Part 2. TEXAS EDUCATION AGENCY

Chapter 61. SCHOOL DISTRICTS

Subchapter AA. COMMISSIONER'S RULES ON SCHOOL FINANCE

19 TAC §61.1018

The Texas Education Agency (TEA) adopts new §61.1018, concerning payment of supplemental compensation, with changes to the proposed text as published in the October 7, 2005 issue of the Texas Register (30 TexReg 6398). The adopted new section specifies definitions, eligibility criteria, and reporting requirements for the supplemental compensation as well as describes the process of handling the calculation, distribution, and settle-up process for this source of funding.

Senate Bill 1863, 79th Texas Legislature, Regular Session, 2005, added TEC, Chapter 22, School District Employees and Volunteers, Subchapter D, Compensation Supplementation. TEC, §22.102, authorizes the TEA to adopt rules to implement provisions relating to the supplemental compensation. Prior to passage of this legislation, rulemaking for supplemental compensation was the responsibility of the Teacher Retirement System of Texas (TRS). However, districts reported their eligible employees to the TEA, and the TEA made the payments of supplemental compensation on behalf of TRS. The statutory change prompting this rule action moved the responsibility for the program to the TEA, which is expected to result in more efficient administration of the supplemental compensation.

The adopted new rule specifies definitions, including those for full-time and part-time employees and professional staff; establishes reporting requirements; delineates eligibility criteria; and sets forth the funding formula, distribution procedures, and settle-up process.

Districts will continue to report their eligible employees to the division at the TEA responsible for state funding as they have for the past four years.

In response to public comment, a change was made in subsection (d)(3) since published as proposed. Reference to employment by "the" eligible entity was changed to "an" eligible entity to clarify that the 90-day waiting period for an individual to be eligible to receive supplemental compensation would apply only to employees who are new to the TRS (i.e., a first-time teacher or a teacher with a break in service). This change clarifies the current interpretation that once an individual has been employed with any eligible entity for the required amount of time, the waiting period requirement has been satisfied. No other changes were made to the rule or accompanying figures since published as proposed.

Following is a summary of public comment received on the proposed new section and the corresponding agency response.

Comment. The director of legislation of the Texas Classroom Teachers Association asked whether the rule language is intended to convey the previous interpretation of the 90-day waiting period, which would mean that the 90-day waiting period would apply only to employees who are new to the TRS (i.e., a first-time teacher or a teacher with a break in service).

Agency response. The agency agrees that the rule is intended to convey its previous interpretation and has made one change to the language in subsection (d)(3) to clarify the current interpretation that once an individual has been employed with any eligible entity for the required amount of time, the waiting period requirement has been satisfied.

The new section is adopted under the Texas Education Code, §22.102, which authorizes the Texas Education Agency to adopt rules to implement Texas Education Code, Chapter 22, School District Employees and Volunteers, Subchapter D, Compensation Supplementation, added by Senate Bill 1863, 79th Texas Legislature, 2005.

The new section implements the Texas Education Code, §§22.101-22.110.

§61.1018.Payment of Supplemental Compensation.

(a) Purpose. In accordance with the Texas Education Code (TEC), Chapter 22, Subchapter D, each month the Texas Education Agency (TEA) shall distribute funds, subject to the availability of funds, for the purpose of payment of supplemental compensation, as specified by the provisions delineated in this section.

(b) Definitions. The following words and terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise.

(1) Entity--An entity is defined as:

(A) a school district or other educational district whose employees are members of the Teacher Retirement System of Texas (TRS);

(B) a participating charter school; or

(C) a regional education service center.

(2) Full-time employee--An individual is employed as a full-time employee if the individual:

(A) is a participating member of the TRS;

(B) is employed by a school district, other educational district whose employees are members of the TRS, a participating charter school, or a regional education service center;

(C) is not a retiree covered under the Texas Public School Retired Employees Group Benefits Program established under the Texas Insurance Code, Chapter 1575;

(D) is not professional staff; and

(E) works for an entity or any combination of entities for 30 or more hours each week.

(3) Part-time employee--An individual is employed as a part-time employee if the individual:

(A) is a participating member of the TRS;

(B) is employed by a school district, other educational district whose employees are members of the TRS, a participating charter school, or a regional education service center;

(C) is not a retiree covered under the Texas Public School Retired Employees Group Benefits Program established under the Texas Insurance Code, Chapter 1575;

(D) is not professional staff; and

(E) works for an entity or any combination of entities for less than 30 hours each week.

(4) Professional staff--An individual is employed as professional staff if:

(A) the individual is employed by a school district, a charter school, or other eligible entity that is not a regional education service center and 50% or more of the individual's time is reported under any combination of the role identifications in the Public Education Information Management System (PEIMS) specified in this subparagraph, or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subparagraph;

Figure: 19 TAC §61.1018(b)(4)(A) (.pdf)

(B) the individual is employed by a regional education service center and 50% or more of the individual's time is reported under any combination of the role identifications in PEIMS specified in this subparagraph, or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subparagraph; or

Figure: 19 TAC §61.1018(b)(4)(B) (.pdf)

(C) regardless of how the individual's time is reported in PEIMS, 50% or more of the individual's time is reported in a role that is substantially similar to a role set out in subparagraph (A) or (B) of this paragraph, as determined by the reporting entity or combination of entities.

(c) Reporting. For each designated report month, each entity shall report to the TEA the number of full-time and part-time employees eligible to receive supplemental compensation and the total number of professional staff, as determined by the entity in accordance with requirements established by the TEA in this section.

(1) The TEA division responsible for state funding must receive each monthly report by 5:00 p.m. Central Time on the 10th calendar day of each month or, if that date is not a business day, by 5:00 p.m. Central Time on the first business day after the 10th calendar day of the month.

(2) The TEA may dispute, seek verification of, or conduct an investigation regarding the reported number of employees and staff at any time after receiving the report.

(d) Eligibility. For the purposes of this section, an individual is eligible to receive supplemental compensation if the individual:

(1) is a full-time employee, as defined in subsection (b)(2) of this section, or a part-time employee, as defined in subsection (b)(3) of this section;

(2) is not a professional staff member, as defined by subsection (b)(4) of this section; and

(3) has been employed by an eligible entity for a period of at least 91 days.

(e) Funding formula. The TEA will remit funds to an entity if the TEA receives the required report on or before the deadline and does not seek verification of, choose to investigate, or otherwise dispute information in the report upon initial review. The remittance is subject to later adjustment if the TEA determines that there are errors in the report. The TEA will remit to the entity, subject to the availability of funds appropriated for this purpose, the sum of:

(1) an amount equal to the number of full-time employees reported by the entity for the reporting month multiplied by $500 and divided by 12; and

(2) an amount equal to the number of part-time employees reported by the entity for the reporting month multiplied by $250 and divided by 12.

(f) Distribution.

(1) If a report is submitted after the deadline specified in subsection (c) of this section, remittance to the reporting entity will be delayed by at least one month even if the TEA does not dispute or seek verification of the numbers reported.

(2) In the first month an individual becomes eligible for the supplement, all entities must begin to distribute the appropriate monthly supplement to each eligible individual employed by the entity, regardless of whether reports are submitted in accordance with the deadlines and other requirements of this section.

(3) Entities must continue to make the appropriate monthly distribution to eligible individuals for the length of time that such individuals are employed, as determined by the entity, for at least one day of the applicable month, provided that the individual did not receive a monthly distribution from another entity for employment that occurred earlier in the same month.

(g) Settle-up.

(1) Entities must submit proposed adjustments to previously reported numbers through September 30 of the fiscal year following the reporting month. The TEA may make adjustments to previously reported numbers and may make a corresponding increase or decrease in funds that would otherwise be remitted to an entity at any time after receipt of a report.

(2) A final determination of supplemental compensation for a school year shall be based on the reports of eligible employees submitted to the TEA division responsible for state funding. Any adjustments to prior year reporting must be completed by September 30 of the following school year.

(A) Additional amounts owed to districts for supplemental compensation shall be added to payments of supplemental compensation in the subsequent school year, and any reductions in payments shall be subtracted from payments of supplemental compensation in the subsequent school year until the overpayment has been recovered.

(B) Any overpayments from a prior year that exceed the amount of supplemental compensation owed to a school district or charter school by March 31 of the following school year will be subtracted from the Foundation School Fund payments owed to that school district or charter school in April and subsequent months until the full amount of overpayment has been recovered. Any overpayments that cannot be subtracted from current payments of supplemental compensation or Foundation School Fund payments will be due and payable upon request from the TEA.

(C) Adjustments to state assistance based on changes in the final number of eligible employees resulting from a subsequent audit or review of the data reported to the TEA or to the TRS must be requested no later than 12 months following the close of the school year for which the adjustment is sought.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 11, 2006.

TRD-200600169

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: January 31, 2006

Proposal publication date: October 7, 2005

For further information, please call: (512) 475-1497

19 TAC §153.1022

The Texas Education Agency (TEA) adopts an amendment to §153.1022, concerning the minimum salary schedule for certain professional staff, with changes to the proposed text as published in the October 21, 2005 issue of the Texas Register (30 TexReg 6901). The section establishes definitions of qualifying staff, details eligibility criteria for placement on the salary schedule, and explains the base pay for the 1999-2000 biennium. The adopted amendment updates the rule to modify the components and calculation of the minimum monthly salary rates prescribed by Texas Education Code (TEC), §21.402.

The commissioner is authorized to adopt a minimum monthly salary schedule for certain professionals, including classroom teachers and full-time librarians, counselors, and nurses. The salary schedule is based on the employee's level of experience. In accordance with TEC, §21.402, enacted by Senate Bill 4, 76th Texas Legislature, 1999, 19 TAC §153.1022 was adopted to be effective January 2, 2000. The rule establishes definitions of qualifying staff, details eligibility criteria for placement on the salary schedule, and explains the base pay for the 1999-2000 biennium. Salaries are adjusted using a factor, defined as "FS" in TEC, §21.402(a), based on state assistance under TEC, §42.302.

The adopted amendment to 19 TAC §153.1022 specifies the components and calculation of "FS" and sets forth minimum monthly salary rates. The adopted amendment modifies subsection (c) to incorporate a new element in the determination of "FS" and modifies subsection (d) by specifying that the salary rates are applicable for the entire 2005-2006 and 2006-2007 school years. The table set forth as Figure 19 TAC §153.1022(d) in subsection (d) establishes the new minimum monthly salary rates.

In response to public comments, a change was made to subsection (d) since published as proposed. In recognition that the adoption of a modified salary schedule during the middle of the school year may create unforeseen pressure on local district budgets, language was added to allow districts to make payments related to this salary increase on a locally-determined schedule, provided that the total amount paid to eligible employees meets the new minimum amounts. School districts will be given through the end of this school year to fully compensate their eligible employees for any increases. No changes were made to the table that establishes the new minimum salary rates since published as proposed.

Numerous comments were received on the proposal, most of which supported the proposed changes to the salary schedule. The following is a summary of public comments received on the proposed amendment to 19 TAC §153.1022 and corresponding agency responses.

Comment. More than 1,500 individuals, including educators and interested citizens, submitted comments expressing support for the proposed increases to the minimum salary schedule.

Agency response. The agency concurs with the need to modify the minimum salary schedule.

Comment. Four school administrators submitted comments indicating their dissatisfaction with the adoption of the new salary schedule during the school year. These comments indicated that school administrators felt that they had not had adequate time to plan and budget for the new salary requirements.

Agency response. The agency recognizes that the rule adoption has taken place considerably later than the June 1 deadline established by TEC, §21.402(b), which requires the commissioner to determine the amount of state and local funds available for the purposes of establishing the minimum salary schedule. In recognition that the adoption of a modified salary schedule during the middle of the school year may create unforeseen pressure on local district budgets, language was added to §153.1022(d) to allow districts to make payments related to this salary increase on a locally-determined schedule, provided that the total amount paid to eligible employees meets the new minimum amounts. School districts will be given through the end of the 2005-2006 school year to fully compensate their eligible employees for any increases.

The amendment is adopted under the Texas Education Code, §21.402, which authorizes the commissioner of education to adopt rules to govern the application of the minimum salary schedule for certain professional staff.

The amendment implements the Texas Education Code, §21.402.

§153.1022.Minimum Salary Schedule for Certain Professional Staff.

(a) Definitions and eligibility. The following definitions and eligibility criteria apply to the increases in the minimum salary schedule in accordance with Texas Education Code (TEC), Chapter 21.

(1) The staff positions that qualify for the salary increase include classroom teachers and full-time librarians, counselors, and nurses employed by public school districts and who are entitled to a minimum salary under TEC, §21.402.

(A) A classroom teacher is an educator who teaches an average of at least four hours per day in an academic or career and technology instructional setting pursuant to TEC, §5.001, focusing on the delivery of the Texas essential knowledge and skills and holds the relevant certificate issued by the State Board for Educator Certification (SBEC) under the provisions of TEC, Chapter 21, Subchapter B. Although non-instructional duties do not qualify as teaching, necessary functions related to the educator's instructional assignment such as instructional planning and transition between instructional periods should be applied to creditable classroom time.

(B) A school librarian is an educator who provides full-time library services and holds the relevant certificate issued by the SBEC under the provisions of TEC, Chapter 21, Subchapter B.

(C) A school counselor is an educator who provides full-time counseling and guidance services under the provisions of TEC, Chapter 33, Subchapter A, and holds the relevant certificate issued by the SBEC pursuant to the provisions of TEC, Chapter 21, Subchapter B.

(D) A school nurse is an educator employed to provide full-time nursing and health care services and who meets all the requirements to practice as a registered nurse (RN) pursuant to the Nursing Practice Act and the rules and regulations relating to professional nurse education, licensure, and practice and has been issued a license to practice professional nursing in Texas.

(2) An eligible educator who is employed by more than one district in a shared service arrangement or by a single district in more than one capacity among any of the eligible positions qualifies for the salary increase as long as the combined functions constitute full-time employment.

(3) Full-time means contracted employment for at least ten months (187 days) for 100% of the school day in accordance with definitions of school day in TEC, §25.082, employment contract in TEC, §21.002, and school year in TEC, §25.081.

(4) A local supplement is any amount of pay above the state minimum salary schedule for duties that are part of a teacher's classroom instructional assignment.

(5) Current placement on the salary schedule means a placement based on years of service recognized for salary increment purposes up to the current year.

(6) Salary schedule means a system of providing routine salary increases based upon an employee's total teaching experience and/or an employee's longevity in a school district.

(b) Base pay for the 1999-2001 biennium. As long as employment is in the same position, eligible educators may not receive a minimum salary for each year of the biennium that is less than the salary that they would have received in 1998-1999 at their current placement on the employing district's 1998-1999 salary schedule.

(1) An educator eligible for the salary increase is entitled to a minimum salary in 1999-2000 and 2000-2001 equal to the greater of the salary corresponding to their current placement on the state salary schedule pursuant to TEC, §21.402(a), or the salary corresponding to their current placement on the employing district's 1998-1999 salary schedule, plus $300 per month. If employed by the same district, the minimum must include any local and career ladder supplements the employee would have received in 1998-1999. In addition to classroom teachers, this provision applies to eligible counselors, nurses, and librarians whose salary was based on placement on a salary schedule in 1998-1999.

(2) Eligible counselors, nurses, and librarians who were not on a salary schedule in 1998-1999 are entitled in 1999-2000 to the greater of the salary earned in 1998-1999 plus $300 per month or to the salary corresponding to their current placement on the salary schedule. These educators are placed on the state schedule according to the same criteria that applies to teachers and librarians pursuant to §153.1021 of this title (relating to Recognition of Creditable Years of Service). In 2000-2001, they are entitled to maintain the salary earned in 1999-2000 or to meet the minimum corresponding to their current placement on the salary schedule, whichever is greater.

(3) A beginning teacher who has not previously been on the state salary schedule is entitled to any local supplement that would have been offered to a beginning teacher on the employing district's 1998-1999 salary schedule.

(4) Educators who are eligible for the salary increase and who are employed for more than ten months are entitled to an additional $300 in increased pay for each full month of additional service.

(5) Teachers who are eligible for the salary increase but who are not employed full-time (work either less than 100% of the day or for a portion of the year) are entitled to a proportionate pay increase. For teachers working less than 100% of the day, the increase is proportionate to the percent of the day employed. For teachers employed less than a full year, the increase is valid only for the months employed.

(6) Nurses, librarians, and counselors who are employed for less than a full school year or who are placed in an eligible assignment for less than a full school year are entitled to a pay increase in proportion to the months employed in which they are eligible.

(c) Determination of "FS." The value of "FS" in the formula contained in TEC, §21.402, shall be determined by dividing the sum of state and local shares of allotments under TEC, Chapter 42, Subchapters B, C, and F, plus the funds allocated under Rider 69 of the General Appropriations Act, as amended by House Bill 1, First Called Session, 79th Texas Legislature, 2005, by the weighted students in average daily attendance for the year. For this determination, the commissioner of education shall use projections of the total amount of allotments and the number of weighted students for the year. In accordance with TEC, §21.402(a), the commissioner shall project the revenues available under TEC, Chapter 42, Subchapter F, based on a guarantee level of $24.70 and a district enrichment tax rate (DTR) of $0.64.

(d) Monthly minimum salary rates. The minimum monthly salary rates applicable for the entire 2005-2006 and 2006-2007 school years, in accordance with this section and TEC, §21.402, shall be as set forth in the table in this subsection. For purposes of the 2005-2006 school year only, a district may make monthly payments based on the 2004-2005 minimum salary schedule for part of the school year, so long as total compensation paid to an eligible educator meets the minimum salary schedule for the 2005-2006 school year.

Figure: 19 TAC §153.1022(d) (.pdf)

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 11, 2006.

TRD-200600170

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Effective date: January 31, 2006

Proposal publication date: October 21, 2005

For further information, please call: (512) 475-1497