IMPORTANT: Note from State Funding - Please be certain that your district has completed the Tax Information Survey using the online FSP System, accessed through the Texas Education Agency Secure Environment (TEASE), by August 13, 2010. If you do not take action regarding this message, your district's state funding could be adversely affected.

Completing the survey is especially important if the agency has overestimated your district's collections in the legislative payment estimate (LPE) column of the Summary of Finances (SOF) for the 2009-2010 school year. If we do not receive more accurate collections data, we will not be able to calculate settle-up payments for your district when we produce near-final estimates in September 2010. Your district will not receive additional state revenue to compensate it for lower collections than those shown on the 2009-2010 SOF until next March 2011, when we incorporate the J1 schedule information from your district's annual financial audit.

If you have questions about the survey, please contact Al Johnson, state funding consultant, by phone at (512) 463-9260 or by email at al.johnson@tea.state.tx.us. If you have questions about TEASE access, please contact Nelda Eisenbeck, state funding TEASE coordinator, by phone at (512) 463-8994 or by email at nelda.eisenbeck@tea.state.tx.us.

2010-2011 Chapter 41 Application Notification: This is a reminder that districts can now commence their Chapter 41 applications for the 2010-2011 school year. Please note that all districts must mail hard-copies of both the Intent Letter and Agreement for the Purchase of Attendance Credits, with original signatures, to the State Funding Division of the Texas Education Agency (TEA). All other data, CAD costs, estimated WADA, M&O collections at the compressed rate, and partner district information should be submitted in the FSP Module – Chapter 41. The deadline for submitting all pertinent 2010-2011 information is January 15, 2011, but in order to qualify for the early agreement credit, districts must submit Option 3 contracts by September 1, 2010. Hard copies must be post-marked by that date to qualify.
If you have questions about the Chapter 41 application please contact Nadia Bobb, State Funding consultant, by phone at (512) 463-9214 or by email at nadia.bobb@tea.state.tx.us . If you have questions about TEA Secure (TEASE) access, please contact Nelda Eisenbeck, State Funding TEASE coordinator, by phone at (512) 463-8994 or by email at nelda.eisenbeck@tea.state.tx.us .

IMPORTANT: Note from State Funding: This is a reminder that districts and charters should review, adjust (as necessary), and submit staff salary numbers for the 2009-2010 school year.
Please note that your district or charter must enter data for all 12 months (September – August) for the 2009-2010 school year to receive the full entitlement of the Staff Salary allotment. You will be able to enter data for the month of August on or after August 1, 2010. Not taking action regarding this matter can adversely affect your state funding. If you have questions about the survey, please contact Al Johnson, State Funding consultant, by phone at (512) 463-9260 or by email at al.johnson@tea.state.tx.us. If you have questions about TEA Secure (TEASE) access, please contact Nelda Eisenbeck, State Funding TEASE coordinator, by phone at (512) 463-8994 or by email at nelda.eisenbeck@tea.state.tx.us.

Note from TEA regarding "Optional Extended Year Program (OEYP) for 2010-11: The purpose of this letter is to inform you that the Optional Extended Year Program (OEYP) is included in this budget reduction which was previously posted on the TEA Website. The OEYP formula grant program will not be funded for the 2010-2011 school year. District grantees that are currently funded will NOT face a reduction in their current grant award amount for the 2009-2010 school year.

Changes in Transportation Handbook forn 2010-11: Beginning School Year 2010-2011 some significant changes will become effective regarding school transportation funding eligibility and reporting.  A new Transportation Allotment Handbook effective SY 2010-2011 has been posted on the School Transportation Funding website at, http://www.tea.state.tx.us/index2.aspx?id=2147484107&menu_id=645. Please review the new handbook and make appropriate changes in preparing for your new school year. Please do not confuse these changes with SY 2009-2010 eligibility and reporting

Note from TASA : AG Issues Opinion on Step Increase
© 2010 Texas Association of School Administrators
Yesterday, Attorney General Greg Abbott issued an opinion on the salaries districts must pay in the 2010-2011 school year. Earlier this year, Commissioner Scott requested an AG opinion asking whether or not districts will be required to provide a pay increase during the second year of the biennium per language contained in HB 3646. The opinion states that the 2008-2009 salary schedule determines whether a particular educator should receive an increase. "If the 2008-2009 salary schedule provides an increase in 2010-2011 school year for a particular educator, the plain language of subsection (c-2) entitles him or her to that salary increase, even if the salary schedule did not provide such an increase for the educator in the 2009-2010 school year." This ruling is contrary to the legislative intent, which did not require an increase in the second year of the biennium beginning September 1, 2009. Review the full opinion.

Note from Woody: Power Point Presentarion by Lisa Dawn-Fisher, Ph.D., Deputy Associate Commissioner for School finance presented at Region 12 ESC's Summer Leadership Conference in Salado June 15, 2010. (Link to presentation)

New Info Regarding Fund Balances: Fund Balance Policy examples to meet new requirements:
These two categories could be implemented within a larger fund balance policy that states the District’s overall intent of fund balance size. Within that fund balance policy approved by the Board of Trustees, the District should state the following:
Committed Fund Balance-
The Board of Trustees is the District’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board of Trustees at the District’s Board meeting.
Assigned Fund Balance-
The Board of Trustees has authorized the District’s Chief Financial Officer (or some other body or official) as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy.
This wording is straight from GASB 54. Information provided by the audit firm of Belt Harris Pechacek, LLLP, Certified Public Accountants|. www.texasauditors.com A copy of a board resolution that may be approved by the board may be found at this link. Link to Region 12 Business Users Support Site (BUS Stop) for more info (Link).

Note from State Funding: 2009 - 2010 Summer Tax Survey is Open
Districts can login to the FSP System and submit their updated estimates of tax collections for use in 2009-10 near final. It will be open until August 13th, according to Leo Lopez. Districts need to comply with this.

From Texas ISD: AG Opinion: Texas AG Ruling on Construction Manager-at-Risk
TASBO:  Last week, Texas Attorney General Opinion No. GA-0782 (2010) was issued on "Whether section 271.118 of the Local Government Code prohibits a company from being selected as a construction manager-at-risk for a municipal project if a related company has been selected as the project manager and design engineer." The Summary to the Opinion stated, [ View Article ]   Jun 29, 2010, 08:35

Notice Transportation: The Foundation School Program (FSP) payment system will be available for input of the school year 2009-2010 Route Services Report data on June 1, 2010.  Due date for the report to be in "SENT" status is July 1, 2010.

There were no changes to funding eligibility or reporting for school year 2009-2010. The Route Services Report instructions dated May 2009 posted on the School Transportation Funding Web site are applicable to school year 2009-2010 reporting. Please review the report instructions before compiling data and filing the report in the FSP on line system, http://www.tea.state.tx.us/school.finance/transportation/index.html .
ESC12 Transportation workshop on Transportation Reporting will be June 9, 201 0( 9.00 AM to 12.00 PM) Please register @ https://register.esc12.net/default.aspx Session # 32236

Notice from Woody: The requirements for posting the district's "Proposed" budget and the districts "Adopted" budget are still in place. You may reference our Templates Page for requirements & models. (ESC 12 School Finance Template's Page)

Note: State Comptroller's Truth in Taxation session for setting the tax rate. This session is scheduled for for July14th at ESC 12 (and other ESC's). The morning sessions will be for non-ISD. The sessions for setting school district tax rates will be from 1:00 to 4:00 PM.

Attendees may pre-register for the seminars of their choice. Use the registration form www.window.state.tx.us/taxinfo/taxforms/50-754.pdf and return it to PTAD. The regional seminars are still free of charge. Registration is required to guarantee receiving a copy of the Truth-in-Taxation publication and presentation slides. The PTAD staff will detail how to calculate the effective and rollback tax rates, what to publish and when to hold a tax-rate-rollback election.

Note: June 22, 2010. Woody's workshp for completing final LPE/DPE Summary of Finance Template. This workshop is not for districts under service contracts. Participants need to bring a "Date Range" Superintendent's Report & "Projected" M&O Tax Collections to workshop. Please register at: https://register.esc12.net/default.aspx. Session #32302.

New: Financial Solvency Power Point Presentation by Gary Barker, ESC 12, at April 28th Superintendent's Forum.

Notice: As you begin the budget development process for 2010-2011, please keep in mind a provision in HB 3646 which penalizes districts financially for adopting a M&O tax rate below the compressed tax rate. If a district adopts a M&O tax rate less than the compressed rate for the first time in 2010-2011, the district will lose all state funding resulting for Additional State Aid for Tax Reduction (ASATR). If a district adopted a M&O tax rate less than the compressed tax rate in 2009-2010 and adopts a M&O rate less than the compressed tax rate in 2010-2011, the district’s ASATR will be reduced proportionally by the percentage difference between the adopted M&O tax rate and the compressed tax rate.

From Omar: A new HB 3646 templatethat contains the calculations for the 2009-10 thru the 2012-13 school years is now available (release 14 dated 6/9/10). This template reflects the latest understanding of the school finance provisions contained in HB 3646 as passed by the 81st session of the Texas Legislature. Please check periodically for updates. (Link to Omar"s web page)
Note from Woody: Be sure to use Omar's latest template. Several districts have had S1,S2,S3 changes. This will change your Target Revenue.

Note from State Funding Regarding Chap. 41 Districts: This is a reminder that your district must submit all the required 2009–2010 Chapter 41 documents and data through the Chapter 41 module of the Foundation School Program (FSP) Payment System located within the Texas Education Agency Secure Environment (TEASE). All required documents (intent letters and contracts) must be signed, and all supporting documentation (election results, county appraisal district [CAD] costs, tuition charged or paid, and Option 4 weighted average daily attendance [WADA] purchased by Chapter 42 partner) should be submitted online via the FSP Payment System. If you nadia.bobb@tea.state.tx.us.

Note from Leo at state funding: I’ve been authorized by the LBB to recalculate M&O Tax Collections for 2009-10 for those districts that held successful tax rate elections in 2009-10. The method that I will probably go is as follows: Current estimate of M&O Collections= $1,000,000; Current estimate of M&O Rate = 1.04; District’s new M&O Rate = 1.17
$1M / 1.04 x 1.17 = $1,125,000.
TEA’s new estimate of M&O collections  = $1,125,000.
Hopefully this will be done in time for the February payments.

Note from Rita Chase at TEA Audits Division: Subject: RE: Special Program Compliance.
The new indirect cost rates are 45/40 percent or looking at it at the direct rate 55/60.  It was approved at the last SBOE meeting. The 40% is for career and technology the 45% is for the other special program areas. We will be updating the Resource Guide with the new rates.

Note from Debbie Ratcliffe at state funding: Subject: Bond Guarantee Program to reopen.
The Texas Permanent School Fund Bond Guarantee Program, closed since March, will re-open in early 2010 and will once again back the bonds issued to pay for school construction.  This will save Texas school districts millions of dollars in interest costs.
http://www.tea.state.tx.us/index4.aspx?id=7356

Note from Joe at TexasISD: Comptroller Updates Travel Reimbursement Rates
Attention! The State Comptroller's website now has new Travel Reimbursement Rates (Link)  effective Janurary 1, 2010.  The link contains all the information needed to update school district policies and procedures.   Jan 7, 2010, 08:42

Note: 2009-10 LPE.DPE Template now posted on Templates Page. Be sure to use the latest version of the template. Updated 11/12/2009 (Be sure to use latest update)

Power Point Presentations by Omar Garcia and School Finance, Leo Lopez & Helen Daniels at ESC 12 Business Manager's Roundtable Oct. 22, 2009.
(Link to Omar's Presentation) ; (Link to TEA's Presentation)

Note from State Funding: Normally technology payments are sent out somewhere between November and January. This year, technology payments will be coming in May 2010.

New Web Posting of Budget Required: House Bill 3 from the 81st Session of the Texas Legislature requires school districts, on final approval of the budget by the board of trustees, to post a copy of the adopted budget on the district’s Web site. This requirement is in addition to posting the proposed budget. The Web site must prominently display the electronic link to the adopted budget. The adopted budget must be maintained on the Web site for three years after adoption.(Link to Template)
Note from Woody: HB 3 requires posting only General Fund Budget. Since adoption of Federal Funds is a local decision, they are not required posting. If you choose to add Federal Funds to the template, this would be acceptable, but not required.

Notice: "Proposed" Budget Report Template to post district's expenditure budgets on Web Page as required by HB1. (Link to Template) A school district must post the budget summary on the school's Internet Web site when it posts the "Notice of Public Hearing" on the budget in the newspaper. The budget summary must remain on the district's web site throughout the district's fiscal year. Updated 5/21/2009.

Note: Utility Posting Template Still Required: Template to post utility usage & aggregate cost on school district web page as required by HB 3693 is still required on district's webpage. (Link to 2010 Energy Template)

 ARRA Title XIV State Fiscal Stabilization Fund: (Link to amounts) (Posted July 31, 2009
This is a formula grant administered by the Division of Formula Funding. For program guidelines and information. (Click here and search for 2009-2010 ARRA Title XIV State Fiscal Stabilization Funds Grant

Ditricts wishing to participate in Optional flexible School year must apply annually (even if you were approved for 2008-09 school year) Link to TEA's approved list for 2009-10.

Repeal of Expenditure Target: House Bill 3, 81st Texas Legislature, 2009, repealed the Texas Education Code, Section 44.011, related to expenditure targets. The repeal of this code is effective immediately.

2008-09 Bus Accident Reporting System survey to open July 6, 2009: The TEA has created a new web-based survey for you to use in reporting this information. This survey is much different from the 2007–08 BARS survey in that it asks for summary level data rather than detailed, accident-specific information. The survey opens today, July 6, and closes August 31. It is available at http://ritter.tea.state.tx.us/school.finance/transportation/bars/bars_index.html. You may preview the survey's questions at http://ritter.tea.state.tx.us/school.finance/transportation/bars/0809_bars_preview.pdf

Dr. Lisa Dawn-Fisher's Power Point Presentation: "News from 81st Texas Legislature", presented at Region 12 Superintendent's retreat June 16, 2009. (Link to Power Point Presentation)

IMPORTANT MEMO Dated May 5, 2009: Be sure to take notice of memo from State Funding regarding 2007-2008 Final Summary of Finances (LINK). This may result in an "Overpayment/Underpayment" adjustment in May 2009. If your district has been underpaid, the amount owed the district will be paid in May 2009. If your district has been overpaid, recovery of the amount overpaid will start in May 2009 and will be made by reducing your district's remaining FSP 2008–09 payments.  Your district's 2008–09 FSP Payment Ledger & Payment Schedules are also available for review on the School Finance website.

NOTICE: Leo has just just posted a new Summary of Finance on the State Funding Webpage Dated May 11, 2009 (Link) Be sure to check "Revenue Target Per WADA" against what you are using on your template. It may have changed since you set up your template. Also, get your Comp. Ed. numbers from the Summary of Finance Report. Your Foundation allocation amounts may change as a result of using "budgeted" M&O Tax collections and "current" Comp Ed. numbers. Be sure to check your Payment Ledger for these changes.

Link to templates page for 2008-09 LPE.DPE Templates Be sure to use latest versions from Omar & Woody.

Transportation Reminder: The Foundation School Program (TEASE) system will be available June 1st for input of the 2008-2009 Student Transportation Route Services Report. Due date for the report to be in "SENT" status is no later than July 1, 2009. ESC 12 Transportation Route Services Workshop will be June 11, 2009. Please register at https://register.esc12.net/default.aspx Use the session number 29822.

New service from Region 12: If your district is financially proactive, this service will provide a level of comfort to confirm the accuracy of district calculations or reduce staff time by outsourcing the elements of data manipulations. The resulting reports are very effective tools for administration and the board to use in making prudent decisions. The reports are also excellent board reports. The service is similar to curriculum benchmarking. It is designed to determine during planned intervals the progress being made toward the fiscal year end goals. The benchmarks will allow early intervention by the district to redirect revenues, expenditures or use other strategies to meet financial goals. (Link to Financial Benchmarking Webpage)

NOTICE from Leo at State Funding: There will be no Fall tax information survey this year.  District data will be updated in March 2009 when we load in budgeted collections from PEIMS and tax rates from the Comptroller.

Links to Power Point Presentations from Feb. 5, 2009 Business Mgr's Round Table at ESC 12. Presentation by TEA on "Expenditure Targets". Presentation on "How to Prepare for your External Audit".

NOTICE: Memo from TEA Regarding FIRST Rating and public hearing This memo gives info regarding the required public hearing for FIRST and the Management Letter that is a part of that hearing (LINK to Memo)

Notice: Urgent Update regarding Dual Credit and State Funding The 2008-09 Student Attendance Accounting Handbook was published stating that a school district could not count students in attendance for state funding in dual credit courses if those students were charged tuition, fees, or textbook costs. Based on concerns raised by a number of school districts and a request by Senators Duncan and Shapiro, the agency has decided to delay implementation of that policy until the legislature has an opportunity to examine the issues related to dual credit. For the 2008-2009 school year, students who participate in dual credit courses in which students pay tuition, fees, or textbook costs will be allowed to be counted in attendance for state funding purposes.If you have any questions, please contact either Belinda Dyer at Belinda.dyer@tea.state.tx.us or 512-475-3451 or Nicole Schuessler at Nicole.schuessler@tea.state.tx.us or 512-475-1632.

Notice: Template to post utility usage & aggregate cost on school district web page as required by HB 3693 (Link to Templates Page) Revised 08/23/08

Link to TASBO's Internet Postings Required of School Districts http://www.tasbo.org/internet_postings_required.htm

Notice from Gary & Woody: There have been many questions regarding the Annual Financial Management Report to be prepared by the school district. Please reference this link

Notice from TEA: Changes to Mileage Reimbursement Rates Effective January 1, 2009, Applicable to State and Federal Grants from the Texas Education Agency (Link to TEA Memo)

Notice from State Funding: Information from TEA regarding implementation of Rider 86 - pay increase for educators (Link to web site)

Federal MOE Template
This template may be used to help a district determine compliance with Federal Funds Maintenance of Effort (MOE) requirements. (Link to Templates Page)

SCHOOL FIRST:
Notice from Gary & Woody: Additional information regarding the Annual Financial Management Report to be prepared by the school district. Please reference this link and scroll down to Sec. 09.1005 "Reporting" .

2006-2007 FIRST Worksheet (Courtesy of ESC Region XIII Website)
(Link to FIRST Template)

Notice, FIRST: TASBO/TSPRA "FIRST Communication Resources Kit" (Including notice of public meeting to discuss your district's State Financial Accountability Rating )

Notice, FIRST: Link to “65% Rule” indicators 13 and 14 of 2006-07 FIRST worksheet as posted on the Texas Register

Note:TEA Audit Division's School Management Report to be given with District's FIRST public hearing in 2007 (6/27/07)