🚨 Urgent Action Items & Deadlines
SHARS FFY 2025 Cost Report:
Deadline Extended to July 3rd
The deadline for the federal fiscal year (FFY) 2025 School Health and Related Services (SHARS) cost report has been extended to July 3, 2026. Reports must be submitted via the State of Texas Electronic Provider System (STEPS).
🔑 Critical Access & Role Requirements
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System Access: You must log in via IAMOnline to access STEPS.
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Maintain Your Account: Users must log in to IAMOnline at least once every 90 days or the account will be disabled.
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Primary Entity Contact (PEC): Ensure your PEC information is current in the Provider Enrollment and Management System (PEMS). HHSC cannot update this for you. Only the PEC can assign Financial Contacts (FCs) in STEPS.
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Mandatory Training: All preparers, FCs, and PECs must complete required training within STEPS before submitting or certifying a cost report.
📞 Need Assistance?
Account & Registration Issues (HHSC Enterprise Service Desk)
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Hours: Mon–Fri, 7 a.m. – 7 p.m. CDT
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Phone: (512) 438-4720 or (855) 435-7181
STEPS Functionality & General Questions (HHSC)
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Live Support: 1-737-86-STEPS (78377)
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Alternative: Submit a ticket via the STEPS General System Guide or email Provider Finance Cost Information.
PEMS & Enrollment Maintenance (TMHP)
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TMHP Contact Center: (800) 925-9126
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General SHARS Notice Questions: Email HHSC SHARS staff or call (512) 730-7400.
Click here or the button below to view the full bulletin.
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Urgent: Proposed Federal Changes to Grant Funds & Professional Development
The Association of Compensatory Educators of Texas (ACET) has issued an urgent notice regarding a proposed federal rule change by the Office of Management and Budget (OMB). This change could drastically restrict how school districts use federal grant funds (like Title I and Title II) for professional development, workshops, and conferences.
🛑 What is Being Proposed?
Under proposed revisions to the Uniform Grant Guidelines (2 CFR Part 200, Section 200.432):
"Costs for attending conferences are allowable only if participation in the conference is expressly approved by the federal agency and is included in the terms and conditions of the federal award."
Because the federal definition of a "conference" is incredibly broad, this rule would apply to nearly all professional development, including local and state-level trainings (like ACET conferences).
⚠️ Why It Matters to Your District
If finalized, this rule could lead to major obstacles for local educational agencies (LEAs):
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No Spontaneous Training: Districts might only be allowed to use federal funds for conferences pre-approved before the grant award is even finalized. Pop-up needs, new TEA initiatives, or compliance training arising mid-year could be blocked.
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Loss of Local Control: Decision-making power shifts to federal agencies, ignoring specific, data-driven local district needs.
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Disproportionate Impact on Small/Rural Districts: Smaller LEAs with limited administrative staff would face the heaviest burdens navigating complex federal pre-approval processes.
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Timeline: This rule is being fast-tracked. If approved, it could take effect as early as October 2026.
✍️ How to Take Action (Deadline: July 13, 2026)
District leaders and practitioners are highly encouraged to submit public comments to protect local funding flexibility.
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Where to Comment: Submit your feedback electronically at Regulations.gov (Docket OMB-2026-0034).
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Formatting Tip: You must begin your comment with the section number in brackets: [200.432]
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Key Points to Make: You can argue that the proposal undermines local autonomy, creates massive administrative delays, ignores existing "reasonableness" standards already in place, and hurts rural schools. (ACET suggests recommending that the federal government retain the current standard instead).
Note: Other sections of the grant guidelines under review include § 200.305 (Federal Payment timing) and § 200.429 (Commencement/Convocation costs).
📊 Section 2: State Funding & Legislative Updates
Revised Tax Year 2026 Tax Rate and MCR Template
The Texas Education Agency (TEA) has released an updated Tax Rate and MCR Template on the State Funding webpage (under District & Charter Planning Tools).
🔍 What Changed?
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The Correction: The updated template fixes prepopulated data in Cell D7 (TY 2025 Value Lost to the Local Optional Homestead Exemption) on the LPVS worksheet tab.
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Action Required: Districts should download and use this most recent version when estimating their TY 2026 Maximum Compressed Rate (MCR) and related tax rate calculations.
💡 Key Reminders
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Technical Assistance Only: This template is just a tool to help your district understand the inputs and calculations behind the MCR.
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Survey Requirement: Using the template does not replace official submission. Districts must still complete the official Local Property Value Survey (LPVS) for the TEA to calculate and approve their final MCR.
Click here or the button below to view the original announcement.
House Pub Ed Discusses School Funding & HB 2 Implementation
The House Public Education Committee met recently to discuss school funding, teacher recruitment/retention, and special education, focusing heavily on the rollout of HB 2.
💰 School Funding & Formula Concerns
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Discrepancies in Financial Runs: Lawmakers expressed concern that actual school funding levels post-implementation differ from the financial runs provided to them before voting on HB 2.
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Hold Harmless Adjustments: Chair Brad Buckley questioned TEA regarding a recent formula change to hold harmless provisions for districts impacted by compression. TEA explained the change was made to fix duplicate funding issues affecting seven specific districts (Brackett, Dallas, Dilley, Houston, Palacios, Shiner, and Spring Branch).
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Enrollment Drops: Committee members discussed the financial impact of a statewide enrollment drop of 76,000 students, which TEA estimates will cut school funding by $645 million.
🍎 Teacher Allotments & Certifications
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Teacher Incentive Allotment (TIA): TEA highlighted new TIA guidance and technical assistance regarding teacher designation changes, increased allotment amounts, and new enhanced designations.
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New Certification Requirements: New core subject teacher certification requirements will phase in between next year and 2030. To date, TEA has approved 570 districts to delay these requirements until 2030, a flexibility allowed under HB 2.
Click here or the button below to watch the hearing.
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💰 Open Grant Applications
2026–2027 CTE Innovative Services for Special Populations Grant Application Due July 7th
The application deadline for the 2026–2027 Career and Technical Education (CTE) Innovative Services for Special Populations Grant is July 7, 2026, via eGrants.
🎯 Grant Purpose
This grant supports school systems in closing gaps in access to CTE programs for students identified as special populations under the Carl D. Perkins Career and Technical Education Act.
👥 Eligible Student Groups Include:
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Students with disabilities
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Economically disadvantaged students
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English learners
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Students preparing for nontraditional fields
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Students experiencing homelessness or foster care
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Migrant students
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Other Perkins-identified special populations
Click here or the button below to learn more & start the application process.
Deadline Extended: 2026–2028 Local Accountability Plan Grant Application
The application deadline for the 2026–2028 Local Accountability Plan Grant has been extended to July 10, 2026, via eGrants.
🏫 Program Overview
The Local Accountability Systems (LAS) initiative allows school districts and open-enrollment charter schools to design and implement custom plans to evaluate campus performance locally.
✨ Key Goals of the Initiative:
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Community Engagement: Involve the community and district stakeholders in setting locally relevant accountability measures.
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Transparency: Provide parents, families, and community members with detailed information regarding local school progress and performance over time.
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Continuous Improvement: Drive student performance and better prepare students for post-secondary success.
Click here or the button below to learn more and apply.
2025–2026 Learning Acceleration Supports Opportunities (LASO) Cycle 4 Due July 31st
The application deadline for LASO Cycle 4 is July 31, 2026.
📋 What is LASO?
Learning Acceleration Support Opportunities (LASO) streamlines the process for districts by utilizing a single, consolidated application. It combines various grants, funding allotments, and in-kind resources into targeted strategies aimed at fast-tracking academic growth.
💡 Focus Areas
LASO Cycle 4 offers 12 distinct opportunities categorized under four primary academic pillars:
- Curriculum & Instruction
- Educator Training
- More Time (Additional learning time)
- Innovative School Models
Click here or the button below to learn more and apply.
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