value of property computed in...
• Texas Section 42.2523 - Adjustment For Property Value Affected By State Of Disaster
  (a) For purposes of Chapters 41 and 46 and this chapter, the commissioner shall adjust the taxable value of property of a school district all...
• Texas Section 42.2524 - Reimbursement For Disaster Remediation Costs
  (a) This section applies only to a school district all or part of which is located in an area declared a disaster area by the...
• Texas Section 42.2525 - Adjustments For Certain Districts Receiving Federal Impact Aid
  The commissioner is granted the authority to ensure that school districts receiving federal impact aid due to the presence of a military installation or significant...
• Texas Section 42.2526 - Adjustment For District Operating Pilot Program
  (a) This section applies only to a school district operating a pilot program authorized by Section 28.0255. (b) Beginning with the first school year that...
• Texas Section 42.2527 - Adjustment For Certain Districts With Early High School Graduation Programs
  (a) As a pilot program to enable the state to evaluate the benefit of providing additional funding at the prekindergarten level for low-income students, the...
• Texas Section 42.2528 - Excess Funds For Video Surveillance Of Special Education Settings
  (a) Notwithstanding any other provision of law, if the commissioner determines that the amount appropriated for the purposes of the Foundation School Program exceeds the...
• Texas Section 42.253 - Distribution Of Foundation School Fund
  (a) For each school year the commissioner shall determine: (1) the amount of money to which a school district is entitled under Subchapters B and...
• Texas Section 42.2531 - Adjustment By Commissioner
  (a) The commissioner may make adjustments to amounts due to a school district under this chapter or Chapter 46, or to amounts necessary for a...
• Texas Section 42.254 - Estimates Required
  (a) Not later than October 1 of each even-numbered year: (1) the agency shall submit to the legislature an estimate of the tax rate and...
• Texas Section 42.255 - Falsification Of Records; Report
  When, in the opinion of the agency's director of school audits, audits or reviews of accounting, enrollment, or other records of a school district reveal...
• Texas Section 42.257 - Effect Of Appraisal Appeal
  (a) If the final determination of an appeal under Chapter 42, Tax Code, results in a reduction in the taxable value of property that exceeds...
• Texas Section 42.258 - Recovery Of Overallocated Funds
  (a) If a school district has received an overallocation of state funds, the agency shall, by withholding from subsequent allocations of state funds for the...
• Texas Section 42.259 - Foundation School Fund Transfers
  (a) In this section: (1) "Category 1 school district" means a school district having a wealth per student of less than one-half of the statewide...
• Texas Section 42.2591 - Foundation School Fund Transfers To Certain Charter Schools
  (a) On the request of an open-enrollment charter school, the commissioner shall compare the student enrollment of the open-enrollment charter school for the current school...
• Texas Section 42.260 - Use Of Certain Funds
  (a) In this section, "participating charter school" means an open-enrollment charter school that participates in the uniform group coverage program established under Chapter 1579, Insurance...
• Texas Section 42.261 - Certain Funds Appropriated For Purpose Of Tax Reduction
  (a) Funds appropriated by the legislature for a tax year for the purpose of reducing a school district's maintenance and operations tax rate and providing...

SUBCHAPTER F GUARANTEED YIELD PROGRAM

• Texas Section 42.262 - Tax Rate Conversion Fund
  (a) Each fiscal year, the commissioner shall identify amounts appropriated in the General Appropriations Act from the Foundation School Fund, to be deposited in the...
• Texas Section 42.301 - Purpose
  The purpose of the guaranteed yield component of the Foundation School Program is to provide each school district with the opportunity to provide the basic...
• Texas Section 42.302 - Allotment
  (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...
• Texas Section 42.303 - Limitation On Enrichment Tax Rate
  The district enrichment tax rate ("DTR") under Section 42.302 may not exceed the amount per $100 of valuation by which the maximum rate permitted under...

SUBCHAPTER G SCHOOL FACILITIES INVENTORY AND STANDARDS

• Texas Section 42.304 - Computation Of Aid For District On Military Reservation Or At State School
  State assistance under this subchapter for a school district located on a federal military installation or at Moody State School is computed using the average...
• Texas Section 42.352 - Standards
  The State Board of Education shall establish standards for adequacy of school facilities. The standards shall include requirements related to space, educational adequacy, and construction...
• Texas Section 42.4101 - Additional Assistance For Districts With Students Using Public Education Grants
  (a) A district is entitled to additional assistance under this section as provided by Section 29.203(c). (b) The amount of additional assistance under this section...

Last modified: September 28, 2016