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TEA Correspondence

A Microsoft Word version of this letter is available for download and PRINTING.

February 22, 2006


Subject:  Updated 2006-2007 Summary of Finances

An updated preliminary Summary of Finances (SOF) and other related materials for the 2006-2007 school year are now available at the TEA website.  This update incorporates the current information related to Chapter 41 partnerships. 

This updated SOF reflects a Reduction in State Aid resulting from the sale of WADA to a Chapter 41 district.  The amount of reduction is indicated on page 4 of the SOF under the heading Additional Aid and is labeled as State Aid Reduction for WADA Sold.  One of the related printouts indicates the number of WADA being sold and it details how the reduction was derived.

A revised payment schedule has also been updated on the TEA website.  As you will note, for those districts selling WADA credits to Chapter 41 districts, the monthly payments from the Foundation School Fund have been reduced beginning with the March 2007 payment.  In some instances, the state aid reduction has resulted in a negative balance in the Foundation School Fund.  If this is the case, the district will not receive any monthly payments from the Foundation School Fund for the remainder of the 2006-2007 school year.  In addition, the district will be required to send a payment in the amount of the negative balance on August 16, 2007.  We will be sending a follow-up letter in June with the amount to be due in August.

Please note that HB1 (42.2516(d)) contains a provision that the gain from the sale of WADA, less any amount the district pays to another entity as result of a partnership agreement with Chapter 41 districts, shall be reduced from district’s state aid.  It is the district’s responsibility to provide the net gain from the sale of WADA to the Division of State Funding ASAP after the sale is final.  A separate letter will be sent to the district in the future as a reminder of this provision.

Please check our website for your information needs related to the funding provided by the state through the Division of State Funding:  http://www.tea.state.tx.us/school.finance/funding/sofweb7.html

If you have any questions concerning this matter, please contact Leo Lopez or Victoria Drewy at (512) 463-9238. 


Liz Caskey, Director
State Funding Division

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