1 / 22

Texas Association of School Business Officials 2011 Budget Academy

Texas Association of School Business Officials 2011 Budget Academy. January 14, 2011 San Marcos, TX. Agenda. House Bill 3 (HB 3) Financial solvency review Financial Allocation Study for Texas (FAST) School Bus Seat Belt Grant Program Texas Economic Development Act (TEDA) reports

tayte
Download Presentation

Texas Association of School Business Officials 2011 Budget Academy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Texas Association of School Business Officials 2011 Budget Academy January 14, 2011 San Marcos, TX

  2. Agenda • House Bill 3 (HB 3) • Financial solvency review • Financial Allocation Study for Texas (FAST) • School Bus Seat Belt Grant Program • Texas Economic Development Act (TEDA) reports • Dual credit • Foundation School Program (FSP) • Payment system • Advanced career and technical education allotment • Funding issues • Budget outlook • Looking ahead • Questions?

  3. House Bill 3 (HB 3): Financial Solvency Review • Mandated by HB 3, 81st Legislature • Requires survey of actual first-quarter expenditures • Current survey closes today (January 14, 2011) • Review includes • Analysis of data reported to Public Education Information Management System (PEIMS) • Annual financial audit

  4. HB 3: Financial Solvency Review • Indicators (see Appendix) • Student-to-staff ratios • WADA:all staff • Enrollment:teachers • General fund expenditures exceeding revenues—current year or recurring problems • Declining or low fund balance

  5. HB 3: Financial Solvency Review • Two-step identification process • Model will flag districts based on indicators • TEA audit staff will request additional information before final determination • Financial solvency plan • Plan required of districts that are identified as having financial solvency problems • Failure to adopt and follow plan can lead to sanctions under the Texas Education Code, Chapter 39

  6. HB 3: Financial Solvency Review • Rules effective December 22, 2010 • Current survey covers two years • Need to make determinations for 2009–2010 and 2010–2011 • Future surveys will cover current year only • Results anticipated by midspring

  7. HB 3: Financial Allocation Study for Texas (FAST) • Study conducted by the Comptroller of Public Accounts (CPA) • Created rating system for school districts and charter schools based on performance of students and expenditures • May be issues with analysis of expenditures related to retirement contributions

  8. School Bus Seat Belt Grant Program • Grant program is open for second round of funding • New deadline: February 28, 2011 • Total appropriation: $10 million • Remaining available funds: ≈$8.8 million • Covers costs of seat belts only, not the cost of the bus itself

  9. Dual Credit • Reminder: Funding exception expires at the end of this fiscal year • Attendance accounting issues • Attendance-taking problems • Sign-in sheets are not acceptable • Cooperation of college staff is crucial • Alternate time is allowed if properly documented • Schedule conflicts • Minutes of daily instruction • Mismatches between college and school district schedules

  10. Dual Credit • Limitation on the number of courses • Two courses per semester in junior and senior years • Programs must seek/receive permission to exceed the cap • Early College High Schools • May exceed limit • Must be designated by the Texas Education Agency (TEA)

  11. Texas Economic Development Act (TEDA) Reports • CPA report recommendations: • Eliminate supplemental payments to districts • Modify requirements related to renewable energy • 64% of active projects • 7% of jobs created • Supplemental payments 2X rate of manufacturing projects • Eliminate local districts’ authority to waive job creation requirements • Evaluate program

  12. TEDA Reports • Legislative Budget Board (LBB) report recommendations: • Realign responsibilities of state and school districts with regard to abatements • Expand economic impact analysis to include impact on state • Make separate provisions for renewable energy projects • Strengthen job creation requirements and clarify oversight responsibilities of CPA • Make funds for administration contingent on adoption of recommendations above

  13. Foundation School Program (FSP): Payment System • Retired mainframe application in July 2010 • New system is functional, but • Processing times have slowed significantly • Issues with migration have delayed updates to prior year allocations • Payments for facilities programs will be made by the end of January in time for February bond payments

  14. FSP: Advanced Career and Technical Education Allotment • New funding source in 2009–2010 • Paid for the first time at the 2009–2010 settle-up • Allotments calculated incorrectly: • Used fall snapshot instead of summer PEIMS submission • Used head count instead of FTE count • Corrections reflected on current Summary of Finances in near future

  15. FSP: Funding Issues • LPE vs. DPE • Legislative payment estimate (LPE) • Established during appropriations process • Used to calculate FSP payments • District planning estimate (DPE) • Based on actual data as they become available • Used to establish FSP earnings • Differences are reconciled at settle-up • "Near-final" occurs after close of fiscal year • "Final" occurs after audit data are released

  16. FSP: Funding Issues • Value growth assumptions • Tax year 2009 (2009–2010) = 2.98% • Tax year 2010 (2010–2011) = 3.34% • Will result in large settle-up amounts –currently estimated at $791 million • Scheduled for payment in September

  17. Budget Outlook • Legislative Appropriations Request (LAR) • No longer valid because of changes in property value, tax collection, and enrollment assumptions • Significant growth in general revenue costs for FSP over current biennium • Costs for current biennium exceed appropriation • Need to replace $3.2 billion in revenue provided by State Fiscal Stabilization Fund (SFSF)

  18. Budget Outlook • Anticipated critical dates: • January 15 – revenue estimate • January 16 – legislative budget estimates • January 17 – appropriations bill, introduced • January 18 – LBB/agency briefing • March 1 – update on property value projections and student enrollment • May 30 – last day of regular session

  19. Budget Outlook • Expect changes at TEA • Substantial reductions in force • Potential outsourcing of functions • Reorganization due to the departure of Associate Commissioner Jerel Booker • Expect cuts in funding to schools • FSP • State-funded grant programs

  20. Budget Outlook • Questions we can’t answer yet: • What is the size of the budget shortfall? • Will the current year FSP shortfall of more than $700 million be covered by a supplemental appropriation? • Which programs will be cut? • How much will FSP and other state funding be cut over the next biennium? • How will cuts to funding be implemented?

  21. Looking Ahead • Keep close watch on budget process at Texas Legislature Online http://www.capitol.state.tx.us • Budget VERY conservatively for the coming biennium • Plan for cuts • Provide for flexibility when possible • Be sure to subscribe to the State Funding Listserv for announcements at http://miller.tea.state.tx.us/list/

  22. Questions? Lisa Dawn-Fisher, Ph.D. Deputy Associate Commissioner for School Finance Texas Education Agency 512.463.9179 phone 512.305.9165 fax Lisa.Dawn-Fisher@tea.state.tx.us Office of School Finance home page: http://www.tea.state.tx.us/index2.aspx?id=6957&menu_id=645&menu_id2=789

More Related