Existing Debt Allotment (EDA) Program Eligibility Information
Only general obligation bonds are eligible for the EDA program. Lease-purchase agreements authorized by the Local Government Code, §271.004, are not eligible. Debt service for which a district currently receives assistance through the Instructional Facilities Allotment program under the TEC, Chapter 46, Subchapter A, is not eligible to receive state assistance. The eligibility of bonds for the EDA program is determined by the first payment of debt service in accordance with the TEC, §46.033. Refunding bonds as defined by the TEC, §46.007, are also eligible for EDA assistance.
The eligibility date for the EDA program was amended by the passage of House Bill 3646, 81st Texas Legislature. Section 76 of the bill changed the TEC, §46.033, to provide a permanent roll-forward provision to establish bond eligibility for the EDA program. The amendments to the section deleted the eligibility dates in the statute and replaced those dates with references to the last year of the preceding biennium. As a result, bonds that have been issued during a biennium, with the first payment made during that biennium, will become automatically eligible for the EDA in the following biennium without the need for legislative action.
Bonds for which a payment is made on or before August 31, 2009, will be eligible for EDA state assistance beginning with the 2009–2010 school year. This payment must be reflected in the debt service schedule of the final official statement for the bonds in order to establish eligibility for the EDA program.
Eligibility and I&S Tax Collections
The amount of state aid on eligible bonds during the coming biennium (2009–2010 and 2010–2011) will be determined by the 2008–2009 I&S tax collections. If a district’s 2008–2009 tax rate did not include tax effort for newly eligible bonds, it is possible the district may not receive EDA funding for those bonds until the 2011–2012 school year, depending on local circumstances. An Excel template is available to assist districts in estimating their EDA state aid and can be downloaded using the 2009–2010 Calculation of Existing Debt Allotment Worksheet link listed in the EDA Tools section.
For additional information, contact:
Office of School Finance
Page last modified on 3/8/2013 11:30:46 AM.