SB 478

relating to renaming the basic allotment under the Foundation
School Program to the initial allotment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 12.106(a-1), Education Code, is amended
(a-1)  In determining funding for an open-enrollment charter
school under Subsection (a), the amount of the allotment under
Section 48.102 is based solely on the initial [basic] allotment to
which the charter holder is entitled and does not include any amount
based on the allotment under Section 48.101.
SECTION 2.  Section 12.263(f), Education Code, is amended to
(f)  In addition to funding provided under Subsection (a), an
eligible entity granted a charter under this subchapter is entitled
to receive for the adult education program an annual allotment,
provided in accordance with a schedule established by commissioner
rule, equal to the maximum initial [basic] allotment under Section
48.051(a) or (b) multiplied by:
(1)  for each credit earned by a student enrolled in the
adult education program during the preceding school year:
(A)  0.01 for a course other than a career and
technology education course; and
(B)  0.02 for a career and technology education
(2)  0.1 for each student who successfully completed
the adult education program and earned a high school diploma during
SECTION 3.  Sections 21.402(a) and (b), Education Code, are
(a)  Except as provided by Subsection (e-1) or (f), a school
district must pay each classroom teacher, full-time librarian,
full-time school counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the initial [basic] allotment as provided by
Section 48.051(a) or (b) for a school district with a maintenance
and operations tax rate at least equal to the state maximum
compressed tax rate, as defined by Section 48.051(a).
(b)  Not later than June 1 of each year, the commissioner
shall determine the initial [basic] allotment and resulting monthly
salaries to be paid by school districts as provided by Subsection
SECTION 4.  Section 29.014(d), Education Code, is amended to
(d)  The initial [basic] allotment for a student enrolled in
a district to which this section applies is adjusted by the weight
for a homebound student under Section 48.102(a).
SECTION 5.  The heading to Section 48.051, Education Code,
Sec. 48.051.  INITIAL [BASIC] ALLOTMENT.
SECTION 6.  Section 48.051(c), Education Code, is amended to
(c)  During any school year for which the maximum amount of
the initial [basic] allotment provided under Subsection (a) or (b)
is greater than the maximum amount provided for the preceding
school year, a school district must use at least 30 percent of the
amount, if the amount is greater than zero, that equals the product
of the average daily attendance of the district multiplied by the
amount of the difference between the district's funding under this
chapter per student in average daily attendance for the current
school year and the preceding school year to provide compensation
increases to full-time district employees other than
(1)  75 percent must be used to increase the
compensation paid to classroom teachers, full-time librarians,
full-time school counselors certified under Subchapter B, Chapter
21, and full-time school nurses, prioritizing differentiated
compensation for classroom teachers with more than five years of
(2)  25 percent may be used as determined by the
district to increase compensation paid to full-time district
SECTION 7.  Sections 48.052(a) and (c), Education Code, are
(a)  Notwithstanding Section 48.051, a school district that
has fewer than 130 students in average daily attendance shall be
provided an initial [a basic] allotment on the basis of 130 students
in average daily attendance if it offers a kindergarten through
grade 12 program and has preceding or current year's average daily
attendance of at least 90 students or is 30 miles or more by bus
route from the nearest high school district.  A district offering a
kindergarten through grade 8 program whose preceding or current
year's average daily attendance was at least 50 students or which is
30 miles or more by bus route from the nearest high school district
shall be provided an initial [a basic] allotment on the basis of 75
students in average daily attendance. An average daily attendance
of 60 students shall be the basis of providing the initial [basic]
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year's average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
(c)  Notwithstanding Subsection (a) or Section 48.051, a
school district to which this subsection applies, as provided by
Subsection (b), that has fewer than 130 students in average daily
attendance shall be provided an initial [a basic] allotment on the
basis of 130 students in average daily attendance if it offers a
kindergarten through grade four program and has preceding or
current year's average daily attendance of at least 75 students or
is 30 miles or more by bus route from the nearest high school
SECTION 8.  Section 48.101, Education Code, is amended to
Sec. 48.101.  SMALL AND MID-SIZED DISTRICT ALLOTMENT.  (a)
Small and mid-sized districts are entitled to an annual allotment
in accordance with this section.  In this section:
(1)  "AA" is the district's annual allotment per
student in average daily attendance;
(2)  "ADA" is the number of students in average daily
attendance for which the district is entitled to an allotment under
(3)  "IA" ["BA"] is the initial [basic] allotment
determined under Section 48.051.
(b)  A school district that has fewer than 1,600 students in
average daily attendance is entitled to an annual allotment for
each student in average daily attendance based on the following
AA = ((1,600 - ADA) X .0004) X IA [BA]
(c)  A school district that offers a kindergarten through
grade 12 program and has less than 5,000 students in average daily
attendance is entitled to an annual allotment for each student in
average daily attendance based on the formula, of the following
formulas, that results in the greatest annual allotment:
(1)  the formula in Subsection (b), if the district is
(2)  AA = ((5,000 - ADA) X .000025) X IA [BA].
(d)  Instead of the allotment under Subsection (b) or (c)(1),
a school district that has fewer than 300 students in average daily
attendance and is the only school district located in and operating
in a county is entitled to an annual allotment for each student in
average daily attendance based on the following formula:
AA = ((1,600 - ADA) X .00047) X IA [BA]
SECTION 9.  Sections 48.102(a) and (j), Education Code, are
(a)  For each student in average daily attendance in a
special education program under Subchapter A, Chapter 29, in a
mainstream instructional arrangement, a school district is
entitled to an annual allotment equal to the initial [basic]
allotment, or, if applicable, the sum of the initial [basic]
allotment and the allotment under Section 48.101 to which the
district is entitled, multiplied by 1.15.  For each full-time
equivalent student in average daily attendance in a special
education program under Subchapter A, Chapter 29, in an
instructional arrangement other than a mainstream instructional
arrangement, a district is entitled to an annual allotment equal to
the initial [basic] allotment, or, if applicable, the sum of the
initial [basic] allotment and the allotment under Section 48.101 to
which the district is entitled, multiplied by a weight determined
according to instructional arrangement as follows:
Self-contained, mild and moderate,
Self-contained, severe, regular campus 3.0
Vocational adjustment class 2.3
(j)  A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the initial [basic] allotment, or, if applicable, the sum of the
initial [basic] allotment and the allotment under Section 48.101 to
which the district is entitled for each full-time equivalent
student in average daily attendance, multiplied by the amount
designated for the student's instructional arrangement under this
section, for each day the program is provided divided by the number
of days in the minimum school year.  The total amount of state
funding for extended year services under this section may not
exceed $10 million per year.  A school district may use funds
received under this section only in providing an extended year
SECTION 10.  Section 48.103(a), Education Code, is amended
(a)  Subject to Subsection (b), for each student that a
school district serves who has been identified as having dyslexia
or a related disorder, the district is entitled to an annual
allotment equal to the initial [basic] allotment multiplied by 0.1
or a greater amount provided by appropriation.
SECTION 11.  Sections 48.104(a), (b), (e), and (e-1),
Education Code, are amended to read as follows:
(a)  For each student who does not have a disability and
resides in a residential placement facility in a district in which
the student's parent or legal guardian does not reside, a district
is entitled to an annual allotment equal to the initial [basic]
allotment multiplied by 0.2 or, if the student is educationally
disadvantaged, 0.275.  For each full-time equivalent student who
is in a remedial and support program under Section 29.081 because
the student is pregnant, a district is entitled to an annual
allotment equal to the initial [basic] allotment multiplied by
(b)  For each student who is educationally disadvantaged and
resides in an economically disadvantaged census block group as
determined by the commissioner under Subsection (c), a district is
entitled to an annual allotment equal to the initial [basic]
allotment multiplied by the weight assigned to the student's census
block group under Subsection (d).
(e)  If insufficient data is available for any school year to
evaluate the level of economic disadvantage in a census block
group, a school district is entitled to an annual allotment equal to
the initial [basic] allotment multiplied by 0.225 for each student
who is educationally disadvantaged and resides in that census block
(e-1)  For each student who is a homeless child or youth as
defined by 42 U.S.C. Section 11434a, a school district is entitled
to an annual allotment equal to the initial [basic] allotment
multiplied by the highest weight provided under Subsection (d).
SECTION 12.  Section 48.1041(a), Education Code, is amended
(a)  The commissioner shall establish an advisory committee
to advise the agency in adopting rules for the compensatory
education allotment under Section 48.104, including:
(1)  rules establishing the economic criteria
described by Section 48.104(c)(5);
(2)  rules detailing the method to count students who
(A)  a dropout recovery school or program; or
(B)  a residential treatment facility;
(3)  methods for properly counting students who are
homeless within the meaning of "homeless children and youths" under
(4)  rules to determine the appropriate weight by which
to adjust the initial [basic] allotment in determining the
compensatory allotment for students described by Subdivision (3).
SECTION 13.  Section 48.105(a), Education Code, is amended
(a)  For each student in average daily attendance in a
bilingual education or special language program under Subchapter B,
Chapter 29, a district is entitled to an annual allotment equal to
the initial [basic] allotment multiplied by:
(1)  for an emergent bilingual student, as defined by
(B)  0.15 if the student is in a bilingual
education program using a dual language immersion/one-way or
(2)  for a student not described by Subdivision (1),
0.05 if the student is in a bilingual education program using a dual
language immersion/two-way program model.
SECTION 14.  Section 48.106(a), Education Code, is amended
(a)  For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades 7 through 12, a district is entitled to  an annual
allotment equal to the initial [basic] allotment, or, if
applicable, the sum of the initial [basic] allotment and the
allotment under Section 48.101 to which the district is entitled,
(1)  1.1 for a full-time equivalent student in career
and technology education courses not in an approved program of
(2)  1.28 for a full-time equivalent student in levels
one and two career and technology education courses in an approved
program of study, as identified by the agency; and
(3)  1.47 for a full-time equivalent student in levels
three and four career and technology education courses in an
approved program of study, as identified by the agency.
SECTION 15.  Section 48.107(a), Education Code, is amended
(a)  Except as provided by Subsection (b), for each student
in average daily attendance who is using a public education grant
under Subchapter G, Chapter 29, to attend school in a district other
than the district in which the student resides, the district in
which the student attends school is entitled to an annual allotment
equal to the initial [basic] allotment multiplied by a weight of
SECTION 16.  Section 48.108(a), Education Code, is amended
(a)  For each student in average daily attendance in
kindergarten through third grade, a school district is entitled to
an annual allotment equal to the initial [basic] allotment
multiplied by 0.1 if the student is:
(1)  educationally disadvantaged; or
(2)  an emergent bilingual student, as defined by
Section 29.052, and is in a bilingual education or special language
program under Subchapter B, Chapter 29.
SECTION 17.  Section 48.109(a), Education Code, is amended
(a)  For each identified student a school district serves in
a program for gifted and talented students that the district
certifies to the commissioner as complying with Subchapter D,
Chapter 29, a district is entitled to an annual allotment equal to
the initial [basic] allotment multiplied by 0.07 for each school
year or a greater amount provided by appropriation.
SECTION 18.  Section 48.111(a), Education Code, is amended
(a)  Except as provided by Subsection (c), a school district
is entitled to an annual allotment equal to the initial [basic]
allotment multiplied by the applicable weight under Subsection
(a-1) for each enrolled student equal to the difference, if the
difference is greater than zero, that results from subtracting 250
from the difference between the number of students enrolled in the
district during the school year immediately preceding the current
school year and the number of students enrolled in the district
during the school year six years preceding the current school year.
SECTION 19.  Section 48.115(a), Education Code, is amended
(a)  Except as provided by Subsection (a-1), a school
district is entitled to an annual allotment equal to the sum of the
following amounts or a greater amount provided by appropriation:
(1)  $10 for each student in average daily attendance,
plus $1 for each student in average daily attendance per every $50
by which the district's maximum initial [basic] allotment under
Section 48.051 exceeds $6,160, prorated as necessary; and
SECTION 20.  Section 48.118(a), Education Code, is amended
(a)  For each full-time equivalent student in average daily
attendance in grades 9 through 12 in a college or career pathway
offered through a partnership under the Rural Pathway Excellence
Partnership (R-PEP) program under Section 29.912, a school district
is entitled to an allotment equal to the initial [basic] allotment,
or, if applicable, the sum of the initial [basic] allotment and the
allotment under Section 48.101 to which the district is entitled,
(1)  1.15 if the student is educationally
(2)  1.11 if the student is not educationally
SECTION 21.  Section 48.202(a), Education Code, is amended
(a)  Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
48.203, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
"GYA" is the guaranteed yield amount of state funds to be
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C by the initial
[basic] allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 48.258 or by the quotient of the value of "DPV" as
determined under Section 48.256(d) if that subsection applies to
the district, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 48.258 or by the quotient of the value of
"DPV" as determined under Section 48.256(d) if that subsection
applies to the district, divided by 100.
SECTION 22.  Section 48.251(a), Education Code, is amended
(a)  The cost of the Foundation School Program for a school
(1)  the sum of the tier one allotments and other
(A)  the initial [basic] allotment under
(B)  the student-based allotments under
(C)  the additional funding under Subchapter D;
(2)  the tier two allotment under Subchapter E.
SECTION 23.  The heading to Section 48.2553, Education Code,
Sec. 48.2553.  PERMITTED TAX RATE FOR MAINTENANCE OF
2020-2021 SCHOOL YEAR INITIAL [BASIC] ALLOTMENT.
SECTION 24.  Sections 48.2553(a) and (b), Education Code,
are amended to read as follows:
(a)  Notwithstanding any other provision of this title or
Chapter 26, Tax Code, if the maximum amount of the initial [basic]
allotment provided under Section 48.051(a) or (b) for a school year
is less than the maximum amount provided for the 2020-2021 school
year, subject to Subsection (b), a school district may adopt a
maintenance and operations tax rate that exceeds the maximum
compressed tax rate permitted under Section 48.2551, provided that:
(1)  the rate adopted by the district was previously
approved by voters for a tax year subsequent to the 2005 tax year;
(2)  the rate may not exceed the lesser of:
(B)  the district's maximum compressed tax rate
and the additional tax rate necessary to generate the amount of
revenue equal to the difference in per student funding.
(b)  Before adopting a maintenance and operations tax rate
under Subsection (a), a school district must receive approval from
the agency.  To receive approval from the agency under this
subsection the district must submit the following information:
(1)  a statement detailing the loss of funding to the
district that resulted from the decline in the maximum amount of the
initial [basic] allotment provided under Section 48.051(a) or (b);
(2)  the proposed additional tax effort and the amount
of funding the proposed additional tax effort will generate;
(3)  evidence that the proposed additional tax effort
described by Subdivision (2) had been previously authorized by
voters subsequent to the 2005 tax year; and
(4)  any other information required by the
SECTION 25.  Section 317.005(f), Government Code, is amended
(f)  The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the foundation school program for a fiscal
year.  The governor or board may not adopt such an order if it would
result in an allocation of money between particular programs or
statutory allotments under the foundation school program contrary
to the statutory proration formula provided by Section 48.266(f),
Education Code.  The governor or board may transfer an amount to the
total amount appropriated to finance the foundation school program
for a fiscal year and may increase the initial [basic] allotment.
The governor or board may adjust allocations of amounts between
particular programs or statutory allotments under the foundation
school program only for the purpose of conforming the allocations
to actual pupil enrollments or attendance.
SECTION 26.  This Act takes effect September 1, 2025.