Updated calculations for the Instructional Facilities Allotment (IFA) and the Existing Debt Allotment (EDA) and interest and sinking (I&S) fund

Word Version

October 30, 2015 

TO THE ADMINISTRATOR ADDRESSED: 

Subject:  Updated calculations for the Instructional Facilities Allotment (IFA) and the Existing Debt Allotment (EDA) and interest and sinking (I&S) fund hold harmless funding authorized by Senate Bill (SB) 1

We have posted updated calculations under the IFA and EDA programs to district Summaries of Finances (SOFs) for the 2015–2016 school year. Please log on to the TEA website at https://wfspcprdap1b16.tea.state.tx.us/Fsp/Reports/ReportSelection.aspx to review your district’s calculations. We anticipate making payments for these programs on or about November 15.

Property Value Exemption Hold Harmless

IFA and EDA calculations do not yet reflect the impact of the proposed constitutional amendment to increase the homestead property value exemption from $15,000 to $25,000 that was authorized by Senate Joint Resolution 1, 84th Texas Legislature. Even if your district does not receive state assistance under IFA or EDA programs, it may be eligible for state assistance under the hold-harmless provisions of SB 1. These payments will be made through the EDA payment ledger. We anticipate incorporating the revised property values in the December–January timeframe and making any necessary supplemental payments at that time.

Data Sources

We are using the following data in the calculations:

2014 Property Value: We are using the 2014 T8 property value certified by the comptroller’s property tax assistance division (PTAD). This value does not yet reflect the increase in the homestead exemption from $15,000 to $25,000. We anticipate updating this value in the December–January timeframe, which will increase the state share under both the IFA and EDA programs. We will make any necessary supplemental payments at that time.

2015 I&S Tax Collections: Estimated tax collections are based on the tax collections your district submitted through the Tax Information Survey for the 2014–2015 school year as reflected in the Near-Final SOF. If your district is receiving a deduction for failure to meet the local share of IFA or EDA and you anticipate collecting more in taxes than are reflected on your SOF because of an increased I&S tax rate, please contact us so that we can update the calculations. Otherwise, we will update this data when we run Near-Final SOFs in September 2016 with information submitted in the summer 2016 Tax Information Survey.

2015–2016 Average Daily Attendance (ADA): ADA estimates come from data submitted through the attendance projections module of the Foundation School Program (FSP) system in the fall of 2014. We will update this data when we run Near-Final SOFs in September 2016.

Eligible Bond Payments: Eligible debt payments come from the Municipal Advisory Council database. If your district has refunded debt that is covered under the IFA program, you may need to submit an amendment to the division of state funding in order to receive full state assistance. If a bond on your district’s IFA report shows an asterisk and no state share of IFA for that bond, then we need to process an IFA amendment for your district. Please contact us if you have questions regarding how to ensure that you have submitted all necessary documentation. 

Payment Ledgers: Payment ledgers for the IFA and EDA programs now reflect Near-Final settle-up for the 2014­–2015 school year as well as updated 2015–­2016 calculations. Please review your district’s payment ledgers. If your district has a negative remaining balance, you will either need to make a repayment of overpaid FSP funds, or we will transfer this balance to your district’s Foundation Payment Ledger. We will notify districts that are in a negative balance situation after calculations are updated to reflect the impact of the homestead exemption.  

If you have questions or we can be of any assistance, please contact Jacqueline Pree by email at Jacqueline.pree@tea.texas.gov or by phone at (512) 475-1217.

Sincerely,

Amanda Brownson
Director, State Funding Division