Texas Education Code

Sec. § 48.257
Local Revenue Level in Excess of Entitlement

(a)

Subject to Subsection (b), if a school district’s tier one local share under Section 48.256 exceeds the district’s entitlement under Section 48.266 (Distribution of Foundation School Fund)(a)(1) less the district’s distribution from the state available school fund, the district must reduce the district’s tier one revenue level in accordance with Chapter 49 (Options for Local Revenue Levels in Excess of Entitlement) to a level not to exceed the district’s entitlement under Section 48.266 (Distribution of Foundation School Fund)(a)(1) less the district’s distribution from the state available school fund.

(b)

This subsection applies only to a school district to which Subsection (a) applies. If a district’s maintenance and operations tax collections from the tax rate described by Section 45.0032 (Components of Maintenance and Operations Tax)(a) for the current tax year minus the required reduction in a district’s tier one revenue level under Subsection (a) results in an amount that is less than the amount of the district’s entitlement under Section 48.266 (Distribution of Foundation School Fund)(a)(1) less the district’s distribution from the state available school fund, the agency shall adjust the amount of the reduction required in the district’s tier one revenue level under Subsection (a) up to the amount of local funds necessary for the district’s entitlement under Section 48.266 (Distribution of Foundation School Fund)(a)(1) less the district’s distribution from the state available school fund.

(c)

For purposes of Subsection (a), state aid to which a district is entitled under this chapter that is not described by Section 48.266 (Distribution of Foundation School Fund)(a)(1), (2), or (3) may offset the amount by which a district must reduce the district’s tier one revenue level under Subsection (a). Any amount of state aid used as an offset under this subsection shall reduce the amount of state aid to which the district is entitled.

(d)

Except as provided by Subsection (e), a school district is entitled to retain the total amount of the district’s tier two local share described by Section 48.266 (Distribution of Foundation School Fund)(a)(5)(A).

(e)

In any school year for which the amount of state funds appropriated specifically excludes the amount necessary to provide the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort under Section 48.202 (Tier Two Allotment)(a-1)(1), a district may only retain the amount of the district’s tier two local share described by Section 48.266 (Distribution of Foundation School Fund)(a)(5)(A) equal to the amount of revenue that would be generated based on the amount appropriated for the dollar amount guaranteed level of state and local funds.

(f)

If the amount of a school district’s tier two local share described by Section 48.266 (Distribution of Foundation School Fund)(a)(5)(B) to which a district is entitled exceeds the amount described by Section 48.202 (Tier Two Allotment)(a-1)(2), the district must reduce the district’s revenue in accordance with Chapter 49 (Options for Local Revenue Levels in Excess of Entitlement) to a level not to exceed the amount described by Section 48.202 (Tier Two Allotment) (a-1)(2).

(g)

For a district to which Section 45.003 (Bond and Tax Elections)(f) applies, revenue generated from any cents of maintenance and operations tax effort that exceeds the maximum rate permitted under Section 45.003 (Bond and Tax Elections)(d) is subject to the revenue limit established under Subsection (f).
Added by Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 1.041, eff. September 1, 2019.
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Jun. 7, 2021

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