1. Business Manager and CFO Roundtable Discussion
January 25, 2017
Hank Johnson
Consultant

2. Agenda Sponsor Introductions Upcoming Events
Updates on Recent TEA Correspondence
FIRST
Gear-Up for the Budget
Current News and Updates/Reminders
Small Group Discussions
Discussion for Future Meetings
Questions and Comments

3. Sponsor Depository bank for Region 11 Service Center
Established in 1960
A community-focused financial institution
Offers a full range of financial services to individuals, businesses and nonprofit organizations
Recently merged with OmniAmerican Bank
Operates 64 banking facilities in East, North and Central Texas
North Texas operations are headquartered in Fort Worth

4. 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.

5. Recent TEA Correspondence: Annual Client Satisfaction Survey of Regional Education Service Centers and Executive Directors
Commissioners review of ESCs
Audit of ESC finances
Review of ESC performance
Review of client satisfaction
Other factors as determined by the commissioner

6. Recent TEA Correspondence: Texas Advanced Placement/International Baccalaureate Incentive Program 
Funded Components for the School Years
Test Fee Subsidies (must meet eligibility requirements)
$30 state test fee subsidy for each AP or IB exam, and
From USDE grant , TEA will also provide:
Test fee subsidy of $16 for each AP exam, and
Test fee subsidy of $65 for each IB exam
Teacher Training Reimbursements
Up to $450 per eligible teacher

7. Recent TEA Correspondence: Texas Advanced Placement/International Baccalaureate Incentive Program 
Funded Components for the School Years
Test Fee Subsidies (must meet eligibility requirements)
$30 state test fee subsidy for each AP or IB exam, and
From USDE grant , TEA will also provide:
Test fee subsidy of $16 for each AP exam, and
Test fee subsidy of $65 for each IB exam
Teacher Training Reimbursements
Up to $450 per eligible teacher

8. Recent TEA Correspondence: Accounting of Grant Funds for High Quality Prekindergarten Programs 
Fund code 429
Revenue object code 5829
Differentiate and revenues

9. Recent TEA Correspondence: School Year 2017–2018 (Fiscal Year 2018) Indirect Cost Rate Procedures for LEAs
Independent School Districts and Education Service Centers – Two Options
Make a one-time request to have a currently negotiated rate (that is, the rate for school year 2016–2017) extended, or
Submit an Indirect Cost Rate Proposal (ICRP) to receive a rate for school year 2017–2018 only.
(No current action is required of ISDs and ESCs that have an indirect cost rate extended through June 30, 2018, June 30, 2019, or June 30, 2020, based on a prior one- time request to extend indirect cost rates.)

10. Recent TEA Correspondence: School Year 2017–2018 (Fiscal Year 2018) Indirect Cost Rate Procedures for LEAs
Open-Enrollment Charter Schools – Two Options
Make a one-time request to have a currently negotiated rate (that is, the rate for school year 2016–2017) extended, or
Submit the SC5050 Request for Federal Funding and Indirect Cost Rate for Charter Schools to request a rate for school year 2017– 2018 only.
(Open-enrollment charter schools that have an indirect cost rate extended through June 30, 2018, June 30, 2019, or June 30, 2020, based on a prior one-time request to extend indirect cost rates, are still required to submit the SC5050 to request that an extended indirect cost rate for school year 2017–2018 be issued.)

11. Recent TEA Correspondence: School Year 2017–2018 (Fiscal Year 2018) Indirect Cost Rate Procedures for LEAs
Restrictions Applicable to One-time Requests for Rate Extension
Only LEAs with a currently negotiated rate may request a rate extension (that is, the LEAs currently negotiated rate is based on the ICRP).
LEAs that extended their school year 2014–2015 or indirect cost rate through June 30, 2017, are ineligible to request another rate extension. To receive a rate for school year 2017– 2018:
LEA must submit either an ICRP (ISDs or ESCs) or SC5050 (open-enrollment charter schools).
No action required for LEAs that extended their school year 2014– 2015 or indirect cost rate beyond 2017.

12. Updated Template – January 4, 2017
, Cell G70 is now available (blocked in previous version)
Preloaded with bond debt used for hold harmless
Issued prior to 9/1/2015
Compare preloaded amount with SOF
Cells for future years also available

13. Updated Template – January 4, 2017
Corrects hold harmless calculation for some fractional funded districts
Updates per capita rate for
Updates Chapter 41 minimum cost per WADA for and
Updates un-equalized taxes for EDA/IFA local share requirements

14. TEA’s Proposed Schedule for Changes to FIRST
Beginning January 2017
Evaluate FIRST indicators
Determine whether indicators still meet objectives
Beginning February 2017
Develop new indicators
Implementation

15. TEA’s Proposed Schedule for Changes to FIRST
Beginning March 2017
List to consider (most recent)
Splitting indicator #1 into 2 indicators
Splitting indicator #2 into 2 indicators
Other items but not limited to:
Planning for property value fluctuations
Student counts vs actuals
More differentiation in district grades
Any other items that improve efficiency and effectiveness
Appeal process

16. TEA’s Proposed Schedule for Changes to FIRST
May 2017
Solicit feedback from
Districts
Charters
ESCs
Other stakeholders
Update for feedback June 2017

17. TEA’s Proposed Schedule for Changes to FIRST
June through September 2017
Training
Face to Face
Webinar
Note: Preliminary commitment for our July Roundtable meeting

18. TEA’s Proposed Schedule for Changes to FIRST
September 2017 through December 2017
Prepare adoption packet for proposed amendments to FIRST
Submit for public comment
Respond to public comment
Final adoption of new FIRST rules and indicators

19. TEA’s Proposed Schedule for Changes to FIRST
June 2018 through June 2019
Transition period for districts and charters
August 2019
Release ratings under new rules and indicators
Transition year
June 2019 through June 2020 – Full implementation
August 2020 – Release ratings based on new rules and indicators.

20. Gear-Up for 2017-2018 Budget Update Projections: 2016-2017 results
Students
Revenue
Expenditures
Fund Balance

21. Gear-Up for 2017-2018 Budget Projections: 2016-2017 Students
Enrollment
Attendance
Weighted Average Daily Attendance
Recalibrate or adjust trends

22. Gear-Up for 2017-2018 Budget Projections: 2016-2017 Revenue
Tax Collections
State Aid
Federal Funding
ASATR
Recapture

23. Gear-Up for 2017-2018 Budget Projections: 2016-2017 Expenditures
Payroll
Non-Payroll
Recapture

24. Gear-Up for 2017-2018 Budget Projections: 2016-2017 Fund Balance
Projected revenue
Projected expenditures
Net results
Beginning balance
Projected ending balance

25. Gear-Up for 2017-2018 Budget Estimates: 2017-2018 Student
Student enrollment - growing or declining?
New program(s)?
Trend changes/adjustments
New homes
Aging out neighborhoods
Re-greening
Cohort survival

26. Gear-Up for 2017-2018 Budget Estimates: 2017-2018 Revenue Local Taxes
Taxable values
Tax Rate
State Aid
FSP
Equalization
Other Programs
ASATR
Per Capita
TRS on be-half
Federal Programs
Other Revenue

27. Gear-Up for 2017-2018 Budget Estimates: 2017-2018 Expenditures Payroll
Staffing
Rates of Pay
Non - Payroll
Operating
Capital Outlay
Debt Payments

28. Gear-Up for 2017-2018 Budget 2017-2018 Budget Process
Budget Calendar with key ingredients
Well defined timeline with specific dates
Staffing
Student growth
Program changes (Master Schedule – secondary)
Date for budget adoption
Date of tax rate adoption

29. Update: New Overtime Rules
Final Rule
Effective December 1, 2016 Nationwide injunction on new rule – November 22, 2016
Blocks DOL enforcement
DOL appealed injunction

30. News from Legislature – House Budget
Provides for expected enrollment growth of about 165,000 students over the next two years
Includes an additional $1.5 billion for public education
Contingent upon the passage of legislation
That reduces Recapture, and
Improves equity in the school finance system

31. News from Legislature – Senate Budget
Adds $2.65 billion to cover student enrollment growth
More than 80,000 per year over the next two years
Increases instructional materials allotment by $29.6 million
Provides an additional $32 million for high quality preK
Continues funding at current levels for Communities in Schools
Includes $5 million for Pathways in Technology Early College High School (P-TECH), a new program designed to help students pursue careers in technology
Provides $10 million to support Education Commissioner initiatives

32. Small Group Discussion
Changes to FIRST
Gearing up for Budget preparation
Timeline
Budget Calendar
Priorities

33. Discussion for Future Meetings
Future Topics
Dates for Future Meetings

34. Questions and Comments