Proposed Amendment to 19 TAC Chapter 89, Adaptations for Special Populations,
Subchapter A, Gifted/Talented Education, §89.4, Fiscal Responsibility
(First Reading and Filing Authorization)
January 21, 2011
COMMITTEE ON INSTRUCTION: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item presents for first reading and filing authorization proposed amendment to 19 TAC Chapter 89, Adaptations for Special Populations, Subchapter A, Gifted/Talented Education, §89.4, Fiscal Responsibility. The proposed amendment would align the indirect cost allotment for gifted/talented education with the maximum allowable indirect cost referenced in 19 TAC Chapter 105, Foundation School Program, Subchapter B, Use of State Funds, §105.11, Maximum Allowable Indirect Cost. The percent was increased as a result of House Bill (HB) 3646, 81st Texas Legislature, 2009.
STATUTORY AUTHORITY: Texas Education Code (TEC), §42.1541 and §42.156(b).
EFFECTIVE DATE: The proposed effective date of the proposed amendment to 19 TAC §89.4 is 20 days after filing as adopted with the Texas Register. Under TEC, §7.102(f), the State Board of Education (SBOE) must approve the rule action at second reading and final adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2011-2012 school year. The earlier effective date will alleviate confusion about the indirect cost allotments that are listed in two separate sections of the Texas Administrative Code.
PREVIOUS BOARD ACTION: Section 89.4 was adopted to be effective September 1, 1996. Section 105.11 was adopted to be effective September 1, 1996, and amended to be effective December 31, 2009.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: Through 19 TAC §105.11, the SBOE establishes the maximum percentage of Foundation School Program (FSP) special allotments under the TEC, Chapter 42, Subchapter C, that school districts may expend for indirect costs for specific programs. Previously, no more than 15% of FSP special allotments could be expended on indirect costs related to the following programs: compensatory education, gifted and talented education, bilingual education and special language programs, and special education. In addition, the rule specifies the expenditure function codes to which the indirect costs may be attributed, as defined in the Texas Education Agency (TEA) publication, Financial Accountability System Resource Guide.
HB 3646, 81st Texas Legislature, 2009, amended the TEC, §42.152(c), to provide that up to 45%, rather than 15%, may be expended from FSP special allotments for indirect costs. HB 3646 also added the TEC, §42.1541, directing the SBOE to by rule increase the indirect cost allotments established for special education, compensatory education, bilingual education, and career and technical education programs. Accordingly, the SBOE took action to amend 19 TAC §105.11 at the November 2009 meeting to increase the percent allowances for indirect costs for FSP special allotments. The adopted amendment, which took effect December 31, 2009, included an increase of the indirect cost for gifted and talented education.
The proposed amendment to 19 TAC §89.4, shown in Attachment II, would increase the percent allowance for indirect costs for gifted and talented education for the FSP special allotments under the TEC, Chapter 42, Subchapter C, to 45% in accordance with the TEC, §42.152(c) and §42.1541, as directed by the 81st Texas Legislature. The proposed amendment would also align the provision in 19 TAC §89.4 with 19 TAC §105.11.
FISCAL IMPACT: The TEA has determined that there are no additional costs to persons or entities required to comply with the proposed rule action. The proposed amendment would allow schools to reallocate their special revenue funds with a different indirect cost rate. The change does not increase or decrease the amount of funds available to the schools.
In addition, there is no direct adverse economic impact for small businesses or microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
PUBLIC AND STUDENT BENEFIT: The proposed amendment would implement the statutory change related to the use of state funds for special program allotments.
PROCEDURAL AND REPORTING IMPLICATIONS: The proposed amendment would have no new procedural and reporting requirements.
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: The proposed amendment would have no new locally maintained paperwork requirements.
PUBLIC COMMENTS: The official public comment period will begin when the amendment is published as proposed in the Texas Register.
OTHER COMMENTS AND RELATED ISSUES: A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register.
COMMISSIONER'S RECOMMENDATION: I recommend that the State Board of Education:
Approve for first reading and filing authorization the proposed amendment to 19 TAC Chapter 89, Adaptations for Special Populations, Subchapter A, Gifted/Talented Education, §89.4, Fiscal Responsibility.
Commissioner of Education
Staff Members Responsible:
Anita Givens, Associate Commissioner
Standards and Programs
Norma Torres-Martinez, Deputy Associate Commissioner
Standards and Alignment
Monica Martinez, Managing Director
I. Statutory Citations
II. Text of Proposed Amendment to 19 TAC Chapter 89, Adaptations for Special Populations, Subchapter A, Gifted/Talented Education, §89.4, Fiscal Responsibility