Tier I Funding?
**Tier I = Basic + weighted funding
**
Includes:
* Basic allotment
* Based on ADA
* Includes weights:
* Special education
* CTE
* Bilingual
* Compensatory Ed
* Gifted/Talented
* Dyslexia
* Early education
Tier II Funding
**Tier II = Enrichment / extra funding
**
* Enrichment funding
* Generated by higher tax rate
* Local districts can raise additional money through tax effort
What is the difference between ADA & Enrollment?
Attendance = money
Schools are funded on attendance, not enrollment → attendance directly affects district revenue.
What is the most important driver of school funding formulas?
Basic Allotment
What is the basic school funding formula?
Basic Allotment × ADA × Weights × Adjustments
What is the purpose of recapture?
Property-wealthy
=
Property-poor districts.
What are M&O tax rates used for?
Salaries
Utilities
Daily Operations
What are I&S tax rates used for?
Bonds
Facilities
Debt
Which tax rate does a bond election effect?
I&S only
Basic Bond Process
- Facility needs identified
- Board calls bond election
- Voters approve
- District sells bonds
- Debt paid using I&S tax rate
Can bond monies be used for salaries & operating expenses?
No
What areas can bond monies be used for?
- **Buildings
- Renovations
- Buses**
- Land
- Major equipment
- Technology infrastructure
Basic Budget Process
- Campus needs assessments
- Department requests
- Revenue projections
- Superintendent builds budget
- Board workshops
- Public meeting
- Board adopts budget
- Tax rate adoption
- Amendments during year
The 4 MUSTS for superintendents in the budget process.
- Align budget to district goals
- Maintain fund balance
- Communicate financial condition
- Plan long-range facilities
What is a Fund balance
District savings account.
What are the basics that fund balance is used for?
Emergencies
Cash flow
Unexpected costs
Revenue shortfalls
Funding Basics
(Big Picture)
- ADA through Foundation School Program
- Local property taxes & state aid
- Equalized through recapture
- Operations=M&O
- Facilities=Bonds (paid by I&S)
Superintendent Basics
Financial Transparency
Debt Management
Balanced Budget
Clean Audit
Audit Process
MUST have…
-Annual audit
-Independent auditor
-Presented to Board
-File w/TEA
