2015–2016 Preliminary Summary of Finances
preliminary Summary of Finances (SOF) report for the 2015–2016 school
year is available at the Texas Education Agency (TEA) School
District State Aid Reports web page. This letter explains the changes to
funding formulas authorized with the passage of House Bill 1, Senate Bill 1,
and House Bill 7, 84th Texas Legislature, 2015, and provides information on the
data we used in this SOF.
elements that have been revised include:
- an increased basic allotment (from $5,040
in 2014–2015 to $5,140 in 2015–2016),
- an increased equalized wealth level in
Tier I (from $504,000 in 2014–2015 to $514,000 in 2015–2016),
- an increased guaranteed yield for Tier
2 level 1 (from $61.86 to $74.28), and
- a preliminary available school fund
rate of $176.437.
Facilities Allotment (NIFA): Senate Bill 1 includes funding for NIFA awards. NIFA provides an allotment of $250 per student in average daily
attendance (ADA) to eligible school
districts and charter schools to pay for operational expenses associated with
opening new instructional facilities. To qualify for awards this year, instructional
facilities must be occupied for the first time during the 2015–2016 school
year. Districts are required to submit applications to the Foundation School
Program (FSP) subsystem of the Texas Education Agency Secure Environment
(TEASE). The deadline to submit applications this year was August 15. Program
information can be found on the NIFA
web page. These allotments will be incorporated into the State Aid Reports
later this fall.
Adjustment to Compressed
Tax Rate for Certain School Districts: House Bill 7 allows the TEA to adjust compressed
tax rates (CTRs) in school districts that had a 2005 tax rate for maintenance
and operations that was below $1.50 per $100 in valuation. Qualifying districts
must have requested that we make this adjustment by September 1 for the
adjustment to affect the Legislative Payment Estimate (LPE) funding cycle for
the 2015–2016 school year. We recommend that districts use state aid templates
to evaluate the impact of the adjustment before submitting a request. More
information about requesting an adjustment to the CTR is in a to the
administrator addressed letter dated July 2, 2015, posted on our TEA Correspondence web page.
An FAQ on this topic is also available on our School
District Tax Policy and Reports web page.
Exemption Hold Harmless: Senate Bill 1 provides for an additional $10,000 homestead exemption.
To become effective, a constitutional amendment must be passed by Texas voters
in the November election. This bill requires the TEA to use a revised 2014 property
value in state aid calculations and to provide additional hold-harmless
assistance if the revised property value does not deliver sufficient funding to
school districts. TEA will revise state aid calculations and update the SOF report once revised property values
are available from the Comptroller’s Property Tax Assistance Division (PTAD) if
the constitutional amendment passes.
following paragraphs provide information about the format and data we used in the 2015–2016 SOF
including planned updates.
A school district’s schedule of payments is determined by statutory criteria
that are based on which payment class the district falls into. There are three
payment classes defined in statute that are based on wealth per pupil.
Districts in payment class 1 have property wealth per pupil that is less than
half the statewide average. Districts in payment class 2 have property wealth
per pupil that is between half the statewide average and the statewide average.
Districts in payment class 3 have property wealth per pupil that is greater
than the statewide average. Your district’s payment class can be found at the
top of your SOF. Payment classes are
calculated annually after the TEA receives state-certified property values from
the Comptroller’s PTAD division. Your district’s payment class has been updated
on its most recent 2015–2016 SOF, and
a spreadsheet showing payment class for all districts can be found on the TEA
website under resources.
Charter Schools: A charter school’s schedule of
payments is simply broken up into 12 equal monthly payments. House Bill 2251, 84th
Texas Legislature, 2015, provides charter schools that have experienced a 10%
or greater growth in enrollment with the option of an accelerated FSP payment
schedule beginning in the 2015–2016 school year. More information regarding
eligibility and how to request an accelerated payment schedule is provided in a
letter to administrators dated July 6, 2015, posted on our TEA
Correspondence web page.
LPE vs. DPE: The
SOF report contains two columns. The
legislative payment estimate is in the column labeled “LPE.” This column
includes the property values and student counts that the legislature used
during the appropriations process, and these figures form the basis of the Foundation
School Program (FSP) payments that your school district receives throughout the
state fiscal year. The district planning estimate is in the column labeled
"DPE." This column is updated periodically throughout the fiscal year
as data are reported to us. This column is intended to provide your district
with a more accurate indication of its actual FSP earnings for the fiscal year.
After the close of the fiscal year, the DPE column will be updated to reflect
actual data, and we will determine final earnings for the fiscal year. There
will be a “settle-up” process to correct any overpayments or underpayments that
occurred during the fiscal year. We urge your district to monitor the
differences between its FSP payments and its actual earnings by using a state aid
template. Links to state aid templates are located under “Resources” on the FSP
All student counts (ADA, full-time equivalents [FTEs], and enrollment counts)
shown in the LPE and DPE columns are based on the March 2015 student
projections that were submitted and approved during the appropriations process.
Please note that the payments made to your school district during the year are
based on the estimated student counts shown in the LPE column. We adjust the
student counts in the DPE column when the fall 2015 Public Education
Information Management System (PEIMS) enrollment data become available in March
2016. These are adjusted again in September 2016 with final attendance data. We
will use the September 2016 student counts in the DPE column to recalculate
funding for year-end settle-up. Your district's budget should be based on the
student enrollment and program participation that are expected to actually
occur during the year. Your district should carefully monitor its state aid
payments during the year as they may differ from actual earnings at year end
and create an overpayment or underpayment.
Charter Schools: Because charter school attendance is less stable than
school district attendance, charter school attendance information is updated in
both the LPE and DPE columns of the SOF
report throughout the school year based on information submitted through the
FSP System. Your charter school's current-year FSP payments are adjusted
accordingly throughout the year.
Property Value: The state-certified property value used in the LPE column
of this SOF is the final 2014 property
value assigned by the Texas Comptroller’s Property Tax Assistance Division
(PTAD). This value has not been adjusted to reflect the additional $10,000
homestead exemption provided for in Senate Bill 1. We will update the SOF as necessary to include any
adjustments for the homestead exemption provided under Senate Bill 1 once it
becomes available if the constitutional amendment authorizing the exemption
passes in the November election.
M&O Tax Collections:
School Districts: To estimate the maintenance and
operations (M&O) tax collection amounts that appear in both the LPE and DPE
columns, we used the current 2014–2015 DPE tax collections increased by 4.56
percent. This was the growth factor used in the appropriations process for the
current biennium. M&O tax collections will be updated to reflect estimated
reductions as a result of implementing the increased homestead exemption if the
voters approve the constitutional amendment in November. Unless your school district has successfully
completed a tax rollback election (TRE) and changed its M&O tax rate,
the LPE column will not be updated again
until the year-end settle-up for the 2015–2016 school year occurs. As a
result, payments to your school district will not reflect updates in tax
collections. If your district had
a successful TRE, we will adjust your district's LPE collections once data from
the Texas Comptroller’s self report are available in late January 2016.
Charter Schools: The estimated M&O tax
collections used for school districts have been used to determine the statewide
average variables for charter schools.
Facilities Allotment (IFA) and 2015 Estimated M&O Tax Collections: If your
district was awarded an IFA for a lease-purchase agreement, the district’s current
share of the IFA allotment has not yet been
subtracted from the estimate of M&O tax collections.
I&S Tax Collections: For this preliminary SOF, the 2015–2016 interest and sinking fund (I&S) tax
collections figure is based on your district’s 2014–2015 budgeted I&S
collections submitted to the PEIMS. These collections will be updated in fall
2015 with I&S collections submitted through the tax information survey.
Existing Debt Allotment (EDA) and IFA: If your district qualifies for the
EDA or the IFA, the preliminary allotment based on 2014–2015 data appears on line
49 (EDA) or line 50 (IFA) of the SOF.
The preliminary SOF does not yet
include data regarding district debt for the 2015–2016 school year. These
allotments will be updated later this fall with data from the Municipal
Advisory Council (MAC) on bond payments for the 2015–2016 school year, and
payment details will be made available at that time. Program information can be
found on the EDA
web page and the IFA
web page. Please be aware that allotments under these programs will be reduced
if I&S tax collections plus any remaining balance of unequalized
collections are insufficient to meet districts’ local share requirements under
Allotment: The transportation allotment is based on your school district’s
current estimated 2014–2015 transportation allotment.
Per Capita Rate: A
rate of $176.135 multiplied by the prior-year ADA is used to estimate the per
capita allotment. The rate is subject to change during the fiscal year.
School Districts: Links to the 2015–2016 state
aid templates developed by the TEA and the Region XIII Education Service Center
are available under “Resources” on the FSP
Charter Schools: A 2015–2016 Estimate of State
Aid Template is available on the Charter
School State Funding Worksheets web page.
always, we strongly advise your school
district or charter school to project state aid based on the best available
information. Your district or charter school should complete a 2015–2016 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 districts and charter schools. Estimates of state aid
earned can be significantly impacted by factors not known to the State Funding
you have any questions about the SOF report,
please contact a state funding consultant at (512) 463-9238. Additional contact information appears at the end of
Director of State Funding
State Funding Division Contact
(Chapter 42) and TEASE (FSP Application) Questions
Al Johnson (512)
Nancy Kuhn (512)
Additional Homestead Exemption Hold
McKenzie (512) 463-9186, email@example.com
Adjustment to the Compressed Tax Rate
for Certain School Districts
Amy Copeland (512)
Bond Guarantee Program, NIFA
Huggins (512) 463-9232, firstname.lastname@example.org
Chapter 41 Wealth Equalization
Kim Wall (512)
Charter School Funding
Nora Rainey (512)
IFA / EDA
Jacqueline Pree (512) 475-1217, email@example.com
Staff Salary Allotment, Tax Information Survey,
Al Johnson (512)
State Compensatory Education, Optional Flexible Year
Optional Flexible School Day Program
Ashley Behnke (512) 463-4834, firstname.lastname@example.org
Tax Credit for Texas Tax Code, Chapter 313 Value
Limitations, Supplemental Tax Increment Fund (TIF) Payments
Nancy Kuhn (512)
Danny Sanchez (512) 463-9266, email@example.com