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,,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 Generalbe requested to give an opinion on the following questions concerning the interpretationof and its authority under the Foundation School ProgramAct 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 followedas adopted by the Board in computing the Economic Index proper?
3. Does the~Board have the discretionto 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 schoolyear includingand 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 immediatelypreceding school year. The Commissioner of Education, subject to the approval of the State Board of Education, is chargedwith the duty of assigning to each school district its proportionatepart of the total funds to be raised locally, according to each district's tax payingability.Dr. J.W. Edgar, Page 2 (WW-452)

Section 3 of Article 2922-16, as amended, prescribes the procedure to be followedby the Commissioner In ascertaining the 'taxpaying ability of each school district'. The first step in such procedure Is the compilationof an economic indexwhich, 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 determinedby the followingweighted factors:

Assessed valuation of the county, weighted by twenty (20);

Scholastic weighted by eight (8 opulationof the county, 7;
Income for the county as measuredby: ValueCadded by manufacture value of minerals produced,value of agrlculiuralproducts,payrolls for retail establishments,payrolls for wholesale establishments,payrolls for service establishments, two (72). weighted collectivelyby seventyII

. . . "TheCommissioner of Education, subject to approval of the State Board of Education, shall recompute annually a new economic indexnot later than the firstweek in March of each year, using an average of data for a three-year periodwhich shall be taken from the most recently available official publicationsand reports of agencies of the State of Texas or the Federal Government. The first economic index so determined for each county under the provisionsof this amendatory Act shall be effectivebeginningwith the 1953-54 school year, and thereafter the economic indexrecomputedannually shall be effectivebeginningwith the new school year in the calendaryear of Its recomputation.:
II ,I

. . . Your first question concerns the meaning of the term.

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

"weightedby" as used in the foregoingprovisionsof the statute. This is not a legal~term,and it must be assumed that the Legislature intended to ascribe to it its ordinary slgniflcationand meaning. The first paragraph-ofSection 3 reads as it was originally enactedby SenateBill 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 indexby multiplying each factor by the statedweight. Hence, the .assessedvaluation of the countywas multi lied by twenty (20),the scholastic populationby eight (8 county by seventy-two (72). P, and the Income for each The average of data for the immediatelypreceding three (3) year periodwas 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 Programand followed the same method of computation. We believe this method is correct and should be followedby the Commissionerand 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, scholasticpopulationand income for the county. However, the statute speaks of assessedvaluation, scholasticpopulationand Income for the county being weighted. This languagedoes not imply that the various f&ors should be reduced Eo percentagerelationshipsprior to application of the weights. We believe the Commissioner and the Board have followed the correct procedure. We further believe that this method is exclusiveand any alternativemethodwould be prohibited. We do not say, however, that the various sources from which the Commissionerhas obtained the statisticaldata necessary to computing the index are exclusive. Section 3 of Article 2922-16 merely requires that such data be taken 'fromthe most recently available official publicationsand 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 "weightedby" as used in Section 3, first paragraph,of Article 2922-16, means that the stated factors should be multipliedDr. 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 calculationsand procedureused by the EducationAgency in computing the Economic Index are proper. The State Board bf Education has no discretionto 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