1-1                                   AN ACT
 1-2     relating to public school finance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 21.402(c), Education Code, is amended to
 1-5     read as follows:
 1-6           (c)  The salary factors per step are as follows:
 1-7     Years Experience       0         1         2         3         4
 1-8     Salary Factor        .5656     .5790     .5924     .6058     .6340
 1-9                         [.5596]   [.5728]   [.5861]   [.5993]   [.6272]
1-10     Years Experience       5         6         7         8         9
1-11     Salary Factor        .6623     .6906     .7168     .7416     .7651
1-12                         [.6552]   [.6831]   [.7091]   [.7336]   [.7569]
1-13     Years Experience      10        11        12        13        14
1-14     Salary Factor        .7872     .8082     .8281     .8467     .8645
1-15                         [.7787]   [.7996]   [.8192]   [.8376]   [.8552]
1-16     Years Experience      15        16        17        18        19
1-17     Salary Factor        .8811     .8970     .9119     .9260     .9394
1-18                         [.8717]   [.8874]   [.9021]   [.9160]   [.9293]
1-19     Years Experience 20 and over
1-20     Salary Factor        .9520
1-21                         [.9418]
1-22           SECTION 2.  Subchapter A, Chapter 41, Education Code, is
1-23     amended by adding Section 41.0021 to read as follows:
1-24           Sec. 41.0021.  WEALTH PER STUDENT IN CERTAIN DISTRICTS NOT
 2-1     SERVING ALL GRADES. (a)  Notwithstanding Section 41.002, for the
 2-2     2001-2002, 2002-2003, and 2003-2004 school years, a school district
 2-3     that in the 1999-2000 school year did not offer each grade level
 2-4     from kindergarten through 12 may elect to have its wealth per
 2-5     student determined under this section.
 2-6           (b)  In accordance with a determination of the commissioner,
 2-7     the wealth per student that a school district to which this section
 2-8     applies may have after exercising an option under Section 41.003(2)
 2-9     or (3) is the amount needed to maintain state and local revenue in
2-10     an amount equal to state and local revenue per weighted student for
2-11     maintenance and operation of the district for the 1999-2000 school
2-12     year less the district's current year distribution per weighted
2-13     student from the available school fund, other than amounts
2-14     distributed under Chapter 31, if the district imposes an effective
2-15     tax rate for maintenance and operation of the district equal to the
2-16     district's tax rate for maintenance and operation for the 1999-2000
2-17     school year.  For purposes of this subsection, a district's
2-18     effective tax rate is determined as provided by Section 41.002(f).
2-19           (c)  The commissioner shall:
2-20                 (1)  compute the wealth per student levels under this
2-21     section using weighted average daily attendance as defined by
2-22     Section 42.302;
2-23                 (2)  notify each school district that is eligible to
2-24     have its wealth per student computed under this section; and
2-25                 (3)  establish a date by which a district must elect to
2-26     have its wealth per student computed under this section.
2-27           (d)  A school district that elects to have its wealth per
 3-1     student computed under this section:
 3-2                 (1)  is not entitled to state aid to achieve the
 3-3     funding levels permitted by Subsection (b);
 3-4                 (2)  is not subject to a limitation on tuition under
 3-5     Section 25.039;
 3-6                 (3)  is not eligible for credit for tuition payments
 3-7     under Section 41.124(b); and
 3-8                 (4)  is not eligible for an adjustment to the
 3-9     district's taxable value of property under Section 42.106.
3-10           (e)  This section expires September 1, 2004.
3-11           SECTION 3.  Section 42.005, Education Code, is amended by
3-12     amending Subsection (b) and adding Subsections (e) and (f) to read
3-13     as follows:
3-14           (b)  A school district that experiences a decline of two
3-15     percent or more in average daily attendance shall be funded on the
3-16     basis of:
3-17                 (1)  the actual average daily attendance of the
3-18     preceding school year, if the decline is the [as a] result of the
3-19     closing or reduction in personnel of a military base; or
3-20                 (2)  subject to Subsection (e), an average daily
3-21     attendance not to exceed 98 percent of the actual average daily
3-22     attendance of the preceding school year, if the decline is not the
3-23     result of the closing or reduction in personnel of a military base
3-24     [shall be funded on the basis of the actual average daily
3-25     attendance of the preceding school year].
3-26           (e)  For each school year, the commissioner shall adjust the
3-27     average daily attendance of school districts that are entitled to
 4-1     funding on the basis of an adjusted average daily attendance under
 4-2     Subsection (b)(2) so that:
 4-3                 (1)  all districts are funded on the basis of the same
 4-4     percentage of the preceding year's actual average daily attendance;
 4-5     and
 4-6                 (2)  the total cost to the state does not exceed the
 4-7     amount specifically appropriated for that year for purposes of
 4-8     Subsection (b)(2).
 4-9           (f)  An open-enrollment charter school is not entitled to
4-10     funding based on an adjustment under Subsection (b)(2).
4-11           SECTION 4. Section 42.152(b), Education Code, is amended to
4-12     read as follows:
4-13           (b)  For purposes of this section, the number of
4-14     educationally disadvantaged students is determined:
4-15                 (1)  by averaging the best six months' enrollment in
4-16     the national school lunch program of free or reduced-price lunches
4-17     for the preceding school year; or
4-18                 (2)  in the manner provided by commissioner rule, if no
4-19     campus in the district participated in the national school lunch
4-20     program of free or reduced-price lunches during the preceding
4-21     school year.
4-22           SECTION 5.  Subchapter E, Chapter 42, Education Code, is
4-23     amended by adding Section 42.2531 to read as follows:
4-24           Sec. 42.2531.  ADJUSTMENT BY COMMISSIONER. (a)  The
4-25     commissioner may make adjustments to amounts due to a school
4-26     district under this chapter or Chapter 46, or to amounts necessary
4-27     for a district to comply with the requirements of Chapter 41, as
 5-1     provided by this section.
 5-2           (b)  A school district that has a major taxpayer, as
 5-3     determined by the commissioner, that because of a protest of the
 5-4     valuation of the taxpayer's property fails to pay all or a portion
 5-5     of the ad valorem taxes due to the district may apply to the
 5-6     commissioner to have the district's taxable value of property or ad
 5-7     valorem tax collections adjusted for purposes of this chapter or
 5-8     Chapter 41 or 46.  The commissioner may make the adjustment only to
 5-9     the extent the commissioner determines that making the adjustment
5-10     will not:
5-11                 (1)  in the fiscal year in which the adjustment is
5-12     made, cause the amount to which school districts are entitled under
5-13     this chapter to exceed the amount appropriated for purposes of the
5-14     Foundation School Program for that year; and
5-15                 (2)  if the adjustment is made in the first year of a
5-16     state fiscal biennium, cause the amount to which school districts
5-17     are entitled under this chapter for the second year of the biennium
5-18     to exceed the amount appropriated for purposes of the Foundation
5-19     School Program for that year.
5-20           (c)  The commissioner shall recover the benefit of any
5-21     adjustment made under this section by making offsetting adjustments
5-22     in the school district's taxable value of property or ad valorem
5-23     tax collections for purposes of this chapter or Chapter 41 or 46 on
5-24     a final determination of the taxable value of property that was the
5-25     basis of the original adjustment, or in the second school year
5-26     following the year in which the adjustment is made, whichever is
5-27     earlier.
 6-1           (d)  This section does not require the commissioner to make
 6-2     any requested adjustment.  A determination by the commissioner
 6-3     under this section is final and may not be appealed.
 6-4           SECTION 6.  Section 46.003, Education Code, is amended by
 6-5     amending Subsections (a) and (d)-(g) and adding Subsection (h) to
 6-6     read as follows:
 6-7           (a)  For each year, except as provided by Sections 46.005 and
 6-8     46.006, a school district is guaranteed a specified amount per
 6-9     student in state and local funds for each cent of tax effort, up to
6-10     the maximum rate under Subsection (b), to pay the principal of and
6-11     interest on eligible bonds issued to construct, acquire, renovate,
6-12     or improve an instructional facility.  The amount of state support
6-13     is determined by the formula:
6-14              FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
6-15     where:
6-16           "FYA" is the guaranteed facilities yield amount of state
6-17     funds allocated to the district for the year;
6-18           "FYL" is the dollar amount guaranteed level of state and
6-19     local funds per student per cent of tax effort, which is $35 or a
6-20     greater amount for any year provided by appropriation;
6-21           "ADA" is the greater of the number of students in average
6-22     daily attendance, as determined under Section 42.005, in the
6-23     district or 400;
6-24           "BTR" is the district's bond tax rate for the current year,
6-25     which is determined by dividing the amount [of taxes] budgeted [to
6-26     be collected] by the district for payment of eligible bonds by the
6-27     quotient of the district's taxable value of property as determined
 7-1     under Subchapter M, Chapter 403, Government Code, or, if
 7-2     applicable, Section 42.2521, divided by 100; and
 7-3           "DPV" is the district's taxable value of property as
 7-4     determined under Subchapter M, Chapter 403, Government Code, or, if
 7-5     applicable, Section 42.2521.
 7-6           (d)  The amount budgeted by a district for payment of
 7-7     eligible bonds may include:
 7-8                 (1)  bond taxes collected in the current school year;
 7-9                 (2)  bond taxes collected in a preceding school year in
7-10     excess of the amount necessary to pay the district's share of
7-11     actual debt service on bonds in that year, provided that the taxes
7-12     were not used to generate other state financial assistance for the
7-13     district; or
7-14                 (3)  maintenance and operations taxes collected in the
7-15     current school year or a preceding school year in excess of the
7-16     amount eligible to be used to generate other state financial
7-17     assistance for the district.
7-18           (e)  Bonds are eligible to be paid with state and local funds
7-19     under this section if:
7-20                 (1)  taxes to pay the principal of and interest on the
7-21     bonds were first levied in the 1997-1998 school year or a later
7-22     school year; and
7-23                 (2)  the bonds do not have a weighted average maturity
7-24     of less than eight years.
7-25           (f) [(e)]  A district may use state funds received under this
7-26     section only to pay the principal of and interest on the bonds for
7-27     which the district received the funds.
 8-1           (g) [(f)]  The board of trustees and voters of a school
 8-2     district shall determine district needs concerning construction,
 8-3     acquisition, renovation, or improvement of instructional
 8-4     facilities.
 8-5           (h) [(g)]  To receive state assistance under this subchapter,
 8-6     a school district must apply to the commissioner in accordance with
 8-7     rules adopted by the commissioner before issuing bonds that will be
 8-8     paid with state assistance.  Until the bonds are fully paid or the
 8-9     instructional facility is sold:
8-10                 (1)  a school district is entitled to continue
8-11     receiving state assistance without reapplying to the commissioner;
8-12     and
8-13                 (2)  the guaranteed level of state and local funds per
8-14     student per cent of tax effort applicable to the bonds may not be
8-15     reduced below the level provided for the year in which the bonds
8-16     were issued.
8-17           SECTION 7.  Subchapter A, Chapter 46, Education Code, is
8-18     amended by adding Section 46.012 to read as follows:
8-19           Sec. 46.012.  MULTIPLE ALLOTMENTS PROHIBITED. A school
8-20     district is not entitled to state assistance under this subchapter
8-21     based on taxes with respect to which the district receives state
8-22     assistance under Subchapter F, Chapter 42.
8-23           SECTION 8.  Section 46.032, Education Code, is amended by
8-24     amending Subsection (a) and adding Subsection (c) to read as
8-25     follows:
8-26           (a)  Each school district is guaranteed a specified amount
8-27     per student in state and local funds for each cent of tax effort to
 9-1     pay the principal of and interest on eligible bonds.  The amount of
 9-2     state support, subject only to the maximum amount under Section
 9-3     46.034, is determined by the formula:
 9-4            EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
 9-5     where:
 9-6           "EDA" is the amount of state funds to be allocated to the
 9-7     district for assistance with existing debt;
 9-8           "EDGL" is the dollar amount guaranteed level of state and
 9-9     local funds per student per cent of tax effort, which is $35 or a
9-10     greater amount for any year provided by appropriation;
9-11           "ADA" is the number of students in average daily attendance,
9-12     as determined under Section 42.005, in the district;
9-13           "EDTR" is the existing debt tax rate of the district, which
9-14     is determined by dividing the amount [of taxes] budgeted [to be
9-15     collected] by the district for payment of eligible bonds by the
9-16     quotient of the district's taxable value of property as determined
9-17     under Subchapter M, Chapter 403, Government Code, or, if
9-18     applicable, under Section 42.2521, divided by 100; and
9-19           "DPV" is the district's taxable value of property as
9-20     determined under Subchapter M, Chapter 403, Government Code, or, if
9-21     applicable, under Section 42.2521.
9-22           (c)  The amount budgeted by a district for payment of
9-23     eligible bonds may include:
9-24                 (1)  bond taxes collected in the current school year;
9-25                 (2)  bond taxes collected in a preceding school year in
9-26     excess of the amount necessary to pay the district's share of
9-27     actual debt service on bonds in that year, provided that the taxes
 10-1    were not used to generate other state financial assistance for the
 10-2    district; or
 10-3                (3)  maintenance and operations taxes collected in the
 10-4    current school year or a preceding school year in excess of the
 10-5    amount eligible to be used to generate other state financial
 10-6    assistance for the district.
 10-7          SECTION 9.  Section 46.033, Education Code, is amended to
 10-8    read as follows:
 10-9          Sec. 46.033.  ELIGIBLE BONDS. Bonds, including bonds issued
10-10    under Section 45.006, are eligible to be paid with state and local
10-11    funds under this subchapter if:
10-12                (1)  the district made payments on the bonds during the
10-13    2000-2001 school year or taxes levied to pay the principal of and
10-14    interest on the bonds were included in the district's audited debt
10-15    service collections for that [the 1998-1999] school year; and
10-16                (2)  the district does not receive state assistance
10-17    under Subchapter A for payment of the principal and interest on the
10-18    bonds.
10-19          SECTION 10.  Sections 46.034(a) and (c), Education Code, are
10-20    amended to read as follows:
10-21          (a)  The existing debt tax rate ("EDTR") under Section 46.032
10-22    may not exceed $0.29 [$0.12] per $100 of valuation, or a greater
10-23    amount for any year provided by appropriation.
10-24          (c)  If the amount required to pay the principal of and
10-25    interest on eligible bonds in a school year is less than the amount
10-26    of payments made by the district on the bonds during the 2000-2001
10-27    school year or the district's audited debt service collections for
 11-1    that [the 1998-1999] school year, the district may not receive aid
 11-2    in excess of the amount that, when added to the district's local
 11-3    revenue for the school year, equals the amount required to pay the
 11-4    principal of and interest on the bonds.
 11-5          SECTION 11.  Subchapter B, Chapter 46, Education Code, is
 11-6    amended by adding Section 46.036 to read as follows:
 11-7          Sec. 46.036.  MULTIPLE ALLOTMENTS PROHIBITED. A school
 11-8    district is not entitled to state assistance under this subchapter
 11-9    based on taxes with respect to which the district receives state
11-10    assistance under Subchapter F, Chapter 42.
11-11          SECTION 12.  Sections 42.152(t) and 46.034(d), Education
11-12    Code, are repealed.
11-13          SECTION 13.  Section 46.003(d), Education Code, as amended by
11-14    this Act, and Section 46.032(c), Education Code, as added by this
11-15    Act, apply only to taxes collected by a school district in the
11-16    1999-2000 school year or a later school year.
11-17          SECTION 14.  (a)  Notwithstanding Section 46.034(a),
11-18    Education Code, as amended by this Act, for the 2002-2003 school
11-19    year, except as provided by this section, a school district may not
11-20    receive assistance under Subchapter B, Chapter 46, Education Code,
11-21    for an existing debt tax rate greater than $0.12 per $100 of
11-22    valuation.
11-23          (b)  As soon as practicable, the commissioner of education
11-24    shall determine whether funds are available from amounts
11-25    appropriated for purposes of the Foundation School Program for the
11-26    2001-2002 or 2002-2003 school year in excess of the amount of
11-27    payments required to be made under Chapters 42 and 46, Education
 12-1    Code.  In making a determination under this subsection, the
 12-2    commissioner may:
 12-3                (1)  notwithstanding Section 42.253(b), Education Code,
 12-4    reduce the entitlement under Chapters 42 and 46, Education Code, of
 12-5    a school district whose final taxable value of property is higher
 12-6    than the estimate under Section 42.254, Education Code; and
 12-7                (2)  make payments to school districts accordingly.
 12-8          (c)  For the 2001-2002 school year, to the extent excess
 12-9    funds are available under Subsection (b) of this section, and
12-10    notwithstanding Section 42.2522, Education Code, the commissioner
12-11    of education shall apply the funds in the following order:
12-12                (1)  subject to any limitations in S.B. No. 1, Acts of
12-13    the 77th Legislature, Regular Session, 2001, to adjusting the
12-14    taxable value of property of school districts that experience a
12-15    rapid decline in taxable value, as provided by Section 42.2521,
12-16    Education Code;
12-17                (2)  to funding school districts based on an adjustment
12-18    for an optional homestead exemption, as provided by Section
12-19    42.2522, Education Code; and
12-20                (3)  to funding school districts based on an adjustment
12-21    for ad valorem taxes subject to a protest of the valuation of a
12-22    major taxpayer's property, as provided by Section 42.2531,
12-23    Education Code, as added by this Act.
12-24          (d)  For the 2002-2003 school year, to the extent excess
12-25    funds are available under Subsection (b) of this section, and
12-26    notwithstanding Section 42.2522, Education Code, the commissioner
12-27    of education shall apply the funds in the following order:
 13-1                (1)  to authorizing additional assistance to school
 13-2    districts under Subchapter A, Chapter 46, Education Code, in an
 13-3    amount not to exceed $50 million;
 13-4                (2)  to increasing the limit on the existing debt tax
 13-5    rate under Subsection (a)  of this section to a rate not to exceed
 13-6    $0.29 per $100 of valuation;
 13-7                (3)  subject to any limitations in S.B. No. 1, Acts of
 13-8    the 77th Legislature, Regular Session, 2001, to adjusting the
 13-9    taxable value of property of school districts that experience a
13-10    rapid decline in taxable value, as provided by Section 42.2521,
13-11    Education Code;
13-12                (4)  to funding school districts based on an adjustment
13-13    for an optional homestead exemption, as provided by Section
13-14    42.2522, Education Code; and
13-15                (5)  to funding school districts based on an adjustment
13-16    for ad valorem taxes subject to a protest of the valuation of a
13-17    major taxpayer's property, as provided by Section 42.2531,
13-18    Education Code, as added by this Act.
13-19          (e)  The commissioner of education must provide full funding
13-20    for a priority listed in Subsection (c) or (d) of this section
13-21    before providing funding for the next lower priority.
13-22          (f)  A decision of the commissioner of education under this
13-23    section is final and may not be appealed.
13-24          SECTION 15. From funds appropriated to the Texas Education
13-25    Agency that may be used for the purpose, the commissioner of
13-26    education shall as necessary assist regional education service
13-27    centers in providing financial management or planning assistance to
 14-1    school districts and open-enrollment charter schools.
 14-2          SECTION 16. (a)  The Communities in Schools advisory
 14-3    committee is created.  The governor, lieutenant governor, and
 14-4    speaker of the house of representatives shall each appoint three
 14-5    members to the advisory committee.
 14-6          (b)  The advisory committee shall advise and provide guidance
 14-7    to programs operated under the auspices of the Communities in
 14-8    Schools.
 14-9          (c)  In accordance with Section 2110.004, Government Code,
14-10    reimbursement of the expenses of advisory committee members may be
14-11    paid from amounts appropriated in S.B. No. 1, Acts of the 77th
14-12    Legislature, Regular Session, 2001, to the Texas Education Agency
14-13    and the Department of Protective and Regulatory Services.
14-14          (d)  The Texas Education Agency and the Department of
14-15    Protective and Regulatory Services shall:
14-16                (1)  coordinate with the advisory committee;
14-17                (2)  share equally the cost of reimbursement of the
14-18    expenses of advisory committee members; and
14-19                (3)  each assign an employee to assist the advisory
14-20    committee in its duties and act as a liaison between the advisory
14-21    committee and the employee's employing agency.
14-22          SECTION 17. Notwithstanding Subsection (a)  of Rider 55 under
14-23    the appropriations to the Texas Education Agency in S.B. No. 1,
14-24    Acts of the 77th Legislature, Regular Session, 2001, the funds
14-25    allocated by that rider shall be allocated in the following manner:
14-26                (1)  The funds shall be distributed by the commissioner
14-27    of education for reading diagnostic instruments and on a
 15-1    competitive grant basis to be used by schools for the
 15-2    implementation of scientific, research-based reading and
 15-3    mathematics programs, the purchase of additional instructional or
 15-4    diagnostic materials, necessary materials for libraries,
 15-5    instructional staff, or related professional staff development for
 15-6    educators with the goal of as much direct intervention with
 15-7    students as possible. To be eligible for funding, schools must
 15-8    perform a diagnostic assessment for below-grade-level reading
 15-9    skills and submit a plan for parental involvement in the program.
15-10                (2)  The commissioner of education shall use not less
15-11    than $15 million of the funds allocated by Rider 55 to implement
15-12    scientific-based content development for training materials,
15-13    professional development institutes in mathematics and related
15-14    research, as provided by Sections 7.058, 21.454, 21.455, Education
15-15    Code, as added by H.B. No. 1144, Acts of the 77th Legislature,
15-16    Regular Session, 2001.
15-17                (3)  The commissioner of education may use a portion of
15-18    the funds allocated by Rider 55 to implement the master mathematics
15-19    teacher program as provided by Sections 21.0482 and 21.411,
15-20    Education Code, as added by H.B. No. 1144, Acts of the 77th
15-21    Legislature, Regular Session, 2001, and shall transfer funds to the
15-22    State Board for Educator Certification for creation of the master
15-23    mathematics teacher certification as provided by Section 21.0482,
15-24    Education Code, as added by H.B. No. 1144, Acts of the 77th
15-25    Legislature, Regular Session, 2001.
15-26          SECTION 18. Of the amounts appropriated in Article III, S.B.
15-27    No. 1, Acts of the 77th Legislature, Regular Session, 2001, to the
 16-1    Texas Education Agency under Strategy A.3.3.: Improving Educator
 16-2    Performance, the commissioner of education:
 16-3                (1)  shall allocate $8 million for the fiscal year
 16-4    ending August 31, 2002, and $12 million for the fiscal year ending
 16-5    August 31, 2003, for purposes of funding stipends for master
 16-6    reading and mathematics teachers as provided by Section 21.410,
 16-7    Education Code, and 21.411, Education Code, as added by H.B. No.
 16-8    1144, Acts of the 77th Legislature, Regular Session, 2001; and
 16-9                (2)  may transfer funds to the State Board for Educator
16-10    Certification for creation of the master mathematics teacher
16-11    certification as provided by Section 21.0482, Education Code, as
16-12    added by H.B. No. 1144, Acts of the 77th Legislature, Regular
16-13    Session, 2001.
16-14          SECTION 19. The Legislative Budget Board shall increase the
16-15    number of full-time-equivalent positions authorized for the Texas
16-16    Education Agency by S.B. No. 1, Acts of the 77th Legislature,
16-17    Regular Session, 2001, by two for the fiscal year ending August 31,
16-18    2003, for purposes of the mathematics initiative proposed by H.B.
16-19    No. 1144, Acts of the 77th Legislature, Regular Session, 2001.
16-20          SECTION 20.  A portion of the amounts appropriated in Article
16-21    III, S.B. No. 1, Acts of the 77th Legislature, Regular Session,
16-22    2001, to the Texas Education Agency is allocated as provided by
16-23    this section:
16-24                (1)  for the fiscal biennium ending August 31, 2003,
16-25    the amount allocated under Strategy A.2.1.:  FSP-Equalized
16-26    Operations is reduced by []$100 million, and the amount allocated
16-27    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
 17-1    that amount to assist school districts under the provisions of
 17-2    Subchapter A, Chapter 46, Education Code;
 17-3                (2)  for the fiscal biennium ending August 31, 2003,
 17-4    the amount allocated under Strategy A.2.1.:  FSP-Equalized
 17-5    Operations is reduced by []$205 million, and the amount allocated
 17-6    under Strategy A.2.2.:  FSP-Equalized Facilities is increased by
 17-7    that amount to assist school districts under the provisions of
 17-8    Subchapter B, Chapter 46, Education Code;
 17-9                (3)  for the fiscal biennium ending August 31, 2003,
17-10    the amount allocated under Strategy A.2.1.:  FSP-Equalized
17-11    Operations is reduced by $57 million,[] and the amount allocated
17-12    under Strategy B.1.2.:  Student Success is increased by that
17-13    amount;
17-14                (4)  for the fiscal biennium ending August 31, 2003,
17-15    the amount allocated under Strategy A.2.1.: FSP-Equalized
17-16    Operations is reduced by $30 million, and the amount allocated
17-17    under Strategy B.1.2.: Student Success is increased by that amount
17-18    for mathematics and reading programs; []
17-19                (5)  for the fiscal biennium ending August 31, 2003,
17-20    the amount allocated under Strategy A.2.1.: FSP-Equalized
17-21    Operations is reduced by $11 million, and the amount allocated to
17-22    the Texas Higher Education Coordinating Board under Strategy
17-23    C.1.18.:  Teach for Texas Conditional Grants is increased by that
17-24    amount for purposes of the Teach for Texas grant program under
17-25    Section 56.309, Education Code;
17-26                (6)  for the fiscal biennium ending August 31, 2003,
17-27    the amount allocated under Strategy A.2.1.:  FSP-Equalized
 18-1    Operations is reduced by $9 million, and:
 18-2                      (A)  an amount of $4 million is allocated to the
 18-3    Texas Higher Education Coordinating Board under Article III,
 18-4    Special Provisions, for purposes of the Joint Admission Medical
 18-5    Program under Subchapter V, Chapter 51, Education Code, as added by
 18-6    S.B. No. 940, Acts of the 77th Legislature, Regular Session, 2001;
 18-7    and
 18-8                      (B)  the amount allocated to the Texas Higher
 18-9    Education Coordinating Board under Strategy A.1.1.:  Information
18-10    and Planning is increased by $5 million for purposes of the Public
18-11    Awareness Campaign Promoting Higher Education under Section 61.951,
18-12    Education Code, as added by S.B. No. 573, Acts of the 77th
18-13    Legislature, Regular Session, 2001;
18-14                (7)  for the fiscal biennium ending August 31, 2003,
18-15    the amount allocated under Strategy A.2.1.:  FSP-Equalized
18-16    Operations is reduced by $2 million, and the amount allocated to
18-17    Strategy B.3.1., Regional Training and Development, is increased by
18-18    that amount and shall be allocated at the discretion of the
18-19    commissioner of education, for purposes including the provision of
18-20    assistance to The University of Texas at Austin for the Technology
18-21    Charter School; and
18-22                (8)  for the fiscal biennium ending August 31, 2003,
18-23    the amount allocated under Strategy A.2.1.:  FSP-Equalized
18-24    Operations is reduced by $300,000, and the amount allocated to
18-25    Strategy C.1.2., School Finance System Operations, is increased by
18-26    that amount to make changes to the Texas Education Agency's school
18-27    finance payment system as are necessary to efficiently implement
 19-1    the provisions of this legislation or H.B. No. 3343, Acts of the
 19-2    77th Legislature, Regular Session, 2001.
 19-3          SECTION 21.  Of the funds allocated by Rider 2 under the
 19-4    appropriations to the Texas Education Agency in S.B. No. 1, Acts of
 19-5    the 77th Legislature, Regular Session, 2001, not more than $22
 19-6    million may be used for the fiscal biennium ending August 31, 2003,
 19-7    for adjusting the attendance of school districts that experience a
 19-8    decline in average daily attendance, as provided by Section
 19-9    42.005(b)(2), Education Code, as added by this Act.
19-10          SECTION 22. For the fiscal biennium ending August 31, 2003,
19-11    the amount appropriated in Article III, S.B. No. 1, Acts of the
19-12    77th Legislature, Regular Session, 2001, to the Texas Education
19-13    Agency and allocated for Successful Schools Awards under Strategy
19-14    A.1.2.:  Accountability System is reduced by $2.5 million.
19-15          SECTION 23.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2879 was passed by the House on
         May 4, 2001, by a non-record vote; that the House refused to concur
         in Senate amendments to H.B. No. 2879 on May 22, 2001, and
         requested the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2879 on May 27, 2001, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2879 was passed by the Senate, with
         amendments, on May 18, 2001, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 2879 on May 27, 2001,
         by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor