ESC 12

1
ESC 12

• Expenditure Target Reporting
• February 5, 2009
• Regional Education Service Center XII
• Waco, Texas

2
Background

• The 79th Texas Legislature, Third Called Session,
  authorized House Bill 1, which added Texas
  Education Code (TEC), 44.011, to require the
  commissioner to establish and annually report
  spending targets for school districts based on
  the best practices of campuses and districts.

3
Background

• The governor's Executive Order RP47 establishes a
  financial indicator requiring that 65 of a
  school district's funds be expended for
  instructional purposes as defined by the National
  Center for Education Statistics.

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Data Sources

• Public Education Information Management System
  (PEIMS) financial actual data
• Community types as defined in Snapshot, produced
  by the Performance Reporting Division

5
Community Types

• What is a community type?
• A conceptual grouping of districts based on
  characteristics such as size and location
• Major Urban
• Major Suburban
• Other Central City
• Other Central City Suburban
• Independent Town
• Nonmetro Fast Growing
• Nonmetro Stable
• Rural

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Methodology

• Expenditures are divided into four categories
• Instruction
• Leadership
• Support Services
• Administrative
• Targets are based on the expenditures for each
  category and community type.
• The instruction target is 65 regardless of
  community type.

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Methodology

• The instruction target is always 65.
• For other categories of expenditure,
• Leadership
• Support Services
• Administrative,
• The expenditure percentage is within an
  acceptable range if it is up to 50 above or
  below the target.
• The expenditure percentage is not within an
  acceptable range if it is over 50 above or below
  the target.

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Color Coding
To provide a means for monitoring how closely
district expenditure percentages match the set
targets, the TEA has developed a traffic light
color scheme.
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Function Codes Within Expenditure Categories

• Instruction
• Instruction (function code 11)
• Extracurricular Activities (function code 36)
• Payments to Fiscal Agent/Member Districts of
  Shared Services Arrangements (function code 93)
• Payments to Juvenile Justice Alternative
  Education Programs (function code 95)
• Leadership
• Instructional Leadership (function code 21)
• School Leadership (function code 23)

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Expenditure Categories

• Support Services, Students
• Instructional Resources and Media Services
  (function code 12)
• Curriculum Development and Instructional Staff
  Development (function code 13)
• Guidance, Counseling, and Evaluation Services
  (function code 31)
• Health Services (function code 33)
• Transportation (function code 34)
• Food Services (function code 35)

• Administrative
• General Administration (function codes 41, 92)
• Facilities Maintenance and Operations (function
  code 51)
• Security and Monitoring Services (function code
  52)
• Data Processing Services (function code 53)

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Nonoperating Expenditure

• Community Services (function 61)
• Counts against your bottom line
• But not in any category
• And has its own line item on the projections

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Instructional Targets Over Time

• In FY 20072008, the target for operating
  expenditures dedicated to instruction was 60.
• In FY 20082009, the target for operating
  expenditures dedicated to instruction is 65.

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200607 Median Instructional Expenditures
Instruction (function code 11) Extracurricular
Activities (function code 36) Payments to Fiscal
Agent/Member Districts of Shared Services
Arrangements (function code 93) Payments to
Juvenile Justice Alternative Education Programs
(function code 95)
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200607 Median Leadership Expenditures
Instructional Leadership (function code
21) School Leadership (function code 23)
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200607 Median Support Service Expenditures
Instructional Resources and Media Services
(function code 12) Curriculum Development
Instructional Staff Development (function code
13) Guidance, Counseling, and Evaluation Services
(function code 31) Health Services (function code
33) Transportation (function code 34) Food
Services (function code 35)
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200607 Median Administrative Expenditures
General Administration (function codes 41, 92)
Facilities Maintenance and Operations (function
code 51) Security and Monitoring Services
(function code 52) Data Processing Services
(function code 53)
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Tools

• The expenditure target dashboard tool is provided
  as a black and white or color option.
• A comments section is provided as part of the
  school district tool for explaining variances
  (colored as red or yellow) for each expenditure
  category.
• The TEA Expenditure Targets web page gives a
  great deal of background information.
• A Frequently Asked Questions document answers
  anticipated questions.

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Download Populate Dashboard
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What is required of school districts?

• School districts not planning on meeting the
  defined targets are required to provide an
  explanation of the variances in a school board
  meeting or to post the district check register on
  the district website.
• The preparation of these documents usually occurs
  between May and August of each year.
• The filing of board resolutions or posting of
  supporting documents usually occurs shortly after
  board meetings.
• The dashboard tool is designed to assist with
  school board presentations and can be filed
  afterward in the business office.

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Region XII Template
Notice ESC 12 has provided a user-friendly
template for calculating how closely district
expenditure percentages match the set targets.
This template is designed to help districts
comply with proposed expenditure targets
established annually by the TEA pursuant to TEC,
44.011. (link to expenditure targets template)
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TEA Next Steps

• Expenditures targets and future tools will be
  adjusted based on the following
• Generation of reports based on PEIMS financial
  actual data (200708)
• (Financial) Best Practices Clearinghouse web
  updates
• Your feedback

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School Finance Forecasting Fiscal Analysis
Staff

• Belinda Dyer, Director
• Al McKenzie, Senior Systems Analyst
• David B. Cohen, Systems Analyst
• Rob Caudill, Systems Analyst

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Web Resources Contact Info

• School Finance Unit Website
• http//ritter.tea.state.tx.us/school.finance/
• School Finance Unit Email
• sfinance_at_tea.state.tx.us
• Phone Number
• [phone]
• Fax Number
• [phone]