1. (a) Maximum revenue in the guaranteed yield program. The maximum equalized revenue available to a public school district in the 1999-2000 and 2000-2001 school years for the second tier of the funding system (guaranteed yield program) is a combination of state and local shares in accordance with the Texas Education Code (TEC), Chapter 42, Subchapter F. It is based on a maximum tax rate pursuant to TEC, §42.253(e-1), and paid on the basis of a guaranteed yield per penny of tax effort of $24.99 adjusted for costs in compensatory education funding formulas in accordance with TEC, §42.152(t).

   1. (1) The maximum tax rate is a rate that generates a maintenance and operations (M&O) revenue per weighted student (WADA) within the guaranteed yield program (TEC, §42.301 et seq.) at a guarantee level of $23.10 per penny of tax effort that enables a district to obtain the same level of M&O revenue as would have been available to a district under the provisions of TEC, Chapter 42, as it existed on May 31, 1999.

   2. (2) The M&O revenue that a district would have been able to obtain under TEC, Chapter 42, as it existed on May 31, 1999, is determined by summing a state aid component using the formula that appeared in TEC, §42.302, prior to the passage of Senate Bill 4, 76th Texas Legislature, 1999, and a local tax component.

      1. (A) The state aid component is determined by the following steps.

         1. (i) Determine net tax collections for the 1998-1999 school year by subtracting the local share of any instructional facilities allotment (IFA) from total taxes collected from September 1, 1998, to August 31, 1999.
         2. (ii) Calculate total tax effort by dividing net tax collections by the result of dividing the taxable value of property for the 1997 tax year as determined by the Comptroller of Public Accounts under Texas Government Code, §403.302, by 100.
         3. (iii) Determine tax effort above Tier 1 tax effort by subtracting the local fund assignment rate ($0.86) from the total tax effort.
         4. (iv) Calculate a Tier 2 state and local revenue amount using a formula that multiplies a guarantee level of $21 by the number of weighted students for the applicable school year, then by the tax effort above Tier 1 multiplied by 100. For this purpose, the tax effort above Tier 1 may not exceed the limit imposed by TEC, §42.302.
         5. (v) Calculate a local share of Tier 2 by multiplying the tax effort above Tier 1 by the taxable value of property for the 1998 tax year as determined by the Comptroller of Public Accounts under Texas Government Code, §403.302, divided by 100. For this purpose, the tax effort above Tier 1 may not exceed the limit imposed by TEC, §42.302.
         6. (vi) Calculate the state share of Tier 2 by subtracting the local share of Tier 2 from the Tier 2 state and local revenue amount. The result is the state aid component.
      2. (B) The local tax component is calculated by multiplying the tax effort above Tier 1, without any rate limitation, by the taxable value of property for the 1998 tax year as determined by the Comptroller of Public Accounts under Texas Government Code, §403.302, divided by 100, then subtracting any debt service tax collections that are not part of a local share for the IFA program. The resulting value may not be less than zero.
2. (b) Expiration date. This section expires on September 1, 2001.

Source Note:The provisions of this §105.1011 adopted to be effective November 7, 1999, 24 TexReg 9610.