September 2021 Committee on School Finance/Permanent School Fund Item 1

Per Capita Apportionment Rate for the 2021-2022 School Year

September 2, 2021

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION

SUMMARY: A per capita apportionment rate for each school year is set by the commissioner of education (Commissioner) based on an estimate of the amount available for expenditure from the Available School Fund. Agency staff members will propose a recommended rate for the 2021-2022 school year at the September meeting of the Committee on School Finance/Permanent School Fund.

STATUTORY AUTHORITY: Texas Education Code (TEC), §§48.004, 48.251(c), and 43.001(b).

TEC, §48.004, requires the Commissioner to implement and administer the Foundation School Program.

TEC, §48.251(c), requires the Foundation School Program to be financed with state available school funds distributed in accordance with the law.

TEC, §43.001(b), describes the appropriations that make up the Available School Fund.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION: None

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: Senate Bill 1, the General Appropriations Bill enacted by the 87th Texas Legislature, 2021, contains an estimate of the amount that will be available for expenditures from the Available School Fund for the 2021-2022 school year. The per capita apportionment will include distributions from the Permanent School Fund and funds from state occupation taxes and from the Motor Fuels Tax. The preliminary per capita apportionment rate set by the Commissioner is based on an estimate of the funds available for expenditure. A final rate is established later in the school year by the Commissioner based on actual funds available for expenditure.

FISCAL IMPACT: The per capita apportionment rate finances part of the cost of the Foundation School Program. State aid comes from the Available School Fund and the Foundation School Fund. The per capita apportionment rate determines how much of each district's total state aid is paid from the Available School Fund. The part that is not financed by the Available School Fund must be paid from the Foundation School Fund.

PUBLIC BENEFIT AND COST TO PERSONS:  State aid for the Foundation School Program is partially funded by the Available School Fund per capita apportionment. If this source of funds were not available, the shortfall would have to be made up from the General Revenue Fund.

Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance
Amy Copeland, Director, State Funding

Separate Exhibit:          
2021-2022 Preliminary Per Capita Rate
(to be provided at the SBOE September 2021 meeting)