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.