Funding+Formula

Funding Formula EDLD 5342 Group 2 Thyrun Hurst....black ink - Daniel Mitchell....blue ink - Sarah Otto....green ink Week One Assisgnment - Part 2

Texas distributes funds to school districts through a system of formulas and calculations that are collectively known as the Foundation School Program (FSP). The FSPs are layer in Tiers:

Tier 1 - formulas are comprised of adjustments, weights, and allotments Tier 1 starts with the basic allotment then Special Programs and then the other specific purpose allotments are added. My district is plagued with the optional homestead exemption adjustment that actually loses the district money every year but saves our tax payers money. We also receive a transportation allotment and Advanced Career and Technology Allotment. These factors do not even include our target revenue. We are also a rural district and used to receive money for this but lawmakers this past year decided that districts like us were too top heavy and cut this.
 * Basic Allotments................................... || Special Instructional Programs.................................. || Special Purposes........................ ||  ||
 * Size of District || SPED || Transportation ||  ||
 * Cost of Education Index || Bilingual Education || High School Allotment ||  ||
 * Property Value Decline || CATE || Technology ||  ||
 * ADA ||  ||   ||   ||

Tier 1 Basic Allotment adjustments are based on small and mid-size district adjustment, sparsity adjustment, decline in property values as well as a decline in ADA. Property value decline and ADA decline have limits to their loss of funding.

Tier 2 - Formulas provides equal access to funds for enrich program using a guaranteed yield approach calculating state aid.

Tier 2 includes enrichment opportunities and recapture for qualifying districts, will also impact state funding for school districts

Tier 2 is your guaranteed level of funding from the state. It supplements Tier 1 to ensure that all districts have the minimum funding needed per child. WADA or weight average daily attendance is used to calculate attendance. See the formula for how the state uses this to calculate how many additional funding may be needed after Tier 1 allotments are given. + Tier I entitlement – transportation allotment – NIFA – TxVSN allotment – high school allotment – 50% of CEI adjustment = adjusted Tier I entitlement adjusted Tier I entitlement ÷ district's basic allotment amount = WADA