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Public School Funding Updates |
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You are receiving this information because you are subscribed to Public School Funding Updates for the Texas Education Agency (TEA).
Please do not reply to this message. This is a broadcast email sent to all Foundation School Program (FSP) State Funding bulletin members.
The school year (SY) 2025-2026 preliminary Summary of Finances (SOF) reports now incorporate the following for LPE and DPE:
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Preliminary tax year (TY) 2025 property values from the Comptroller’s Property Value Study (line 8)
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Total TY 2025 M&O and I&S tax rates from the Comptroller’s self-report (lines 9 and 13)
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Final TY 2025 maximum compressed tax rates from the 2025-2026 Local Property Value Survey (line 11)
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Budgeted TY2025 M&O and I&S tax collections with data from the PEIMS Fall submission #1 (lines 12 and 14)
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New Instructional Facilities Allotment (NIFA) for districts with approved applications (line 37)
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Excess Local Revenue module data for TEC, Chapter 49 (recapture) districts (line 62)
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Frozen levy before and after compression data from the Comptroller's office (TEC, Section 48.2542)
Action Required: These changes impacted LPE (and DPE) and will affect your district’s cashflow. Please review your district’s SY 2025-2026 SOF report carefully for accuracy, especially your district’s self-reported total M&O tax rate shown on line 9. If you find a discrepancy and believe a correction is needed, please contact taxprograms@tea.texas.gov with an explanation and any relevant documentation (e.g., signed board resolution with adopted tax rate). As always, near-final data will be incorporated as part of settle-up beginning in September 2026, including final TY 2025 property values and estimated tax collections. In the meantime, districts should use local state aid templates to estimate settle up (under/over allocations), as districts have access to more up-to-date local information.
Forthcoming updates to the SY 2025-2026 preliminary SOF reports are projected to occur in March 2026 and will include:
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State Compensatory Education (SCE) tier counts: Adjustment to LPE and DPE, using PEIMS Fall Snapshot counts of economically disadvantaged students by census block group by tier. A campus detail report will be available to view, and a summary of the SCE allotment is viewable on the Tier One Detail Report. This update will also impact the district’s/charter school’s cash flow.
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PEIMS Six-Weeks Attendance: As part of HB 2 implementation, TEA will begin incorporation of actual six-weeks attendance reporting into the SOF reports for SY 2025-2026 and beyond. For SY 2025-2026 SOF reports, TEA will incorporate actual 1st through 3rd six-weeks attendance in approximately March 2026 to DPE (will not impact funding). Beginning May 2026, TEA will incorporate actual attendance each six-weeks to both LPE and DPE (which will impact funding). Additional information is provided in the September 18, 2025, TAA Letter: House Bill 2 Implementation: Six-week Attendance Reporting. Charter schools will no longer be required to report six-weeks attendance in the Charter School module of the FSP system.
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Teacher counts for Teacher Retention Allotment: Adjustment to LPE and DPE, using fall PEIMS teacher submission data. This update will also impact the district’s/charter school’s cash flow.
If you have any questions related to the SY 2025-2026 SOF reports, please contact the Division of State Funding, Forecasting & Fiscal Analysis by phone at (512) 463-9238 or email sfinance@tea.texas.gov.
To support the implementation of HB 2, the agency has launched the TEA 89th Legislature Updates webpage specifically designed to communicate relevant information about the implementation of bills from the 89th Legislature. Given the comprehensive nature of HB 2, along with other changes made by legislation adopted during the 89th Legislature, this page will be updated periodically with more information.
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The Texas Education Agency will improve outcomes for all public-school students in the state by providing leadership, guidance, and support to school systems.
     
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