March 10, 2000
TO THE ADMINISTRATOR ADDRESSED:
Subject: Updated 1999-00 Summary of Finances
Enclosed is an updated 1999-00 Summary of Finances and other related printouts. Please note the following information pertaining to these materials:
· Projected Student Counts - The DPE column now reflects a projection of end-of-year ADA and FTEs. ADA was projected by applying last year's ratio of end-of-year ADA to PEIMS fall enrollment to this year's PEIMS fall enrollment. All other ADA and FTE counts were then estimated as a percentage of the projected ADA, again using last year's ratios. For compensatory education enrollment, the DPE side has been updated to reflect the district's actual best six-month average of free or reduced-price eligible students for the prior year. A printout indicating the monthly counts that were used is enclosed for your review.
· Budgeted Tax Collections - Tax collections budgeted for the 1999-00 school year as reported to PEIMS have been used on both the LPE and DPE columns. For those districts participating in the Instructional Facilities Allotment (IFA) program for a lease-purchase, the dollar amount that represents the district's share of the IFA program has been subtracted from the budgeted collections. A printout that details the budgeted collections by fund and object code and indicates the IFA amount subtracted is also enclosed for your review. Please check these data carefully.
On all previous summaries, the total tax collection amount that was being used on both the LPE and DPE columns was equal to the Tax Collection Limit for DTR used in Tier II calculations. If the budgeted collection amount (less the IFA local share, if any) is less than the tax collection amount that was previously being used on the LPE side, the district's Tier II aid on the LPE side has been reduced as directed by Section 42.253 of the Texas Education Code. This reduction will have the effect of lowering the district's remaining monthly Foundation School Fund payments.
· Property Value Adjustments - If the district's preliminary property value for tax year 1999 (as certified by the Comptroller's Property Tax Division) is at least four percent lower
than the district's 1998 tax year CPTD value, an adjusted value recognizing value declines in excess of four percent appears under the LPE and DPE columns (shown as Adjusted Index Value on
the first page of the summary). The district's 1998 value was reduced by the amount of the decline in excess of four percent, since the district must absorb the first four percent of the
loss. When final 1999 tax year values are certified in July, the adjusted value being used will be recalculated. For those districts that are less than K-12, the 1998 value has also been
adjusted for tuition costs, if applicable.
· Tier II Tax Rate Compression - A revised Worksheet for Determining Tier II Tax Rate Compression is enclosed as well. The recalculation of compressed Tier II tax rate (DTR) incorporates
the final 1998-99 tax collection amount that was recently reflected in the district's final 1998-99 Summary of Finances. At this time, only the DPE column has been updated. At settle-up
time, the actual DTR rate will be used.
· Hold Harmless Additional State Aid - A revised Calculation of Hold Harmless State Aid for M&O Collections (and for I&S Collections as well) is also enclosed. The recalculation of the hold harmless additional state aid incorporates the final 1998-99 tax collection amount that was recently reflected in the district's final 1998-99 Summary of Finances.
· Salary Transition Entitlement - A revised Calculation of Salary Transition Entitlement is also enclosed. The salary transition entitlement was recalculated for those districts whose Tier II allotment changed and/or who received a property value adjustment.
· Projected Settle-up - Page 5 of the summary, under the DPE column, indicates the projection of what the end-of-year settle-up might be. If the Projected Balance as of 8/31/00 is a negative amount, the district is projected to be overpaid for the year. If the balance is a positive amount, the district is projected to be underpaid for the year.
· Other - If the district was approved for the New Instructional Facilities Allotment (NIFA) program, the allotment as a separate item and is included in Tier I costs on the first page of the summary. If the district was awarded a Pre-kindergarten expansion grant, the grant amount appears on page 4 of 5 of the summary under the Additional Aid heading. These allotments will be paid from April through August in accordance with the district's payment class.
· Remaining Payment Schedule - An updated schedule of payments from the Foundation School Fund for April through August, 2000 will be sent to the district in the near future.
· Payment Ledgers - The "final" Foundation School Program Ledger for the 1998-99 school year and an up-to-date Foundation School Program Ledger for the 1999-00 school year will also be sent out in the near future.
If you have any questions concerning these materials, please do not hesitate to contact us at (512) 463-9238.
Sincerely,
Omar Garcia, Senior Director
Division of State Funding
For further information on this topic, contact State Funding at (512) 463-9238.