Created by the Texas Legislature in 1999,
the Existing Debt Allotment (EDA) program provides tax rate
equalization for local debt service taxes. Specifically, the program
provides a guaranteed yield on interest and sinking fund (I&S) taxes
levied by school districts to pay the principal of and interest on
eligible bonds. It guarantees a specific amount of state and local funds
per student for each cent of tax effort up to $0.29 per $100 of
assessed valuation. Currently, the guaranteed yield for EDA provides $35
per student in average daily attendance (ADA) per penny of tax effort.
The program operates without applications and has no award cycles.
Law and Rules
Texas Education Code: Chapter 46, Subchapter B, Assistance with Payment of Existing Debt
Commissioner's Rules: 19 Texas Administrative Code §61.1035, Assistance with Payment of Existing Debt
Reports and Tools
EDA Eligible Debt Service Report
EDA Payments Ledger
EDA State Aid Calculation by District - Included in the SOF report
2015–2017 Unequalized Tax Collections Applicable to EDA & IFA Local Share (Excel, 1.2 MB)
Wiring Instructions for Paying Negative EDA Balances to the Texas Education Agency (PDF, 105 KB)
Only general obligation bonds are
eligible for the EDA program. Lease-purchase agreements authorized by
the Local Government Code, §271.004, are not eligible. Similarly, debt
service for which a district currently receives assistance through the
Instructional Facilities Allotment (IFA) program under the Texas
Education Code (TEC), Chapter 46, Subchapter A, is not eligible. The
first payment of debt service under the TEC, §46.033, determines the
eligibility of bonds for the EDA program. Refunding bonds as defined by
the TEC, §46.007, are also eligible for EDA assistance.
The eligibility date for the EDA program
was amended by the passage of House Bill 3646, 81st Texas Legislature.
Section 76 of the bill changed the TEC, §46.033, to provide a permanent
roll-forward provision to establish bond eligibility for the EDA
program. The amendments to the section deleted the eligibility dates in
the statute and replaced those dates with references to the last year of
the preceding biennium. Bonds for which a payment is made during the
final school year of the preceding state fiscal biennium are eligible
for the EDA program. This payment must be reflected in the debt service
schedule of the final official statement for the bonds in order to
establish eligibility for the EDA program.
Eligibility and I&S Tax Collections
The amount of state aid on eligible bonds
during a biennium is limited by the interest and sinking fund tax
collections from the second year of the previous biennium. If a
district’s tax rate did not include tax effort for newly eligible bonds,
it is possible the district may not receive EDA funding for those bonds
until the next school year, depending on local circumstances.
For additional information, contact:
Division of State Funding