Where’s Our Facilities Money!?!

1. Where’s OurFacilities Money!?! Presented by the Facilities & Transportation Team Gary B. Marek, Cynthia Hegemier-Boggs, & Cassie Huggins State Funding Division Texas Education Agency March 5, 2008 TASBO Annual Conference Austin, Texas

2. Where’s Our Facilities Money!?! • IFA • EDA • NIFA • QZAB • Science Lab Grant Program

3. Where’s Our Facilities Money!?! IFA

4. Instructional Facilities Allotment • Where is our money? • Why is our award so small? • What’s wrong with the application/ amendment we submitted? • What are the IFA application deadlines? • Who is the IFA program contact?

5. Where is our money? All but a handful of districts have already received their IFA awards. If you think you haven’t: • Check online. 2007–08 IFA Payment Reports can be found midway down the same Web page as the Summary of Finances reports. • Determine if all required amendments and supporting documents for refunding or refinancing have been submitted and processed. Full amendments are required for all transactions that affect the IFA debt. • If you still have questions, contact the IFA program administrator.

6. Why is our payment so small? Have you reviewed the IFA Payment Report applicable to your allotment? • Current-year payments are based on estimated data and usually include a settle-up adjustment for the prior-year near-final earned share. • Compare the payment reports from last year to this year’s report, and look for changes in ADA, CPTD, and eligible debt service. If you think the data is erroneous, contact the IFA program administrator.

7. What’s wrong with the application/ amendment we submitted? • Are required schedules missing? • Always include a complete schedule 4A. • New applications – Review the RFA checklist before submitting an application. • Amendments – Review the online instructions. • Use the most appropriate forms for the applicable transaction. • Is information incomplete? • Always include a complete schedule 1, which requires the authorized district official’s original signature. • Reference the applicable document control number. • Is supporting documentation missing? • Include the attorney general’s letter of approval for corresponding debt. • Include the final official statement (FOS) for corresponding debt. If an FOS is not available, include the final bond order or other official document describing the relevant financing activity, including a final debt service schedule.

8. What are the IFA application deadlines? $87.5 million will be available this summer to provide new awards for the 2008–09 school year. Details can be found in the required reading: Request for Application (RFA), found under the “Forms” heading on the main IFA Web page at http://www.tea.state.tx.us/school.finance/facilities/ifa.html. • Round 9 deadline: 5:00 p.m. CST, Monday, June 16, 2008 • Application must be made after voter authorization. (General obligation bonds require an election. Leases require a 60-day notice period.) • Application must be made before the sale date. (For bonds the sale date is the date the district prices the bonds. For lease-purchase agreements the sale date is the date the board trustees pass an order authorizing the lease-purchase contract.) If you plan to apply for IFA this June and do not already have voter authorization for your proposed debt, you need to get started! • Last opportunity for bond election May 10, 2008 • Notice must be published before April 21, 2008 IFA applications submitted prior to June 16, 2007 (last year) have expired if the proposed debt did not issue by December 12, 2007.

9. IFA - Agency Contact Cynthia Valenzuela Hegemier-Boggs (512) 463-9238 Fax (512) 305-9165 Cynthia.Hegemier-Boggs@tea.state.tx.us Main IFA Web Page http://www.tea.state.tx.us/school.finance/facilities/ifa.html There you can access — • Frequently asked questions (FAQs) • “Required Amendments—When, Where, What, How, & Why” • Request for Application (RFA) for Round 9 (required reading for all applicants) • Individual copies of the IFA application form/schedules

10. Where’s Our Facilities Money!?! EDA

11. Existing Debt Allotment (EDA) • EDA eligibility 2007–08 • Bonds issued and a payment made on or before August 31, 2007 • Required sufficient I&S tax collection in school year 2006–07

12. EDA Funding 2007–08 • State/local share of EDA = $35 x total refined ADA x allowed EDTR x 100 • Local share of EDA = allowed EDTR x (2007 CPTD APV / 100) • EDA entitlement = (state/local share of EDA) – (local share of EDA) unless I&S taxes are less than the local share of EDA • EDTR = existing debt tax rate • CPTD = Comptroller Property Tax Division • APV = adjusted property value

13. EDA Corrections – 2007–08 • To request changes to EDA debt service information, please submit an EDA correction form. Changes to debt service information include the refunding of bonds. The form and applicable instructions can be obtained by sending an email request to Gary B. Marek.

14. EDA - Agency Contact Gary B. Marek, REFP (512) 463-9238 Fax (512) 305-9165 gary.marek@tea.state.tx.us Main EDA Web Page http://www.tea.state.tx.us/school.finance/facilities/eda.html

15. Where’s Our Facilities Money!?! NIFA

16. New Instructional Facilities Allotment (NIFA) • NIFA purpose • Provides funding for new campuses • Renovations and additions are not eligible • Provides two years of funding • 1st year – ADA on eligible campus • 2nd year – additional ADA on eligible campus • One-year – special case of district that failed to apply during first year of eligibility • May be used for equipment, furniture, other start-up costs for new facility

17. NIFA - Funding • 1st year = • $250 x ADA on eligible campus • 2nd year = • $250 x additional ADA on eligible campus • Additional ADA = 2nd year ADA – 1st year ADA • One-year = • $250 x ADA on eligible campus, one year only

18. NIFA - Eligibility • Facility must be new from slab up • May not be attached to existing building, except by covered walkway • Portable buildings are not eligible • Facility must have its own: • Principal • Accountability rating • Campus number • Record of expenditures • Attendance data

19. NIFA - Common Mistakes • Applications submitted for facilities that incorporate existing instructional facilities in the new construction • Applications submitted for new buildings on an existing campus—the new facilities do not have a separate campus number, principal, record of expenditures, or accountability rating

20. NIFA - Deadlines • Annual application deadline: July 15 • Submit online application • 1st year and one-year funding – submit supporting documentation • Contract or similar legal document • Photograph of building/site • 2nd year – online application only • 2nd year funding is not automatic; district must apply • Follow-up survey – usually due in late October or early November

21. NIFA - Common Mistakes • Failing to file the online application by the July 15 deadline • Failing to submit, via certified mail, the required paper documentation postmarked by the July 15 deadline • Failing to submit a follow-up application before the second year of occupation • Submitting follow-up applications for schools that did not open during the year for which initial applications were filed

22. NIFA - Agency Contact Cassie Huggins (512) 463-9238 Fax (512) 305-9165 cassie.huggins@tea.state.tx.us Main NIFA Web Page http://www.tea.state.tx.us/school.finance/facilities/nifa.html

23. Where’s Our Facilities Money!?! QZAB

24. Qualified Zone Academy Bond (QZAB) • What is QZAB? • allows school districts to obtain interest-free financing for the purpose of establishing “qualified zone academies” • provides an incentive in the form of federal tax credits to lenders who purchase bonds from issuing school districts • Approx. $32.7 million (2006) & $37.7 million (2007) available

25. Qualified Zone Academy Bond (QZAB) • A complete application is critical! • Incomplete applications are rejected: • Blocks not checked • Blanks not filled in • Insufficient project description • Lack of campus information, description of work, budgets, timelines, etc. • New academy not identified • Lack of signature from business partner(s) • New construction and/or additions are not eligible!

26. Where’s Our Facilities Money!?! Science Lab Grant Program

27. Science Lab Grant Program • Authorized under Sec. 7.062 TEC, as added by HB 2237, 80th Legislature. • TEA is currently working to adopt rules for this program. • If sufficient excess funds are available in the IFA & EDA appropriation, then Commissioner can certify up to $20 million annually for this program. • TEA has determined that $20 million is available for this fiscal year.

28. Science Lab Grant Program • Although rules will not yet be adopted, TEA goal is to have an application cycle ending on March 31, 2008. • Statute allows $200/sf for new labs & $100/sf for existing space converted to labs; TEA will set size limits: • 2,050 sf max. for new lab/classroom • 1,550 sf max. for new stand-alone lab • 1,640 sf max. for renov. lab/classroom • 1,240 sf max. for renov. stand-alone lab

29. Science Lab Grant Program • School districts must establish and certify need • Program will be limited to high schools. • Need will be determined by formula: • Lab/classrooms needed = campus enrollment x 0.007353. Subtracting the existing number of lab/classrooms will determine the number of lab/classrooms that are eligible for the grant…OR… • Stand-alone labs needed = campus enrollment x 0.003676. Subtracting the existing number of stand-alone labs will determine the number of stand-alone labs that are eligible for the grant.

30. Science Lab Grant Program • Multipliers are derived from following assumptions: • 80% of students on Recommended & Distinguished Achievement programs. • Lab class size of 24 students per period. • Labs used 6 class periods per day. • 85% utilization factor. • Districts using stand-alone labs will need half the number of labs compared to districts using lab/classrooms.

31. Science Lab Grant Program • Once need is certified and established, districts will then be ranked by property wealth per ADA. • Grants will be awarded beginning with the district with the lowest property wealth and continue until all available funds have been used. • Districts must award contract within one year and complete construction within two years of receiving grant.

32. QZAB & Science Grant - Agency Contact Gary B. Marek, REFP (512) 463-9238 Fax (512) 305-9165 gary.marek@tea.state.tx.us Main QZAB Web Page http://www.tea.state.tx.us/school.finance/facilities/qzab.html