1. Budgeting State Compensatory Funds TASBO Budget Academy January 14, 2010

2. Legal References • Texas Education Code (TEC) • TEC 42.151 Special Education • TEC 42.152 Compensatory Education • TEC 42.153 Bilingual/ESL • TEC 42.154 Career & Technology • TEC 42.156 Gifted and Talented • Texas Administrative Code (TAC) • TAC 105.11 Maximum Allowable Indirect Cost • FASRG SCE Module, Version 13

3. Adopted Changes to TAC 105.11 • Effective 12/31/2009 • §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. • Source: 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.

4. Indirect Costs – No more than 45% • Functions included: • 34 Transportation • 41 General Administration • 81 Facilities and Construction • 90 Series • The remaining 55 percent of the SCE Allotment must be spent on the district’s identified “at risk” students.

5. Expenditures less than 55% • Compare the Summary of Finance to the SCE actual expenditures at fiscal year-end • The lower of the Preliminary or Near Final should be compared to the expenditures • If 55% rule not met, the carry forward amount must be budgeted and spent in the 1st or 2nd subsequent year.

6. Compensatory Education Program Guidelines • FASRG Version 13 – Comp Ed Module • District and Campus Improvement Plans • Comprehensive Needs Assessment • Budgeted dollars and funded Staff FTEs • Student Eligibility – entry and exit data (written procedures are required) • Use funds to support and supplement the basic program (supplement not supplant) • Expenditures tracked by PIC (24-30) • Program Evaluation • Changes to FASRG coming soon…

7. At Risk Student Eligibility Defined • Changes effective 2009-2010 • HB 2703 – amends TEC 29.081 (d-1) • Current law includes any student who was not advanced from one grade level to the next. • New law excludes a student who did not advance from PK to K to the next grade level only as a result of the request of the student’s parents. • Other 13 eligibility rules remained unchanged.

8. Local Student At-Risk Eligibility • TEC 29.081 (d-5g) • Students meeting local at risk criteria may receive instructional services subject to: • Local criteria must be Board approved • Number of students receiving services may not exceed 10% of the number of students who received services during the preceding school year

9. Using SCE Funds • Purpose: Increase achievement of students at risk of dropping out • Acceptable use of funds: • Supplemental programs under TEC 29.081 • Alternative education program under TEC 37.008, • Support Title I program at a campus with at least 40% educationally disadvantaged students, or • Program designed to serve students at risk of dropping out of school under TEC 29.081.

10. Using SCE Funds to Support Title I • School-wide campus • May use the funds to meet the needs of all students in the school, as determined by the Needs Assessment. • Targeted Assistance campus & Central Office (district-wide program activities (reservations) • May use funds to provide supplemental services to Title I eligible students only • Like NCLB, expenses with SCE funds must be used to incorporate instructional strategies that are supported by scientifically-based research • Maintenance of effort must continue with local funds • Expenses must be reasonable and necessary

11. Estimating & Budgeting SCE Allotment

12. SCE Funding Formulas • Based on an average of the best six months' enrollment in the national school lunch program of free or reduced-price lunches for the preceding school year the best 6 months (Oct-Sept) • Submitted through the CPNIMS – NSLP Claim • Based on students residing in a residential treatment facility at a weight of .2 • Based on pregnant students in a remedial or support program at a weight of 2.41

13. Allocating SCE Funds to Campuses • Collect at risk student counts for each campus (PEIMS data & local criteria, if any) • Identify single and multiple attendance area campuses • Calculate the regular program resources allocated to each campus • Allocate the SCE allotment to campuses based on proportionality of at risk students

14. Supplement vs Supplant Compliance • Single attendance campuses • Resource allocations to campuses according to the proportion of at risk students • Review of regular education program resources across campuses FASRG, 9.2.12

15. Supplement vs Supplant Compliance • Multiple attendance campuses • Direct costs for regular education should reflect an equitable distribution of regular education resources across comparable campuses • Review proportionality of comp ed program resources across campuses to number of at risk students FASRG, 9.2.13

16. Budgeting for SCE Staff • Start with the district’s Staff Allocation Chart • Determine supplemental staff units • Ensure that teacher schedules reflect SCE assignments • Ensure that job descriptions describe the SCE roles and responsibilities • Ensure that time and effort documentation is collected and that general ledger entries are made for any adjustments to pro-rated salaries • Verify that PEIMS Staff Data (060 and 090) support the SCE expenditures

17. Enrollment 1,000 Total Teachers = 55 Local Ratio = 20:1 Basic Program Teachers = 50 Supplemental Teachers = 5 Enrollment 1,000 Total Teachers = 55 Local Ratio = 22:1 Basic Program Teachers = 45 Supplemental Teachers = 10 Staff Allocation Formulas District A District B

18. Year-End Budget Wrap-Up • Review Summary of Finance – Near Final • Compare the SCE Allotment to the current SCE expenditures and determine carry forward, if any • Monitor the collection and retention of SCE required documentation • Verify that the DIP and CIPs were submitted to TEA in July • TEA may withhold SCE funds due to non-compliance • Review the amount of unspent funds • Three year average to spend allocations

19. Documentation to Support SCE Expenses • DIP and CIP • Teacher Schedules • Campus Staffing Formulas • Job Descriptions • Time and Effort • Student Case Counts • Use of Local Criteria

20. Questions

21. Presenter Contact Information Rebecca Estrada Business Manager Lackland ISD 2460 Kenly Ave., Bldg. #8265 Lackland Air Force Base San Antonio, Texas 78236 (210) 357 5005 estrada.r@lacklandisd.net