1. FACTS ABOUT SCHOOL FINANCE
Santa Fe
Independent School District
2009

2. CHALLENGES Navigating the State Financial System
Managing Student and Facility needs

3. FACTS about Texas School Finance
4.6 million students
322,000 teachers
$40 billion in state aid and local property taxes
80,000 new students each year

4. FACTS Per student funding is based on the value of homes in 2006
Taxes generated from increases in your home value since 2006 go directly to the state
Transportation funding has not increased since 1985

5. FACTS about SFISD School Finances
$38,000 million general fund budget
4600 students
375 -teachers, librarians, nurses,admin
256 - bus drivers, child nutrition, maintenance, custodians and para professionals

6. Pre 2006 School Funding Revenue – sources:
Local property value (13m) and state funding (21m), federal (2m)
Maintenance & Operations Tax Cap
Tax cap of $1.50 per $100 valuation
SFISD - $1.04
Debt Service tax SFISD $ .12 to increase with bond sales approved Nov. 2008

7. Pre 2006 Funding System
The system was declared unconstitutional in 2006
Rewritten during special session of the 2006 legislative session
House Bill 1 resulted

8. House Bill 1
Intended to provide for School Funding and tax reform including:
High School Allotment support
$2500 teacher salary increase
Reduced local Maintenance and Operations property tax rate by 1/3 over two years
Created local tax options to authorize .04 without voter approval and then additional .13 with voter approval (SFISD exercised .04, but not .13)

9. Target Revenue……….$4645 HB 1 established a “target revenue” concept
State guarantees base revenue per student
SFISD target revenue amount is $4645 per student
In Galveston county Tx city is highest at $5706 per student
A difference per student of $1061 per student
The target revenue amount per WADA remains fixed per district while costs increase

10. ADA Average Daily Attendance (ADA) =
Counting the days a student is actually physically present in school. School districts have enrollment and attendance
Attendance Matters!

11. WADA…………….5350
Unique program costs raise the cost of educating individual students
Career & Technology
Special Programs
Gifted and Talented
ESL/bilingual
Compensatory Education
WADA is Weighted Average Daily Attendance –
Mathematical calculation applied to ADA
Program weights are added to account for increased cost of educating students who need special programing

12. WADA fixed
The state will not change the revenue per WADA for any district without legislative action
Under the current funding system, children in Texas do not have equal access to educational dollars

13. Arbitrary system based on 2006 levels
The system is disproportionate
Unequal access to funding providing inequity in ability to educate students comparably
Target revenue is frozen at 2006 level requiring legislative action to change (2009)
Target revenue not adjusted for inflation of cost (insurance, fuel, salaries)

14. Target Revenue Downfalls
Does not cover total cost of maintenance and operations as expenses increase
Does not provide for salary increases
If local values increase, state reduces district funding – district does not benefit from new growth or building as target revenue is frozen

15. Public School District Revenue
As Property Values go up……………………………
As Property Values go Down………………………
Money the state sends the district decreases
Money the state sends to the district increases

16. How can a district generate additional funding?
More students generate more funds
But districts have no control over population growth
The state does not allow a district to raise the current tax rate without a successful rollback election from voters

17. Revenue Options Election required of voters
Trustee approve a budget with expected increases
District authorizes and holds roll-back election
If fails, must provide budget cuts
Or:
Consider budget cuts to accommodate during budget process

18. What should be expected?
Every taxpaying citizen should expect an equitable, adequate funding system that provides a quality education for all children regardless of the public school district a child attends.
This ensures a highly-educated workforce that contributes to a strong state economy.

19. What can be done?
Every parent should learn about the inequities in the school finance system and expect the same funding for every child in the state of Texas after taking into consideration unique program costs (special programs, GT).
Who can fix the problem?
The Texas Legislature

20. Budget Key budget drivers include Personnel – 85% of budget
Enrollment – staffing
Adjustments for cost of living increases for personnel – 3% raise equates to approximately 1 million in budget costs/year
Operational costs – technology support, instructional support (instructional specialists, math and science)
Inflationary pressures – utliity, fuel, insurance that have increased dramatically since 2005

21. Budget Development
SFISD passed deficit budget 2007, 2008 to accommodate salary increases without significant cuts in personnel and programs
Funds available through revenue – federal/state/local - $37M > 38M – expenditures, > +1M
EXPENSES
Staff :$22.4; 2008:$24.5; 2009: $24.8
Salary increases $ 1 million
Fuel cost adjustments $2007:790k; 2008: $1.2; 2009: $1.4
Educational programs/support $18million, 20M; ^2.4
Funds required – salary + increases + program costs –
$1.0 M + payroll-$777,000+fuel-$200,000 + $375,000

22. Options Cut expenses – (85% of budget personnel) Use fund balance
Roll back election
Options utilized to date:
Accessed .04 to provide M & O of $1.04
Deferred additional personnel
10% cuts per budget manager

23. Short Term Eliminate Roll back provision
allow districts authorize increases
Provide funding system to meet uncontrollable and inflationary costs
Utility/fuel/energy/insurance
Teacher/staff salary increases
Consider allotment adjustments
HS allotment - $250
Technology - $35
Transportation - $35

24. Long Term
Provide stable source of funding for public education to grow with economy
Provide equitable revenue structure – adjust or eliminate target revenue
Modify election feature for tax increases
Provide permanent adjustments for inflationary costs
Modity formulas that are outdated (not adjusted since 1980)

25. Unfunded State Mandates
Accelerated Reading/Math – 10 students
Dyslexia services
Compensatory services
PGP 7-12
GT services
4X4 plan
School Health program k-8
College Credit (12 hr)
EOC – 2011
Fitness Gram k-12
Class size limit

26. Unfunded Accountability
Test administration and security
Home-schooled
FIRST
Benefits
Criminal background checks
CPR, AED
Bus Evacuations
Abatement cert
PEIMS
Public notices – reporting – aeis, budget

27. Contact
Senator Mike Jackson
Representative Larry Taylor