August 15, 2000
TO THE ADMINISTRATOR ADDRESSED:
Subject: Tuition Rules and Transfer Students
Senate Bill 4, 76th Legislature, directed the commissioner to establish rules on the amount of tuition districts could charge for educating students whose grades were not taught by the resident district. Rules relative to the calculation of a tuition limit were developed and a public hearing on those proposed rules was held in May 2000. As a result of comments received at the public meeting, the proposed rules were amended and will be effective beginning September 2000.
Because districts have already developed budgets without knowing exactly what the tuition limit would be, I have postponed full implementation of those rules until the 2001-2002 school year. Districts that educate students from districts not offering all grade levels will have the following options in setting a tuition charge per student for the 2000-2001 school year only:
(1) an amount per student, not to exceed the amount per student charged for the 1999-2000 school year, may be charged if both the educating district and the resident district agree to that amount; or
(2) an amount per student, not to exceed the limit established by commissioner's rule, may be charged (enclosed is a printout that establishes this tuition limit and details the methodology used in calculating the limit).
A resident district not subject to the provisions of Chapter 41 of the Texas Education Code (TEC) will receive a property value adjustment, as authorized by TEC Section 42.106 that equates to the amount of taxable value that would be needed to pay for the tuition cost at a $1.50 tax rate. If either of the two options is chosen, the district will also be able to claim ADA funding for each nonresident student.
For districts that are subject to the provisions of TEC Chapter 41, a credit against the number of weighted students (WADA) needed to equalize wealth will be applied. The number of WADA needed to equalize wealth will be determined using only those students actually educated by the Chapter 41 district.
In order to determine the property value adjustment to be made or the credit against the number of WADA needed to equalize wealth, the resident district must submit to the Division of State Funding the number of students for whom tuition is being paid, the amount per student being charged, and the name of the district(s) providing the education. If tuition is based on the prior-year amount, a copy of the agreement between the two districts must also be submitted.
If you have any questions, please contact Joe Wisnoski or Omar Garcia at (512) 463-9238.
Sincerely,
Jim Nelson
Commissioner of Education
For further information on this topic, contact the Division of State Funding at (512) 463-9238.