The 2023 Preliminary PVS values have been released by the Comptroller’s Office. You should review your information for accuracy, update your summary of finance template, and file an appeal if necessary.

 

Comptroller Rules 9.4301 through 9.4317 set out the requirements and procedures for protesting the Comptroller’s SDPVS preliminary findings. Each protest of the Comptroller’s SDPVS preliminary findings begins with the filing of a petition with PTAD by the deadline – that is, within 40 calendar days after the date the Comptroller’s office certifies SDPVS preliminary findings of taxable value to the commissioner of education.

1. Pre-Preliminary Property Value Study Amounts

 

The Comptroller's office has released pre-preliminary property values related to the 2023 Property Value Study. This email likely went to your superintendent, with the subject of "Pre-Preliminary 2023 SDPVS Information".  If you find an inaccuracy in this data, you will want work with your appraisal district to review the values and notify the Comptroller's office by January 5, 2024.

 

Be careful, as if you have more than one county of tax levy, you will need to select each county individually and then combine the totals to estimate your complete values.

 

Below is a good reminder from Amanda Brownson at TASBO:

 

1. The PVS results may show a T-2 that was lower than you were expecting due to compression of the frozen levy. Before reducing your T-2 in the template, it is a good idea to also consider whether you should reduce your estimated property tax collections. Reach out to your tax office for updated levy information. In general, these two items should move together.

 

2. These results have not been through the study process. Your actual PVS results may well turn out to be different from this, especially if your CAD is found to be under-appraising.

 

3. To see your results, open the "Self-Report Summary" file and select your district from the dropdown box on the first sheet.

 

4. There are estimated T-Values on the sheet called "Local Tax Roll Value". You can see the comptroller's estimate of T-values in column B of that sheet at the bottom of the page. Specifically the T-2 value for local fund assignment calculation purposes.

 

 

2. School Safety Grant Opportunity

 

The Safety and Facilities Enhancement (SAFE) Grant Cycle 2 will award $279.5M from the overall legislative appropriation to local educational agencies (LEAs) through a formula grant process. This funding is designated to help LEAs meet the required safety standards as well as other statutory school safety requirements.

 

LEAs meeting the enrollment criteria below are eligible to apply for this grant program:  

• School districts and open-enrollment charter schools with a reported enrollment of at least one student from the October 2021 PEIMS fall snapshot submission will be eligible for funding.  
• Charter schools that opened prior to January 1, 2024 (the date of grant availability). 
• Note: Private schools are not eligible recipients for funding.

 

As part of the process to receive a SAFE Cycle 2 grant award, LEAs are required to complete a compliance assessment, through the Intruder Detection Audit Dashboard, no later than January 31, 2024.

 

To support LEAs through the Compliance Assessment and Cycle 2 grants process, TEA will be hosting a series of webinars in January. Please click the link below to sign up for a webinar (Note: webinar attendance is optional).

• Register for the January 9th webinar at 3:00 p.m.
• Register for the January 10th webinar at 10:00 a.m. 
• Register for the January 11th webinar at 12:00 p.m. 

 

If you are a SAFE Cycle 1 applicant, or have any additional questions on SAFE Cycle 2, please visit the School Safety page or email safeschools@tea.texas.gov.

 

 

3. Summary of Finance Updates

 

As we get halfway through the school year for most schools, there are a few items to be on the lookout for in the next month or two:

 

• Preliminary PVS updates to the T2 values should be released by TEA in an SOF run late January, or first week of February.
• Compensatory Education tier updates should be released by TEA in an SOF run in late February.

 

These items will have a direct impact on your local share calculation and total FSP funding. As you continue to update your SOF template, you can use these future runs to help verify these numbers from pre-preliminary values (see above) and manual SCE Tier counts (using the 2024 Tier Mapping file) from the Fall PEIMS submission report PDM1-120-022.

 

 

4. Update to Standard Mileage Rate for 2024

 

Beginning on January 1, 2024, the standard mileage rate will increase to $0.67 per mile driven for business use (up 1.5 cents per mile from 2023).

 

Additional information can be found in the IRS Notice 2024-08, as it contains the optional 2024 standard mileage rates guidance.

 

 

5. SOF Template Updates

 

Omar and his team have not yet released a new template, but I would expect one by the end of January which will include updated PVS numbers. Until then, you will need to utilize the methods above to provide a better estimate of your template values.

1. AFR Deadlines

 

• For those districts that have a June 30^th year end, November 27, 2023 was the last day to submit the AFR to TEA.
• For those districts that have an August 31^st year end, you will need to submit your audit report no later than January 28, 2024.

 

There is a 30 day grace period that begins on the due date for purposes of fiscal compliance with TEA reporting for those districts that have difficulty reporting all documents their respective date. Additional information can be found on TEA’s website.

 

 

2. Debt Transparency

 

• For those districts that have a June 30^th year end, you will need to submit or post your annual local debt report no later than December 27, 2023.
• For those districts that have an August 31^st year end, you will need to submit or post your annual local debt report no later than February 27, 2024.

 

Additional information on this process can be found on the Comptroller’s website.

 

 

3. Final FIRST Ratings and Meeting Requirements

 

Final 2022–2023 Financial Integrity Rating System of Texas (FIRST) ratings based on fiscal year 2022 are now publicly available on the Texas Education Agency (TEA) website: 

 

• School districts 

 

A previous “To the Administrator Addressed” letter dated August 7, 2023, instructed your school district or charter school (local educational agency or LEA) to view its preliminary FIRST rating. The letter also provided information about the data the TEA analyzes to produce the rating and described the appeal process available to your LEA. This appeals process is now complete, and the FIRST ratings are final. 

 

Within two months of the release of its final FIRST rating, your LEA must announce and hold a public meeting to distribute a financial management report that explains the LEA’s rating and its performance under each indicator for the current and previous year’s ratings. The report also must provide the financial information described in 19 Texas Administrative Code (TAC) §109.1001(q)(3). 

 

The required newspaper notice to inform taxpayers of the meeting must be published no more than 30 days and no fewer than 10 days before the public meeting. Your LEA may combine the meeting with a scheduled regular meeting of the board of trustees. 

 

For full requirements related to the report and meeting, see 19 TAC §109.1001(q). For a template that your LEA can use in developing its financial management report, see the TEA School FIRST web page. 

 

 

4. Year 4 ESSER Annual Reporting

 

The official data collection tool for Year Four ESSER Annual Performance Reporting is now live. The online system for LEAs to complete this reporting requirement will close Friday, February 16, 2024, at 11:59 p.m. CST.

 

LEAs and ESCs can access the USDE ESSER Reporting WorkApp using this link.

 

In addition, TEA staff will be hosting the following office hours sessions to provide technical assistance for Year Four USDE ESSER Annual Performance Reporting (these are open to LEAs and ESCs):

 

• Tuesdays, from 10am to 11am (October 31, 2023, to December 19, 2023) – Register Here
• Thursdays, from 2pm to 3pm (November 2, 2023, to December 19, 2023) – Register Here
• Tuesdays, from 10am to 11am (January 9, 2024, to February 13, 2024) – Register Here
• Thursdays, from 2pm to 3pm (January 11, 2024, to February 15, 2024) – Register Here

 

More information for this process can be found in the TEA ESSER Annual Performance Reporting FAQs.

 

 

5. 2024-2025 Indirect Cost Requests – ISDs

 

The Texas Education Agency (TEA) is providing two training opportunities via Zoom for independent school districts (districts) interested in learning more about completing the request for indirect cost rates for 2024–2025.

 

Next Zoom Training Date/Time: December 13, 2023, from 1:00–2:30 PM – Register

 

The PowerPoint, forms, and other resources will be available on TEA’s Indirect Cost Rates webpage. For any questions, contact TEA’s Federal Fiscal Compliance and Reporting Division at Compliance@tea.texas.gov.

 

 

6. Transportation Report: Operations

 

The Operations Report is an annual report that asks for information on transportation costs and mileage for the school year, as well as for information on vehicles used to transport students. The report must be submitted to the TEA by December 1, 2023.

 

Additional information on this process can be found on TEA’s website.

 

 

7. Updated Grant Compliance Risk Scores

 

LEA administrators with current, active SmartSheet access to other TEA WorkApps (EDGAR Connect, FPC Random Validation, ESSER Reporting, etc.) will be able to view the Risk Assessment WorkApp. Email Frank Baca, the Department's System Automation Team Lead (Frank.Baca@tea.texas.gov), to request to add or remove users.

 

Active users can access their 2023-2024 Risk Assessment Status Designation Report by following these steps: 

 

• Access the TEA Smartsheet WorkApps site:
• Select Risk Assessment WorkApps.
• Select LEA Name and CDN when the 2023-2024 GCA Risk Assessment page displays.
• Click on the Attachments link and click on the LEA RA Report.pdf title.
• The report will download to your computer's download folder.
• Click on the downloaded report to view your 2023-2024 LEA Risk Assessment Status Designation Report.
• Each LEA report includes points assigned by indicator, total risk assessment score, and risk status designation for 2023-2024.

 

For more information on the risk assessment see our GCA Risk Assessment webpage. For questions regarding 2023-2024 Risk Assessment scores or status, contact Cal Lopez, TEA Federal Compliance Officer, at noncompresolution@tea.texas.gov or 512-463-9017.

 

8. Jobs, Energy, Technology and Innovation Act (JETI)

 

JETI was created with the passage of House Bill 5 (88th Legislature, Regular Session) and aims to help Texas stay competitive by attracting new jobs and investment to the state. The JETI program enables a company, school district and Governor’s office to enter into an agreement for a 10-year school district maintenance and operations (M&O) tax appraised value limitation pursuant to statutorily mandated job creation and investment minimums.

 

The Comptroller’s office has posted initial information on their new JETI website, which has a link to proposed rules for this program.   

 

If you have further questions, please contact John Villarreal at John.Villarreal@cpa.texas.gov.

1. Preliminary MCR Release for Tax Year 2023

 

The TEA has released the preliminary Maximum Compressed Rates (MCR) for tax year 2023 based on submissions from the Local Property Value Surveys (LPVS) and the adjustment from the SB 2 (88^th SS #2) compression.

 

The FSP system should now show your district’s LPVS status as “Approved”. As a reminder, the preliminary MCR in the FSP system will continue to show the values based on a $40,000 Homestead exemption and the MCR prior to the additional $0.107 reduction. The Final MCRs will incorporate adjustments under SB 2 (88^th SS #2) and at the lower compressed Tier I rate.

 

As a reminder, for all remaining tax calculation items, districts should utilize the $100,000 Homestead exemption values. The Truth-in-Taxation calculation worksheets that districts utilize on the on the comptroller's website, such as the allowed debt rate and no-new-revenue rate, will use the lower certified value with the $100,000 homestead exemption recognized. This is important because it will be the value used to collect taxes for tax year 2023 (for fiscal year 2023–2024).  

 

Next Steps for MCR

• No additional action is required unless the district chooses to appeal the calculated rate. The rate will become final after August 11, 2023.

 

• If you choose to appeal your preliminary MCR, a final determination will be issued to your school district no later than August 31, 2023.

 

• District appeals must be received by August 11, 2023, and should be submitted electronically to the attention of Amy Copeland on district letterhead, signed by the superintendent, to taxprograms@tea.texas.gov. 

 

Tax Rate Adoption

The maximum rate districts can adopt without going to the voters for a Voter Approval Tax Rate Election is the district’s maximum Tier One compressed rate (MCR), as discussed above, plus the greater of: 

• five golden pennies; or 
• the number of Tier Two voter-authorized enrichment pennies levied in the prior year

 

The Tier II enrichment pennies are subject to compression only in a year when the state increases the guaranteed yield on those copper pennies via an increase in the basic allotment. At this time, this has not occurred. More on this will come later if the Legislature decides to increase the basic allotment through future special sessions or during the next regular session.  

 

Districts will use the preliminary MCR (or wait for their final MCR, if appealed) published on TEA’s website to calculate the M&O portion of their voter-approval tax rates (VATRs), and these rates will be used for state aid purposes.

 

If voters approve the increased homestead exemption, the preliminary state certified "T2" values from the Texas comptroller’s Property Tax Assistance Division will reflect the $100,000 exemption and will be incorporated into the 2023–2024 Summary of Finances (SOF) reports in February 2024.

 

You can view the TAA letter for additional information or contact taxprograms@tea.texas.gov.

 

 

2. SOF Template

 

 The new R5 file dated 08/01/2023 fixes issues related to the Rate to Maintain and the Notice tabs. 

 

Since the preliminary MCRs were just released, be on the lookout for Omar to publish another template with those values loaded into the system.

 

 

3. Additional Days School Year

 

Additional Days School Year (ADSY) adds half-day formula funding for school systems that add instructional days to any of their elementary schools (Texas Education Code (TEC), §48.0051). Districts will generate half-day funding for each instructional day after their 180^th instructional day, up to their 210th instructional day.

 

ADSY funding is available at the campus level and programs can utilize anywhere from one to 30 additional days with design flexibility as long as it meets eligibility requirements. The list of requirements can be found within the TAA letter.

 

TEA is requesting that all LEAs who anticipate utilizing ADSY funding in 2023-2024 complete the ADSY 2023-2024 Implementation Survey by August 25, 2023.

 

This survey includes the submission of a school calendar with evidence of a 180-day instructional calendar, which will be used to verify eligibility compliance and serve as required evidence for any ADSY waivers in the 2023-2024 school year, as well as helping to identify projected ADSY implementation trends to better inform ADSY supports.

 

Beginning in the 2023–2024 school year, participating campuses are eligible for up to five days of ADSY waivers for missed instructional days throughout the year due to weather, health, or safety reasons. These waiver days are for the purpose of ensuring compliance with the 180 days of instruction requirement and are distinct from the Missed School Day waiver. The list of waiver requirements can be found within the TAA letter.

 

You can view the TAA letter for additional information or contact ADSY@tea.texas.gov.

 

 

4. Dyslexia Support Updates

 

During the 88^th Texas Legislature (Regular Session), House Bill 3928 was passed and impacts dyslexia evaluation, identification, and instruction. TEA is working to update all impacted technical assistance resources and webpages since the changes are in effect beginning with the 2023-2024 school year.

 

The State Board of Education's (SBOE’s) proposed timeline for its required changes will be communicated as that timeline is determined and communicated to TEA. While the SBOE completes its rulemaking process to update the Dyslexia Handbook, it is critical that LEAs comply with the requirements of HB 3928 and use the HB 3928 FAQ document for assistance with implementation.

 

Be aware that there might be additional funding and expenditure requirements with an increased service for dyslexia related student instruction. Currently, the spending requirement is 100% of the assigned PIC in the Summary of Finance.

 

You can view the TAA letter for additional information or contact sped@tea.texas.gov.

2023-2024 FY Tax Rate and MCR Template Tool

 

Overall Information

 

Due to timing of legislative decisions (specifically, Senate Bill (SB) 2, 88th Texas Legislature, Second Called Session), the official Local Property Value Survey (LPVS) application will calculate MCRs under Regular session (88^th R) law only. The information below also assumes SB 2 (88^th SS #2) will be signed by the Governor, enacted, and then approved by voters in November.  If voters approve the increased homestead exemption, the state certified "T2" values will reflect the $100,000 exemption and will be incorporated into the Summary of Finances (SOF) reports in February 2024.

 

TY 2023 State MCR: 0.8941 × (1.025 ÷ 1.0443) - 0.0825 = $0.7950 - $0.1070 = $0.6880

 

If SB 2 (88^th SS #2) is signed by the Governor and is enacted, Tier One MCRs for TY 2023 will range from $0.6880 (max) to $0.6192 (90% floor). As a result, the maximum M&O rate for the 2023 tax year would be $0.8580 ($0.6880 + $0.17).

 

Local MCR determinations for tax year 2023 will be calculated in 2 steps

 

Initially, the LPVS will calculate MCRs under regular session law only (88^th R). However, TEA will then make additional calculations prior to publishing the Preliminary MCRs to incorporate the additional tax reduction per SB 2 (88^th SS #2). These additional calculations from SB 2 (88^th SS #2) will not require an action by the ISD (unless the ISD is appealing the MCR), as TEA will automatically calculate them as noted below:

 

1. Districts submit LVPS using HB 1 (88^th R) law prior to August 1.

 

2. After initial LPVS survey submission, TEA will calculate and make available the preliminary maximum compressed tier one tax rates to each school district on or before August 5.

• If TEA does not receive an appeal of a preliminary MCR, the preliminary MCR as determined by TEA automatically becomes a final MCR.
• If TEA receives an appeal of a preliminary MCR, TEA will issue a final determination to the school district no later than August 31.

 

LPVS Submission Process

 

The LPVS for the 2023-2024 school year opens for data submission today, Tuesday, July 18, 2023, and will close at midnight on Tuesday, August 1, 2023. Please ensure that your district completes and submits the LPVS using the online FSP System by Tuesday, August 1, 2023.

 

For purposes of the LPVS submission, districts should enter local district taxable property values (and calculated estimates of district comptroller property values, or “T2” values) for TY 2023 reflecting the $40,000 state homestead exemption (HSE) under current HB 1 (88^th R) law.

 

As a note, the MCR that will be shown in the local property value survey in TEAL will not correctly reflect your district’s final MCR, as determined under Senate Bill 2 (88^th SS #2), since TEA will adjust the LPVS prior to issuing preliminary MCRs. Districts that do not submit their LPVS will receive the lesser of the prior year MCR, or the assumed State compression rate of $0.6880 as their MCR.

 

Tax Rate Adoption

Districts should wait to proceed with tax rate adoption until the TEA publishes preliminary MCRs on or before August 5^th. If an appeal is requested, then districts should wait to receive from TEA a final MCR determination before proceeding with tax rate adoption.

As a reminder, a lower MCR does not impact your district’s total FSP entitlement, but rather shifts funding between the state and local share, as Tier One tax compression does not impact the overall level of funding a district is entitled to. Rather, tax compression only impacts the balance of the state and local share of a school district’s total Tier One entitlement.

MCR Template from TEA

For additional assistance, TEA has posted a new Tax Rate and MCR Template on their TEA State Funding Webpage, under the District & Charter Planning Tools subheading. Please note that the purpose of this template is limited to assistance only and does not anticipate any tax rate increase that the district may be considering, nor is it an official submission of the LPVS. Legal responsibility to adopt a tax rate in accordance with the law remains with the district, which should consult with its own legal counsel.

For more information on submitting the LPVS through the FSP System, including information on applying for specific roles in the system, please see the TEA FSP System web page. For help with accessing the FSP system or submitting the 2023–2024 LPVS, please contact Namrata Parikh by phone at (512) 463-6220 or email taxprograms@tea.texas.gov.

1. Preliminary 2023-2024 Summary of Finance (SOF) Data

 

The initial 2023–2024 preliminary Summary of Finances (SOF) reports are published in SOF Run ID 40797 and incorporate, but are not limited to the following:

 

• Increased tier two golden penny yield from $98.56 to $126.21.
• Preliminary ASF rate of $414.884.
• ADA and FTEs – attendance projections as adopted in the 88th GAA, HB 1, Article III, Rider 3.
• For charter schools, the SOF reports will be updated prior to the first September payment to reflect charter estimates from the FSP system.

 

The 2023–2024 preliminary Summary of Finances (SOF) reports do NOT yet include:

 

• HB 3 (88-R) changes to school safety allotment (increase from $9.72 to $10 per ADA, plus $15,000 per campus).
• HB 3705 (88-R) to provide $1,500 per non-enrolled student for UIL activities.
• Pending Legislation from 88^th called special sessions.

 

Periodic updates to the preliminary 2023–2024 SOF reports will occur until the first payment is made in September 2023. Additional updates might also be needed throughout the school year depending on the complexity/timelines/outcomes of pending legislation in the 88^th Texas Legislature called special sessions.
 
Please contact TEA’s School Finance Division at sfinance@tea.texas.gov with any additional questions.

 

 

2. Survey on Real Property

 

TEA is conducting a short survey of local educational agencies (LEAs) to identify those LEAs that purchased real property with federal funds under grant federal programs administered by TEA prior to the 2022–2023 grant year. Note that this purchase may have occurred several years ago, since the completion of the previous Survey on Real Property Reporting back in October 2019.

 

All LEAs need to complete the survey on real property, regardless if you have purchased eligible property or not, by July 21, 2023.

 

The Federal Fiscal Compliance and Reporting (FFCR) Division will send targeted emails to LEAs that do not complete the survey and provide an extended deadline for them, if needed.

 

 

3. ESSER Supplemental

 

TEA has calculated and posted final allocations for the 2021–2023 ESSER Supplemental (ESSER-SUPP) Federal Grant Application on the TEA entitlements webpage under the “COVID-19 Funding” heading.

When Federal Fiscal Compliance and Reporting (FFCR) Division staff replaced projected 2022–2023 enrollment with actual 2022–2023 enrollment, it impacted the ESSER-SUPP allocations for every LEA. If an LEA’s actual 2022–2023 enrollment was lower than the enrollment projection used in the April 2022 ESSER-SUPP calculation, even if the LEA experienced an increase in enrollment in 2022–2023 compared to 2021–2022, the LEA’s ESSER-SUPP allocation decreased.

 

The 25% hold on LEA's NOGAs has been removed, and as a result, LEA's can now draw down their remaining funds, including expenditures during the grant period.

No action is required by the grantee at this time, as TEA staff have already initiated and completed budget adjustments to incorporate the revised amounts. If necessary, an LEA may submit an amendment to revise the budget entered by TEA staff with a revised deadline of July 28, 2023.

 

As a reminder, ESSER Supplemental grant funds must be obligated by August 31, 2023, which is the end of the grant period.

 

4. ESSER II

 

Upcoming deadlines for ESSER II are as follows:

 

• July 7, 2023 – Final Amendment due date.
• September 30, 2023 – End of grant period for ESSER II.

 

Please remember to fully expense your ESSER II funds (down to the penny) as applicable, otherwise you might be subject to have partial ESSER III funds be allocated for ESSER II by TEA’s grant staff.

 

 

5. ESSER Annual Reporting

 

For the Year 4 Reporting, USDE has required an additional 26 data elements for ESSER I, II, and III.

 

LEAs will still be required to report expenditures in the standard expenditure categories, but will now also be required to report the same expenditures for the additional 26 data elements as well. A new printable workbook will be released in Early Summer for all LEAs to utilize, as the workbook will break down the new data elements for better understanding.

 

1. Tax Year 2023 Maximum Compressed Tax Rates (MCR)

 

As expected, TEA has released the official MCR numbers for the 2023 tax year (2023-2024 fiscal year) at $0.7950. In accordance with TEC, §48.2552(c), and after accounting for additional state revenue determined under TEC, §48.2552(b), the maximum state compression rate for TY 2023 was also reduced by an additional 8.25 pennies in the 2023 year only (under current law). 

 

TY 2023 State MCR: 0.8941 × (1.025 ÷ 1.0443) - 0.0825 = $0.7950*

 

In order to maintain tax rate equity, no district may have an MCR less than 90 percent of any other district. The limit on local compression for TY2023 will be $0.7155 ($0.7950 * 0.90).  

 

*The current MCR does not supersede any items in the TTC, TEC, or TAC laws. If potential Legislative action changes any of these laws, additional guidance will be sent out and updated. Until then, please make sure to follow current law in planning for your tax rate calculations.

 

Additional information on these calculations can be found in the TAA letter sent out on June 22^nd.

 

 

2. Tax Rate Compression Calculations

 

TEA has yet to release the updated MCR template (as of this morning) to assist in the calculation of the items above. Until they release their official template, you can utilize the previous year’s version and update all of the data in formulas accordingly. If you need assistance with this process, please let me know.

 

As a reminder, the maximum M&O tax rate for any district in TY 2023 will be $0.9650 = $0.7950 + $0.17. Districts with local compression that exceeds state compression will have a lower maximum M&O tax rate. 

 

 

When TEA releases the updated MCR template, it will be posted on the State Funding page under the District and Charter Planning Tools section.

 

 

3. Instructional Materials and Technology Allotment

 

The 2024‒2025 biennium instructional materials and technology allotment allocations for each district and open-enrollment charter school (local educational agency or LEA) will be available on the instructional materials website and are expected to be populated in EMAT, the state’s online ordering system, by mid-July, 2023.

 

Although the amounts will appear soon in EMAT, the actual funds will not be available until after September 1, 2023. Until that time, LEAs may use unexpended funds (carry-over funds) for allotment expenditures, including newly adopted instructional materials, continuing contracts, technological equipment, and technology services.

 

House Bill 1605 (88th Regular Texas Legislature, 2023) establishes two new Foundation School Program (FSP) entitlements for SBOE-approved instructional materials, in addition to this Instructional Materials and Technology Allotment allocation. Those entitlements are not part of this per student allocation amount and will be provided in addition to these amounts. More details on those entitlements will follow in a future TAA.

 

Additional information can be found in the TAA letter sent out on June 22^nd.

 

Below are 9 important updates to funding, initiatives, and upcoming training opportunities that have been recently released. As always, if you have any questions, please reach out to me for assistance.

 

 

1. Adjustments to the FY 2023-2024 and 2024-2025 FSP Payments

 

In support of the legislative process, the LBB requested that the TEA provide supplementary analysis to put LEAs’ attendance projections in context, and alternative methodological options for consideration by legislative decision makers. These figures are lower than LEA projections by 15,923 (0.3%) in FY 2024 and by 54,624 (1%) in FY 2025. 

 

To operationalize the adopted LPE: 

• If an LEA’s projection was at or below the alternative projection, the LEA’s projection was accepted. 

 

• If an LEA’s projection was above the alternative projection, the LEA’s projection was reduced by a percentage, but no LEA was reduced below TEA’s October projection. 
• For 2023–2024, up to a 0.3% reduction was applied to LEAs with ADA up to 1,600, and reductions up to 0.52% for LEAs above 1,600 ADA. 
• For 2024–2025, up to a 1% reduction for LEAs with ADA up to 1,600, and reductions up to 1.78% for LEAs above 1,600 ADA. 

 

The adopted projections by LEA can be found here: https://tea.texas.gov/finance-and-grants/state-funding/additional-finance-resources/attendance-projections. 

 

Note: Only refined ADA was revised for certain districts as noted above. All other student counts (SPED, Bilingual, G/T, etc.) that were submitted by LEAs and accepted by the TEA through the Attendance Projections module in the FSP system and submitted to LBB did not change.  

 

Remember, LEAs are made whole during settle-up. If projections are too high, more funding flows during the school year, but must be returned to the state later. If the projections are too low, less funding flows during the school year, and will be made whole in the settle-up process. Whether projections are too low or too high, the final entitlement is the same, based on actual attendance. The only difference is when the funding flows.

 

More information can be found in the TAA letter sent out on June 15th.

 

 

2. SOF Template Updated Release #2

 

The SR#1 release #2 was released yesterday, June 15^th. It makes a few changes to the first release by correcting the Rate to Maintain and Notice tabs and a minor display issue on the 23-24 tab (it did not impact the calculations).

 

 

3. TEA MCR Template

 

The TEA has still not released a MCR calculation for the 2023-2024 school year on their State Funding page. They did update their projection worksheet under the same page (June 10^th), but after looking through a few district’s rates, they are not 100% correct. Be cautious if you are utilizing this method for creating an estimate for your district and be sure to check your information before proceeding.

 

If you need assistance in re-adjusting the formulas on the 2022-2023 MCR template to show an estimate of the 2023-2024 MCR, feel free to reach out for assistance.

 

 

4. Upcoming Survey Deadlines

 

The 2022-2023 Tax Information Survey (TIS)

• The TIS for the 2022–2023 school year is open for data submission and will close at midnight on August 31, 2023.
• If your district does not submit the survey by the deadline, your district’s state funding for the 2022–2023 school year could be adversely affected.
• Please do not submit any tax data related to the upcoming 2023 tax year (2023–2024 school year).
• Please ensure that your district has completed and submitted the TIS using the online FSP System by August 31, 2023.
• Completing the survey is important because it allows the agency to use the most accurate tax collections data possible when they calculate the 2022-2023 near-final Summary of Finances (SOF) estimates in September 2023.

 

The 2022-2023 Transportation Route Services Report

• TEA requests your school district to promptly complete and submit this report to enable TEA’s process in finalizing the 2022-2023 Transportation Allotment amount.
• The annual deadline for submitting the 2022-2023 Transportation Route Services Report is August 1, 2023.
• Additional information can be found on the School Transportation Funding webpage, as well as in the School Transportation Allotment Handbook.

 

 

5. Cyber Security Initiative, Funding, and IT Guidance

 

It is the intent of the Legislature that the Texas Education Agency enter into an interagency agreement with the Department of Information Resources (DIR) to provide cybersecurity services for LEAs in accordance with DIR Strategy C.1.2, Security Services. Cybersecurity services to be provided by DIR may include, but are not limited to, cybersecurity assessments, end point detection response, and network detection response.

 

The purpose of this initiative is to provide immediate solutions to protect LEAs from major cyber incidents, such as ransomware. Priority will be given to rural LEAs, and cybersecurity practitioners will be available at your regional education service center to assist with implementation of cybersecurity controls that fall within scope of this initiative.  
 
The following cybersecurity controls are highly encouraged for all LEAs to implement between September 1, 2023 and August 31, 2025 and fall within the scope of this initiative: 

 

1. Implement fully managed Endpoint Detection and Response (EDR) on LEA servers and applicable staff devices. TEA will fully fund licenses with limited distribution. See details below. 
2. Implement Multi-Factor Authentication (MFA) on staff email systems. More details to come. 
3. Implement email protocol security configurations. More details to come. 
4. Restrict local admin access. More details to come.  

 

The following cybersecurity controls are funded on a first come first served basis by TEA through DIR’s Shared Technology Services (STS) program and are recommended to mature LEA cybersecurity posture. These controls fall within scope of this initiative:  

• Complete a third party K-12 Cybersecurity Assessment to get a baseline of your cybersecurity maturity and action plan for improving cybersecurity posture. Application to open in September. 
• Implement Network Detection and Response (NDR), especially for schools with cameras and other Internet of Things (IoT) devices. Application to open in September.

 

LEAs will need to sign DIR’s inter-local agreement to receive the in scope services from DIR’s Shared Technology Services (STS), Managed Security Services (MSS) program. 

• TEA’s goal is to have all eligible LEAs onboarded with a signed inter-local agreement by September 1, 2023, so the services can be distributed as soon as possible.
• After the inter-local agreement is in place, eligible LEAs may then request in scope services through the STS program, which will be paid for by TEA starting September 1, 2023 through August 31, 2025.
• The MSS vendor, AT&T, or your regional education service center may reach out to your LEA to help facilitate this process.
• Details about this process were discussed in the April Cybersecurity Coordinator call, and a recording can be accessed here, which includes additional resources with instructions and scope: https://tea.texas.gov/academics/learning-support-and-programs/technology-planning/k-12-cybersecurity-initiative.
• You may register for the Cybersecurity Coordinator Forum series, with the next one next scheduled on June 28th @ 11am CDT, at this URL using your LEA email address: https://attendee.gotowebinar.com/register/8234183618339320587. 

 

TEA’s distribution of Endpoint Detection and Response (EDR) services through DIR’s Managed Security Services (MSS) will be to provide a scope that they can reasonably accommodate with the funding provided. Therefore, TEA will limit the distribution for LEAs with a total enrollment of 15,000 and below.

• The EDR provided, which replaces traditional anti-virus software and incorporates threat intelligence along with malicious behavior characteristics on endpoints, will be fully managed to eliminate additional LEA overhead and is one of the best solutions to prevent ransomware and secure devices.
• The current vendors under the MSS contract for EDR are CrowdStrike and SentinelOne.
• TEA will provide a range from 30 licenses up to licenses equal to 10% of student enrollment, whichever is larger. 
• It is TEA’s intent to focus on high-risk and impact devices, so initial distribution should focus on servers and central office staff with any remaining licenses distributed to other staff devices that have access to sensitive data.

 

Finally, all LEAs will be signed up with the Dorkbot web application vulnerability notification service. Dorkbot is an automated system run by the University of Texas – Austin, that uses publicly available information to identify vulnerable public facing systems on K-12 networks.

• Currently designated cybersecurity coordinators for each LEA will be the point of contact for any findings the service uncovers, so please ensure those designations are up to date in AskTED. Please reach out to your district AskTED coordinator or email askted@tea.texas.gov if you need assistance with updating AskTED. 
• The Dorkbot service for LEAs will begin July 1, 2023.   
• More information about the Dorkbot service can be found at: https://security.utexas.edu/dorkbot.

 

Any LEA wishing to opt-out of the free service of Dorkbot, or if you have any questions related to the TAA letter sent out on June 15^th, please email TEA at cybersecurity@tea.texas.gov.

 

 

6. 2023–2024 Indirect Cost Rates

 

The Federal Fiscal Compliance and Reporting (FFCR) Division has published indirect cost rates for independent school districts and open-enrollment charter schools. These rates are effective July 1, 2023, through June 30, 2024.

You may find your indirect cost rates in either of two places:

• The Indirect Cost Rates page of the TEA website lists 2023–2024 indirect cost rates for all independent school districts and open-enrollment charter schools.
• The GFFC Reports and Data Collections secure TEAL application includes a 2023–2024 Indirect Cost Rate Notification Letter for each independent school district and open-enrollment charter school.

 

If you have questions about the issuance of indirect cost rates, please email the Federal Fiscal Compliance and Reporting Division at Compliance@tea.texas.gov.

 

 

7. School Safety Funding

 

2023-2025 School Safety Standards Formulary Grant 

• On November 3, 2022, TEA released a formula-based grant to support the school safety standards rule referenced above. The grant allows for pre-award for items purchased on or after June 1, 2022.   
• Application due date is August 1, 2023.
• Grant details are available on the TEA Grant Opportunities page.  

 

Future Funding 

• The Texas Legislature has provided new funding for school safety totaling $1.4 billion for the next two years, including $1.1 billion in one-time funding through the supplemental appropriations bill to address new minimum school safety standards and other facilities-related safety improvements.
• TEA will provide more information on accessing this funding in the coming months.

 

 

8. Accelerated Instruction from HB 1416

 

House Bill 1416 updated accelerated instruction requirements from House Bill 4545 (from 87^th Legislature), which could have financial impacts to your local budget.

 

The following supports are available for LEA personnel supporting HB 1416 implementation: 

• HB 1416 Webinar: TEA is hosting a webinar to provide an overview of HB 1416, review changes from HB 4545, and to walk through available supports for HB 1416 implementation on Thursday, July 13th from 10am CT to 11am CT. Interested attendees can register here. 
• Accelerated Instruction Webpage: TEA will provide accelerated instruction supports – including frequently asked questions and example resources from LEAs - on the TEA Accelerated Instruction webpage. Additional resources will be added as developed. 
• Direct Support: LEA personnel may reach out to accelerated.instruction@tea.texas.gov with questions or to provide resources which may be hosted on the TEA accelerated instruction webpage as a resource for other LEAs. 

 

Additional information about the changes can be found on the TAA letter sent out on June 15^th.

 

 

9. Upcoming Training Opportunity

 

We are excited to share that our partners at the Region One ESC Division of Business & Operations will be hosting their first School Finance & Operations Conference at South Padre Island, TX, July 27-28, 2023. School System teams of professionals in the areas of Business, Finance, Operations, Maintenance, Human Resources and Technology will be attending to prepare for the 2023-2024 School Year and beyond. They will also offer a Pre-Conference SOF Template session presented by Omar Garcia on July 26 at no additional cost.

 

You can visit their conference website, https://sites.google.com/esc1.net/schoolfinance/home, for agendas, registration, and hotel accommodations.

 

For questions or more information, please contact the Region One ESC Division of Business & Operations team at 956-984-6284 or email yaramos@esc1.net.

 

1. ESSER Supplemental Grant Reductions

 

Due to the mechanism in which the ESSER Supplemental grant was formed, there will be one final adjustment to these NOGAs. Most districts will see a reduction in the funding, not an increase.

 

Final allocations are not posted, but should be in the next couple of weeks. TEA staff will be reaching out to districts with significant reductions and will also be sending out a statewide notice to LEAs regarding the final allocations.

 

If you have ESSER Supplemental funding, please be on the lookout for this change in the coming weeks.

 

2. 2021-2022 IDEA B and IDEA B Pre K ARP

If you still cannot drawdown funds for your IDEA B and IDEA B Pre K ARP, here is a reminder of the process that is needed.

 

Grantees with IDEA-B Formula-ARP or IDEA-B Preschool-ARP carryover must amend their Applicant Designation and Certification (ADC) form in eGrants to make the carryover funds available prior to starting an amendment. When amending the ADC, grantees must select the same designation as they selected for the "regular" IDEA-B Formula and/or Preschool funds in their 2022–2023 Special Education Consolidated Grant Application (Federal) or select "Not Apply at All.”

 

Once an amendment has been initiated, final amounts and any 2021–2022 carryover will appear on the BS6001 – Program Budget Summary and Support schedule in eGrants. Grantees will complete the program budget schedules as appropriate, then certify and submit the amendment. The deadline to submit amendments is 5:00 p.m. Central Time, June 2, 2023.

 

3. Other ESSER Funds

Upcoming End of Grant Periods

09/30/2023 - End of grant period for CRRSA ESSER II

09/30/2023 - End of grant period for IDEA-B ARP

09/30/2023 - End of grant period for IDEA-B Pre K ARP

09/30/2024 - End of grant period for ARP ESSER III

 

ARP ESSER III NOGAs

September 30, 2024, is the end of the performance period for ESSER III and revised NOGAs are being sent out to districts with updated end dates around April 19, 2023. After September 30, 2023, ESSER III will no longer require MOE reporting and LEAs RIPICS plan will no longer need to be updated (but the RIPICS plan will still need to remain on the school’s official website). See GR-Q85 on when plan updates can be discontinued.

 

For additional questions, contact the ESSER Expenditure Reporting Team in Grants Administration ESSERexpenditures@tea.texas.gov.

 

4. GASB 96

As a reminder, GASB 96 for SBITAs were incorporated into the FASRG effective September 2022. For those that are paid with grant funding, TEA will be revising budget schedules for SBITAs in active, applicable grant applications awarded on or after September 13, 2022 (revised BS6501 – Debt Services – eGrants and Debt Services 6500 form for pdf applications.)

 

A universal Errata should be issued on or around April 4, 2023, with instructions on how to submit an amendment to the grants that you need to adjust.

 

5. TRS Employment After Retirement Suspension Ends

In March 2020, TRS received approval from Texas Gov. Greg Abbott to temporarily suspend certain statutes and rules that allowed TRS retirees working for any hospital, medical school, or health care facility affiliated with an institution of higher education covered by TRS (including but not limited to the employers listed below) to not forfeit their retirement annuity if they exceed half-time employment during the disaster declaration, nor were surcharges due for these retirees.

 

Effective March 31, 2023, Gov. Gregg Abbott has terminated this suspension. Resuming with the April 2023 Employment After Retirement report, surcharges will be due for any TRS retirees, with a retirement date after September 1, 2005, that exceed half-time employment during the calendar month. In addition, if the retiree has a retirement date after January 1, 2021, they may forfeit their annuity if they exceed half-time employment.

 

6. TRS Penalty Fee Grace Period

After careful consideration of feedback from you and districts around the State regarding the challenges they continue to face related to TRS reporting, TRS has issued a final extension to the one-month grace period through the August 2024 report period. In preparation of the grace period being eliminated with the September 2024 report period, TRS recommends REs create an action plan now to begin working toward completing reports as close to the TEXNET and report due dates as possible.

 

1. ESSER Reporting (Year Three) — updated due date to February 24, 2023.

 

The official data collection tool for Year Three (09/01/2022 – 08/31/2022) ESSER Annual Performance Reporting has been updated. The online system for LEAs to complete this reporting requirement was initially set to close Tuesday, January 31, 2023, at 11:59 p.m. CST.

 

TEA has notified ESC grant staff that this due date has been extended to February 24, 2023, at 11:59 p.m. CST. TEA will send out correspondence regarding this change later in the week.

 

As a reminder, TEA staff will begin hosting the following office hours sessions to discuss Year Three USDE ESSER Annual Performance Reporting today, January 9 (these are open to LEAs and ESCs):

·         January 9 to 31

·         2:00 to 3:00 p.m. daily — Register here.

 

In addition, TEA staff have prepared the following resources:

·        Year Three ESSER Reporting Planning Workbook (NOTE: This workbook is to be used to assist LEAs in how to report their information and is not intended to be submitted to TEA. LEAs will be required to enter reporting information in the Official Year Three Data Collection Tool in SmartSheet.)

·         TEA ESSER Annual Performance Reporting FAQs

 

 

2. School Safety Allotment Survey 

 

The 86th Legislature passed Senate Bill (SB) 11, which created an annual school safety allotment to help fund equipment, programs, and training related to school safety and security and the 87th Legislature enacted House Bill (HB) 1525, which included a provision requiring TEA to publish an annual report regarding the programs, personnel, resources, and other purposes for which the funds were used by LEAs.  FY 2022 school safety allotment data will be collected by a mandatory survey to report those expenditures related to that fiscal year to meet this requirement.

 

To successfully complete the survey, LEAs should review the survey preview and gather and collect information related to all expenditures from their school safety allotment for the 2022 fiscal year. LEAs should complete the FY 2022 School Safety Allotment Survey by 11:59 p.m. CST, Wednesday, February 8, 2023.  

 

Additional information can be found in the TAA letter from TEA.

 

 

3. 2022-2025 School Safety Standard Formula Grant

 

The 2023-2025 School Safety Standards Formula Grant application is now available in eGrants. Allocations for eligible applications of the 2023-2025 School Safety Standards Formula Grant are available. They can be viewed on the Entitlements page, while the TEA Grant Opportunities page has detailed information about applying for this grant program.

 

Eligible applicants must apply through the eGrants system by 5:00 p.m. Central Time, February 17, 2023.  

 

For additional information on the ADC or grant application, contact your assigned negotiator listed on the Grant Administration Division Contacts page or reference additional information in the TAA letter.

 

 

4. Update to SOF Template

 

Release 2, dated 01/04/2023, is now available for download from ESC Region 13 website. This new release primarily applies to districts that get the Formula Transition Grant, but other minor updates are made as well:

• Formula Transition Grant updates
• Proration amount changes on NIFA, Fast Growth, and Formula Transition Grant