2008 TASBO Annual Conference Session D: School Funding Template Update Presented by Omar Garcia Region XIII ESC Thursday, March 6, 2008 Copyright©2007 Education Service Center Region XIII 1

Copyright©2007 Education Service Center Region XIII Funding Elements 2007-08 2008-09 Basic Allotment 3,135 3,218 Level 1 Tier II Yield 36.45 37.42 Level 2 Tier II Yield 46.94 50.98 “Golden” pennies 4 6 Level 3 Tier II Yield 31.95 31.95 Eq Wealth Level 1 364,500 374,200 Eq Wealth Level 3 319,500 319,500 Copyright©2007 Education Service Center Region XIII 2

Copyright©2007 Education Service Center Region XIII Tax Compression 2007-08 2008-09 Compression % .6667 .6667 Applied to your 2005-06 M&O tax rate Beginning with 2007-08, compressed rate remains the same Copyright©2007 Education Service Center Region XIII 3

The “Greater of” Number1 What is it? Greater of 3 amounts 2005-06 State/Local Revenue per WADA 2006-07 State/Local Revenue per WADA under old law and using 2005-06 M&O rate 2006-07 State/Local Revenue per WADA under old law and using effective M&O rate Copyright©2007 Education Service Center Region XIII 4

The “Greater of” Number2 Where is it? 2006-07 Summary of Finances Printout entitled “HB1- HH” Line 12 under “S1”, “S2”, and “S3” calculations NOT YET FINAL!!!!!!!!! 2007-08 Summary of Finances Should be the same as 2006-07 SOF But…..don’t count on it….use 2006-07 SOF Copyright©2007 Education Service Center Region XIII 5

The “Greater of” Number3 Release 12 of template First, match up with TEA’s “near final” Then replace TEA’s M&O taxes with audited M&O tax collections Result should be close to TEA’s “final” SOF when generated (probably next month) Copyright©2007 Education Service Center Region XIII 6

Copyright©2007 Education Service Center Region XIII 2008-09 M&O Tax Rate What’s your rollback rate? Lesser of: $1.04; OR Effective M&O Rate plus $.04 Effective M&O Rate should be equal to approximately your compressed rate plus # pennies adopted above compressed rate in 2007-08 Plus $.04, not to exceed $1.04 Copyright©2007 Education Service Center Region XIII 7

The 2 Additional “Golden” Pennies1 Do you need to have an election to access the 2 additional “golden” pennies? The answer – it depends… On the relationship between your compressed rate and your rollback rate 2008-09 M&O rate has to be at least 6 cents above the compressed rate Copyright©2007 Education Service Center Region XIII 8

The 2 Additional “Golden” Pennies2 If district’s M&O rate was $1.50 in 2005-06, then election will be required $1.50 x .6667 = $1.00005 compressed rate Rollback rate =$1.04 Need to get to $1.06 ($1.00 + $.06) – can’t get there without voter approval Copyright©2007 Education Service Center Region XIII 9

The 2 Additional “Golden” Pennies3 If district’s M&O rate was $1.40 in 2005-06, then election MAY NOT be required $1.40 x .6667 = $0.933 compressed rate 2007-08 M&O rate = $.973 Rollback rate = $1.01 (Effective M&O Rate: $.973 plus $.04) Need to get to $0.993 ($0.933 + $.06) to access the 2 additional pennies – can do so without a rollback election Copyright©2007 Education Service Center Region XIII 10

The 2 Additional “Golden” Pennies4 The break point 2005-06 M&O Rate:  $1.44 x .6667 = $.96005 + $.04 + $.02 = $1.02005 $1.45 x .6667 = $.96672 + $.04 + $.02 = $1.02672 $1.46 x .6667 = $.97338 + $.04 + $.02 = $1.03338 $1.47 x .6667 = $.98005 + $.04 + $.02 = $1.04005 $1.48 x .6667 = $.98672 + $.04 + $.02 = $1.04672 $1.49 x .6667 = $.99338 + $.04 + $.02 = $1.05338 $1.50 x .6667 = $1.0001 + $.04 + $.02 = $1.06010 Copyright©2007 Education Service Center Region XIII 11

The ‘Regular’ Template Release 3 now on web Only minor changes ‘IFA’ tab now allows for up to 9 awards Summary of Total State/Local Revenue not right for Chapter 41 districts with tax effort beyond compressed plus $.04 Added feature New ‘RateCalculator’ tab Computes approximate rate needed to fund a particular proposed expenditure Copyright©2007 Education Service Center Region XIII 12

The New ‘8-Step’ Template1 Designed to produce ‘ballpark’ estimate using minimum amount of data entry Should be very close to ‘Regular’ template using same data Main difference relates to “DTR” in Tier II formula Uses actual # of pennies rather than actual “DTR” that ‘Regular’ template computes Copyright©2007 Education Service Center Region XIII 13

The New ‘8-Step’ Template2 Main objective: See the light, thus the title “8-Step Path to Enlightenment” It is not a new religion!! Need to understand the relationship between the “greater of” number (basically, the ‘target revenue’) and the total General Fund revenue Copyright©2007 Education Service Center Region XIII 14