Texas Register, Volume 47, Number 7, Pages 715-820, February 18, 2022 Page: 769
717-820 p. ; 28 cm.View a full description of this periodical.
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the Excess Local Revenue subsystem of the online Foundation
School Program (FSP) System. Each year, a school district's
board of trustees must delegate authority to obligate the district
under TEC, Chapter 49, to the superintendent to facilitate the
submission of the agreement through the Excess Local Revenue
subsystem. The adopted amendment to 62.1001(a) aligns with
TEA's automated process for districts submitting this agreement
by removing language that prohibits a school district's board of
trustees from delegating authority to enter into agreements nec-
essary to achieve the purposes of TEC, Chapter 49.
62.1072, Options and Procedures for Local Revenue in Excess
of Entitlement, 2019-2020 and 2020-2021 School Years
The procedures contained in each yearly manual for districts
determined to have local revenue in excess of entitlement are
adopted as part of the TAC. The intent is to biennially update
62.1072 to refer to the most recently published manuals. Man-
uals adopted for previous school years will remain in effect with
respect to those school years.
The adopted amendment to 62.1072 adopts in rule the official
TEA publications Options and Procedures for Districts with Local
Revenue in Excess of Entitlement 2021-2022 School Year as
Figure: 19 TAC 62.1072(a) and Options and Procedures for
Districts with Local Revenue in Excess of Entitlement 2022-2023
School Year as Figure: 19 TAC 62.1072(b). The section title is
updated to reflect the manuals adopted in the rule.
Each school year's options and procedures for districts deter-
mined to have local revenue in excess of entitlement explain how
districts subject to excess local revenue are identified; the fiscal,
procedural, and administrative requirements those districts must
meet; and the consequences for not meeting requirements. The
options and procedures also provide information on using the
online FSP System to fulfill certain requirements.
The following significant changes are addressed in the updated
publications pursuant to TEC, Chapter 49, as amended by
House Bill 1525, 87th Texas Legislature, Regular Session,
2021.
Netting Provision
Provisions in TEC, 48.257(c), were amended to allow districts
to offset the reduction of excess local revenue against TEC,
Chapter 48, funds. All districts will have the option to use state
aid calculated under TEC, Chapter 48, that is not described by
TEC, 48.266(a)(3), as an offset to their attendance credit for
purposes of reducing their local revenue level. Districts using
this option are required to submit the district intent/choice selec-
tion form and complete an Option 3 netting agreement.
Local Revenue in Excess of Entitlement After Review Notifica-
tion
If the commissioner determines that a district has a local revenue
level in excess of entitlement after the date of notification for
the current school year under TEC, 49.004, the amount of the
district's local revenue level that exceeds the level established
under TEC, 48.257, for that school year will be included in the
annual review for the following school year of the district's local
revenue levels under TEC, 49.004(a).
SUMMARY OF COMMENTS AND AGENCY RESPONSES: The
public comment period on the proposal began October 8, 2021,
and ended November 8, 2021. Following is a summary of the
public comments received and the corresponding agency re-
sponses.Comment: Crane Independent School District raised concerns
that there would be additional costs to districts that are not noti-
fied of revenue levels in excess of entitlement at the beginning
of the school year and there should be deadlines that require no-
tification no later than 90 days prior to the end of the fiscal year.
Response: The agency disagrees on both points. The pub-
lic school finance system operates under a mechanism through
which funding is provided to school districts via estimates, and
then balances owed are accounted for in the subsequent school
year. While the state might not have knowledge of actual excess
revenue levels during the official notification process, school dis-
tricts have current enrollment and tax information that would al-
low the actual excess revenue levels to be known and budgeted
for well in advance of the subsequent school year. In addition,
TEC, 49.0041, contemplates that the commissioner might de-
termine the district has local revenue in excess of entitlement
after the official notification date specified in TEC, 49.004, and,
in that situation, requires the commissioner to include the excess
local revenue associated with that school year in the subsequent
year's revenue level. There is no additional cost beyond what the
authorizing statutes allow.
Comment: An employee from Education Service Center 15
raised concerns that there would be an additional cost to districts
that are not notified of revenue in excess of entitlement status
by the statutory deadline, and districts in this situation would not
meet the required deadlines to call an election and to submit the
required documentation.
Response: The agency disagrees on both points. The pub-
lic school finance system operates under a mechanism through
which funding is provided to school districts via estimates and
then balances owed are accounted for in the subsequent school
year. While the state might not have knowledge of actual excess
revenue levels during the official notification process, school dis-
tricts have current enrollment and tax information that would al-
low the actual excess revenue levels to be known and budgeted
for well in advance of the subsequent school year. In addition,
TEC, 49.0041, contemplates that the commissioner might de-
termine the district has local revenue in excess of entitlement
after the official notification date specified in TEC, 49.004, and,
in that situation, requires the commissioner to include the excess
local revenue associated with that school year in the subsequent
year's revenue level. This statutory date provides ample time for
a school district to determine their amount of revenue in excess
of entitlement under these provisions to call an election and to
submit the required documentation to the agency. There is no
additional cost beyond what the authorizing statutes allow.
STATUTORY AUTHORITY. The amendments are adopted un-
der Texas Education Code, 49.006, which authorizes the com-
missioner of education to adopt rules necessary for the imple-
mentation of TEC, Chapter 49, Options for Local Revenue Lev-
els in Excess of Entitlement.
CROSS REFERENCE TO STATUTE. The amendments imple-
ment Texas Education Code, 49.006.
The agency certifies that legal counsel has reviewed the adop-
tion and found it to be a valid exercise of the agency's legal au-
thority.
Filed with the Office of the Secretary of State on February 2,
2022.
TRD-202200354ADOPTED RULES February 18, 2022 47 TexReg 769
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Texas. Secretary of State. Texas Register, Volume 47, Number 7, Pages 715-820, February 18, 2022, periodical, February 18, 2022; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1462843/m1/55/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.