| ACTION REQUESTED |
June 13, 2001
TO THE ADMINISTRATOR ADDRESSED:
Subject: Application for Funding for the New Instructional Facility Allotment (NIFA)
Statute and Eligibility Criteria. The Texas Education Code (TEC), §42,158, enacted by Senate Bill 4 of the 76th Texas Legislature, 1999, created the New Instructional Facility Allotment (NIFA). The 77th Legislature again funded the NIFA at $25 million for each year of the coming biennium. The complete statutory reference for the NIFA is shown in Attachment I. Note that the NIFA and the IFA (Instructional Facility Allotment) are NOT the same; they are two separate programs.
The NIFA is a part of the cost of the first tier of the Foundation School Program (FSP) but is not counted in the calculation of weighted average daily attendance (WADA) for the second tier. Districts that must take action under TEC, Chapter 41 to reduce wealth per student to the equalized level and school districts that are otherwise ineligible for state aid are eligible to receive the NIFA. Definitions and eligibility criteria for the NIFA are described below. The commissioner's rules for the NIFA are shown in Attachment II. The rules will be modified to reflect appropriate dates.
A facility eligible for the NIFA is a newly constructed instructional site (campus) used for teaching the curriculum required by TEC, Chapter 28. To qualify for first-time funding, it (1) must not have been occupied prior to the 2001-2002 school year or (2) was occupied for the first time in 2000-2001 but did not receive NIFA funds for its first year of operation. To qualify for follow-up funding, it must not have been occupied prior to 2000-2001 and did receive NIFA funds in the prior year.
The facility must have its own principal or be eligible to
receive an accountability rating through standard analysis as
described in the most current Accountability Manual. The facility
must have its own campus ID number as designated by the Texas
Education Agency, and its own record of expenditures that is not a
sub-set of another school budget, and attendance data that can be
reported for those students who are assigned to its campus. With the
exception of a covered walkway connecting the new facility to
another building, the new facility must be physically separate from
other existing school structures. It must have its own assigned
instructional staff and instructional program distinct from other
facilities. It cannot be a program for students enrolled in another
public school (summer school, evening school, etc.). Expansion or
renovation of existing facilities, as well as portable and temporary
structures, are not eligible for the NIFA.
Renovations, no matter how extensive, will not qualify for NIFA funds unless the building is completely new from the ground-up, including the slab. The only exception would be a campus with newly constructed instructional facilities and renovated or retained non-instructional structures, such as cafeteria or library.
Allotment Amount. 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. This means that ADA is reduced for a facility that opens after the beginning of the school year. For follow-up (second) 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 in the preceding year.
Allotment Proration. The amount appropriated for NIFA is limited to $25 million for a school year. If the total amount of allotments to which all districts combined are entitled for a school year exceeds the amount appropriated, the commissioner will reduce each district's allotment so that the total amount to be distributed equals the amount available. Reductions to allotments are made by applying the same number of cents of tax rate to each district's taxable value of property. 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.
Application process. School districts must complete an application for NIFA funding. The application must include the signature of the district superintendent. The information provided is subject to audit. Applications must be submitted to the Agency by certified mail through the U.S. Postal Service or other common postal carrier and postmarked by July 15th. Submissions 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
A first-time application pertains to two sets of circumstances. Usually, an initial funding request applies to a facility not occupied prior to the 2001-2002 school year and which has never before received NIFA funds. It also applies to a facility first occupied in 2000-2001 but not receiving NIFA funds for that year because of failure to apply. An initial application (Attachment III) includes a verification of eligibility, a brief description and photograph of the newly built instructional site, and minimal documentation of the nature and dates of the construction. The documentation may be a copy of a contract, certification of project compliance, or certification of substantial completion.
A follow-up application is for a facility not occupied prior to the 2000-2001 school year and receiving NIFA funding last year (Attachment IV). Funding for the second year is based on the number of students in ADA as compared to the first year.
The ADA Worksheet (Attachment V) should be completed for all applications.
Payments. Separate NIFA check will not be sent. Rather, payments will be incorporated into allocations for the Foundation School Program in accordance with the district's payment class. NIFA costs are reflected on the Summary of Finance Reports. For districts that are not subject to the requirements of Chapter 41 and do not receive payments from the Foundation School Fund, NIFA distributions will correspond to the schedule for payment class 3. For districts that are required to reduce wealth pursuant to TEC, Chapter 41, any NIFA funds for which the district is eligible are applied as credits to the amounts owed to equalize wealth.
For all districts receiving the NIFA, a final (settle-up) amount is determined by the commissioner when final counts of ADA as reported through the Public Education Information Management System (PEIMS) are available for each eligible campus, at the close of business for the school year. The amount of funds to be distributed for the NIFA to a school district is in addition to any other state aid entitlements.
Contact Person. If you have any questions related to any of this information, please contact Gail Nelson in the School Finance and Fiscal Analysis Department at 512/463-8994.
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.