JIM MAlTOX Attorney General

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P 

# The Attornesy General of Texas

June 19, 1986

EonorableAllen R>ss Hightower Chairman Law EnforcementCnnmittee Texas Rouse of Representatives P. 0. Box 2910 Austin,Texas 73769 OpinionNo. JM-504

Re: Whether section 16.02(e)of the EducationCode,which authorises a school district to receive state funds in accordance with maximum price differential index, is applicable beyond the 1984-85academicyear

Dear RepresentativeHightower:

You ask the op~inion of this office as towhether section 16.102(e) of the Education Code is applicable after the 1984-85 school year. Section 16.102(e) authorizes a school district that meets specified, criteria to receLve state funds in accordance with a maximum price differential index [PDI]. We conclude that the provisions of section 16.102(e)are intended to apply only to the 1984-85schoolyear.
Section 16.102(e)was enacted into the Education Code in 1984by House Bill No. 72, Sixty-eighth Legislature, 2nd Called Session, as part of the chapter providing for the Foundation School Program. Section 16.102 established a price differential adjustment of the basic allotment jioreach school district. Subsection (a) of section 16.102provides th.at

(a) 'Thebasic allotment for each district is adjusted by multiplying the amount of the basic allotment by an.index factor that reflects the geographic variation in resource costs due to factors 'beyondthe control of the schooldistrict.
Subsection (b) scpplied a formula for adjust&g each district'sbasic allotment, a forwla that was to be used in each school year until a different formula, was adopted by the State Board of Education under subchapter E of #chapter16. The price differential index is one element of that formula. Subsection (c) established a formula for calculating the PI11for each school year until a different PDI was adopted by the !;tateBoard of Education under subchapter E. Subsection (d) contains additional criteria for the PDI based on the ranking of schoo:ldistricts in the order of index values determined under subsection 1:~)of section 16.102. It relates .onlyto the PDI determinedunder subsection (c). Subsection (e)reads as follows:

p. 2312(e) Notwithstanding other provisions section a school district is entitled of this to the maximum PDI if located in a county in which the number of full-t,lmestate employees at pay grade 10-14,plus thenumber of public senior college or university faculty at the rank of instructor or a higher rank, employedwithin the county as of May 31, 1984, exceeds 125 percent of the number of nonfederally funded teachers employed in that county as of that date. HonorableAllen Ross Hightower - Page 2 (JM-504)

Subchapter C is com~~asedof sections 16.101-16.104 and subchapter E consists of sectLons 16.176-16.180. Section 16.179directs the State Board of Education,not later than the 30th day before the 1st day of each regular se!,c;ion of the legislature,to adopt a PDI to be used in adjusting the i.llotmentof state funds for the following biennium. Accordingly, th, PDI for use during the 1985-87 biennium
was adopted by the board prior to the beginning of the Sixty-ninth Session in 1985. It is the "different price differential index adoptedunder subchapterE" which is referred to in section 16.102(c).

"The price different:ial index is designed to reflect the geographic variation in I'esourcecost due to factors beyond the control of school distr:icts." SM. 16.176. Section 16.178 establishes an advisory csnomitteeappointed by the State Board of Education to advise the board in the development of the PDI. Section 16.177 requires the comIltrollerof public accounts to collect biennially, and report to the State Board of Education and the price index advisory committee, price information necessary to the development of the PDI based on an econometricmodel that considers the effect of school distl,ictcharacteristics on prices paid in the schooldistrict for goods and services.

No inflexible rule can be announced for the construction of statutes. However, the dominant consideration in construing statutes is the intentionof the legislature. That intention is derived from a aeneral review of an entire! enactment and. when ascertained. shallbe given effect to attain the object and purpose of the legislature. see City of Houstonv. Morgan Guaranty InternationalBank, 666 S.W.2d 524. 529 (Tex.App. - Houston [lstDist.] 1983,writ ref'dn.r.e.).
Subchapters C and E provide for the calculation and adoption of the PDI. When theirprovisionsare read together, it appears that the legislature intended the determination of the PDI to be governed by section 16.102 of subchaptczC only until, beginningwith the 1985-87 biennium, the State Board o:E Education began the adoption of the PDI for eachbiennium under subchapterE. Thus 516.102(b)provides: "For each school year until a different formula is adopted under Sub chapter E

. . ." the commiz~ioner shall follow this section. Similar language is in 516.102(c). Subsection (d)of section 16.102exuresslv is iim?ted to the ranking csfschool disiricts in the order of inde; values determinedunder subsection (c) of section 16.102. Subsection (e) states that, notwithstandingother provisionsof section 16.102,a

p. 2313HonorableAllen Ross Hightower - Page 3 (~~-504)

school districtmeeting cert:ain criteria on May 31, 1984, is entitled to the maximum PDI. Thir;language indicates that the legislature thereby intended to make an exception to the calculation of the PDI thatwas calculatedunder section 16.102,which itselfwas intended to be temporary. Subchapter E prescribes! procedures for the ongoing collection of informationand data to be used for the development of a PDI for each biennium by the State Boar,dof Education with the advice and recommendation of the advisory committee. By subchapterE, the legislature provided that the PDI for each biennium is based on changing factors and is not determined permanently on the basis of criteria and conditions that exist at a certain point in time. It is our opinion that the legislature inter& section 16.102(e) to be part of the calculation of the PDI only until the State Board of Educationbegan itsbiennial adoption of the PDI as providedby sections 16.176-16.180 of subchapterE.

We conclude that the maximum PDI which is authorized for certain school districts by section 16.102(e) is not applicable after the 1984-85 schoolyear.

SUMMARY

Section 16.102(e) of the Education Code, authorizing certs:lnschool districts to receive state funds in accordance with a maximum price differential ind,ex,is not applicable after the 1984-85 schoolyear.
Very trulyyours

.
J-/k JIM MATTOX AttorneyGeneral of Texas

JACK HIGHTOWER FirstAssistantAttorneyGczneral

MARY KELLER ExecutiveAssistantAttornc:y General

ROBERT GRAY SpecialAssistantAttorney G#eneral

RICK GILPIN Chairman,Opinion Committee!
Preparedby Nancy Sutton AssistantAttorney General

p. 2314