April 14, 2006
TO THE ADMINISTRATOR ADDRESSED:
Subject: Updated 2005-06 Summary of Finances.
The revised 2005-06 Summary of Finances and other related reports have been updated on our website. Please note the following information pertaining to these reports:
- Projected Student Counts - The DPE column reflects the latest 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 report indicating the monthly counts was also updated on our website for your review.
- Budgeted Tax Collections - M&O tax collections budgeted for the 2005-06 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 M&O collections. A report that details budgeted tax collection by fund and object code and indicates the IFA amount subtracted is also updated in our website for your review. Please check these data carefully.
On all previous summaries, the total M&O 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 M&O collection amount (less the IFA local share, if any) is less than the M&O tax collection amounts previously 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 - For those districts that serve students fewer than 12 grades, the 2004 value has been adjusted for tuition costs, if applicable. You will note that there is no funding available at this time for adjustments related to declines in property values.
- Tier II Max Tax - Revised Worksheet for Calculation of Tax Collection report is updated as well. The DPE column uses actual 2004-05 audited tax collections to derive the Tier II DTR rate, whereas the LPE column uses an estimate of 2004-05 budgeted tax collections. Therefore, the DPE column reflects the district’s actual Tier II limit.
- Hold Harmless Additional State Aid – The updated Calculation of Hold Harmless State Aid for M&O Collections (and for I&S Collections) report is also updated and the district’s new allocation is posted on the DPE column for your review.
- Salary Transition Entitlement - A revised Calculation of Salary Transition Entitlement is also updated and the district’s new allocation is updated on the DPE column. The salary transition entitlement was recalculated for those districts whose Tier II allotment changed. The FTE count of teachers and full - time nurses, librarians, and counselors has been updated to reflect the numbers of these staff that were reported to PEIMS this past fall.
- Existing Debt Allotment - A revised Calculation of Existing Debt Allotment report is updated and the district’s new allotment is updated on both the LPE and DPE columns for your review. This report reflects the latest information available relative to the district’s actual debt service payments for 2005-06 school year.
- Schedule of Payments - A report entitled “ Estimated May Through August Payments” will be posted to our website in March for your information. This report reflects the district’s remaining monthly payments from the Foundation School Fund.
- Transportation Allocation - The district’s 2005-06 transportation allotment as calculated from the data submitted on the 2004-05 Route Services Report is reflected on both LPE and DPE of this SOF. If the district did not submit the Route Services Report, the transportation allocation has been set to zero.
- 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 8/31/06 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.
- Payment Ledger - The Foundation School Program Ledger for the 2005-06 is on our website for your review.
- State Aid Reduction for WADA Sold - If the district entered into an Option 4 agreement with a Chapter 41 district, the reduction in state aid for selling WADA has been recalculated. A report entitled State Aid Reduction to Partner Districts that shows how this latest WADA charge was derived is updated on both LPE and DPE columns.
If you have any questions concerning these materials, please do not hesitate to contact the Division of State Funding at (512) 463-9238.
Lisa Dawn-Fisher , Director