September 2020 Committee on School Finance/Permanent School Fund Item 1

Per Capita Apportionment Rate for the 2020-2021 School Year

September 1, 2020

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION

SUMMARY: A per capita apportionment rate for each school year is set by the commissioner of education based on an estimate of the amount available for expenditure from the Available School Fund (ASF). Agency staff members will provide an update on the  recommended rate for the 2020-2021 school year at the September 2020 meeting of the Committee on School Finance/Permanent School Fund.

STATUTORY AUTHORITY: Texas Education Code (TEC), §§48.004; 48.251(c); and 43.001(b).

TEC, §48.004, requires the commissioner to implement and administer the Foundation School Program.

TEC, §48.251(c), requires the Foundation School Program (FSP) to be financed with state ASF distributed in accordance with the law.

TEC, §43.001(b), describes the appropriations that make up the ASF.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION: None

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: House Bill 1, the General Appropriations Bill enacted by the 86th Texas Legislature, 2019, contains an estimate of the amount that will be av ailable for expenditures from the ASF for the 2020-2021 school year. The per capita apportionment will include distributions from the Permanent School Fund and funds from state occupation taxes and from the Motor Fuels Tax. The preliminary per capita apportionment rate set by the commissioner is based on an estimate of the funds available for expenditure. A final rate is established later in the school year by the commissioner based on actual funds available for expenditure.

FISCAL IMPACT: The per capita apportionment rate finances part of the cost of the FSP. State aid comes from the ASF and the Foundation School Fund (FSF). The per capita apportionment rate determines how much of each district's total state aid is paid from the ASF. The part that is not financed by the ASF must be paid from the FSF. State aid for the FSP is partially funded by the ASF per capita apportionment. If this source of funds were not available, the shortfall would have to be made up from the General Revenue Fund.

Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance
Amy Copeland, Director, State Funding

Separate Exhibit:         
2020-2021 Preliminary Per Capita Apportionment Rate