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School Finance Weekly Updates
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💰 The New Funding Framework
The state is moving away from instructional arrangement codes to a system where student needs drive funding through two new allotments:
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Tiers of Intensity: Eight tiers based on the level of service required, ranging from Tier 1 (speech therapy only) to Tier 8 (residential placement).
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Service Group Allotments: Supplemental funding for specific instructional and related services that exceed foundational tier funding.
To support this transition, the commissioner will ensure the total statewide special education allotment for the 2026-2027 SY is approximately $250 million greater than under the previous law.
📊 Reporting and Data Requirements
The 2026-2027 SY serves as a transition year with unique reporting mandates:
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Dual Reporting: School systems must report data using both the old instructional arrangement codes and the new service intensity approach.
- Deadlines: The first PEIMS submission for the new service intensity data is due October 8, 2026.
- New Data Elements: Schools must report the average number of minutes per instructional day a student spends in a special education setting.
- Educational Environment: A new data element that will be collected starting in the 2026-2027 SY as IEPs are naturally revised.
🗓️ Transition Timeline and Budgeting
Because final funding levels for the new system won't be settled until September 2027, the TEA has established safeguards for school districts:
- Funding Floor: During the 2026-2027 SY, schools will receive no less than what they would have earned under the prior funding system.
- LBB Projections: TEA must submit attendance and weight estimates to the Legislative Budget Board (LBB) by late 2026.
- Volunteer Data Request: The TEA is asking for volunteers to submit early student data by August 14, 2026, to help provide more accurate estimates to the legislature.
🎓 Training and Resources
The TEA has provided several tools to help administrators prepare:
- Special Education Funding Tool: An online tool and "How to Guide" to help determine student tiers.
- Webinars & Office Hours: Monthly webinars are ongoing, and weekly Zoom "office hours" will begin on May 7, 2026, held every Thursday at 9 a.m. and 4 p.m.
- Support: Questions can be directed to spedfunding@tea.texas.gov.
Click here or the button below to see the full update on the TEA website.
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Certification of 2026-2027 Indirect Cost Rates
📅 Key Deadlines and Actions
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Certification Deadline: ISDs must review, approve, and certify their Indirect Cost Rate Proposals (ICRPs) by May 15, 2026.
- Effective Date: Approved indirect cost rates will become effective on July 1, 2026.
- Notification: TEA will post official rate notification letters in the GFFC Reports and Data Collections application on July 1, 2026.
🛠️ The Certification Process
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Accessing the ICRP: The completed proposals are currently available in the GFFC Reports and Data Collections application via TEAL.
- Requirement: Certification is mandatory for an ISD to receive and use calculated indirect cost rates for 2026-27 grant applications.
- Approval: By certifying, the ISD officially approves its final restricted and unrestricted indirect cost rates for the upcoming school year.
🔍 Background and Data Usage
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Eligibility: Rates were only calculated for ISDs that submitted an Additional Costs Workbook (ACW) by the January 16, 2026, deadline.
- Data Composition: The ICRP is populated using two primary sources:
- 10% of the data came from the ISD's submitted ACW.
- 90% of the data was drawn from the district's certified TSDS/PEIMS data.
- Non-Participation: If an ISD did not submit the required ACW, TEA has not calculated and will not issue rates for that district for the 2026-27 school year.
📩 Support and Resources
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Instructions: Step-by-step guidance is available in the ICRP Certification Instructions on the TEA Indirect Cost Rates webpage.
- Contact: For questions regarding the process, districts can email compliance@tea.texas.gov.
Click here or the button below to see the full update on the TEA website.
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2026 Federal Real Property Survey
April 20, 2026 by 5:00 p.m. - Deadline for school systems to complete their 2026 Federal Real Property Survey. All school systems must complete this survey regardless of whether they purchased real property with federal funds.
To access the survey, reference the GovDelivery sent 3/6/2026 by clicking here or the button below.
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Session ID 118768 | April 23, 2026 | 9:00 AM - 10:30 AM
As discussed in Commissioner Morath's March Superintendent call, TEA and ESCs are partnering to provide a training on Local School District Revenue Options. The purpose of this training is to:
- Increase district awareness of state funding sources - including those inside and outside of a district's control - and how they align with local academic strategies.
- Provide district leadership with a suite of tools to support decision making to maximizing the uptake of available state funds and the related impact on student achievement.
The target audience for this training is superintendents, CFOs, other academic and finance staff, or board members. This meeting is exclusive to Region 20 districts & charters. Please visit the Local School District Revenue Options webpage for more information & when your ESC will be hosting this meeting.
Attendees will receive the benefit of additional exploration time with the Decision Funding Tool and will have a chance to learn more about The Texas Education Exchange.
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April 22-23, 2026 | 9:00 AM - 3:00 PM *Lunch will be served both days
The Public Funds Investment Act, Chapter 2256 of the Texas Government Code, requires the Treasurer, Chief Financial Officer (CFO), and Investment Officer of a school district to attend 10 hours of training within 12 months of taking office of assuming duties and eight hours of renewal training every two years thereafter.
Fee:
BMC Members: Free for up to 2 participants per meeting
Non-Members: $250 per person
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IMPORTANT REGARDING THE ABOVE SESSIONS: Accommodations will be made to those interested in attending both the TEA Decision Tool Training and the Investment Officer Training. Interested attendees will be asked to register for both sessions.
Please reach out to Alexis Gutierrez at alexis.gutierrez@esc20.net or Lilibeth Robles at lilibeth.robles@esc20.net if you have any questions.
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