TITLE 19.EDUCATION

Part 2. TEXAS EDUCATION AGENCY

Chapter 62. COMMISSIONER'S RULES CONCERNING THE EQUALIZED WEALTH LEVEL

19 TAC §62.1071

The Texas Education Agency (TEA) adopts an amendment to §62.1071, concerning the administration of wealth equalization, without changes to the proposed text as published in the February 13, 2004, issue of the Texas Register (29 TexReg 1285) and will not be republished. The section addresses wealth equalization provisions relating to identification, alternative calculation of wealth, actions and costs to equalize wealth, administrative requirements, noncompliance, excellence exemption, and property value decline. The adopted amendment changes the point at which the current year's distribution from the Available School Fund is applied to the revenues a district is allowed to obtain from its tax base.

Through 19 TAC §62.1071 the commissioner exercises rulemaking authority for implementation of TEC, Chapter 41, Equalized Wealth Level. School districts subject to the provisions of TEC, Chapter 41, have identified an alternate interpretation of statutory language regarding the wealth level to which certain school districts should be entitled. The alternate method changes the point at which the current year's distribution from the Available School Fund is applied to the revenues a district is allowed to obtain from its tax base. For districts with increases in population since 1992-1993, the amendment allows additional tax base to be retained. For those with declines in population over the same time period, there is a decrease in the tax base the districts are allowed to retain.

The adopted amendment to 19 TAC §62.1071 adds new subsection (d)(12) to clarify the calculation of the wealth level that applies to certain districts that had spending levels in 1992-1993 that cannot be maintained at a wealth level of $305,000 per weighted student. In particular, it clarifies the treatment of the per capita distribution in the calculation of the property wealth level to which such districts should have access.

No comments were received regarding adoption of the amendment.

The amendment is adopted under the Texas Education Code (TEC), §41.006, which authorizes the commissioner of education to adopt rules necessary for the implementation of TEC, Chapter 41, Equalized Wealth Level.

The amendment implements the Texas Education Code, §41.002 and §41.006.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 19, 2004.

TRD-200402566

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: May 9, 2004

Proposal publication date: February 13, 2004

For further information, please call: (512) 475-1497