1. Business Manager and CFO Roundtable Discussion
April 25, 2018
Hank Johnson
Consultant

2. 1909 Woodall Rodgers Fwy, Ste 575
1909 Woodall Rodgers Fwy, Ste 575
Dallas, TX  75201
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3. Empire Financial Capital Equipment Financing
Empire Financial, LLC has been leasing equipment for companies and municipalities for over 25 years with most of our business as repeat customers.  
Empire has a relationship with US Bancorp allowing them to offer our competitive municipal rates to school districts in Texas for bus financing.  
They have numerous options including 100% financing on 3-7 year terms or a lease option with a buy back agreement.
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.

4. Agenda Introductions Upcoming Events
Updates on recent TEA Correspondence
Current News and Updates/Reminders
Proposed Change to FIRST Rating
Texas Commission on Public School Finance
Discussion for Future Meetings
Questions and Comments

5. Upcoming Events Public Funds Investment Training - May 15, 2018
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.

6. Recent TEA Correspondence: Accreditation Ratings
accreditation status results are available
Posted publicly to the TEA website on the Accreditation Status homepage at
Includes
2017 FIRST rating
2017 Accountability rating
Accreditation status
Reason for status if not accredited or pending

7. Recent TEA Correspondence: Travel and Mileage Reimbursement
The Comptroller published the travel and mileage reimbursement rates
Effective January 1, 2018, as listed below:
Automobile mileage reimbursement rate is 54.5 cents per mile.
Meals and lodging reimbursement rates are listed by city on the federal per diem rate map.
Lodging reimbursement rate is $93 a night for in-state travel and out-of- state to areas not listed on the federal per diem rate map.
Meal reimbursement rate for overnight travel is $51 per day for travel to areas not listed on the federal per diem rate map.
Meal reimbursement rate for non-overnight travel is $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.

8. Recent TEA Correspondence: Instructional Materials for the 2018−2019 School Year
instructional materials ordering closed April 2
EMAT reopens May 1 for the 2018−2019 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 2018−2019 instructional materials through EMAT

9. Recent TEA Correspondence: Maintenance of Effort
TEA performed/performing 2016–2017 IDEA-B LEA MOE Compliance Reviews
LEA’s were required to reply within 5 business days to preliminary review
TEA to release final IDEA-B LEA MOE determinations in May
Refunds are based on final

10. Charter School Facilities Funding
Beginning in FY2019, certain charter schools will be eligible to receive a facilities allotment calculated using the state average debt service tax rate for school districts (estimated at 21 cents) or a rate which will deliver $60 million in additional funding statewide.
Funding is currently estimated at approximately $200 per student in average daily attendance (ADA), but is subject to change.

11. Update: Summary of Finances
Updated April Final
Tax Collections
State Funding
Recapture
Summary of Finances
Updated mid April

12. Update: SOF Template New Template February 14, 2018
Updates 2017 Certified Values
Minor Chapter 41 corrections
Increases per capita to $447.18

13. Update: Review 2017-2018 Estimates
Projections:
Compare actual tax collections to estimates
Compare attendance through 5th six weeks with estimates
Recalculate state funding
Recalculate recapture

14. Update: 2018-2019 Budget Projections: 2018-2019 Students Enrollment
Attendance
Weighted Average Daily Attendance

15. Update: 2018-2019 Budget Projections: 2018-2019 Revenue
Property values
Tax revenue calculations
State funding
Recapture

16. Current News Statewide walkouts for better teacher pay
Safe schools – facility changes
Teacher retirement

17. FIRST Rating Proposed Changes
What’s New Ratings (Based on FY 2020 data)
Proposed indicators for 2020–2021 ratings are NOT the same as the 2016–2017 ratings
Point scales and ratings are different
There are 21 proposed indicators
An introduction of a new type of indicator, designated as a “Ceiling Indicator”, is included with the proposed indicators.

18. SCHOOL FIRST RATINGS 2020–2021 RATING YEAR (BASED ON FY 2020 DATA)
A = Superior Achievement
Points
B = Above Standard Achievement
80-89 Points
C = Meets Standard Achievement
60-79 Points
F = Substandard Achievement
0-59 Points

19. SCHOOL FIRST RATINGS 2020–2021 RATING YEAR (BASED ON FY 2020 DATA)
Must pass critical indicators to receive a passing rating (Superior, Above Standard, or Meets Standard rating)
F = Substandard Achievement
Fail a critical indicator or points less than Meets Standard rating
Substandard data quality because the AFR and/or the Data Feed was not submitted on time and/or not complete for FIRST analysis.

20. Ceiling Indicators - New
A “Ceiling Indicator”
Adds additional criteria to designated indicators; and
if the additional ceiling criteria is not met by the school district
Subject to a predetermined maximum number of points, and
highest applicable School FIRST rating that may be earned is assigned to the school district.

21. Ceiling Indicators - New
Activation of Ceiling Indicator
Maximum
Points
Rating
Indicator 4 – Timely Payments and Warrant Hold(s) Issued 95
A = Superior Achievement
(Original points earned on School
FIRST minus 5 points)
Indicator 5 – Unrestricted Net Position
Balance
Passes indicator 5 solely on 7% or more increase
in students in membership over 5 year period 79
C = Meets Standard Achievement

22. Ceiling Indicators - New
Activation of Ceiling Indicator
Maximum
Points
Rating
Indicator 6 – 3 Year Change in
Assigned and Unassigned Fund
Balances
3-year change in assigned and unassigned fund
balances > 25% or assigned and unassigned fund
balance < 75 days of operational expenditures 89
B = Above Standard Achievement
Indicator 16 – Comparison of PEIMS
to AFR data
PEIMS to AFR data exceeds 3% threshold

23. Ceiling Indicators - New
Activation of Ceiling Indicator
Maximum
Points
Rating
Indicator 17 – Material Weaknesses
in Internal Controls Over Financial
Reporting and Compliance
AFR discloses one or more material weaknesses in internal controls over financial reporting and compliance 79
C = Meets Standard Achievement
Indicator 20 – Property Values and Funding Lag Discussion with Board of Trustees
Property values and funding lag discussion did
not occur 89
B = Above Standard Achievement

24. CEILING INDICATORS, CONTINUED
If the school district's overall points earned is less than the maximum points allowed by the applicable ceiling indicator the district will receive a rating based on the lesser of the points earned.
If the school district receives an F = Substandard Achievement rating based on the school district failing a critical indicator or the school district's total number of points is equal to or less than 69 points, the F = Substandard Achievement rating supersedes any rating that the school district may earn for a ceiling indicator.

25. DETERMINATION OF POINTS – 2020-2021 SCHOOL FIRST RATING YEAR
Indicator
Points
Ceiling Indicator
Maximum Points
Highest Rating
1-4
Pass/Fail (Critical)
Indicator 4
5 Point Deduction
A = Superior Achievement, 95 points 5
Indicator 5 79
C = Meets Standard Achievment 6
Pass/Fail 89
B = Above Standard Achievment 7 10 8 9 11 12 13 14 15 16 17 18 19 20 21
Total
100

26. Texas Commission on Public School Finance
Property tax levy out pacing taxpayers ability to pay
Improving outcomes
Class size – 21
Teacher Quality
Improved Pay
Increasing pay for some
Other than just years of experience

27. Texas Commission on Public School Finance - Types of Funding Formulas
Student-Based Formulas estimate a total amount needed for each average pupil and then adjust that amount for students in different need categories.
Inherently responsive to changes in student demographics
Flexible at the district and school levels
Responsive to changes in pedagogical methods
Calculation is clear and transparent

28. Texas Commission on Public School Finance - Types of Funding Formulas
Resource-Based Formulas are driven by estimated cost of particular inputs (salaries, benefits, materials, etc.).
Reflect a particular, frozen-in-time vision of education
May include more limited-use funds
Can be responsive or nonresponsive to changes in student demographics, depending on design

29. Texas Commission on Public School Finance - Types of Funding Formulas
Program-Based Formulas are composed of discrete funding allocations whose use is restricted to particular programs.
Least flexible way of funding schools
Least responsive to changes in pedagogical methods

30. Texas Commission on Public School Finance -

31. Discussion for Future Meetings
Future Topics
Dates for Future Meetings

32. Questions and Comments