18_02 Proposed New 19 TAC §61.1010
Commissioner's Rules
Proposed New 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1010, Additional State Aid for School Districts that Contract to Partner to Operate a District Campus
Attachments:
I. Statutory Citations (PDF)
II. Text of Proposed New 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1010, Additional State Aid for School Districts that Contract to Partner to Operate a District Campus (PDF)
SUMMARY: The rule action presented in this item was filed as proposed with the Texas Register under the commissioner's rulemaking authority. This item proposes new 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1010, Additional State Aid for School Districts that Contract to Partner to Operate a District Campus. The proposed new rule would implement Senate Bill (SB) 1882, 85th Texas Legislature, Regular Session, 2017, by providing for additional funding for school districts that have entered into a contract to partner to operate a district campus under the TEC, §11.174.
STATUTORY AUTHORITY: Texas Education Code (TEC), §42.2511, as added by SB 1882, 85th Texas Legislature, Regular Session, 2017.
TEC, §42.2511, as added by SB 1882, 85th Texas Legislature, Regular Session, 2017, requires the commissioner of education to adopt rules necessary for the implementation of an entitlement for school districts that enter into a contract to operate a district campus under the TEC, §11.174.
EARLIEST POSSIBLE DATE OF ADOPTION: March 26, 2018.
PROPOSED EFFECTIVE DATE: May 14, 2018.
BACKGROUND INFORMATION AND JUSTIFICATION: SB 1882, 85th Texas Legislature, Regular Session, 2017, added the TEC, §42.2511, to create an additional entitlement through the Foundation School Program for school districts that enter into contracts to partner to operate a district campus under the TEC, §11.174.
The TEC, §42.2511, provides for additional funding to the school district in the amount of any positive difference between the amount to which a charter school would be entitled under the TEC, §12.106, and the amount to which the district would be entitled under the TEC, Chapter 42, Subchapters B, C, and F, for the district's students attending the contracted campus.
Proposed new §61.1010 would detail the manner in which the Texas Education Agency (TEA) will calculate the difference in funding to arrive at the additional entitlement. The new rule would also specify that TEA will eliminate funding provided for the contracted campus or recover overallocated funds if a contract is found to be out of compliance with the TEC, §11.174 or 19 TAC §97.1075, Contracting to Partner to Operate a Campus under Texas Education Code, §11.174.
FISCAL IMPACT: The TEA has determined that there are no additional costs to persons required to comply with the proposed new rule. There are no fiscal implications for state and local government beyond what the authorizing statute requires.
In addition, the TEA has determined that there is no direct adverse economic impact for small businesses, microbusinesses, and rural communities; therefore, no regulatory flexibility analysis specified in Texas Government Code, §2006.002, is required. There is no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed new rule does not impose a cost on regulated persons and, therefore, is not subject to Texas Government Code, §2001.0045.
GOVERNMENT GROWTH IMPACT: TEA staff has determined that proposed new §61.1010 would not have a government growth impact pursuant to Texas Government Code, §2001.0221.
PUBLIC AND STUDENT BENEFIT: The proposed new rule would clarify the calculation of the additional funding to which districts would be entitled under the TEC, §42.2511. The additional funding will assist with improving academic performance and will incentivize contracting to partner to operate a district campus as a way to provide innovative governance arrangements.
PROCEDURAL AND REPORTING IMPLICATIONS: The proposed new rule would require school districts and open-enrollment charter schools to follow current reporting requirements.
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: The proposed new rule would require school districts and open-enrollment charter schools to maintain existing local records.
PUBLIC COMMENTS: The public comment period on the proposal begins February 23, 2018, and ends March 26, 2018.
ALTERNATIVES: None.
OTHER COMMENTS AND RELATED ISSUES: A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on February 23, 2018.
Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance / Chief School Finance Officer
Al Mckenzie, Director, State Funding