State+Formula+Insight

One major area that impacts the concern of the state formula for school funding is definitely the valuation of property in the State of Texas and the amount of property tax that is received by the school districts. A simple looks at the Comptroller of Public Accounts school district records easily shows the inequity of property valuations within the county the school district is located. With the county being strongly unequal, the variable among the state is even larger. A more in depth look at the M&O tax rate capped at 1.04, compared to those districts that have participated in tax rate election to increase the election barrier tax rate, greatly affects the funding equity among districts.

Another area that greatly impacts the amount of funding a school district receives is the projection of students the district will have in the following school year. A miscalculation or poor interpretation of the projection will greatly increase the amount of funds received from the state, however, this is usually money that will be owed back to the state and can jeopardize the budgeting for the district. It is smart to only budget the amount the school district is expected to earn, not the amount that is paid by the state to the school districts.

A third area that greatly impacts the final total of funding is the amount of weighted funds that are produced from students participating in special programs, such as special education and career and technology courses. It is important to maintain the predictions and appropriate record-keeping for these courses since these funds greatly fluctuate. Maintaining consistent PEIMS data and monitoring through the PEIMS Edit program will keep the school district in positive financial gain, instead of losing overpayment by the state.