18_05 Proposed New 19 TAC §61.1017
Commissioner's Rules
Proposed New 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1017, Alternative Compensatory Education Allotment Calculation
Attachments:
I. Statutory Citation (PDF)
II. Text of Proposed New 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1017, Alternative Compensatory Education Allotment Calculation (PDF)
SUMMARY: The rule action presented in this item was filed as proposed with the Texas Register under the commissioner's rulemaking authority. This item proposes new 19 TAC Chapter 61, School Districts, Subchapter AA, Commissioner's Rules on School Finance, §61.1017, Alternative Compensatory Education Allotment Calculation. The proposed new rule would provide for an alternative compensatory education allotment calculation for certain school districts and open-enrollment charter schools located in counties declared a natural disaster as a result of Hurricane Harvey.
STATUTORY AUTHORITY: Texas Education Code (TEC), §42.152.
TEC, §42.152(a)(2), allows the commissioner to adopt rules for the administration of TEC, §42.152, including the calculation of the number of educationally disadvantaged students.
EARLIEST POSSIBLE DATE OF ADOPTION: July 23, 2018.
PROPOSED EFFECTIVE DATE: August 23, 2018.
BACKGROUND INFORMATION AND JUSTIFICATION: TEC, §42.152(a), specifies that a school district is entitled to an annual compensatory education allotment that is determined using counts of students who are educationally disadvantaged or who do not have a disability and reside in a residential treatment facility not located where the student's parent or legal guardian resides. TEC, §42.152(b), specifies that the number of educationally disadvantaged students is determined by averaging the best six months' numbers of students eligible for enrollment in the National School Lunch Program (NSLP) of free or reduced priced lunches the preceding school year or in a manner provided by commissioner rule.
Proposed new §61.1017 would exercise the commissioner's authority under TEC, §42.152(b)(2), to specify how educationally disadvantaged students are determined for the purpose of the compensatory education allotment. The proposed new rule would equalize compensatory education funding for all school districts and open-enrollment charter schools located in counties declared a natural disaster as a result of Hurricane Harvey.
Specifically, the proposed new rule would allow school districts and open-enrollment charter schools located in counties declared a natural disaster that did not receive a waiver related to provisions of the NSLP and School Breakfast Program offered by the Texas Department of Agriculture (TDA) to use total student enrollment as reported during the 2017-2018 Fall Texas Student Data System Public Education Information Management System (TSDS PEIMS) Snapshot in place of the number of students reported as eligible for enrollment in free or reduced-price lunches for the month of September 2017 when computing the best six-month average under TEC, §42.152(b)(1), for the 2017-2018 school year. Absent this proposed new rule, school districts and open-enrollment charter schools that did not receive the TDA waiver for the school lunch program would not be able to receive additional compensatory education funding even though their students were likely educationally disadvantaged due to the impacts of Hurricane Harvey.
FISCAL IMPACT: Texas Education Agency (TEA) has determined that there are no additional costs to persons required to comply with the proposed new rule. The proposed new rule would have fiscal implications for state and local government. School districts and open-enrollment charter schools located in counties declared a natural disaster that do not have a TDA waiver will receive an additional $11 million in compensatory education funding. The funding will cost the state $11 million from the Foundation School Program. There is no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required. There is no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed new rule does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.
GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not expand, limit, or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.
PUBLIC AND STUDENT BENEFIT: The proposed new rule would provide school districts and open-enrollment charter schools located in counties declared a natural disaster without a TDA waiver approximately $11 million in additional compensatory education funding to serve students at risk of dropping out of school.
PROCEDURAL AND REPORTING IMPLICATIONS: The proposed new rule would have no procedural and reporting implications. School districts and open-enrollment charter schools would continue to follow current reporting requirements.
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: The proposed new rule would have no locally maintained paperwork requirements. School districts and open-enrollment charter schools would continue to maintain existing local records.
PUBLIC COMMENTS: The public comment period on the proposal begins June 22, 2018, and ends July 23, 2018.
ALTERNATIVES: None.
OTHER COMMENTS AND RELATED ISSUES: A public hearing on the proposed new rule will be held at 9:00 a.m. on July 9, 2018, in Room 1-104, William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701. Anyone wishing to testify at the hearing must sign in between 8:15 a.m. and 9:00 a.m. on the day of the hearing. The hearing will conclude once all who have signed in have been given the opportunity to comment. Questions about the hearing should be directed to Nora Rainey, State Funding, (512) 463-7298.
Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance / Chief School Finance Officer
Al McKenzie, Director, State Funding
Nora Rainey, Manager, State Funding