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As a result of the veto
of the appropriations for the Texas Education Agency for the 2006-2007
state fiscal biennium, the Agency has temporarily withdrawn the 2005-06
school year Summary of Finances and the 2005-06 Minimum Salary Schedule.
We anticipate posting new information once the Legislature adopts
appropriations and any related statutory changes.
June 13, 2005
TO THE ADMINISTRATOR
ADDRESSED:
Subject: 2005-2006 Preliminary Summary
of Finances
A preliminary Summary of Finances (SOF)
and other related reports for the 2005-2006
school year have been placed on the TEA
school finance web site. (http://www.tea.state.tx.us/school.finance/funding/sofweb3.html)
Paper copies of these preliminary reports
will not be mailed. Please note the following
information pertaining to these reports:
- 2004 CPTD Value – The CPTD
value being used in the LPE and DPE
columns of the SOF is the district's
January 2005 preliminary values for tax
year 2004 (T2). These values will be
updated in July based on the Comptroller's
final certification, and state aid will
be recalculated based on any changes
in property values.
- Student Counts – All student
counts ( ADA , FTEs, and enrollment counts)
used in the LPE and DPE columns for the
Foundation School Program estimates are
based on the March 2005 student projections
that were submitted and approved during
the appropriations process. Please note
that the student counts in the DPE column
will be adjusted by the agency when PEIMS
fall enrollment data for 2005-06 becomes
available in March 2006. Student counts
in the LPE column serves as the basis
(along with the estimated CPTD value
and tax collections) to determine a district's
cash flow during the year; however, school
district budgets should be based on the
student enrollment and program participation
that is expected to actually occur. Each
school district or open-enrollment charter
school must critically evaluate the state
aid shown in the SOF, and budget state
revenues only for state aid that will
actually be earned under the formulas.
- Tax Collections – For Tier
II purposes, the M&O tax collection
amount on both the LPE and DPE columns
has been set to the tax collection limit
for DTR (found on page 4 of the SOF).
Both LPE and DPE limits use actual 2003
CPTD and data from the 2004-05 Budgeted
Tax Collections from PEIMS to compute
the DTR for Tier 2 purposes. Statute
and the appropriations act require that
cash be distributed on this tax rate,
although the district's actual limit
for earning Tier II funding may be different.
A report entitled Worksheet for Calculating
of Tax Collection Limit for DTR is also
available on our web page. When the summer
tax collection survey is completed and
final 2004 property values are certified
by the Comptroller, a new limit will
be calculated for the DPE column.
- “Hold Harmless” - Additional State
Aid – If the district qualifies
for “hold harmless” additional state
aid, the amount is shown on page 4
of the SOF under the Additional Aid
category. If the district's loss in
local revenue resulting from the additional
$10,000 homestead exemption is not
entirely offset with additional state
aid, the difference is made up with
additional “hold harmless” state aid.
A report is available on our web page
showing how the “hold harmless” amount,
if any, was derived.
- Salary Transition Entitlement – If
the district qualifies for salary transition,
the amount is show on page 4 of the SOF
under the “Additional Aid” category.
If the district's cost of the $3,000
raise is not entirely offset with 80
percent of the additional state aid resulting
from the funding element increases made
in 1999, the difference is made up with
salary transition. A report is available
on our web site showing how the “hold
harmless” amount, if any, was derived.
The number of FTEs for teachers and full-time
librarians, nurses, and counselors will
be updated when the PEIMS Fall staff
data become available.
- Existing Debt Allotment (EDA) and
Instructional Facilities Allotment
(IFA) – If the district qualifies
for EDA or IFA, the amount of each
allotment appears on the first page
of the SOF under the “Additional Aid” heading.
Note, the allotment shown does not
yet include bonds issued on or after
September 1, 2003, but does include
the estimated FY 05-06 payments on
bonds paid on as of August 31, 2003.
A report detailing the EDA calculations
is available on the TEA school finance
web site. Note that the agency is in
the process of updating the information
used to calculate the allocation for
EDA-eligible debt from the State Information
Depository, and the amount of this
allocation may change as a result of
that update later this summer. A report
detailing the IFA calculations will
be available later this summer. NOTE:
State aid payments on IFA or EDA debt
that has been refunded will be withheld
until all updates have been received.
Payment reports and instructions for
updating debt information can be found
on the IFA website http://www.tea.state.tx.us/school.finance/facilities/ifa.html
and the EDA website http://www.tea.state.tx.us/school.finance/facilities/eda.html.
- Transportation Allocation – The
allocation is based on the district's
2003-04 transportation allotment as calculated
from data submitted on the 2003-04 Route
Services Report.
- Projected Settle-up - The
preliminary projected settle-up amount
is indicated on page 5 of the SOF in
the DPE column. If the district
is currently projected to be overpaid
for the 2004-05 school year that projected
overpayment is shown as the Adjustments-to-Date amount.
If the district is currently projected
to be underpaid for the 2004-05 school
year, the Adjustments-to-Date amount
will be zero, since the underpayment
will be paid in a lump sum. For districts
that have a credit balance due to WADA
sold, this settle-up amount will be adjusted
after the state received districts' refunds .
Please keep in mind that the projected
settle-up will change as new data become
available.
- Others – This SOF does not
include the New Instructional Facilities
Allotment (NIFA) or the Pre-K Expansion
Grant Program funds. The SOF will be
updated when these allocations are determined.
Also, the SOF does not include any amounts
that would be paid for the Hold Harmless
for State Aid Gains related to the public
school employee health insurance requirements.
- 2005-2006 State Aid Template and
Rollback and Notice Worksheet – The
2005-06 SOF Template, the Worksheet
to Assist Districts in Calculating
Rollback Rate, and Worksheet to Assist
Districts in Completing the Notice
of Public Meeting to Discuss Budget
and Proposed Tax Rate are also av ailable
through our web page, (www.tea.state.tx.us/school.finance).
- CHANGES TO STATE AID FOR THE 2005-2006
SCHOOL YEAR:
Rider 69 of the General Appropriations
Act authorized by the 79 th Texas Legislature
provides for the maintenance of revenue
created by Rider 82 (c) of the General
Appropriations Act, 2003, which delivered
$110 per weighted student during the
current biennium.
- For districts that receive Tier II
funds, the guaranteed yield per weighted
student is increased from $27.14 to
$29.12 for FY 2006. If the state aid
produced by the new guaranteed yield
amount does not generate revenue per
student equal to the amount of revenue
that would be generated by providing
$110 per weighted student, additional
aid will be provided in order to achieve
the previous revenue levels.
- For districts that do not receive
Tier II aid, those districts are entitled
to receive an allocation to maintain
funding levels provided by the $110
per WADA allocation. The gain from
this revenue is offset by the increases
in the per capita rate for the Available
School Fund created by the adoption
of the constitutional amendments approved
by voters in September 2003.
A report entitled “ Worksheet for Determining
Hold Harmless for $110 per WADA Versus
the Gain in Tier II Aid Based on the Change
in GYL from $27.14 to $29.12” is also posted
on the TEA website as an attachment to
the district's SOF showing how the “reduction” amount,
if any, was derived.
Per Capita Rate – An estimated
rate of $315 multiplied by the prior-year
ADA is used to estimate the per capita
allotment. This rate is subject to
change.
As always, school districts are strongly
advised to project state aid based on the
best av ailable information. Each district
should complete the 2005-2006 state aid
template or an equivalent state aid estimation
process. The greatest value of the SOF
is in explaining the basis of cash distributions
to district. Estimation of state aid earned
can be significantly impacted by factors
not known to State Funding. If you h av
e any questions concerning these reports,
please contact State Funding at (512) 463-9238.
Sincerely,
Robert N. Jocius, Senior Director
Division
of State Funding
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