Business Manager and CFO Roundtable Discussion April 25, 2017 Hank Johnson Consultant

Partners in Education PPT-00122 (2/12)

Horace Mann Founded by Educators for Educators® We are the nation’s largest multiline insurance company focusing on educators and their families. With nearly $10 billion in assets, we offer a full line of personal insurance and retirement planning products. We’ve been in the 403(b) tax-deferred annuity (TDA) market since 1961. We provide school districts and their employees with solutions designed to maximize savings, enhance benefits and support the mission of public education. We are the nation’s largest multiline insurance company focusing on educators and their families. With nearly $10 billion in assets, we offer a full line of personal insurance and retirement planning products. We’ve been in the 403(b) tax-deferred annuity (TDA) market since 1961, the year Congress first made them available to public school employees. We provide school districts and their employees with solutions designed to maximize savings, enhance benefits and support the mission of public education.

Agenda Introductions Upcoming Events Updates on recent TEA Correspondence Current News and Updates/Reminders Small Group Discussions Discussion for Future Meetings Questions and Comments

Upcoming Events Public Funds Investment Training - May 11, 2017 (9:00am - 03:00pm) The Business Center at ESC Region 11 is hosting a Public Funds Investment Training. This session is presented by guest speaker Patrick Shinkle, Associate Director for the Center for Public Management at the University of North Texas. Shinkle has more than 17 years of experience in public funds management in Texas, including 12 years as Administrator of LOGIC and five years as part of the TexPool management team. Shinkle has spoken on investment management, disaster recovery planning, computer security awareness, and technology-related issues. CPAs will receive CPE credit.

Recent TEA Correspondence: Accreditation Ratings 2016-2017 accreditation status results are available Posted publicly to the TEA website on the Accreditation Status homepage at http://tea.texas.gov/accredstatus/ Includes 2016 FIRST rating 2016 Accountability rating 2016-2017 Accreditation status Reason for status if not accredited or pending

Recent TEA Correspondence: Travel and Mileage Reimbursement The Comptroller published the travel and mileage reimbursement rates Effective through August 31, 2017, as listed below: Automobile mileage reimbursement rate is 53.5 cents per mile. Lodging reimbursement rate is up to $85 a night for in-state travel to areas not listed on the federal per diem rate map. Lodging reimbursement rate is up to $91 a night for out-of-state travel to areas not listed on the federal per diem rate map. Meal reimbursement rate for overnight travel is up to $51 per day for travel to areas not listed on the federal per diem rate map. Meal reimbursement rate for non-overnight travel is up to $36. The mileage, lodging, and meal reimbursement rates published by the comptroller apply to all grants funded by the Texas Education Agency for individuals on travel status.

Recent TEA Correspondence: Instructional Materials for the 2017−2018 School Year 2016-2017 instructional materials ordering closed April 3 EMAT reopens May 1 for the 2017−2018 school year Districts required to certify annually: Students have access to instructional materials To cover all of the Texas Essential Knowledge and Skills (TEKS) Failure to certify: Unable to order 2017−2018 instructional materials through EMAT

Recent TEA Correspondence: 2017–2018 Optional Flexible Year Program (OFYP) Your school district or charter school may modify its instructional calendar for up to 4,200 minutes The application requires the following information: 1) a completed 2017–2018 application, 2) a modified 2017–2018 instructional calendar, and 3) a letter describing the proposed modifications to the instructional calendar that includes a description of the OFYP.

Recent TEA Correspondence: Maintenance of Effort TEA performed/performing 2015–2016 IDEA-B LEA MOE Compliance Reviews LEA’s were required to reply by April 10 to preliminary review TEA to release final IDEA-B LEA MOE determinations Refunds are based on final

Recent TEA Correspondence: Every Student Succeeds Act NCLB Consolidated Grant Application requires two new schedules Schedule PS3001—Needs Assessment, Priorities, and Program Outcomes and addresses the performance monitoring Schedule PS3099—Private School Services incorporates the new formula for determining private school services in ESSA

Recent TEA Correspondence: Every Student Succeeds Act (New for 2017-2018) District Equity Plan Requirement – All LEAs receiving Title 1 Must develop a plan for “how the local educational agency will identify and address”: Any disparities that result in low-income students and minority students being taught at higher rates than other students by ineffective, inexperienced, or out-of-field teachers Reporting and Planning templates include “Funding”

Recent TEA Correspondence: House Bill 2610 KEY POINTS TO REMEMBER Current school year (2016–2017) first year for funding reduction: For campuses reporting minutes of operation with less than 75,600 minutes.    Check your calendars before the school year ends to make sure your campuses reach at least 75,600 minutes by the end of the current school year (2016–2017).    The Texas Education Agency (TEA) will not know which campuses fell short of meeting 75,600 minutes until after the summer PEIMS submission.    One-time waivers expire at the end of current school year (2016– 2017): Prekindergarten and dropout recovery campuses.

Recent TEA Correspondence: Loss of Property Value for Local Option Homestead Exemption Recognition of 50% loss of property value for Local Option Homestead Exemption (LOHE) Previously recognized if surplus in FSP or a specific appropriation for the recognition Beginning 2016-2017 school year, 50% will be recognized every year regardless Impacts: Chapter 41 calculation of recapture Chapter 46 facility allotments

Recent TEA Correspondence: Certification Exam Reimbursement for School Year 2016-2017 TEA can reimburse LEAs for the cost of certification exams if: Student completed program (End of program exam) Taken and Passed exam Qualifies for license certificate before July 31, 2017 One exam per student LEA paid for the exam with state and local funds Application must be submitted by August 4, 2017 Limited funds – first come first serve

Update: Summary of Finances Updated April 2017 - Final Tax Collections State Funding Recapture 2016-2017 Summary of Finances Updated mid April

Update: SOF Template New Template February 3, 2017 (Release 2) Incorporates new rules for local option homestead exemption (LOHE) No need to change from previous version if: District does not provide LOHE

Update: Review 2016-2017 Estimates Projections: Compare actual tax collections to estimates Compare attendance through 5th six weeks with estimates Recalculate state funding Recalculate recapture

Update: 2017-2018 Budget Projections: 2017-2018 Students Enrollment Attendance Weighted Average Daily Attendance

Update: 2016-2017 Budget Projections: 2017-2018 Revenue Property values Tax revenue calculations State funding ASATR (?) Recapture

Current News Senate Bill 2145 (Public School Finance) Simplifies funding formula Removes certain penalties Removes many complex formula add-ons Addresses equity Based on cost

Current News Senate Bill 2145 (Public School Finance) Instructional allotment made up of five components: Regular Ed Special Ed Comp Ed Bilingual Technical Training

Current News Senate Bill 2145 (Public School Finance) Instructional Allotment Multiplied by tax rate Equals instructional funding Add transportation Equals total funding

Current News Senate Bill 2145 (Public School Finance) Funding ASF – per capita Tax collections State FSP makes up difference Recapture = tax collections exceeding total cost

Current News House Bill 21 (Public School Finance) Commits $1.8 billion above enrollment growth Moves toward a more simplified system Adds greater equity by increasing the basic allotment Reduces recapture Includes a new weight for students with dyslexia at 0.1 Increases the bilingual weight from 0.1 to 0.11 Provides transitional grant funding for those districts impacted by the expiration of ASATR Note: Basic Allotment proposed at $5,350

Small Group Discussion 2017-2018 Budget Pending legislation Revenue projections Preliminary taxable property values Estimating certified values Student projections Validating estimates Salary Increases Current discussion and/or decisions

Discussion for Future Meetings Future Topics Dates for Future Meetings

Questions and Comments