July 16, 2008
TO THE ADMINISTRATOR ADDRESSED:
Subject: 2006-2007 Revised Final Summary of Finances
A revised Final Summary of Finances (SOF) and other related reports for the 2006–2007 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:
Amended Calculation of Revenue Target
- Salary Transition Hold Harmless– The M&O tax collections used 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)
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
If your district has been underpaid, the amount owed the district will be paid in July 2008. If your district has been overpaid, recovery of the amount overpaid will be made by reducing the district’s remaining Foundation School Program (FSP) 2007–08 August payment. You can review your district's 2006–07 FSP Payment Ledger, which is also available on the School Finance website.
If you have any questions about your district’s SOF or your district’s state funding, please contact a consultant in the Division of State Funding at (512) 463-9238.
Director, State Funding