Per Capita Apportionment Rate for the 2010-2011 School Year
September 24, 2010
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: The board is responsible for setting a per capita apportionment rate for each school year based on an estimate of the amount available for expenditures from the Available School Fund. The recommended rate for the 2010-2011 school year will be proposed at the September meeting of the Committee on School Finance/Permanent School Fund.
STATUTORY AUTHORITY: Texas Education Code, (TEC) §42.004 and §43.001(b).
PREVIOUS BOARD ACTION: The board adopted a 2009-2010 per capita apportionment rate of $274.062 in July 2010.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: House Bill 1, the General Appropriations Bill enacted by the 81st Texas Legislature, 2009, contains an estimate of the amount that will be available for expenditures from the Available School Fund for the 2010-2011 school year. Two recommended apportionment rates will be presented because it is unknown if the board will act to make a distribution of earnings to the Available School Fund from the Permanent School Fund during the 2010-2011 school year. The per capita apportionment will include funds from the Motor Fuels Tax and State Fiscal Stabilization Funds from the American Recovery and Reinvestment Act of 2009. The recommended per capita apportionment rate will be dependent on whether the board acts to use the proceeds of the Permanent School Fund for the Available School Fund. The rate may be revised later in the school year based on actual funds available for expenditure.
FISCAL IMPACT: The per capita apportionment rate finances a portion of the cost of the Foundation School Program. State aid comes from the Available School Fund and the Foundation School Fund. The per capita apportionment rate determines how much of each district's total state aid is paid from the Available School Fund. The portion that is not financed by the Available School Fund must be paid from the Foundation School Fund.
PUBLIC AND STUDENT BENEFIT: State aid for the Foundation School Program is partially funded by the Available School Fund per capita apportionment. If this source of funds was not available, the shortfall would have to be made up from the General Revenue Fund.
PROCEDURAL AND REPORTING IMPLICATIONS: None.
PUBLIC COMMENTS: None.
OTHER COMMENTS AND RELATED ISSUES: None.
COMMISSIONER'S RECOMMENDATION: I recommend that the State Board of Education:
Adopt two recommended per capita apportionment rates for the 2010-2011 school year contingent on future board action to use proceeds from the Permanent School Fund for the Available School Fund.
Commissioner of Education
Staff Members Responsible:
Adam Jones, Deputy Commissioner Finance & Administration/
Chief Operating Officer/Chief Information Officer
Shirley Beaulieu, Associate Commissioner
Finance/Chief Financial Officer
Lisa Dawn-Fisher, Deputy Associate Commissioner