This report covers TEA’s video on Current Year Values and the Fast Growth Allotment, part of a series on changes found in HB 3. The video can be found here.
This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.
- Using current year values and a Fast Growth Allotment was one of the Texas Commission on Public School Finance’s major recommendations as in previous years there has been consistent misalignment of state and local revenue.
- Using prior year values can cause districts to exceed Basic Allotment and have a larger budget than others with similar student populations due to “lag” money.
- Additionally, districts who have received “lag” money are at risk for a decline in their budgets if property value growth slowed relative to the prior year.
- Firstly, Basic Allotment will be increased overall.
- Changes to district budgeting and forecasting practices will be applied to the 2019 school year.
- 2018 TY values will be used for the 2019-2020 school year
- In February 2020, preliminary TY 2019 values will be incorporated
- By August 2020 the final TY 2019 values will be incorporated as a part of the settle-up process.
- 2019 Comptroller values are calculated by dividing Tax Year 2019 Local Appraised Value by Tax Year 2018 Local Appraised Value and multiplying by Tax Year 2019 Comptroller Certified “T2” Values
- A fast growth allotment recognizes fast-growing district’s one-time expenses due to rapid student enrollment growth.
- Districts will qualify for the allotment if student enrollment, over the preceding three years, is in the top quartile of student enrollment growth.
- They will be entitled to an annual allotment equal to the basic allotment multiplied by .04 for each student in average daily attendance.
- August and September 2019 will be used to compile a list of fast growth districts and the proposal will be published in the Texas Register.
- December 2019 is the effective date of Rule
- HB 3 increases New Instructional Facility Allotment from $25 million to 100 million to align with the increase to the per student multiplier that occurred in 2017.
- TEA Next Steps:
- TEA will be standing up a ne data collection in Spring/Summer of 2020 related to tacable property values
- Rulemaking on the Fast Growth Allotment, current target date for filing rules is September 2019