July 14, 2008
TO THE ADMINISTRATOR ADDRESSED:
Subject: 2007-2008 Revised Summary of Finances
A revised Summary of Finances (SOF) and other related reports for the 2007–2008 school year have been posted to the School Finance Web site of the Texas Education Agency (TEA) at www.tea.state.tx.us/school.finance/. A summary of relevant information about the data updates in these reports, including planned future updates, is provided below:
Available School Fund (ASF) Rate – The ASF has been revised from the preliminary rate of $290 per prior year ADA to a final rate of $280 per prior year ADA.
Amended Calculation of Revenue Target
- Salary Transition Hold Harmless – TheM&O tax collectionsused in the calculation of the Salary Transition Hold Harmless in S2 and S3 are now aligned with the M&O tax collections that are used for the S2 revenue target.
- S3 M&O tax collections – The revenue target has been adjusted to reflect a corrected value for the “Local 2006 District Property Value (DPV)” that is used in the calculation of M&O tax collections used in the S3 revenue target. The new value more closely follows the effective tax rate calculation prescribed by Section 26.08(i), Tax Code.
The formula is: SR0652 + FF009 – FF004 – ((SR0700 ÷ SR0013)*100)
Where,
SR0652 = Total taxable value adjusted for tax freeze
FF009 = Loss in taxable value from tax freeze
FF004 = Taxable value of homesteads with tax ceilings
SR0700 = Payments to tax increment financing zone (TIF)
SR0013 = 2006 Adopted Total Tax Rate
As always, school districts are strongly advised to project state aid based on the best information available. Each district should complete the 2007–2008 state aid template produced by the Education Service Center (ESC) in Region XIII or an equivalent state aid estimation process. (The School Finance Web site provides a link to the ESC template.) The greatest value of the SOF is in explaining the basis of cash distributions to districts. Estimation of state aid earned can be significantly impacted by factors not known to the Division of State Funding. If you have any questions concerning these reports, please contact a State Funding consultant at (512) 463-9238.
Sincerely,
Helen Daniels
Director, State Funding
