Texas Register
(24 TexReg 8405), which has been
withdrawn. The notice of withdrawal can be found in the Withdrawn Rules section
in this issue.
Like the earlier version, the new section sets a maximum tuition charge
for transfer students, as well as the maximum of tuition that can be applied
to a property value adjustment, authorized under Texas Education Code (TEC),
Chapter 25, as amended by Senate Bill (SB) 4, 76th Texas Legislature, 1999.
The methodology for the calculation of the tuition limit has been refined
from the previous withdrawn version.
Under prior law, the amount of tuition was determined by local school boards
without a specific methodology in rule or statute. The change in law allows
the commissioner of education to set a ceiling for tuition. The primary purpose
of that limit is to assure that the cost of educating transfer students under
the Foundation School Program is approximately recognized in the district
providing the educational services.
Joe Wisnoski, coordinator for school finance and fiscal analysis, has determined
that for the first five-year period the section is in effect there will be
no fiscal implications for state government as a result of enforcing or administering
the new section. There will be fiscal implications for local government. The
proposed new section may reduce tuition charges in some school districts,
especially in the 2000-2001 school year. The amount of reduction will depend
on current rate practices and will vary from district to district. The change
may represent reduced cost to some districts, but reduced revenue to others.
Some school districts may experience a loss of revenue if they have been charging
more for tuition than will be allowed under the proposed new rule, while other
districts may experience a savings if they have been paying more.
Mr. Wisnoski and Criss Cloudt, associate commissioner for policy planning
and research, have determined that for each year of the first five years the
section is in effect the public benefit anticipated as a result of enforcing
the section will be setting limits on amounts charged for tuition for transfer
students. The limits assure that the cost of educating transfer students under
the Foundation School Program is recognized in the district providing the
educational services. Also, the section clarifies the changes authorized by
SB 4, 76th Texas Legislature, 1999, for school districts. There will not be
an effect on small businesses. There is no anticipated economic cost to persons
who are required to comply with the proposed new section.
Comments on the proposal may be submitted to Criss Cloudt, Policy Planning
and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701.
Comments may also be submitted electronically to
rules@tmail.tea.state.tx.us
or faxed to (512) 475-3499. All requests
for a public hearing on the proposed section submitted under the Administrative
Procedure Act must be received by the commissioner of education not more than
15 calendar days after notice of a proposed change in the section has been
published in the
Texas Register
.
The new section is proposed under the Texas Education Code, §25.039,
as amended by Senate Bill 4, 76th Texas Legislature, 1999, which authorizes
the commissioner of education to adopt rules that specify the amount of tuition
that can be charged for the education of students transferring outside the
school district and apply that limitation to a property value adjustment.
The new section implements the Texas Education Code, §25.039, as amended
by Senate Bill 4, 76th Texas Legislature, 1999.
§61.1012.Contracts and Tuition for Education Outside District.
(a)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Home district - District of residence of a transferring
student.
(2)
Receiving district - District to which a student is
transferring for the purpose of obtaining an education.
(3)
Tuition - Amount charged to the home district by the
receiving district to educate the transfer student.
(b)
Tuition charge for transfer students. Tuition charged to
a home district for a transfer student in payment for that student's education
may not exceed an amount per enrollee calculated for each receiving district.
The calculated limit applies only to tuition paid to a receiving district
for the education of a student at a grade level not offered in the home district.
The calculation will utilize the most currently available data in an ongoing
school year to determine the limit that applies to the subsequent school year.
(1)
Excess maintenance and operations (M&O) revenue per
enrollee. A district's excess M&O revenue per enrollee is defined as the
sum of state aid in accordance with Texas Education Code (TEC), Chapter 42,
Subchapters B, C, and F, plus M&O tax collections, with the sum divided
by enrollment, less the state aid gained by the addition of one transfer student.
M&O taxes exclude the local share of any lease purchases funded in the
Instructional Facilities Allotment (IFA) as referenced in TEC, Chapter 46,
Subchapter A.
(A)
The data for this calculation are derived from the Public
Education Information Management System (PEIMS) fall data submission (budgeted
M&O tax collections and student enrollment) and the Legislative Payment
Estimate (LPE) data (Foundation School Program (FSP) student counts and property
value).
(B)
The state aid gained by the receiving district from the
addition of one transfer student is computed by the commissioner of education.
The calculation assumes that the transfer student participates in the special
programs at the average rate of other students in the receiving district.
(2)
Excess debt revenue per enrollee. A district's
excess debt revenue per enrollee is defined as Interest and Sinking Fund (I&S)
taxes budgeted to be collected that surpass the taxes equalized by the IFA
pursuant to TEC, Chapter 46, Subchapter A, and the Existing Debt Allotment
(EDA) pursuant to TEC, Chapter 46, Subchapter B, divided by enrollment.
(A)
The local share of the IFA for bonds and the local share
of the EDA are subtracted from debt taxes budgeted to be collected as reported
through PEIMS.
(B)
The estimate of enrollment includes transfer students.
(3)
Base tuition limit. The base tuition limit per
transfer student for the receiving district is a percentage of its state and
local entitlement per enrollee from both tiers of the FSP. The entitlement
includes the Texas Education Agency's estimate for the current year for the
total of allotments in accordance with TEC, Chapter 42, Subchapters B and
C, plus the state and local shares of the guaranteed yield allotment (GYA)
in accordance with TEC, Subchapter F.
(A)
For this purpose, the GYA is calculated as the product
of the elements guaranteed leave (GL) multiplied by weighted average daily
attendance (WADA), then multiplied by district tax rate (DTR), and finally
by 100. All applicable limits for DTR apply to the calculation as specified
in §105.1011 of this title (relating to Distribution of Foundation School
Fund), and GL is limited as directed in TEC, §42.152(t).
(B)
The applicable proportions of the entitlement are 20% in
the 2000-2001 school year, 15% in the 2001-2002 school year, and 10% in the
2002-2003 school year and beyond.
(4)
Calculated tuition limit. The calculated tuition
limit is the sum of the excess M&O revenue per enrollee, the excess debt
revenue per enrollee, and the base tuition limit, as calculated in subsections
(b)(1), (b)(2), and (b)(3) of this section, respectively.
(5)
Notification and appeal process. In the spring of
each school year, the commissioner will provide each district with its calculated
tuition limit and a worksheet with a description of the derivation process.
A district may appeal to the commissioner if it can provide evidence that
the use of projected student counts from the LPE in making the calculation
is so inaccurate as to result in an inappropriately low authorized tuition
charge and undue financial hardship. The commissioner's decision regarding
the appeal is final.
(c)
Maximum tuition amount in property value adjustment. For
the 1999-2000 school year, the maximum amount of tuition that can be applied
to the property value adjustment for school districts offering fewer than
all grade levels in accordance with TEC, §42.106, may not exceed the
greater of the amount per student computed in subsection (b)(4) of this section
or the amount per student actually paid during the 1998-1999 school year.
For subsequent years, the maximum amount is limited to the amount per student
computed in subsection (b)(4) of this section.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on March 27, 2000.
TRD-200002203
Criss Cloudt
Associate Commissioner, Policy Planning and Research
Texas Education Agency
Earliest possible date of adoption: May 7, 2000
For further information, please call: (512) 463-9701