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

May 18, 2007

TO THE ADMINISTRATOR ADDRESSED:

Subject:  2007-2008 Tuition Limit for Adjusting Property Values for Districts not Offering All Grade Levels as authorized by the Texas Education Code, Section 42.106.

Senate Bill 4, 76th Legislature, directed the commissioner of education to establish rules on the amount of tuition districts could charge for educating a nonresident student whose grade was not taught by the student’s resident district for the purpose of adjusting the property values for districts not offering all grade levels.

A resident district (a district from which the student transfers) not subject to the provisions of Chapter 41 of the Texas Education Code, will receive a property value adjustment, as authorized by TEC Section 42.106, that equates to the amount of taxable value that would be needed to pay for the tuition required (tuition limit) at a $1.50 tax rate.  A credit against the number of weighted students (WADA) needed to equalize wealth will be applied directly in the district’s Cost of Options Report for districts that are subject to the provisions of TEC Chapter 41.

A printout that shows the calculation of the district’s tuition limit for the 2007-2008 school year under the commissioner’s rules, Section 61.1012(b)(1)(a) of the TAC, is posted at our website for your review.  The tuition limit indicated on line 18 of this printout will be the maximum limit the receiving district can charge for educating a student from a district that does not offer all grade levels for the purpose of adjusting the property values of the resident district.  The maximum limit amount used to adjust the resident district’s property value is the calculated tuition limit of the receiving district.

According to commissioner’s rules, tuition may be set at a rate higher than this calculated limit if both districts enter into a written agreement. However, only the calculated tuition limit will be used in the computation of adjusted property values for the sending district.

Please note that this calculated tuition limit is based on the current law.  Should the legislature enact changes that affect the calculation provided, the district will be notified as soon as possible.

If you have any questions, please contact Leo Lopez at (512) 463-9238.

Sincerely,

Liz Caskey, Director

State Funding Division