April 10, 2013
Subject: Charter School Available School Fund Payments
To the Charter School Administrator Addressed:
In March 2013, your charter school started to receive Available School Fund (ASF) payments. This letter provides more information about these payments.
What Is the ASF?
The ASF serves as a method of finance for the Foundation School Program (FSP). What this means is that this source of revenue is used to help pay the state's FSP payments to school districts and charter schools and is not additional revenue.
How Are Our Charter School's ASF Allotment and ASF Payments Calculated?
Your charter school's ASF allotment is based on the school’s prior year average daily attendance (ADA) multiplied by the estimated payment rate per ADA (the distribution rate), which is adopted each year by the State Board of Education. A revised estimated rate of $448.148 was adopted by the board February 1 and was reflected on the Summary of Finances in March. The final rate will be adopted in July and will determine the remaining ASF balance to be paid in August. The ASF allotment is deducted from your charter school's total FSP operations funding, so initially, when the Texas Education Agency (TEA) implemented ASF allotments for charter schools, your school saw a decrease in its Foundation School Fund allotment for the year, which was offset by an increase in its ASF allotment.
The TEA determines the amount that will be available for ASF payments each month, and we calculate monthly payments based on that amount. Please note that ASF payments will vary each month and any amount that has not been paid from September through July will be paid in August when we calculate the final payment. To prevent a negative impact to your charter school's cash flow resulting from the midyear implementation of these payments, we processed a special “catch up” ASF payment in March that was paid in addition to the regular March ASF payment.
What If Our School Does Not Have Prior Year ADA to Calculate an ASF Allotment?
If your charter school was not in operation last school year, it will not receive ASF payments this school year. Instead, your school's total FSP operations funding will come out of the Foundation School Fund.
What If Our School's Prior Year ADA Is Lower Than Its Current Year ADA? Will That Result in Reduced Funding?
If your school's prior year ADA is lower than its current year ADA as a result of significant growth or a merger with another charter school, this will just result in a larger part of your school's total FSP operations funding coming from the Foundation School Fund than from the ASF. It will not have an effect on the total amount of your school's FSP operations funding.
Please make sure that you review your charter school's Summary of Finances and Foundation and ASF ledgers each month. If you have any questions, please contact Nora Rainey at email@example.com or at (512) 463-7298.
Director of State Funding