TO THE ADMINISTRATOR ADDRESSED:

Re: Instructional Facilities Allotment

Recently, the agency announced that there would be no December 1999 cycle of applications for the Instructional Facilities Allotment. This decision was made after considering the views of legislators instrumental in appropriating the funds for the program this biennium. The cancellation will provide an opportunity for districts to conduct bond elections through the spring, leading to an application cycle that will take place in June 2000.

Those districts that applied in June 1999 but received no funding are still eligible for consideration in the June 2000 cycle if certain conditions are met. First, the district will automatically be considered if it issues the debt described in the June 1999 cycle within the 180 day time period provided in current rules. Each district should provide the agency with the appropriate documentation to assure that the application on file is accurate and current. Second, a district that does not complete the issuance of debt within the 180 day time period can be considered in the June 2000 cycle if it reapplies for the debt to be covered by the program prior to the actual issuance date.

In June 2000, all eligible applications will be prioritized according to the statutory criteria. A district that fails to issue debt for which it applied in the June 1999 cycle will likely be prioritized the same as if the debt had been issued. Districts that received adjustments to property wealth for prioritization purposes in the June 1999 cycle due to the lack of funds in the previous biennium will continue to have those adjustments apply for the June 2000 cycle. However, rejection of an application in June 1999 does not meet the statutory requirement of rejection for a biennium, so no additional 10% reduction will be made for those applications that could not be funded in the June 1999 cycle. The adjustments for growth rates will also be recomputed appropriately for the June 2000 cycle.

In December, the agency will send a new application for the June 2000 cycle to each school district. The agency will also send proposed rule changes that will address the issues of application cycles, availability of appropriations, and other administrative aspects that have caused some of the confusion and frustration in recent weeks. The agency will continue to administer this program in a manner that best reflects the statutory limits and the legislative intent.

If you have any additional questions, please contact the State Funding Division at (512) 463-9238.

Sincerely,

Jim Nelson
Commissioner of Education