| ACTION REQUESTED |
December 3, 1999
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 complete statutory reference for the NIFA is shown in Attachment I. 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 of the program. 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.
A facility eligible for the NIFA is a newly constructed instructional site (campus), not occupied prior to the 1999-2000 school year, and used for teaching the curriculum required by the TEC, Chapter 28. It 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 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.
Allotment Amount. For the first school year in which students attend a new instructional facility, a school district is entitled to an allotment of $250 for each student in average daily attendance (ADA) at the facility. Note that ADA will likely be significantly reduced for a facility that opens after the beginning of the school year.
For the second year, 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.
The amount appropriated for NIFA is limited to $25 million in 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 appropriated. 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 process requesting funding for the NIFA. The application form is enclosed as Attachment III. The initial (first-year) application is made by the completion of the attached form. The form includes a brief description and photograph of the newly built instructional site, a copy of contracts that document the nature and dates of the construction, and an estimate of the number of students in average daily attendance (ADA). The form must be signed by the district superintendent. The information provided is subject to audit.
For the 1999-2000 school year, applications must be postmarked by the last day in December. For school years beginning with 2000-2001, applications must be postmarked by July 15th. All applications must be submitted to the Agency by certified mail through the U.S. Postal Service or other common postal carrier. Second-year applications require only the submission of an estimate of students in ADA.
Payments. For 1999-2000, districts not subject to the requirements of wealth equalization pursuant to TEC, Chapter 41, will begin receiving payments for the NIFA in February based on the estimate of ADA submitted in the funding application. For the remainder of 1999-2000 and for subsequent years, allocations will be made in conjunction with allotments for the FSP in accordance with the district's payment class. 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 earned is determined by the commissioner when final counts of ADA as reported through the Public Education Information Management System (PEIMS) are available for the 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 to not hesitate to contact Gail Nelson in the School Finance and Fiscal Analysis Department at 512/463-8994.
Sincerely,
Joe Wisnoski, Coordinator 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.