Week+4+Asignments

Group 2..........Thyrun Hurst-Daniel Mitchell-Sara Otto  **Week Four Assignment, Part 1 – Understanding FIRST (Financial Integrity Rating System of Texas) in School Finance ** Collaborate with your Wiki group, and **__write a one – two page group paper that identifies and justifies your group’s opinion regarding the three most important components of FIRST.__** After developing your group paper, have your Wiki group do the following: Group answer in blue...................... The purpose of the financial accountability rating system (Texas Administrative Code (TAC), Title 19, § 109.1001) is to ensure that school districts and open-enrollment charter schools are held accountable for the quality of their financial management practices and achieve improved performance in the management of their financial resources. The system is designed to encourage Texas public schools to manage their financial resources better in order to provide the maximum allocation possible for direct instructional purposes. The system will also disclose the quality of local management and decision-making processes that impact the allocation of financial resources in Texas public schools.
 * post your group opinion paper to your Wiki group,
 * post a reflection on the faculty section blog, and
 * Comment on at least **two** other cohort Wiki group submissions.

The Three components that we felt are most important for FIRST as as follows: 1- Reporting- The school district/charter schools are required to disclose all financial documents to ensure transparency and comments from the public 2- Types of ratings - Provides and opportunity for the district to evaluate and understanding the ratings......clear and precise guidelines.  3. Financial Solvency - The purpose of the financial solvency review is to anticipate the future financial solvency of Texas public school districts and open-enrollment charter schools. The review is designed to alert school districts and open-enrollment charter schools to circumstances that could lead to financial insolvency.   FIRST is the Financial Integrity System of Texas. According to TEC 109.1001 the purpose of this system is to give a rating to each district in Texas based on a rubric of financial and academic information that provides motivation for districts to improve the management of their financial resources. The evaluation system is also designed to show the long-term effectiveness of improvement in the Texas public schools financial system. The process of this system is laid out in the TEC 109.1001- 109.1101. Districts must disclose all financial information not just to the state but to parents and taxpayers in the form of an annual report. External audits may be performed and that information must be submitted as well to the state. There are processes for appeals, timelines, and explanations of each rating. Through my research on this system I found several web sites such as the comptroller’s office that give ratings of school districts based on FIRST and AEIS. I found this web site to be helpful in understanding these systems and how they provide taxpayers and the state with a rating for each district and campus. The FIRST web site has the information from each district posted and even allows the viewer to click on the forms that the district submitted. This form helped me understand further the rubric of the FIRST. The questions that the districts must answer are laid our simply and points are awarded based on responses. At the bottom of the form the determination of rating and the indicators are explained for the public to understand. These indicators include district size and this is taken into consideration as was discussed in the lecture about the economy of scale.

The three areas that we felt as a group that were the most important components of FIRST are as follows. As I was able to find districts submit or report to the state all of this information electronically. This information must also be reported to the public in the form of an annual financial report. If any of this data is not reported correctly then the system will give an accurate rating. Reporting is especially important to give clear and accurate information to the public as a district is always under the watchful eye of the public. The better your FIRST rating the better that a district is being financially responsible. They are keeping their costs down and utilizing their money efficiently while still maintaining a high level of student success. This is not our money. It is taxpayer money and we are obliged to ensure that we are being frugal with this money to educate our students. There are 5 ratings that the state gives. After much research most districts fall into the top 2. Superior and above standard. The other 3 are standard, substandard, and suspended. This is important to understand that this evaluation system is used a first warning indicator or early alert for possible financial troubles in the future. School budgets are forecasted annually but a budget is designed to be a 5-year plan. If there are problems with their year’s budget FIRST will be able to see that coming so that district officials can plan accordingly.
 * Reporting **
 * Types of Ratings **
 * Financial Solvency **

= 1. Reporting = §109.1005. Reporting. (a) Each school district and open-enrollment charter school is required to report information and financial accountability ratings to parents and taxpayers by implementing the following reporting procedures. (1) Each school district and open-enrollment charter school is required to prepare and distribute an annual financial management report in accordance with subsection (b) of this section. (2) The public must be provided an opportunity to comment on the report at a public hearing in accordance with subsection (c) of this section. (b) The annual financial management report prepared by the school district and open-enrollment charter school must include: (1) a description of its financial management performance based on a comparison, provided by the Texas Education Agency (TEA), of its performance on the indicators established by the commissioner of education and reflected in §109.1002 of this title (relating to Financial Accountability Ratings). The report will contain information that discloses: (A) state-established standards; and (B) the district's or open-enrollment charter school's financial management performance under each indicator for the current and previous year's financial accountability ratings; (2) any descriptive information required by the commissioner of education, including: (A) a copy of the superintendent's current employment contract or other written documentation of employment where no contract exists. The purpose of this disclosure is to report all compensation and benefits paid to the superintendent. The school district or open-enrollment charter school may publish the superintendent's employment contract on the school district's or open-enrollment charter school's Internet site in lieu of publication in the annual financial management report; (B) a summary schedule for the fiscal year (12-month period) of expenditures paid on behalf of and/or total reimbursements received by the superintendent and each board member, including transactions resulting from use of the school district's or open-enrollment charter school's credit card(s) to cover expenses incurred by the superintendent and each board member. The summary schedule shall separately report reimbursements for meals, lodging, transportation, motor fuel, and other items (the summary schedule of total reimbursements is not to include reimbursements for supplies and materials that were purchased for the operation of the school district or open-enrollment charter school); (C) a summary schedule for the fiscal year of the dollar amount of compensation and/or fees received by the superintendent from another school district or open-enrollment charter school or any other outside entity in exchange for professional consulting and/or other personal services. The schedule shall separately report the amount received from each entity; (D) a summary schedule for the fiscal year of the total dollar amount by the executive officers and board members of gifts that had an economic value of $250 or more in the aggregate in the fiscal year. This reporting requirement only applies to gifts received by the school district's or open-enrollment charter school's (or charter holder's) executive officers and board members (and their immediate family as described by Government Code, Chapter 573, Subchapter B, as a person related to another person within the first degree by consanguinity or affinity) from an outside entity that received payments from the school district or open-enrollment charter school (or charter holder) in the prior fiscal year, and gifts from competing vendors that were not awarded contracts in the prior fiscal year. This reporting requirement does not apply to reimbursement of travel-related expenses by an outside entity when the purpose of the travel is to investigate or explore matters directly related to the duties of an executive officer or board member, or matters related to attendance at education-related conferences and seminars whose primary purpose is to provide continuing education (this exclusion does not apply to trips for entertainment-related purposes or pleasure trips). This reporting requirement excludes an individual gift or a series of gifts from a single outside entity that had an aggregate economic value of less than $250 per executive officer or board member; (E) a summary schedule for the fiscal year of the dollar amount by board member for the aggregate amount of business transactions with the school district or open-enrollment charter school (or charter holder). This reporting requirement is not to duplicate the items disclosed in the summary schedule of reimbursements received by board members; and (F) a summary schedule of the data submitted using the electronic-based program developed under the financial solvency provisions of Texas Education Code, §39.0822; and (3) any other information the board of trustees of the district or open-enrollment charter school determines to be useful. (c) The board of trustees of each school district or open-enrollment charter school shall hold a public hearing on the annual financial management report within two months after receipt of a final financial accountability rating (including a final rating of Suspended--Data Quality). The public hearing is to be held at a location in the district's or open-enrollment charter school's facilities. The board shall give notice of the hearing to owners of real property in the geographic boundaries of the district or open-enrollment charter school and to parents of district or open-enrollment charter school students. In addition to other notice required by law, notice of the hearing must be provided: (1) to a newspaper of general circulation in the geographic boundaries of the district or each campus of an open-enrollment charter school once a week for two weeks prior to holding the public meeting, providing the time and place where the hearing is to be held. The first notice in the newspaper may not be more than 30 days prior to or less than 14 days prior to the public meeting. If there is not a newspaper published in the county in which the district's central administration office is located or within the geographic boundaries of a campus of an open-enrollment charter school, then the notice is to be published in the county nearest the county seat of the county in which the district's central administration office is located or in which the campus of the open-enrollment charter school is located; and (2) through electronic mail to media serving the district or open-enrollment charter school. (d) At the hearing, the annual financial management report shall be disseminated to the district's or open-enrollment charter school's parents and taxpayers that are in attendance. (e) The annual financial management report is to be retained in the district or open-enrollment charter school for at least a three-year period after the public hearing and will be made available to parents and taxpayers upon request. (f) A corrective action plan is to be filed with the TEA by each school district or open-enrollment charter school that received a rating of Substandard Achievement or Suspended--Data Quality. The corrective action plan, which is to be prepared in accordance with instructions from the commissioner of education, is to be filed within one month after the district's or open-enrollment charter school's public hearing. The commissioner of education may require certain information in the corrective action plan to address the factor(s) that may have contributed to a district's or open-enrollment charter school's rating of Substandard Achievement or Suspended--Data Quality.

= 2. Types of Financial Ratings = §109.1003. Types of Financial Accountability Ratings. (a) The types of ratings school districts or open-enrollment charter schools may receive are as follows. (1) Superior Achievement. In accordance with the procedures established in §109.1002 of this title (relating to Financial Accountability Ratings), a school district or open-enrollment charter school shall be classified as Superior Achievement if it scores within the applicable range established by the commissioner of education for Superior Achievement. (2) Above Standard Achievement. In accordance with the procedures established in §109.1002 of this title, a school district or open-enrollment charter school shall be classified as Above Standard Achievement if it scores within the applicable range established by the commissioner of education for Above Standard Achievement. (3) Standard Achievement. In accordance with the procedures established in §109.1002 of this title, a school district or open-enrollment charter school shall be classified as Standard Achievement if it scores within the applicable range established by the commissioner of education for Standard Achievement. (4) Substandard Achievement. In accordance with the procedures established in §109.1002 of this title, a school district or open-enrollment charter school shall be classified as Substandard Achievement if it responds negatively to specified indicators or if it scores within the applicable range established by the commissioner of education for Substandard Achievement. The commissioner of education may apply sanctions to a district that is assigned a Substandard Achievement rating and may require other corrective actions. (5) Suspended--Data Quality. If serious data quality issues are disclosed by the commissioner of education, a Suspended--Data Quality rating shall be assigned to the school district or open-enrollment charter school. The Suspended--Data Quality rating will be assigned until the school district or open-enrollment charter school successfully resolves the data quality issues. The commissioner of education may apply sanctions to a school district or open-enrollment charter school that is assigned a Suspended--Data Quality rating and may require other corrective actions. (b) The commissioner of education may lower a financial accountability rating based on findings of an investigation conducted under Texas Education Code (TEC), Chapter 39. (c) Unless revised as a result of investigative activities by the commissioner of education as authorized under TEC, Chapter 39, or other law, a financial accountability rating remains in effect until replaced by a subsequent financial accountability rating. A financial accountability rating shall be revised after initial assignment when circumstances require such revision in order to achieve the purposes specified in §97.1053(a) of this title (relating to Purpose).

 3. Financial Solvency <span style="color: #000080; display: block; font-family: 'Times New Roman',Times,serif; font-size: medium; text-align: left;">§109.1101. Financial Solvency Review. (a) Purpose of financial solvency review. The purpose of the financial solvency review is to anticipate the future financial solvency of Texas public school districts and open-enrollment charter schools. The review is designed to alert school districts and open-enrollment charter schools to circumstances that could lead to financial insolvency. (b) Definitions. The following terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise. (1) Financial solvency--When used to describe a school district or open-enrollment charter school, the condition in which a school district or open-enrollment charter school either is generally paying its debts as they become due, unless such debts are the subject of a bona fide dispute, or is able to pay its debts as they become due. (2) Public Education Information Management System (PEIMS)--The system described by §61.1025 of this title (relating to Public Education Information Management System (PEIMS) Data and Reporting Standards). (c) Financial solvency review data. (1) In its financial solvency review, the Texas Education Agency (TEA) will use the following data, which are available to the TEA through existing data sources: (A) annual financial audits for the past two school years; (B) PEIMS financial actual data for the past two school years; (C) PEIMS financial budget data for the current year and the past two school years; (D) PEIMS staff data for the current year and the past two school years; (E) PEIMS student data for the current year and the past two school years; and (F) school district tax rate data. (2) In its financial solvency review, the TEA will use the following additional information, which the TEA will request from school districts and open-enrollment charter schools: (A) first-quarter school district and open-enrollment charter school financial data for the current school year; and (B) school district and open-enrollment charter school comments. (3) School districts and open-enrollment charter schools that the TEA selects for additional review may be required to submit other additional information as described in subsection (d)(5) of this section. (4) School districts and open-enrollment charter schools that the TEA projects to have a general fund deficit within the next three school years will be required to submit interim financial reports supplemented by staff and student data as described in subsection (d)(5) of this section. (d) Financial solvency review. (1) In its financial solvency review, the TEA will use the methodology described in the document provided in this paragraph, entitled "Financial Solvency Review Methodology." [|Figure: 19 TAC §109.1101(d)(1)] (2) In its financial solvency review, the TEA will analyze the following: (A) school district and open-enrollment charter school revenues and expenditures for the past school year; and (B) projected school district and open-enrollment charter school revenues and expenditures for the current school year and the next two school years. (3) In analyzing the information under paragraph (2) of this subsection, the TEA may consider, for the past school year, the current school year, and the next two school years, as appropriate, the following: (A) student-to-staff ratios relative to expenditures; (B) average staff salaries; (C) the rate of change in the unreserved (assigned and unassigned, effective beginning with fiscal year 2010-2011 data) general fund balance; (D) the number of students enrolled in the district or open-enrollment charter school; (E) the adopted tax rate of the school district; (F) any independent audit report prepared for the school district or open-enrollment charter school; and (G) actual school district or open-enrollment charter school financial information for the first quarter. (4) The TEA will notify any school district or open-enrollment charter school for which the financial solvency review shows one or more of the following: (A) a student-to-staff ratio that is significantly outside the norm; (B) a rapid depletion of the general fund balance; or (C) a significant discrepancy between submitted budget figures and projected revenues and expenditures. (5) The TEA may extend the financial solvency review and require additional documentation of a school district or open-enrollment charter school that has been notified as described in paragraph (4) of this subsection following an initial review. (A) The TEA will determine additional documentation requirements on a case-by-case basis. (B) The TEA will use additional documentation and comments submitted by a school district or open-enrollment charter school to determine whether the school district or open-enrollment charter school is projected to have a deficit for its general fund within the next three school years. (C) If the financial solvency review indicates a projected deficit for a school district or open-enrollment charter school general fund within the next three school years, the school district or open-enrollment charter school must submit to the TEA interim financial reports, supplemented by staff and student count data, as needed, for the TEA to evaluate the current budget status of the school district or open-enrollment charter school. (D) If analysis and evaluation of the additional data required to be submitted under subparagraph (C) of this paragraph substantiates a projected deficit within the next three school years, the school district or open-enrollment charter school must develop and submit a financial plan to the TEA for approval. (6) All documentation generated and gathered in the process of determining a school district's or open-enrollment charter school's financial solvency will be considered working papers and not subject to open records requests. Financial solvency documentation related to school districts and open-enrollment charter schools required to submit financial plans will be subject to open records requests as permitted by statute or rule. (e) Financial plans. (1) If the TEA determines that a school district or open-enrollment charter school is required to submit a financial plan, the TEA will provide written notification of this requirement to the school district or open-enrollment charter school. (2) On receiving the notification described in paragraph (1) of this subsection, a school district or open-enrollment charter school must develop and submit to the TEA for approval a financial plan for avoiding the projected insolvency. (3) If the TEA determines that a submitted financial plan will permit a school district or open-enrollment charter school to avoid projected insolvency, the TEA will provide written notification of its approval of the financial plan to the school district or open-enrollment charter school. (4) If the TEA determines that a submitted financial plan will not permit a school district or open-enrollment charter school to avoid projected insolvency, the TEA will require the school district or open-enrollment charter school to modify the financial plan submitted to the TEA. The TEA will provide written notification of this requirement to the school district or open-enrollment charter school. (5) The TEA may monitor the implementation of a financial plan or modified financial plan that is based on a financial review for a period of up to three years after TEA approval of the financial plan or modified financial plan, as applicable. (f) Financial plans and accreditation. The commissioner of education will assign an Accredited-Warned status to a school district or open-enrollment charter school that is required to develop and submit a financial plan as provided by subsection (e) of this section if: (1) the school district or open-enrollment charter school fails to submit a financial plan to avoid a projected deficit; (2) the school district or open-enrollment charter school fails to get approval from the TEA for a financial plan or modified financial plan; (3) the school district or open-enrollment charter school fails to comply with a TEA-approved financial plan; or (4) the TEA determines in a subsequent school year, based on financial data submitted by the school district or open-enrollment charter school, that the approved plan for the school district or open-enrollment charter school is no longer sufficient or is not appropriately implemented. (g) Decisions by commissioner final. All financial plan approval decisions made by the commissioner in regard to the financial solvency review are final and cannot be appealed.


 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Week Four Assignment, Part 2 – Comparing Economy of Scale in Large and Small Districts **
 * __<span style="font-family: Arial,sans-serif; font-size: 11pt;">Write a one – two page group pager that includes: __**
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Analysis of data regarding Total Revenue per pupil in each district;
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Analysis of Total Operational Expenditures per pupil in each district;
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Analysis of average teacher salary in each district;
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Your group’s analysis of the contrasts between large and small districts and how economy of scale may address these contrasts

<span style="font-family: Arial,sans-serif; font-size: 15px; line-height: 22px;">Group 2 As indicated in the lecture by Dr. Stephens, an “economy of scale is a concept that indicates that increasing the size of an organization can result in a lower per unit production cost.” With this in mind we must consider the impact of an economy of scale on school districts and the costs associated with the education of our children. Obviously the larger the organization, or in this case the district, the more funding they would receive. This would be realized in a lower operating cost per student. To further explore this concept let’s look at two district with very different demographics.
 * Snapshot Week4 || District1 || District2 ||
 * TotalRevenuePerPupil || 10,529 || 10.316 ||
 * TotalOpertationsExpenditures || 8,611 || 8.908 ||
 * Avg. Teacher Salary || 39,771 || 50,307 ||
 * Students || 830 || 32,326 ||
 * Total Teachers || 70 || 2,299 ||
 * Total Schools || 3 || 45 ||
 * Econ dis || 43% || 53% ||
 * Revenue || 8,823,250 || 329,638,930 ||

The data indicates that district 1 is a very small district servicing 830 students with a total staff of 130. Of the student population, 43% are considered economically disadvantaged. By looking at the data, it is safe to assume that district 1 consist of lower income families with a low tax base. The average teacher salary in district 1 is $39,771. The total revenue for the district is $8,823,250 which equates to total revenue per student of $10,529. The total operating expenditures for this district was $7,216,335 which equates to a total operating expenditure per student of $8,611. Because the total operating expenditures is so great per student it reduces the amount of funds available to dedicate to the improvement of instruction or learning per student. A total of 54% of the funds are dedicated to instruction.

District 2 is a very large district servicing 32,326 students with a total staff of 4,582. Of the student population, 53.9% are economically disadvantaged. The average teacher salary in district 2 is $50,307. The total revenue for the district is $329,638,930 which equates to total revenue per student of $10,316. The total operating expenditures for this district was $284,664,004 which equates to a total operating expenditure per student of $8,908. A total of 62% of the funds per student are dedicated to instruction.

One would argue the point that all students are the same and should require the same amount of money to be educated. Well, I agree to a certain degree, but there are more challenges when educating students who are econ-dis, thus requiring more time, more interventions, more activities, all requiring more adult personnel to help close the achievement gaps.

Economy of scale is a fundamental business principal that is indicates that there are cost advantages for expansion or business that are large in size. The cost for their output is significantly cheaper than other competitors because of their size. It is like Wal-Mart compared to the local store in town. Wal-Mart is able to keep their prices “rolling back” because of their purchasing power and bulk discounts. Small stores are unable to compete with these low prices to stay open therefore they have to charge more for the same item. In Texas, these Wal-Mart school districts have an advantage over small districts because they are able to keep the cost per student down while still maintaining a high level of student success. In this comparison District 1 can only afford to spend 54% of their budget on instruction while District 2 is able to spend 62%. This is due to the revenue generated from their tax base. Both District 1 and District 2 have the same needs fundamentally as all districts in Texas. We all have to maintain a 1:22 class ratio. We all have to have administrators. We all have to pay a competitive teacher salary to keep highly qualified successful teachers. We all have to pay building costs etc. Where the cost effectiveness comes is with personnel and purchasing power. We used to receive a small school allotment that helped our mom and pop district compete financially with Wal-Mart districts but some out of touch lawmakers determined based on inferences made from paper that small districts were too top heavy and did not need these funds. This generalization does not hold true for all districts and I assure you that I contacted my representative.

<span style="font-family: Arial,sans-serif; font-size: 11pt;">Using the lecture/interview from Week Four, the Glossary in the Resource Section, and data and observations from a campus of your choice, discuss and share your observations, select a campus from your group**__, and develop a 1 – 2 page group paper describing how differentiated staffing might impact and/or improve the goals of that campus.__**
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Week Four Assignment, Part 3 – Analysis of Differentiated Staffing on a campus of your choice **
 * <span style="font-family: Arial,sans-serif; font-size: 11pt;">Directions: **<span style="font-family: Arial,sans-serif; font-size: 11pt;">In this activity, you will be asked to post to your faculty section blog and to your group Wiki and comment on at least one other group’s wiki. **__Your faculty and Instructional Associate will assign you to a Wiki group for this activity.__**

Dr. Stephens in the week 4 defined Differentiated Staffing, as a concept that proposes specialized use of personnel. Even though teachers and administrators tend to not be that specialized differentiated staffing could bring about greater efficiency by analyzing and redefining essential teaching tasks and many teaching functions that would create a way to distribute new educational roles for teaching the students that could bring about a significant operational cost savings for the district. Barriers to differentiated staffing are commitment to status quo, loss of teaching jobs, and opposition to organizational change. In Humble ISD we have implemented differentiated staffing by "double blocking" and combining Reading and English now called RELA. All 6 grade students visit their RELA teachers twice to have Reading and Language. The scheduling for double blocked RELA classes have saved money and created an opportunity for struggling students to addressed and known by the same teacher. According to our CBA, DBA, and pass TAKS scores, differentiating staffing for Humble ISD has paid off.

Another challenge of differentiated staffing is buy in. Whether we like to hear this or not, teachers gripe about the added responsibility of "extra" duties that they are contractually obligated to "all other duties assigned." With a commitment to establishing a PLC (professional learning community) Robert Dufour states that differentiated staffing arises based on needs and becomes part of the culture of the campus instead of an administrative directive. Change is never easy but with a PLC change is necessary for improvement. There will never be a school year that I do not reflect back and ask the question what can I do better for next year? What do we need to improve as a campus and how are we going to do this. Once I am complacent and no longer use reflective questioning it will be time for me to find a new profession.

On my campus we have utilized differentiated staffing in many ways. When I came on board only 4th grade was departmentalized. With the commitment and support of the teachers we departmentalized 3rd grade as well. We saw a need for teachers who are experts in their field to be with ALL of our students daily. We found each teacher's niche and shared the common goal of improving TAKS/STAAR scores. Even this year we are looking towards next year for restructuring both 3rd and 4th grade to find the perfect teachers and schedule for the needs of our students.

We also as a campus formed committees. Each teacher must serve on a committee and there must be at least one grade level representative on all 5 committees. The committees have changed over the years to fit the needs of our campus and will be the following for next year. Behavior (in charge of PBS), RTI, Programs (in charge of variety show, fundraisers, field day, party days, musicals), new Community (will be in charge of posting something about their grade level every 6 weeks to the school web site and newspapers, will ensure that all weekly newsletters for each grade level are going out), Curriculum (staff development, CSCOPE, book study, staff meetings etc.)