HB351 - Relating to an annual adjustment to the basic allotment under the Foundation School Program to reflect inflation.

      By: Goodwin H.B. No. 351       A BILL TO BE ENTITLED   AN ACT   relating to an annual adjustment to the basic allotment under the   Foundation School Program to reflect inflation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 48.051, Education Code, is amended by   amending Subsection (a) and adding Subsections (a-1), (a-2), and   (a-3) to read as follows:          (a)   Subject to adjustment under Subsection (a-1), for [ For ]   each student in average daily attendance, not including the time   students spend each day in special education programs in an   instructional arrangement other than mainstream or career and   technology education programs, for which an additional allotment is   made under Subchapter C, a district is entitled to an allotment   equal to the lesser of $7,160 [ $6,160 ] or the amount that results   from the following formula:   A = $7,160 [ $6,160 ] X TR/MCR   where:          "A" is the allotment to which a district is entitled;          "TR" is the district's tier one maintenance and operations   tax rate, as provided by Section 45.0032; and          "MCR" is the district's maximum compressed tax rate, as   determined under Section 48.2551.           (a-1)     Subject to Subsection (a-3), beginning with the   2026-2027 school year, the basic allotment provided to a district   under Subsection (a) or (b) is adjusted annually to increase the   allotment by the lesser of:                 (1)     three percent of the amount of the allotment for   the preceding school year; or                 (2)     the amount that results from applying the   inflation rate, as determined by the comptroller on the basis of   changes in the Consumer Price Index for All Urban Consumers   published by the Bureau of Labor Statistics of the United States   Department of Labor, to the allotment for the preceding school   year.           (a-2)     If the inflation rate for a school year is less than   zero, the inflation rate to be used for purposes of Subsection (a-1)   is zero.           (a-3)     The legislature in the General Appropriations Act may   provide for a lesser amount than the amount determined under   Subsection (a-1), provided that the amount is equal to or greater   than the amount provided under Subsection (a).          SECTION 2.  Section 48.202(a-1), Education Code, is amended   to read as follows:          (a-1)  For purposes of Subsection (a), the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") for a school district is:                (1)  the greater of the amount of district tax revenue   per weighted student per cent of tax effort available to a school   district at the 96th percentile of wealth per weighted student or   the amount that results from multiplying $7,160 [ 6,160 ], or the   greater amount provided under Section 48.051(a-1) or (b)   [ 48.051(b) ], if applicable, by 0.016, for the first eight cents by   which the district's maintenance and operations tax rate exceeds   the district's tier one tax rate; and                (2)  subject to Subsection (f), the amount that results   from multiplying $7,160 [ $6,160 ], or the greater amount provided   under Section 48.051(a-1) or (b) [ 48.051(b) ], if applicable, by   0.008, for the district's maintenance and operations tax effort   that exceeds the amount of tax effort described by Subdivision (1).          SECTION 3.  This Act takes effect September 1, 2025.