- . 

,,Dr. J. W. Edgar Opinion W-45? 

Commissioner of Education 

Walton Building Re: Questions relating to 

Austin, Texas computing economic index in making local 

fund assignments pursuant to the Foundation 

Dear Dr. Edgar: School Program. 

We quote from your request for an opinion as 

follows : 

"The State Board of Education has directed 

that the Attorney General be requested to give 

an opinion on the following questions concerning 

the interpretation of and its authority under 

the Foundation School Program Act appertaining 

to the economic index: 

1. What is meant by the phrase 'weighted 

by' as used In Section 3, first paragraph, 

Article 2922-16? 

2. Are the calculations used by the Agency 

and the procedure that has been followed as adopted 

by the Board in computing the Economic Index proper? 

3. Does the~Board have the discretion to vary 

from the Economic Index procedures set forth in the 

statutes?" 

Section 2 of Article 2922-16, as amended, provides 

in substance that for each school year including and subsequent to, the 1955-56 school year, the sum of the amounts to 

be charged against the local school districts toward the 

Foundation School Program shall be twenty (20%) percent of the 

estimated total cost of the Foundation School Program for the 

immediately preceding school year. The Commissioner of Education, subject to the approval of the State Board of Education, 

is charged with the duty of assigning to each school district 

its proportionate part of the total funds to be raised locally, 

according to each district's tax paying ability. 
Dr. J. W. Edgar, Page 2 (WW-452) 

Section 3 of Article 2922-16, as amended, prescribes the procedure to be followed by the Commissioner In 

ascertaining the 'tax paying ability of each school district'. 

The first step in such procedure Is the compilation of an 

economic index which, in the language of the statute, "shall 

constitute for the purpose of this Act a measure of one':county's 

ability to support schools in relation to the ability of other 

counties In the State". Section 3 further provides: 

If The economic index for each county 

shall be-based upon and determined by the following weighted factors: 

Assessed valuation of the county, 

weighted by twenty (20); 

Scholastic 

weighted by eight (8 

opulation of the county, 

7; 

Income for the county as measured by: 

ValueCadded by manufacture value of minerals 

produced, value of agrlculiural products, payrolls for retail establishments, payrolls for 

wholesale establishments, payrolls for service 

establishments, 

two (72). 

weighted collectively by seventyII 

. . . 

"The Commissioner of Education, subject to 

approval of the State Board of Education, shall 

recompute annually a new economic index not later 

than the first week in March of each year, using 

an average of data for a three-year period which 

shall be taken from the most recently available 

official publications and reports of agencies of 

the State of Texas or the Federal Government. 

The first economic index so determined for each 

county under the provisions of this amendatory 

Act shall be effective beginning with the 1953-54 

school year, and thereafter the economic index recomputed annually shall be effective beginning with 

the new school year in the calendar year of Its recomputation.: 

II ,I 

. . . 

Your first question concerns the meaning of the term 
. 

Dr. J. W. Edgar, Page 3 (W-452) 

"weighted by" as used in the foregoing provisions of the 

statute. This is not a legal~term,and it must be assumed 

that the Legislature intended to ascribe to it its ordinary 

slgniflcation and meaning. The first paragraph-of Section 

3 reads as it was originally enacted by Senate Bill 116 

Acts 51st Legislature, Regular Session, 1949, at page 640. 

Since Its effective date the Commissioner, with,the Board's 

approval, has computed the economic index by multiplying 

each factor by the stated weight. Hence, the .assessed valuation of the county was multi lied by twenty (20), the scholastic population by eight (8 

county by seventy-two (72). 

P , and the Income for each 

The average of data for the 

immediately preceding three (3) year period was used in compiling each of the factors. 

You advise that the Legislature fixed the economic 

index in Senate Bill 116, supra, for the first two years of 

the Foundation School Program and followed the same method 

of computation. We believe this method is correct and should 

be followed by the Commissioner and the Board. It has been 

sugjested that the weights should be applied to the percentage 

relationships of the various factors rather than directly to 

the assessed valuation, scholastic population and income for 

the county. However, the statute speaks of assessed valuation, 

scholastic population and Income for the county being weighted. 

This language does not imply that the various f&ors should 

be reduced Eo percentage relationships prior to application of 

the weights. We believe the Commissioner and the Board have 

followed the correct procedure. We further believe that this 

method is exclusive and any alternative method would be prohibited. We do not say, however, that the various sources from 

which the Commissioner has obtained the statistical data necessary to computing the index are exclusive. Section 3 of Article 

2922-16 merely requires that such data be taken 'from the most 

recently available official publications and re'@rts of agencies 

of the State of Texas or the Federal Government . 

Your second question is therefore answered in the 

affirmative, and your third question in the,negative. 

SUMMARY 

The term "weighted by" as used in 

Section 3, first paragraph, of 

Article 2922-16, means that the 

stated factors should be multiplied 
Dr. J. W. Edgar, Page 4 (WW-452) 

by the given weights. The weights 

should be applied directly to the 

factors and not to their percentage 

relationships. The calculations and 

procedure used by the Education Agency 

in computing the Economic Index are 

proper. The State Board bf Education 

has no discretion to vary from the 

Economic Index procedures set forth In 

the statutes. 

Very truly yours, 

WILL WILSON 

Attorney General of Texas 

Leonard Passmore 

Assistant 

LP:pf:mg 

APPROVED: 

OPINION COMMI'R'EE 

Geo. P. Blackburn, Chairman 

Morpan Nesbitt 

'J. L4ilton Richardson 

J. .lrthur Sandlin. 

Linwaru Shivers 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: 

W. V. Geppert