February 18, 2016
Recent Updates to the Summary of Finance (SOF) Reports
We have recently made a number of changes to district summary of
finance (SOF) reports for the 2015–2016 school year.
Additional State Aid for the Homestead Exemption
We have incorporated the revised 2014 property value reflecting the
increased homestead exemption into the calculation of state aid for Instructional
Facilities Allotment (IFA) and Existing Debt Allotment (EDA). Funding for these
programs increased when the property value used to calculate the local and
state shares of the programs was reduced to reflect the increased homestead
exemption granted this year. Districts receive interest and sinking (I&S)
hold-harmless funding when increases in IFA and EDA due to the reduced property
value are not sufficient to compensate for the loss due in I&S tax
collections for eligible bonds. You can find information related to the
calculation of the I&S hold-harmless funding on line 52 of your district’s
SOF report. The hold-harmless payment is flowing to districts through the EDA
payment ledger, so you should review this ledger even if your district does not
normally receive funding under the EDA program.
You can locate the payment ledgers at this link:
State funding has issued catch-up payments under the IFA and EDA
programs in order to reflect the homestead exemption increase. You should
receive these funds this week. These funds should be coded using fund 599 and revenue
Funding for maintenance and operations (M&O) also increased when we
incorporated the lower property value. Using a lower property value increases
the state share of Tier 1 and Tier 2 and reduces recapture. When other
increases are not sufficient to compensate for the loss due to the homestead
exemption, districts receive funding under the M&O hold-harmless. You can
find information related to the calculation of the M&O hold-harmless on
line 2 of the other programs detail report on your SOF report. Increased
M&O funding will flow through your regular monthly state aid payments.
Incorporation of 2015 M&O Tax Rates
We have updated district SOF reports to reflect 2015 M&O tax rates
as reported by your appraisal districts to the comptroller’s office. We have updated
M&O tax collections for districts that had M&O tax rate changes by changing
them in proportion to the change in the tax rate.
Chapter 41 Payment Reports
We have incorporated data from the Chapter 41 module into district SOF
reports and produced Chapter 41 payment reports for those districts that make
payments under Chapter 41. You can see the payment reports at this link:
If you need additional information, please contact the Division of State
Funding at (512) 463-6220.