2017-2018 Final Summary of Finances

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A final Summary of Finances (SOF) and other related reports for the 2017–2018 school year are now posted to the School Finance website of the Texas Education Agency (TEA) at https://tealprod.tea.state.tx.us/fsp/Reports/ReportSelection.aspx. A summary of relevant information about the data used in these reports is provided in the following paragraphs:

Average Daily Attendance (ADA) and Full-Time Equivalents (FTEs): 
The SOF reflects the final student attendance data submitted by districts through the Public Education Information Management System (PEIMS) in July for the 2017–2018 school year. Any changes to average daily attendance (ADA) and full-time equivalent (FTE) student count data submitted and processed since the "near final" SOF are reflected on this update. This SOF reflects, if applicable, special education FTEs generated by last summer's Extended Year Services (EYS) program and Optional Flexible School Day Program (OFSDP) Credit Recovery ADA reported in PEIMS submission 4. Line 7 of the SOF shows the final calculation of students in weighted average daily attendance (WADA).

ADA Adjustments to Districts Affected by Hurricane Harvey:
Districts that experienced losses in average daily attendance (ADA) due to Hurricane Harvey and met eligibility requirements for an ADA adjustment were held harmless to an ADA projection calculated using a three-year trend from the 2014–2015 through the 2016–2017 school years or the 2017–2018 legislative payment estimate (LPE) projection for the 2017–2018 school year. This is a one-time adjustment that will only be made for the 2017–2018 school year.

Click the following link for more details about the Commissioner’s adjustments to ADA for school districts experiencing declines in enrollment because of Hurricane Harvey.

Total Tax Collections:
School Districts: The SOF uses audited tax collections as reported by your district's independent auditor in Schedule J-1 of your district's annual financial and compliance report (AFR) for the 2018 fiscal year. If your district received an Instructional Facilities Allotment (IFA) for a lease-purchase agreement, your district's local share of the IFA has been subtracted from the maintenance and operations (M&O) tax collection amount before the calculation of state aid. If your district participates in a tax increment reinvestment zone (TIRZ), your district's reported payments of M&O tax collections to the TIRZ have been subtracted from your district's M&O tax collections as well.

Charter Schools: The M&O tax collections reported by school districts through the Schedule J-1 of the school districts AFR have been used to determine the statewide average variables for charter schools.

Rapid Property Value Decline:
Texas Education Code (TEC), §42.2521 provides for an Adjustment for Rapid Decline in Taxable Value of Property (“DPV Decline Adjustments”) to assist districts that experience a rapid decline in their tax base of more than four percent. Senate Bill 1, General Appropriations Act (85th Legislature, Regular Session), appropriated $25 million for adjustments due to rapid property value decline pursuant to TEC, §42.2521. The calculation detail for the DPV Decline Adjustments can be found on the 2017–2018 Summary of Finances under the new detail report entitled Additional State Aid for Property Value Decline. These adjustments are for property value declines that occurred from the 2016 to 2017 tax years. All districts eligible for funding under this statute received a payment in the amount of the DPV Decline Adjustment in October 2018.

Adjustment to Compressed Tax Rate for Certain School Districts: 
The 84th Legislature amended TEC, §42.101, to allow for the adjustment of compressed tax rates (CTR) for school districts that had 2005 maintenance and operations (M&O) tax rates below the maximum allowed M&O tax rate of $1.50 per $100 of valuation. Beginning in the 2017–2018 school year, because ASATR was repealed effective September 1, 2017, adjustments to the CTR are automatically being applied (if applicable) in your district’s SOF. No further action is necessary for districts to receive an adjustment to the CTR.

New Instructional Facilities Allotment (NIFA): 
The NIFA program can provide up to $1,000 per student in average daily attendance (ADA) in an eligible new campus in the first year of operation and up to $1,000 per each additional ADA in the second year of operation to help with any start-up costs associated with opening a new campus. The definition for a new instructional facility has been expanded to include a repurposed instructional facility or a leased facility operating for the first time as an instructional facility with a minimum lease term of not less than 10 years. The bill provides for a statewide total of $23.75 million in the 2017–2018 school year. Based on approved NIFA applications, the amount provided per student in ADA is currently $235.436. Final settle-up is based on ADA from PEIMS and information provided on the Days of Instruction Survey submitted through the NIFA subsystem of the FSP system.

Per Capita Rate:
A rate of $206.566 multiplied by the prior-year ADA is used to calculate the per capita allotment.

Transportation Allotment: 
Your district's 2017–2018 transportation allotment is based on the data submitted on the 2017–2018 Route Services Report. If your district did not submit this report, the transportation allotment has been removed from the SOF.

High School Allotment:
Your school district’s or charter school's high school allotment is calculated by multiplying its high school (grades 9–12) ADA by $275.

Staff Salary Allotment :
Your district's staff salary allotment is calculated by multiplying the district's number of eligible staff by $500 or $250, depending on their full-time or part-time status. The allotment was updated with 2017–2018 monthly counts submitted via the web-based Foundation School Program (FSP) System staff salary subsystem. If your district did not submit this report, the staff salary allotment has been removed from the SOF.

State Aid Reduction for WADA Sold:
The SOF report reflects reductions in state funding for the attendance credits sold by a partner district to a Chapter 41 district. The adjustments were made by reducing state aid based on the number of credits for students in weighted average daily attendance (WADA) involved in the partnership arrangement. The number of WADA being sold does not reflect the "final" WADA that the Chapter 41 district must purchase. The number of WADA bought/sold may need to be adjusted depending on the "final" Cost of Recapture reports now available online to Chapter 41 districts. Revisions for WADA sold must be completed by May 2019.

Existing Debt Allotment (EDA):
A report entitled EDA State Aid Report, available by clicking the "EDA Detail Report" link on line 50 of the SOF, reflects the final state and local shares of the EDA based on final ADA, district property values and updated un-equalized tax collections. Settle-up amounts for 2017–2018 will be paid. If we do not anticipate your district will have a sufficient EDA entitlement in 2019–2020 to net against a negative balance from 2017–2018, the remaining negative balance will be transferred to the IFA ledger, if applicable, or a refund will be requested and obtained. If your district refinanced eligible debt during 2017–2018, please verify that the information on the EDA State Aid Report and in the FSP System’s Bond Programs subsystem has been updated correctly.

*Additional State Aid for Homestead Exemption (ASAHE) for facilities:
A report entitled Additional State Aid for Homestead Exemption (ASAHE) for Facilities Detail Report available by clicking the "ASAHE for Facilities Detail Report" link on line 53 of the SOF, reflects the final ASAHE allotment based on final ADA and district property values. Settle-up amounts for 2017–2018 will be paid. If we do not anticipate your district will have a sufficient EDA entitlement in 2019–2020 to net against a negative balance from 2017–2018, the remaining negative balance will be transferred to the IFA ledger, if applicable, or a refund will be requested and obtained.

Instructional Facilities Allotment (IFA):  
A report entitled IFA Allotment Detail, available by clicking the "Details" link on line 51 of the SOF, reflects the final state and local shares of the IFA based on final ADA, district property values and updated un-equalized tax collections. Settle-up amounts for 2017–2018 will be paid. If we do not anticipate your district will have a sufficient IFA entitlement in 2019–2020 to net against a negative balance from 2017–2018, the remaining negative balance will be transferred to the EDA ledger, if applicable, or a refund will be requested and obtained. If your district refinanced eligible debt during 2017–2018, an amendment is required and adjustments may be necessary.

FSP Allocations and Adjustments Report: 
The report entitled FSP Allocations and Adjustments, available by clicking the "FSP Allocations and Adjustments Report" link at the end of the SOF, shows the amount of your school district’s final settle-up. If your school district or charter school was underpaid, the amount owed to the district or to the school was paid in April. If your school district or charter school was overpaid, recovery of the amount overpaid starts in May by reducing the district’s or school's 2018–2019 monthly payments from the Foundation School Fund (FSF). If a reduction to the subsequent year’s payments, the rate of recovery will be based on the same percentage that FSF monthly payments are based on in accordance with your district’s or school's 2018–2019 payment class. Your school district's or charter school's 2017–2018 FSP payment ledger is also available at School District State Aid Reports (select "Payment Ledgers" from the drop-down list).

If you have any questions about the SOF report, please contact a state funding consultant at (512) 463-9238.

Sincerely,

Al McKenzie
Director of State Funding
NR/am