1. 2008 TASBO Annual Conference
Session D: School Funding Template Update
Presented by
Omar Garcia
Region XIII ESC
Thursday, March 6, 2008
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2. Copyright©2007 Education Service Center Region XIII
Funding Elements
Basic Allotment 3,135 3,218
Level 1 Tier II Yield
Level 2 Tier II Yield
“Golden” pennies 4 6
Level 3 Tier II Yield
Eq Wealth Level , ,200
Eq Wealth Level , ,500
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3. Copyright©2007 Education Service Center Region XIII
Tax Compression
Compression %
Applied to your M&O tax rate
Beginning with , compressed rate remains the same
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4. The “Greater of” Number1
What is it?
Greater of 3 amounts
State/Local Revenue per WADA
State/Local Revenue per WADA under old law and using M&O rate
State/Local Revenue per WADA under old law and using effective M&O rate
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5. The “Greater of” Number2
Where is it?
Summary of Finances
Printout entitled “HB1- HH”
Line 12 under “S1”, “S2”, and “S3” calculations
NOT YET FINAL!!!!!!!!!
Summary of Finances
Should be the same as SOF
But…..don’t count on it….use SOF
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6. The “Greater of” Number3
Release 12 of template
First, match up with TEA’s “near final”
Then replace TEA’s M&O taxes with audited M&O tax collections
Result should be close to TEA’s “final” SOF when generated (probably next month)
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7. Copyright©2007 Education Service Center Region XIII
M&O Tax Rate
What’s your rollback rate?
Lesser of:
$1.04; OR
Effective M&O Rate plus $.04
Effective M&O Rate should be equal to approximately your compressed rate plus # pennies adopted above compressed rate in
Plus $.04, not to exceed $1.04
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8. The 2 Additional “Golden” Pennies1
Do you need to have an election to access the 2 additional “golden” pennies?
The answer – it depends…
On the relationship between your compressed rate and your rollback rate
M&O rate has to be at least 6 cents above the compressed rate
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9. The 2 Additional “Golden” Pennies2
If district’s M&O rate was $1.50 in , then election will be required
$1.50 x = $ compressed rate
Rollback rate =$1.04
Need to get to $1.06 ($ $.06) – can’t get there without voter approval
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10. The 2 Additional “Golden” Pennies3
If district’s M&O rate was $1.40 in , then election MAY NOT be required
$1.40 x = $0.933 compressed rate
M&O rate = $.973
Rollback rate = $1.01 (Effective M&O Rate: $.973 plus $.04)
Need to get to $0.993 ($ $.06) to access the 2 additional pennies – can do so without a rollback election
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11. The 2 Additional “Golden” Pennies4
The break point
M&O Rate: 
$1.44 x = $ $.04 + $.02 = $
$1.45 x = $ $.04 + $.02 = $
$1.46 x = $ $.04 + $.02 = $
$1.47 x = $ $.04 + $.02 = $
$1.48 x = $ $.04 + $.02 = $
$1.49 x = $ $.04 + $.02 = $
$1.50 x = $ $.04 + $.02 = $
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12. The ‘Regular’ Template
Release 3 now on web
Only minor changes
‘IFA’ tab now allows for up to 9 awards
Summary of Total State/Local Revenue not right for Chapter 41 districts with tax effort beyond compressed plus $.04
Added feature
New ‘RateCalculator’ tab
Computes approximate rate needed to fund a particular proposed expenditure
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13. The New ‘8-Step’ Template1
Designed to produce ‘ballpark’ estimate using minimum amount of data entry
Should be very close to ‘Regular’ template using same data
Main difference relates to “DTR” in Tier II formula
Uses actual # of pennies rather than actual “DTR” that ‘Regular’ template computes
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14. The New ‘8-Step’ Template2
Main objective: See the light, thus the title “8-Step Path to Enlightenment”
It is not a new religion!!
Need to understand the relationship between the “greater of” number (basically, the ‘target revenue’) and the total General Fund revenue
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