1. (a) Gap funding is supplemental state assistance to school districts that do not achieve the same revenue benefit per weighted student as districts eligible for tier II funding due to formula changes enacted by the 77th Texas Legislature, 2001.

2. (b) Districts eligible for gap funding are:

   1. (1) those with wealth above the tier II guarantee level that applied in the 2000-2001 school year and below the equalized wealth level per weighted pupil; and
   2. (2) those subject to wealth equalization with a revenue gain from the increase to the equalized wealth level enacted by the 77th Texas Legislature, 2001, that is less than the revenue gain from the gap funding formula.
3. (c) The district tax rate (DTR) in the gap funding formula is the district's DTR determined in accordance with Texas Education Code (TEC), §42.302 and §42.303.
4. (d) Gap funds shall be distributed to eligible districts along with other state aid payments in accordance with their Foundation School Program payment class. For eligible districts that are subject to recapture, gap funds shall be used first to reduce any recapture amounts owed.
5. (e) This section, issued under TEC, §42.2513, expires September 1, 2003.

Source Note:The provisions of this §61.1013 adopted to be effective December 2, 2001, 26 TexReg 9618.