HBA-SEB H.B. 3558 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3558 By: Hochberg Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE H.B. 3558 requires the commissioner of education to withhold, coordinate, and distribute funds from compensatory allotments for certain school programs. Those programs include the foundation school program, life skills program for student parents, school counselor and counseling programs, and gifted and talented student programs. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 42, Education Code, by adding Section 42.158, as follows: Sec. 42.158. REDUCTION IN ALLOTMENTS. (a) Requires the commissioner of education (commissioner) to reduce allotments as directed by this section or by appropriation for the purpose of funding specific programs. Prohibits a reduction in allotments from reducing the computation of weighted students for purposes of Subchapter F (Guaranteed Yield Program), but requires the reduction to reduce the computation of weighted students for purposes of Chapter 41 (Equalized Wealth Level) to the extent necessary to implement this section. (b) Requires the commissioner to transfer the amount of receipts appropriated to the foundation school program to the program for which a reduction in allotments is authorized. (c) Authorizes the commissioner to retain a portion of the total amount allotted under Section 42.152 (Compensatory Education Allotment) that the commissioner considers appropriate to finance intensive accelerated instruction programs and study guides. (d) Requires the commissioner to withhold a specific amount, but not less than $10 million, from the total amount of funds appropriated for allotments each fiscal year and to distribute that amount under Section 29.085 (Life Skills Program for Student Parents). Requires the commissioner to give preference to a school district that received funds for a program under that section for the preceding school year. Requires that program to be only in school districts in which the program is financed by funds distributed under the compensatory education allotment and any other funds available for the program. (e) Requires the commissioner to coordinate the withheld funds and any other funds available for the program and to distribute those funds. Provides that a school district must apply to the commissioner to receive funds for the program. Requires the commissioner to give preference to districts that have the highest concentration of students who are pregnant or who are parents. (f) Requires the commissioner to withhold $7.5 million or a greater amount from the total amount of funds appropriated for compensatory allotments each fiscal year and to distribute that amount for programs under Subchapter A, Chapter 33 (School Counselors and Counseling Programs). Requires such a program to be only in school districts in which the program is financed by funds distributed under Section 42.152 or other funds distributed by the commissioner for a program under Subchapter A, Chapter 33. Requires the commissioner to give preference to a school district that received funds for a program under this subsection for the preceding school year. (g) Requires the commissioner to coordinate and distribute the withheld funds and any other funds available for the program. Provides that a school district must apply to the commissioner to receive funds for the program. Requires the commissioner to give preference to the districts that apply that have the highest concentration of at-risk students. Requires a school district to allocate an amount of local funds for school guidance and counseling programs that is equal to or greater than the amount of the local funds that the school district allocated for that purpose during the preceding school year if the school district receives funds for compensatory allotments. (h) Requires the commissioner to withhold $2.5 million from the total amount of funds appropriated for compensatory allotments each fiscal year for transfer to the investment capital fund. (i) Authorizes the commissioner to withhold an amount not exceeding $1 million from the total amount of funds appropriated for compensatory allotments each fiscal year. Authorizes the commissioner to distribute the withheld funds to school districts that incur unanticipated expenditures resulting from a significant increase in the enrollment of students who do not have disabilities and who reside in residential placement facilitites. (j) Requires the commissioner to withhold an amount sufficient to finance extended year programs, not to exceed five percent of amounts appropriated for compensatory allotments, from the total amount appropriated for that purpose. Requires the commissioner to give priority to applicants for extended year programs to districts with high concentrations of educationally disadvantaged students. (k) Authorizes the State Board of Education (board) to use up to $500,000 of the funds under this section after each district has received allotted funds. Authorizes the board to use the funds for programs such as MATHCOUNTS, Future Problem Solving, Odyssey of the Mind, and Academic Decathlon if the funds are used to train personnel and provide program services. Provides that the board must determine that a program provides services that are effective and consistent with the state plan for gifted and talented education in order for the program to be eligible for funding under this subsection. SECTION 2. Repealer: Sections 42.152(e), (f), (g), (h), (i), (j), (l), (m), (n), (o), and (p), Education Code (regarding the withholding of funds from compensatory allotments for certain programs). SECTION 3. Repealer: Section 42.156(f), Education Code (regarding the board's use of up to $500,000 for certain gifted and talented programs). SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.