TITLE 19.EDUCATION

Part 2. TEXAS EDUCATION AGENCY

Chapter 61. SCHOOL DISTRICTS

Subchapter AA. COMMISSIONER'S RULES ON SCHOOL FINANCE

1. COUNTY EDUCATION DISTRICTS

19 TAC §61.1001

The Texas Education Agency (TEA) adopts the repeal of §61.1001, concerning county education districts (CEDs), without changes to the proposed text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9664) and will not be republished. The section establishes provisions relating to the management of the assets, liabilities, and records of the former CEDs. The adopted repeal reflects recent legislative changes relating to CEDs in accordance with Texas Tax Code, §33.09, amended by House Bill (HB) 195, 78th Texas Legislature, 2003.

County education districts (CEDs) were formed by legislative action in 1991 and subsequently abolished in 1993. CEDs levied and collected taxes during the 1991-1992 and 1992-1993 school years. The assets, liabilities, and records of the former CEDs were assigned to successors-in-interest, agents who were responsible for the collection and distribution of delinquent taxes and related penalties.

Through 19 TAC §61.1001, adopted to be effective September 1993, the commissioner exercised rulemaking authority over the management of the assets, liabilities, and records of the CEDs by the successors-in-interest. HB 195, 78th Texas Legislature, 2003, abolishes the successors-in-interest and consequently, the commissioner's authority for rulemaking. The adopted repeal of this rule implements this legislative change.

No comments were received regarding adoption of the repeal.

The repeal is adopted under the Texas Tax Code, §33.09, which abolishes the successors-in-interest and consequently, the commissioner's authority for rulemaking in this area.

The repeal implements the Texas Tax Code, §33.09.

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 February 2, 2004.

TRD-200400644

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: February 22, 2004

Proposal publication date: November 7, 2003

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


Subchapter AA. COMMISSIONER'S RULES ON SCHOOL FINANCE

19 TAC §61.1016

The Texas Education Agency (TEA) adopts new §61.1016, concerning school finance, with changes to the proposed text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9665). The new section specifies the delivery of funds to school districts specifically authorized in the General Appropriations Act, House Bill 1, Rider 82, 78th Texas Legislature, 2003. The rider further specifies that this rule is subject to prior approval by the Governor and the Legislative Budget Board.

The 78th Texas Legislature, 2003, authorized additional funding to school districts and charter schools in the amount of $110 per student in weighted average daily attendance. The rider directs the Texas Education Agency to adopt rules as necessary to carry out this provision.

Adopted new 19 TAC §61.1016 establishes general provisions, provides calculation instructions, describes payment and reconciliation processes, and explains adjustment computations relating to the delivery of the additional funding. This rule was developed in consultation with the Office of the Governor and the Legislative Budget Board.

In response to public comment, the following change was made to 19 TAC §61.1016 since published as proposed. Additional language was added to subsection (d) in order to clarify the computation of additional state aid to be received by districts that are not entitled to receive state aid from the Foundation School Fund in Tier 1.

The following comment was received regarding adoption of the new section.

Comment. An employee of the Region 13 Education Service Center noted that the proposed rule language did not clearly indicate how the computation of gain would affect the additional state aid for districts that have a change in the amount of local taxes recaptured under Texas Education Code, Chapter 41, that results from a change in the per capita allocation of the Available School Fund.

Agency response. The agency agrees with the comment and has added language to subsection (d) to clarify this computation.

The new section is adopted under the General Appropriations Act, House Bill 1, Rider 82, 78th Texas Legislature, 2003, which authorizes the Texas Education Agency to develop and promulgate rules as necessary to carry out the delivery of funds specifically authorized in Rider 82.

The new section implements the General Appropriations Act, House Bill 1, Rider 82, 78th Texas Legislature, 2003.

§61.1016.Delivery of Funds per House Bill 1, Rider 82, 2003.

(a) General provisions. For the 2003-2004 and 2004-2005 school years, each school district and open- enrollment charter school is entitled to an additional $110 per student in weighted average daily attendance as authorized by the General Appropriations Act, House Bill 1, Rider 82, 78th Texas Legislature, 2003. Only those school districts that are authorized to participate in the full range of Tier 1 allotments under Texas Education Code (TEC), Chapter 42, and open-enrollment charter schools established under TEC, Chapter 12, are eligible to receive this funding. A school district required to take an action under TEC, Chapter 41, is eligible to receive the $110 per student in weighted average daily attendance, subject to the adjustment in subsection (d) of this section.

(b) Calculation. The amount to which each eligible school district or open-enrollment charter school is entitled shall be based on the final weighted average daily attendance of those students actually educated by the entity for the respective school years. An estimate of the weighted average daily attendance shall be used for purposes of the initial calculation.

(c) Payment and reconciliation. Payment of the estimated amount shall be made in conjunction with other regularly scheduled state aid payments from the Foundation School Fund solely as an administrative convenience, and is not considered part of the general state aid calculation under the formulas for state aid in TEC, Chapters 42 or 46. Upon final determination of the amount earned for the 2003-2004 school year, the 2004-2005 amount shall be increased or reduced for any underpayment or overpayment from the preceding school year. Upon final determination of the amount earned for the 2004-2005 school year, and pending any future legislative action that would affect it, the 2005-2006 Foundation School Program entitlement for the school district or open-enrollment charter school shall be increased or reduced for the amount overpaid or underpaid for the 2004-2005 school year.

(d) Adjustment. For districts that are not entitled to state aid from the Foundation School Fund in Tier 1 as computed according to TEC, §42.253(c), the total amount of funding provided under Rider 82 is subject to reduction for the increase in the amount of funding received from the Available School Fund caused by the adoption of amendments to the Texas Constitution, Article VII, §5, at the election held September 13, 2003. The Texas Education Agency shall provide a computation of the additional revenue derived from the constitutional amendment to each affected district. The amount of the reduction shall be equal to the difference between the payment from the Available School Fund before and after the effects of the constitutional amendment, less any increase in recapture payment under TEC, §41.002(e), that may arise as a result of the increase in revenue from the Available School Fund. In no case shall the adjustment result in a payment for Rider 82 purposes higher than $110 per student in weighted average daily attendance.

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 February 2, 2004.

TRD-200400645

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: February 22, 2004

Proposal publication date: November 7, 2003

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


Chapter 153. SCHOOL DISTRICT PERSONNEL

Subchapter CC. COMMISSIONER'S RULES ON CREDITABLE YEARS OF SERVICE

19 TAC §153.1022

The Texas Education Agency (TEA) adopts an amendment to §153.1022, concerning the minimum salary schedule for certain professional staff, without changes to the proposed text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9667) and will not be republished. The section establishes definitions of qualifying staff, details eligibility criteria for placement on the salary schedule, and explains the base pay for the 1999-2000 biennium. The adopted amendment updates the rule to specify the components and calculation of the minimum monthly salary rates prescribed by Texas Education Code (TEC), §21.402.

The commissioner is authorized to adopt a minimum monthly salary schedule for certain professionals, including classroom teachers and full-time librarians, counselors, and nurses. The salary schedule is based on the employee's level of experience. In accordance with TEC, §21.402, enacted by Senate Bill 4, 76th Texas Legislature, 1999, 19 TAC §153.1022 was adopted to be effective January 2, 2000. The rule establishes definitions of qualifying staff, details eligibility criteria for placement on the salary schedule, and explains the base pay for the 1999-2000 biennium. Salaries are adjusted using a factor, defined as "FS" in TEC, §21.402(a), based on state assistance under TEC, §42.302.

The adopted amendment to 19 TAC §153.1022 specifies the components and calculation of "FS" and sets forth minimum monthly salary rates. The adopted amendment adds new subsection (c) establishing the determination of "FS" and new subsection (d) adding to rule a table that establishes the minimum monthly salary rates for the 2003-2004 and 2004-2005 school years.

The following comments were received regarding adoption of the proposed amendment.

Comment. The Texas Classroom Teachers Association (TCTA) stated that the proposed rule would illegally limit the state and local funds only to those provided under TEC, Chapter 42, Subchapters B, C, and F. TCTA further maintained that there is no statutory authority to limit the calculation of "FS" only to allotments under Chapter 42. TCTA argued that the funding increases of $110 per student in weighted average daily attendance (WADA) should be included in the calculation of the "FS" component of the salary schedule.

Comment. The Association of Texas Professional Educators (ATPE) stated that the additional $110 per WADA received by school districts should have been included in the calculation of the minimum salary schedule for 2003- 2004 and 2004-2005 school years because the 78th Texas Legislature, 2003, did not adopt a statutory exclusion of this money.

Agency response. The agency does not agree with these interpretations regarding the interaction between TEC, §21.402, and the funding provided by the General Appropriations Act, House Bill 1, Rider 82, 78th Texas Legislature. The language of TEC, §21.402, does not support a construction that includes the $110 per WADA in the calculation of the "FS" component that is used to calculate the minimum salary schedule. The "FS" in that calculation is defined as an amount to which a district is entitled at the maximum tax rate within the Tier 2 portion of the school finance system. In contrast, the $110 is delivered to all school districts outside of the school finance system, regardless of whether the district receives Tier 2 funding or the level of its tax effort. The $110 was provided only in Rider 82 and is not a permanent entitlement under the Foundation School Program in Chapter 42.

The amendment is adopted under the Texas Education Code, §21.402, which authorizes the commissioner of education to adopt rules to govern the application of the minimum salary schedule for certain professional staff.

The amendment implements the Texas Education Code, §21.402.

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 February 2, 2004.

TRD-200400646

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: February 22, 2004

Proposal publication date: November 7, 2003

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