| INFORMATION ONLY |
September 6, 2000
TO THE ADMINISTRATOR ADDRESSED:
Subject: Eligibility for the New Instructional Facility Allotment (NIFA)
The Texas Education Agency has processed applications for the new instructional facility allotment (NIFA) and your district has qualified for the 2000-2001 school year.
Eligible ADA
For an initial (first-time) application, a school district is entitled to an allotment of $250 for each student in average daily attendance (ADA) at the facility. The number of qualifying ADA is reduced for a facility that opens after the beginning of the school year.
For follow-up (second-time) applications, a district is entitled to an allotment of $250 for each additional student in ADA at the facility. The number of additional students is the difference between the number of students in ADA in the current year at that facility and the number that were funded in the preceding (1999-2000) school year.
§ For follow-up applications only, the number of ADA eligible in the preceding year will be verified using final counts of ADA as reported through the Public Education Information Management System (PEIMS). Final ADA will be used to settle-up the final amount of NIFA funding for 1999-2000, as well as to determine the preliminary amount owed in 2000-2001.
§ For follow-up applications only, it is possible for the ADA eligible for funding in 1999-2000 to exceed the ADA eligible in the current year (2000-2001). In this case, there would be no "additional" ADA compared to the prior year and the district would have no qualifying ADA for 2000-2001 and no 2000-2001 NIFA funding.
Allotment Proration.
For 2000-2001, it appears that although the total amount owed to all districts combined will come very close to the $25 million appropriated, it will not exceed it. However, it is possible for proration yet to occur as data are revised with settle-up information from the prior year (applicable to follow-up applications).
Also, it is possible for proration to occur when data are finalized at the end of the school year. If proration should become necessary at settle-up, it is likely that many districts could have been overpaid and would owe the state the overpayment amount. Districts with very large tax bases should be aware that, if proration occurs at this point and their proration share exceeds their NIFA allocation as finally calculated, the entire amount paid could be owed back.
The proration process applies the same number of cents of tax rate to each district's taxable value of property to generate an amount that when summed across districts is equal to the shortfall. For each district, the taxable value of property is the property value certified by the Comptroller for the preceding school year as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, a reduced property value that reflects either a rapid decline pursuant to TEC §42.2521 or a grade level adjustment pursuant to TEC §42.106.
Payments
In order to compute the payments amounts for the 2000-2001 school year for follow-up applications, it is necessary to settle-up the amounts due for 1999-2000 (which depend on final 1999-2000 ADA). In early September, current amounts due to follow-up applicants can be determined and the total amount due to all districts can be calculated. From this, the proration amount (if any) can be figured and the tax rate to be applied to each district's property value for the purposes of proration and the dollar amount to be deducted from each district's allotment can be computed.
It is likely that these computations will not be completed until
October. Payments will follow as quickly as possible after this.
NIFA allocations will not be made separately but will be added to
Foundation School Program payments and appear on the Summary of
Finance report.
NIFA Contact and Correspondence
If you have questions about this information, please contact Gail Nelson in the School Finance and Fiscal Analysis Department at 512/463-8994. Written correspondence should be sent to the following address:
Texas Education Agency
School Finance and Fiscal Analysis, 6-120
Attention: NIFA
1701 North Congress Avenue
Austin, TX 78701-1494
Sincerely,
Joe Wisnoski, Managing Director
School Finance and Fiscal Analysis
For further information on this topic, contact Gail Nelson in the School Finance and Fiscal Analysis Department at 512/463-8994.