School Finance Update

1
School Finance Update

• TASA Midwinter Conference
• January 29, 2007
• Presented by TEA Staff
• Liz Caskey, Director, State Funding Division
• Belinda Dyer, Director, Forecasting Fiscal
  Analysis
• Leo Lopez, FSP Manager, State Funding Division

2
School Finance Update An Overview

• Make-up days procedure
• General State Funding calendar
• Facilities funding
• Pupil projections
• Changes to the Student Attendance Handbook
• Legislative Issues

3
School Finance Update An Overview, Contd

• Changes to Chapter 41
• High School Allotment Payments
• Tax Student Data update

4
School Finance Update Make-up Days Procedure

• District calendar should include 2 make-up days
  for instructional days lost due to weather,
  safety or health
• Recommended that make-up days be after March 1
  and not a traditional holiday
• Greater than 2 days missed require a formal
  request to excuse

5
School Finance Update Make-up Days Procedure,
Contd

• Low attendance on make-up days are not eligible
  to excuse
• Correspondence, policy and forms can be linked
  from TEA web site under Hot Topics.

6
School Finance Update-Calendar,

• January 31, 2007 Preliminary Values for tax year
  2006 certified by Comptroller
• March 2007 Final 2005-06 Summary of Finances
  generated
• Final 2005-06 Cost of Options Report for Chapter
  41 districts generated

7
School Finance Update-Calendar, Contd

• March 2007 - Summary of Finances for 2006-07
  updated incorporating PEIMS fall enrollment and
  budget data
• State aid reduction for Chapter 41 begins
• April 2007 Preliminary notification sent to
  potential Chapter 41 districts for 2007-08
• June 2007 Tax collection survey,
• Rollback worksheet

8
School Finance Update-Calendar, Contd

• July 2007 Final values for tax year 2006
  certified by Comptroller
• July 2007 Release preliminary Summary of Finances
  for 2007-08
• September 2007 Deferred August payment
• Near final 2006-07 Summary of Finances
  generated
• Near final 2006-07 Cost of Options Report for
  Chapter 41 districts generated

9
School Finance Update-Facilities Funding

• Exceptional items in TEA budget request include
  150 million for IFA and money to roll EDA
  forward to include bonds with payments made by
  8/31/07

10
Pupil Projections

• Pupil Projections are due to Legislative Budget
  Board (LBB) March 1, 2007
• Approximately 166 districts will be contacted to
  review/verify reported data
• Statewide projections for 2008 and 2009
• 2008 4,341,064 projected ADA
• 2009 4,423,238 projected ADA

11
Changes to Student Attendance Accounting Handbook

• Pregnancy Related Services Chapter was rewritten
  for clarity
• PK eligibility for children of parents serving in
  the military (HB1)
• Changes for 2007-08 Attendance Reporting for
  Optional Flexible School Day Program (HB1)
• Next publication date July 1, 2007

12
Legislative Issues

• HB 5 - Relating to providing for a reduction of
  the limitation on the total amount of ad valorem
  taxes that may be imposed by a school district on
  the residence homesteads of the elderly or
  disabled to reflect any reduction in the school
  district's tax rate and protecting a school
  district against any resulting loss in local
  revenue.

13
Legislative Issues, Contd

• HB 74 - Relating to providing for a reduction of
  the limitation on the total amount of ad valorem
  taxes that may be imposed by a school district on
  the residence homesteads of the elderly or
  disabled to reflect any reduction in the school
  district's tax rate and protecting a school
  district against any resulting loss in local
  revenue.

14
Legislative Issues, Contd

• HB 80 - Relating to the adjustment under the
  public school finance system for optional
  homestead exemptions granted by public school
  districts.
• HB 131 - Relating to the cost of education
  adjustment under the Foundation School Program.

15
Legislative Issues, Contd

• HB 616 - Relating to specialty license plates
  benefiting public schools in certain counties.
• SB 234 - Relating to the reporting of
  income-producing contracts entered into by school
  districts.
• SB 70 - Relating to the financing of school
  district instructional facilities and assistance
  with the payment of a school district's existing
  debt.

16
Legislative Issues Contd

• HB 263 - Relating to expansion of the minimum
  salary schedule for certain professional public
  school employees. (expand year exp)
• HB 359 - Relating to expansion of the minimum
  salary schedule for certain professional public
  school employees. (expand yrs exp)
• HB 517 - Relating to the minimum salary schedule
  for certain public school employees. (new roles)

17
Legislative Issues, Contd

• SB 71 - Relating to creation of an inflation
  adjustment to salaries for classroom teachers and
  certain other professional staff employed by
  school districts.

18
Changes to Chapter 41

• Revised Calendar http//www.tea.state.tx.us/schoo
  l.finance/funding/ch41/rev_2006-07_c41_calendar.do
  c
• Notable Dates
• January 31, 2007
• Option 3 Contract w/ Early Agreement Credit
• Option 4 Letter of Intent
• Chapter 41 WADA, MO Coll, CAD Costs

19
Changes to Chapter 41, Contd

• Notable Dates (contd)
• February 15, 2007
• Revised Cost of Options mailed out
• February 28, 2007
• First Option 3 Payment Due
• Chapter 41 districts will be coded as exercising
  Option 3 until Option 4 contracts actually
  received

20
Changes to Chapter 41, Contd

• Notable Dates (contd)
• March 1, 2007
• Last date to new Ch41 districts to hold elections
• April 16, 2007
• Option 4 contracts, WITHOUT efficiency credit
• May 16, 2007
• Option 4 contracts, WITH efficiency credit

21
Tax Student Data update

• Data to be incorporated into Summary of Finances
  for February Foundation Payment
• Local 2006 District Property Values
• 2005 Adopted MO Tax Rate
• 2006 Adopted MO Tax Rate

22
Tax Student Data update, Contd

• 2006 Estimated MO Collections - Will be
  allocated across 1st, 2nd, and 3rd (If
  applicable) Levels of TIER II
• 3-yr Avg. Total Tax Collection Rate - Can exceed
  100 (for a single yr the avg.)
• High School Enrollment (students enrolled in
  grades 9-12) - Will be used to update estimated
  high school ADA High School Allotment

23
High School Allotment Payments

• 275 per High School ADA (not students enrolled)
• Total Allotment can be found on the bottom of
  page 1 of the Summary of Finances
• High School Allotment is coded fund 428, but is
  paid out along with 199 funds.

24
High School Allotment Payments, Contd

• As a result, the High School Allotment payments
  are part of regular monthly Foundation payments.
• It will not appear as a separate payment
• Monthly estimate of High School Allotment can be
  found on School Finance Website
  http//www.tea.state.tx.us/
• school.finance/HS_allotment_0607_r1.xls

25
Other Items

• Per Capita Rate 385 prior-year ADA This
  rate is subject to change.
• Technology Allotment - based on rate of 26.904
  2006-07 Refined ADA (LPE)
• Technology Payments currently in process
• Letter to be posted on website to accompany
  February SOF that details all changes since
  January

26
Web Resources/Contact Info

• State Funding Web Site
• http//www.tea.state.tx.us/school.finance/
• School Finance Email
• sfinance_at_tea.state.tx.us
• Phone Number
• [phone]
• Fax Number
• [phone]