Texas Administrative Code Title 19

Education: As effective August 6, 2010

Chapter 105

Subchapter A

§105.1: Rules for the Definition of Tax Levy and Tax Collection

(a) General provisions. For the purpose of determining state aid under the Texas Education Code, Chapter 42 and Chapter 46, and in implementing the wealth-equalizing provisions of the Texas Education Code, Chapter 41, calculations that include tax collections as a data element shall reference subsection (b) of this section.

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

(1) Total levy. The sum of the maintenance and operation and debt service levies generated by applying a district's adopted tax rates to its locally assessed valuation of property for the current tax year.

(2) Tax collection.

(A) For districts with a fiscal year that begins on July 1, total taxes collected between July 1 and June 30 for the current and all prior years' levies.

(B) For districts with a fiscal year that begins on September 1, total taxes collected between September 1 and August 31 for the current and all prior years' levies.

(C) For a district that has been awarded a property value adjustment for a major taxpayer protest pursuant to Texas Education Code, §42.2531, the district may petition the commissioner to attribute taxes that had been withheld due to the protest of valuation to the year in which the taxes were originally levied.

(3) Types of tax collections.

(A) Maintenance and operations taxes are those taxes collected during the fiscal year that are associated with the levy of local maintenance and operations tax rates, including current and delinquent taxes and any delinquent taxes related to former county education districts, but not including penalties and interest that accrue on delinquent maintenance and operations tax levies.

(B) Interest and sinking fund taxes are those associated with the levy of local interest and sinking fund taxes, not including penalties and interest that accrue on delinquent interest and sinking funds tax levies.

Comments

Source Note: The provisions of this §105.1 adopted to be effective September 1, 1996, 21 TexReg 586; amended to be effective June 6, 2004, 29 TexReg 5344

Subchapter B

§105.11: Maximum Allowable Indirect Cost

No more than 45% of each school district's Foundation School Program (FSP) special allotments under the Texas Education Code, Chapter 42, Subchapter C, may be expended for indirect costs related to the following programs: compensatory education, gifted and talented education, bilingual education and special language programs, and special education. No more than 40% of each school district's FSP special allotments under the Texas Education Code, Chapter 42, Subchapter C, may be expended for indirect costs related to career and technical education programs. Indirect costs may be attributed to the following expenditure function codes: 34--Student Transportation; 41--General Administration; 81--Facilities Acquisition and Construction; and the Function 90 series of the general fund, as defined in the Texas Education Agency publication, Financial Accountability System Resource Guide.

Comments

Source Note: The provisions of this §105.11 adopted to be effective September 1, 1996, 21 TexReg 5710; amended to be effective December 5, 2004, 29 TexReg 11347; amended to be effective December 31, 2009, 34 TexReg 9439

§105.12: Basic Allotment

A school district may use state aid received pursuant to the Texas Education Code (TEC), Chapter 42, Subchapter B, and indirect costs as defined in §105.11 of this title (relating to Maximum Allowable Indirect Cost) for any lawful purpose, including operations and using, purchasing, or acquiring real property or land; improving real property; constructing or equipping buildings; renovating real property; repairing real property; or maintaining real property. A school district may fund obligations from state aid received pursuant to the TEC, Chapter 42, Subchapter B, including reduction of bond tax by deposit into the district debt service fund, lease purchase agreements, and public property finance contracts authorized under the Local Government Code, §271.004 and §271.005; time warrants issued pursuant to the TEC, §45.103; maintenance notes issued pursuant to the TEC, §45.108; and contracts issued pursuant to the TEC, §44.901.

Comments

Source Note: The provisions of this §105.12 adopted to be effective October 10, 1999, 24 TexReg 8547

Subchapter AA

§105.1001: Optional Extended Year Program

(a) Each school district seeking funding for an optional extended year program under the Texas Education Code, §29.082, must submit an application in a format prescribed by the commissioner of education. Once funded, the program shall comply with the provisions of the Texas Education Code, §29.082.

(b) An optional extended year program may extend the day, the week, or the year to provide additional support and instruction for eligible students. The program shall be conducted beyond the required instructional days, which may include intercessions for year-round programs.

(c) A student is eligible for services in accordance with the Texas Education Code, §29.082(a)(1) - (2). A student who does not demonstrate proficiency in a subject area as determined by the district is also eligible for services.

(d) School districts shall be funded annually based on the most recent district data available to the Texas Education Agency through the Public Education Information Management System (PEIMS). Funding shall be based on the following:

(1) Eligibility. School districts in which at least 40% of the students in Kindergarten through Grade 12 are from economically disadvantaged families will be eligible for funding.

(2) Maximum entitlement. Funding for an eligible school district under this section shall be based on the amount necessary to provide extended year instructional services to at least 5.0% of the at-risk student population in Kindergarten through Grade 12.

(3) Per capita amount. The per capita amount will be determined by dividing the total program allocation by the sum of the maximum entitlement populations in Kindergarten through Grade 12 in eligible school districts.

(4) Reallocation. Program funds not requested by eligible school districts will be reallocated to school districts identified in paragraph (1) of this subsection that requested funding.

(e) At a minimum, school districts will be required to provide services to the number of students identified on the school district's entitlement notice used for funding. School districts that have fewer students participating in the optional extended year program than identified for calculating the school district's maximum entitlement (including reallocation, if applicable) will have their entitlement reduced on a per-capita basis.

(f) A school district receiving funds under the Texas Education Code, §29.082, that is also receiving funds for an optional extended year program for students in Kindergarten through Grade 12 under the Option 4 wealth equalization agreement authorized under the Texas Education Code, Chapter 41, must adjust its Option 4 equalization agreement. The district must adjust the agreement to redirect the use of funds to a qualifying activity other than an optional extended year program for students in Kindergarten through Grade 12 to the extent necessary to avoid duplicate funding of optional extended year programs.

(g) A school district receiving funds for the accelerated reading instruction program authorized under the Texas Education Code, §28.006(g), is eligible to use funds authorized under the Texas Education Code, §29.082, to serve students in Kindergarten through Grade 2. Each optional extended year program must have auditable funding documentation linking direct service expenditures and optional extended year program funds used to identify eligible students.

(h) All costs under the optional extended year program must be necessary and reasonable for carrying out the objectives of the program and for the proper and efficient performance and administration of the program.

(i) Teacher training required under the Texas Education Code, §29.082(d), shall address the provisions set forth in this subsection. Training is to occur prior to the implementation of the program. Additional training may be provided throughout the implementation of the program. The required training shall provide teachers with the following:

(1) knowledge and skills needed to help students in the program meet challenging state content and student performance standards; and

(2) innovative instructional practices suitable for accelerating the academic performance of at-risk students.

(j) A school district shall incorporate effective instructional strategies into the design of the program to ensure students are provided with the skills needed to be successful in the following school year. An extended day program must be implemented beyond the regular seven-hour day and may not include tutorials or extended in-school day-care services. A program with the basic design to complete homework is not an acceptable instructional design for the program. A tutorial program using pre- and post-testing with each student working on a sequenced and focused program over time to enable the student to attain greater academic success is acceptable.

(k) A school district shall submit an annual report evaluating the program in the time and format required by the commissioner. A school district shall also submit, in a manner determined by the commissioner, a complete list of students who participated in the program for at least one day.

(l) For audit purposes, a school district shall maintain documentation to support each of the requirements of this section.

Comments

Source Note: The provisions of this §105.1001 adopted to be effective December 1, 1997, 22 TexReg 11671; amended to be effective November 7, 1999, 24 TexReg 9610; amended to be effective September 18, 2006, 31 TexReg 7990; amended to be effective July 8, 2008, 33 TexReg 5316

Subchapter CC

§105.1021: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Severance payment--Any amount paid by the board of trustees of an independent school district to or in behalf of a superintendent on early termination of the superintendent's contract that exceeds the amount earned by the superintendent under the contract as of the date of termination, including any amount that exceeds the amount of earned standard salary and benefits that is paid as a condition of termination of the contract. Payments to a former superintendent who remains employed by a school district in another capacity or contracts with a school district for services may be severance payments in whole or in part, if the payments are compensation for the early termination of a prior employment agreement.

(2) Superintendent--The educational leader and chief executive officer of an independent school district. "Departing superintendent" means an individual no longer acting as superintendent and includes a former superintendent who is employed by or contracts with the same school district in any other capacity.

(3) Settlement--A payment made to an employee to settle actual or threatened litigation, or to resolve an actual or disputed claim the employee may have against the employer. A settlement does not include payments for the early termination of a contract. Damages for early termination of an employment contract, including loss of benefits, are severance payments regardless of whether litigation has commenced or the form of the settlement. For a written agreement entered into on or after September 1, 2001, a severance payment includes any payment for actual or threatened litigation involving or related to the employment contract.

(4) Foundation School Program (FSP) reduction amount--The portion of a severance payment to a superintendent that is deducted from an independent school district's FSP funds, which is calculated in accordance with provisions in §105.1022(a)(3) of this title (relating to Severance Payments to Superintendents) for payments made on or after September 1, 2001, or §105.1022(b)(3)(A) of this title for payments made prior to September 1, 2001, consistent with an independent school district's election to apply provisions of §105.1022(a) or (b) of this title.

Comments

Source Note: The provisions of this §105.1021 adopted to be effective November 27, 2001, 26 TexReg 9624

§105.1022: Severance Payments to Superintendents

(a) Severance payments to superintendents on or after September 1, 2001.

(1) Applicability. The provisions of this subsection apply to any payments made to a superintendent based upon a written agreement entered into on or after September 1, 2001. An independent school district may elect to apply the provisions of this subsection to any agreement subject to subsection (b) of this section.

(2) Administration. The commissioner of education shall reduce the district's Foundation School Program (FSP) funds by the FSP reduction amount, in accordance with §105.1023(c)(1) of this title (relating to Administration of Severance Payment Reporting and Payment Reduction).

(3) FSP reduction amount. The FSP reduction amount will be equal to the severance payment in excess of one year's salary and benefits under the superintendent's terminated contract.

(b) Severance payments to superintendents prior to September 1, 2001.

(1) Applicability. The provisions of this subsection apply to any payments made to a superintendent based upon a written agreement entered into prior to September 1, 2001. An independent school district may elect to apply the provisions of subsection (a) of this section in lieu of the provisions of this subsection.

(2) Identification. Identification of an independent school district subject to reductions in state funding attributable to severance payment to superintendent provisions in Texas Education Code (TEC), §11.201(c), is based on information filed by the district with the Texas Education Agency (TEA) on the Superintendent Payment Disclosure Form. No report is required to be filed for payments already earned and payable under the terms of a terminated employment contract, such as accrued vacation. The interim superintendent, new superintendent, or school board president is responsible for timely filing of the Superintendent Payment Disclosure Form. Reporting on the disclosure form is required regardless of whether the district considers the payment to be a severance payment within the meaning of TEC, §11.201(c).

(3) Administration.

(A) All severance payments reported under the Superintendent Payment Disclosure Form are presumed to qualify as FSP reduction amounts up to the total amount to be paid or one year's salary and benefits under the terminated contract, whichever is less. All payments in excess of one year's salary and benefits under the terminated contract are presumed to be payments in settlement of potential litigation. A school district may elect to apply the provisions of subsection (a) of this section to any agreement subject to this subsection. A school district must submit the Disclosure Form no later than March 1, 2002, to report severance payments from agreements signed between May 30, 1995, and August 31, 2001.

(B) A school district may submit documentation with its Superintendent Payment Disclosure Form to rebut the presumptions created by this section. Such evidence must demonstrate that the value to the departing superintendent of the full remaining term of the terminated employment contract is less than the presumptive amount under this section to reduce the FSP reduction under this section. A district submitting documentation to rebut the presumptive amount must include the following items:

(i) final signed agreement terminating the employment relationship;

(ii) canceled check(s) for any payment(s) made to a departing superintendent beyond amounts earned under the contract at the time the employment relationship is terminated;

(iii) Internal Revenue Service Form W-2, Wage and Tax Statement, reporting payments as supplemental wages (compensation paid in addition to the employee's regular wages) and/or special wage payments (amount paid to an employee or former employee for services performed in a prior year) that the district submits to cover in whole or in part payments made to a departing superintendent;

(iv) worksheet(s) documenting calculation of earned payroll amounts through last day of employment;

(v) general ledger detail documenting transactions involving payment(s) to a departing superintendent;

(vi) minutes of board of trustees documenting approval of a final agreement to make payment(s) to a departing superintendent;

(vii) employment contract for the most recent contractual period (year) of employment and for the year immediately preceding, if applicable;

(viii) compensation plan or salary schedule for a superintendent for the most recent contractual period (year) of employment and for the year immediately preceding, if applicable;

(ix) salary distribution records for the most recent contractual period (year) of employment and for the year immediately preceding, if applicable; and

(x) board policy covering employee benefits including monthly allowances, deferred compensation, vacation days, personal leave days, and sick leave days in effect at the time of termination of employment.

(C) The commissioner of education may require any additional documentation to evaluate the documentation submitted.

(D) Failure to timely submit the Superintendent Payment Disclosure Form, failure to notify the commissioner of disagreement with the presumptive amount under this section, failure to submit required documents with the Superintendent Payment Disclosure Form, or failure to submit additional documentation within 30 days of request constitutes a waiver of a district's ability to contest the presumption under this section.

Comments

Source Note: The provisions of this §105.1022 adopted to be effective November 27, 2001, 26 TexReg 9624

§105.1023: Administration of Severance Payment Reporting and Payment Reduction

(a) Applicability. This section applies to any severance payment determined under §105.1022 of this title (relating to Severance Payments to Superintendents), with certain exceptions, as stated.

(b) Identification.

(1) Identification of an independent school district subject to reductions in state funding attributable to severance payment to superintendent provisions under Texas Education Code (TEC), §11.201(c), is based on information filed by the district with the Texas Education Agency (TEA) on the Superintendent Payment Disclosure Form. A district must file the Superintendent Payment Disclosure Form with the TEA not later than 60 days following execution of an agreement to make payments of any kind to a departing superintendent or any payment under such an agreement, whichever is sooner. No report is required to be filed for payments already earned and payable under the terms of a terminated employment contract, such as accrued vacation. The interim superintendent, new superintendent, or school board president is responsible for timely filing of the Superintendent Payment Disclosure Form. Reporting on the disclosure form is required regardless of whether the district considers the payment to be a severance payment within the meaning of TEC, §11.201(c).

(2) The commissioner of education or the commissioner's designee will determine whether a payment to a departing superintendent is a severance payment for purposes of this section, based on the documentation submitted and any additional documentation required, or from agency documents that are made available to the district. The commissioner or the commissioner's designee may determine that an amount greater or less than the presumptive amount under §105.1022(b) of this title is a severance payment based upon the documentation considered. A determination by the commissioner or the commissioner's designee upon the record compiled under this section is the final agency administrative decision and may not be appealed under TEC, §7.057(a).

(c) Reduction of Foundation School Program funds.

(1) The commissioner shall reduce the district's Foundation School Program (FSP) funds for the school year following the school year in which the first payment is made subject to an FSP reduction amount. The commissioner shall also reduce the district's FSP funds in the school year following each school year that any additional payment(s) are made to the former superintendent requiring a FSP reduction amount under §105.1022 of this title. Districts will be subject to reductions to FSP state funding amounts in TEC, Chapter 42, for one or more school years until the liability amount(s) has (have) been liquidated in full, if the liability to the state exceeds the total flow of estimated earned revenue to a district under the FSP. The reduction in FSP state aid payments may apply to any FSP state aid sources of estimated earned revenue. The reductions in FSP state aid will be proportionately deducted from each FSP state aid payment for the school year(s).

(2) For districts subject to the provisions of TEC, Chapter 41, any FSP reduction amounts will be deducted from the FSP Tier I allotment for the district prior to computation of weighted average daily attendance for purposes of determining the district's equalized wealth level.

(3) FSP reduction amounts will not affect the district's requirements to comply with all provisions of TEC, Chapter 42, to provide educational services to special populations and other provisions of TEC, Chapter 42.

(d) Audit. Accurate reporting of a district's Superintendent Payment Disclosure Form is subject to audit by the TEA division responsible for school financial audits. Compliance with the reporting requirements of this section shall be considered as part of the district's compliance with required financial accounting practices under TEC, §39.075(a)(4). Failure to comply with disclosure requirements may result in sanctions as authorized by TEC, §39.075(c).

(e) Implementation. Notwithstanding any other subsection of this section, all payments made to a departing superintendent on or after May 30, 1995, are required to be reported to TEA on forms distributed to a district for the purpose of administering the provisions of this section. FSP funds available to a district shall be reduced in accordance with the commissioner's or the commissioner's designee's determination based upon the documentation considered for purposes of administration of provisions in TEC, §11.201(c).

Comments

Source Note: The provisions of this §105.1023 adopted to be effective November 27, 2001, 26 TexReg 9624