1. (a) Under Texas Education Code (TEC), §44.004, school districts shall publish a notice of budget and tax rate meeting that identifies effects attributed to school finance provisions in Senate Bill 4, 76th Texas Legislature, 1999. The commissioner of education is authorized under TEC, §44.004, to define calculations and amend language concerning teacher salary increases in the notice.

2. (b) For purposes of this section, the following terms shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Comptroller's Taxable Value for 1998 - Final tax year 1998 taxable value for school funding purposes certified by the Comptroller of Public Accounts as provided in Texas Government Code, §403.302.
   2. (2) Local Yield - Result of dividing the "Comptroller's Taxable Value for 1998" by the number of weighted students in average daily attendance for the 1999-2000 school year, and then dividing the result by 10,000.
   3. (3) Cost of the Teacher Pay Increase Adopted by the 76th Legislature - Product of $3,000 multiplied by the number of qualified classroom teachers, full-time librarians, full-time nurses, and full-time counselors to be employed by the district in the 1999-2000 school year.
   4. (4) Tier 1 - Allotments described in TEC, Chapter 42, Subchapters B and C.
   5. (5) Tier 2 - Guaranteed Yield Program defined in TEC, Chapter 42, Subchapter F.
   6. (6) Summary of Finances - Documents of the same name provided by the Texas Education Agency (TEA) to each school district as estimates of state aid to be earned under the Foundation School Program for a given school year.

3. (c) School districts shall use the following calculations required under TEC, §44.004, to derive the amounts that appear on the "Notice of Public Meeting to Discuss Budget and Proposed Tax Rate" form.

   1. (1) "Less State-Funded Tax Relief" in the column labeled "Maintenance & Operations" shall be calculated by subtracting the rate determined in the Comptroller's Truth-in-Taxation 1999 Rollback Tax Rate Worksheet on line 30, "1999 Calculated Maintenance and Operations Rate," from the rate shown in the same column on the line labeled "Last Year's Rate."
   2. (2) "Last Year's Rate Adjusted for Tax Relief" in the column labeled "Maintenance & Operations" shall be computed as the sum of the values in the same column that appear on the rows labeled "Last Year's Rate" and "Less State-Funded Tax Relief."
   3. (3) "Less State-Funded Tax Relief" in the column labeled "Interest & Sinking Fund*" shall be calculated by dividing the expected state aid for 1999-2000 for debt service under TEC, Chapter 46, Subchapter B (Existing Debt Allotment), by the same collection rate used on line 26 of the form entitled "Texas Education Agency Worksheet to Assist Districts in Calculating the Rollback Tax Rate," then dividing the result by the value on line 29 of the Comptroller's Truth-in-Taxation 1999 Rollback Tax Rate Worksheet, then multiply the result by 100.
   4. (4) "Last Year's Rate Adjusted for Tax Relief" in the column labeled "Interest & Sinking Fund*" shall be computed as the sum of the values in the same column that appear on the rows labeled "Last Year's Rate" and "Less State-Funded Tax Relief."
   5. (5) "Less State-Funded Tax Relief" in the column labeled "Total" shall be computed as the sum of the values on the same row in the columns labeled "Maintenance & Operations" and "Interest & Sinking Fund*."
   6. (6) "Last Year's Rate Adjusted for Tax Relief" in the column labeled "Total" shall be computed as the sum of the values on the same row in the columns labeled "Maintenance & Operations" and "Interest & Sinking Fund*."

4. (d) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "Maintenance & Operations" shall be computed for a school district that is not required to exercise an option under TEC, Chapter 41, in the 1999-2000 school year and is eligible to receive state aid that exceeds the per capita payment from the Available School Fund by completing each of the following steps in sequence.

   1. (1) Step 1. Divide the sum of state aid earned under TEC, §42.253, for the 1998-1999 school year and local maintenance and operations taxes collected between September 1, 1998, and August 31, 1999, by the number of students in average daily attendance for the 1998-1999 school year. For the purpose of determining state aid, districts shall use either the data provided on the most current "Summary of Finances" provided by the TEA for the 1998-1999 school year or as computed using a TEA-provided spreadsheet template or manually completed worksheet for the 1998-1999 school year using best data available to the district for tax collections and attendance.
   2. (2) Step 2. Multiply the result from Step 1 by the number of students in average daily attendance projected for the 1999-2000 school year, then add the cost of the teacher pay increase adopted by the 76th Texas Legislature, 1999.
   3. (3) Step 3. Subtract the total of all allotments under Tier 1 from the result of Step 2. For this purpose, the total of all allotments under Tier 1 shall be taken from the "Summary of Finances" provided by the TEA for the 1999-2000 school year or as computed using a TEA-provided spreadsheet template or manually completed worksheet for the 1999-2000 school year using best data available to the district for estimated tax collections and student attendance.
   4. (4) Step 4. Divide the result of Step 3 by the number of weighted students in average daily attendance projected for the 1999-2000 school year, then divide by 100, then divide by the greater of $24.70 or the local yield as defined in subsection (b)(2) of this section. For this purpose, the number of weighted students in average daily attendance must be derived from the most current "Summary of Finances" provided by the TEA for the 1999-2000 school year or as computed using a TEA- provided spreadsheet template or manually completed worksheet for the 1999-2000 school year using best data available to the district for tax collections and attendance. The same attendance data must be used in the calculation of Step 2 and the calculation of weighted students for Step 4.
   5. (5) Step 5. Multiply the number of weighted students in average daily attendance for 1999-2000 by the greater of $24.70 or the local yield, then by the lesser of 64 (representing $.64 of tax effort as a whole number of pennies) or the result from Step 4.
   6. (6) Step 6. Multiply the Comptroller's Taxable Value for 1998 by the lesser of $.64 or the result from Step 4, then dividing the product by 10,000.
   7. (7) Step 7. Subtract the result from Step 6 from the result from Step 5.
   8. (8) Step 8. Subtract the result from Step 7 from the result from Step 3.
   9. (9) Step 9. Add the result from Step 8 to the product of.0086 multiplied by the Comptroller's Taxable Value for 1998.
   10. (10) Step 10. Divide the result from Step 9 by the "M&O Collection Rate" as used on line 29 of the "Texas Education Agency Worksheet to Assist Districts in Calculating the Rollback Tax Rate 1999-2000 School Year," then divide the result by the 1999 adjusted taxable value as shown on line 29 of the "Comptroller's Truth-in-Taxation 1999 Rollback Tax Rate Worksheet."

5. (e) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "Maintenance & Operations" shall be computed for a school district that is required to exercise an option under TEC, Chapter 41, in the 1999-2000 school year or is not eligible to receive state aid that exceeds the per capita payment from the Available School Fund by completing each of the following steps in sequence.

   1. (1) Step 1. Divide the sum of state aid earned under TEC, §42.253, for the 1998-1999 school year and local maintenance and operations taxes collected between September 1, 1998, and August 31, 1999, by the number of students in average daily attendance for the 1998-1999 school year. For the purpose of determining state aid, districts shall use either the data provided on the most current "Summary of Finances" provided by the TEA for the 1998-1999 school year or as computed using a TEA-provided spreadsheet template or manually completed worksheet for the 1998-1999 school year using best data available to the district for tax collections and attendance. A district required to exercise an option under TEC, Chapter 41, in 1998-1999 shall add to the actual attendance of the district the attendance paid for through its options by converting weighted average daily attendance (WADA) purchased to unweighted average daily attendance (ADA) using the relationship between weighted and unweighted students for the population actually educated by the district.
   2. (2) Step 2. Multiply the result from Step 1 by the number of students in average daily attendance projected for the 1999-2000 school year, then add the cost of the teacher pay increase adopted by the 76th Texas Legislature, 1999. A district required to exercise an option under TEC, Chapter 41, in 1999-2000 shall add to the actual attendance of the district the attendance paid for through its options by converting weighted average daily attendance (WADA) purchased to unweighted average daily attendance (ADA) using the relationship between weighted and unweighted students for the population actually educated by the district.
   3. (3) Step 3. Subtract the amount to be received from the per capita distribution of the Available School Fund in 1999-2000 from the result of Step 2, then add the cost of the teacher pay increase. For the purpose of determining the per capita amount, districts shall use the most current "Summary of Finances" provided by the TEA for the 1999-2000 school year or as computed using a TEA- provided spreadsheet template or manually completed worksheet for the 1999-2000 school year using best data available to the district for tax collections and attendance.
   4. (4) Step 4. Divide the result of Step 3 by the "M&O Collection Rate" as used on line 18 of the "Texas Education Agency Worksheet to Assist Districts in Calculating the Rollback Tax Rate 1999-2000 School Year," then divide the result by the 1999 adjusted taxable value as shown on line 29 of the "Comptroller's Truth-in-Taxation 1999 Rollback Tax Rate Worksheet."
6. (f) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "Interest & Sinking Fund" shall be calculated by dividing the expected debt service payments from the interest and sinking fund for 1999-2000, less any state aid for debt service under TEC, Chapter 46, Subchapter A (Instructional Facilities Allotment) and Subchapter B (Existing Debt Allotment), for those debts, by the same collection rate used on line 35 of the "Comptroller's Truth-in-Taxation 1999 Rollback Tax Rate Worksheet," then dividing the result by the value on line 29 of the "Comptroller's Truth-in- Taxation 1999 Rollback Tax Rate Worksheet," then multiply the result by 100.
7. (g) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "Total" shall be the sum of the rates entered on the same row in the columns labeled "Maintenance & Operations" and "Interest & Sinking Fund."
8. (h) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "Local Revenue Per Student" shall be calculated as the sum of all expected local tax collections at the rates shown in the columns "Maintenance & Operations" and "Interest & Sinking Fund*," divided by the projected number of students in average daily attendance for the 1999-2000 school year.
9. (i) "Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service" in the column labeled "State Revenue Per Student" shall be calculated as the sum of all expected state aid under TEC, Chapters 42, 43, or 46, for the 1999-2000 school year as determined based on the local tax collections expected at the tax rates shown in the columns "Maintenance & Operations" and "Interest & Sinking Fund*" on the same line, divided by the projected number of students in average daily attendance for the 1999-2000 school year. School districts should compute the state aid amount by using the templates or worksheets provided by the TEA for the purpose of computing state aid at a given level of tax effort.
10. (j) The statement described in TEC, §44.004(c-2), as amended by House Bill 2075, 76th Texas Legislature, 1999, shall be modified to read, "The Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service includes revenue available to the district in the 1999-2000 school year for the pay raise for classroom teachers, full-time librarians, full-time counselors, and full-time school nurses enacted by the 76th Legislature. The estimated cost of the pay raise for the 1999-2000 school year is (to be completed by district)." Each district shall supply the appropriate amount to reflect $3000 multiplied by the number of eligible staff.
11. (k) This section, issued under the Texas Education Code, §44.004, as adopted by the 76th Texas Legislature, 1999, shall expire May 1, 2000.

Source Note:The provisions of this §61.1013 adopted to be effective December 5, 1999, 24 TexReg 10527.