This report covers TEA’s video on the shift from adjustments to new district allotments for small to mid-sized school districts. 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.
- This portion of the bill changes the previous
allotment structure based upon a recommendation by the Texas Commission on
Public School Finance’s Final Report.
- The state is moving away from small and mid-sized adjustments to small and mid-sized allotments.
- Its general goal is to have complete clarity regarding how much a school district receives for being small or mid-sized without have the amount complicated by other adjustments.
- Previously, when calculating funding per
district, the Basic Allotment would be increased for the school districts’ cost
of education index (CEI) or if the school district qualified as a small or
mid-sized district.
- These adjustments are repealed under HB 3.
- In terms of district size, HB 3 accelerated a schedule implemented by House Bill 21 in 2017 so there is no longer a difference in funding for small districts based on square miles.
- Small and mid-sized adjustment is now a stand-alone allotment in Tier One and does not affect other funding except special education which still uses the small and mid-sized adjustments.
- Districts’ Tier One allotment is derived using
an increased Basic Allotment which has been increased from $5,140 to $6,160 per
student. The districts’ allotments are funded and calculated using this new
basic allotment.
- These previous Tier One allotments were increased or expanded: Special Education, Career & Technology, Compensatory Education, and Bilingual Education.
- These previous Tier One allotments were not increased or expanded: Regular Program Allotment and Public Education Grant.
- Three new allotments were added to Tier One: Dyslexia Allotment, Early Education Allotment, and Fast Growth Allotment.
- Additional new Tier One allotments include:
Teacher Incentive Allotment, CCMR Outcomes Bonus, Mentor Program Allotment,
Dropout Recovery & Residential Placement Facility Allotment, and College/
Career Entrance Exam Reimbursements.
- However, these allotments are not calculated using the Basic Allotment.
- Calculating District Allotment
- Mid-sized district allotment applies to all
school districts with less than 5,000 students in average daily attendance.
- MDA = ((5,000 – Average Daily Attendance) x .0000025) x Basic Allotment
- Small district allotment applies to districts
with less than 1,600 students.
- SDA = ((1,600 – ADA x .00040) x BA
- This formula reflects the acceleration of HB 21 by using .0004 factor for all small districts.
- However, HB 3 created a new carve out for single
county small districts with fewer than 300 students in average daily attendance.
- SCSDA = ((1,600 – ADA x .00047) x BA
- This allotment is to recognize the extreme diseconomies of scale for such districts.
- A new allotment was also created for charter
schools based on the same small to mid-sized allotments.
- The specifics of this topic are included in a separate HB 3 in 30 video.
- Mid-sized district allotment applies to all
school districts with less than 5,000 students in average daily attendance.