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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.
Summary of Updates:
The school year (SY) 2025-2026 preliminary Summary of Finances (SOF) reports now incorporate the following:
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New and Modified HB 2 Detail Reports (run ID 46474): New detail reports include Teacher Retention Allotment (TRA), Support Staff Retention Allotment, Additional State Aid for Regional Insurance Cost Differentials, and Regional Day School Programs for the Deaf (RDSPD). Modified detail reports include Tier One and Charter School Facilities Funding.
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State Compensatory Education (SCE) tier counts (LPE & DPE) (run ID 46474): Adjustment to LPE and DPE, using PEIMS Fall Snapshot counts of economically disadvantaged students by census block group by tier. A campus detail report is available to view (line 25 of Main SOF), and a summary of the SCE allotment is viewable on the Tier One Detail Report (line 27 of Main SOF).
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Teacher Counts for TRA (LPE & DPE) (run ID 46494): Adjustment to LPE and DPE, using fall PEIMS teacher submission data. See the TRA Detail Report in line 42 of the Main SOF.
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Fall Enrollment (LPE & DPE) (run ID 46494): Based on fall PEIMS enrollment reported for FSP eligible students. This enrollment value will impact calculations for TRA and the Allotment for Basic Costs. See line 6 of the Main SOF. Note that enrollment related to the Instructional Materials & Technology Fund, which impacts Additional State Aid for State Approved Instructional Materials and Additional State Aid for Open Education Resource Instructional Materials, will be incorporated later this spring.
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RDSPD (LPE & DPE) (run ID 46494): Based on fiscal agent data submitted in the fall PEIMS submission. Find more details in Line 26 of the Other Programs Detail Report.
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Actual Six-Weeks Attendance (DPE) (run ID 46495): Actual six-weeks attendance (ADA and FTEs) from the 1st and 3rd six-weeks from the PEIMS submission 5. Beginning May 2026, TEA will incorporate actual attendance each six-weeks to both LPE and DPE (which will impact funding).
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Preliminary Tax Year (TY) 2025 amended property values and frozen levy data (LPE & DPE) (run ID 46498): From the Comptroller’s Property Value Study (line 8 of Main SOF) and frozen levy before and after compression data from the Comptroller’s office (line 14 of the Other Programs Detail Report). See this March 6, 2026 correspondence for more details.
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Revised Frozen Levy Methodology (run ID 46501): Revised self-reported (SR) data for SR0706 (current law actual levy) and SR0716 (prior law actual levy) values to be based on SR0705 adjusted for SR0707 and SR0717, respectively. See values on line 3 of the “Additional State Aid for Adjustment of Limitation on Tax Increases on Homestead of Elderly or Disabled (TEC 48.2542) Detail Report” accessible from line 14 of the Other Programs Detail Report for more information. See this March 6, 2026 correspondence for more details.
Action Required:
These SOF reports changes impacting LPE (and DPE) will affect your district or charter school’s cashflow. Please review your district’s SY 2025-2026 SOF report carefully for accuracy.
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Teacher Retention Allotment: Verify your district or charter school’s number of classroom teachers with 3-4 years of experience and 5+ years of experience in the TRA detail report on line 42. If you find a discrepancy, submit a working submission through TSDS PEIMS. Additionally, the Superintendent will need to submit an email with a signed letter and the reports attached to Terri Hanson, Associate Commissioner, Customer Relationship Management and Data Standards Department, Office of Information Technology: terri.hanson@tea.texas.gov. The email should include the following:
- Description of the error
- Explanation of why it occurred
- School system’s plan to prevent recurrence
- PEIMS PDM Reports with corrected data
For assistance with any step or the overall process for submitting a TSDS PEIMS working submission, contact your ESC PEIMS Champion.
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Frozen Levy Data: Review your district’s Additional State Aid for Adjustment of Limitation on Tax Increases on Homestead of Elderly or Disabled (TEC 48.2542) Detail Report carefully. TEA understands there may still be reporting issues from districts’ central appraisal districts. Pay close attention to your T2, T17, and frozen levy before and after compression values. Generally, TEA expects that the T17 value is greater than the T2 value and the prior law actual levy (SR0705-SR0717) value to be greater than the current law actual levy (SR0705-SR0707) value. If your district discovers a discrepancy in property value or frozen levy data, follow the Comptroller’s Property Tax Assistance Division (PTAD) process to correct the data through a protest, appeal, or audit.
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M&O Tax Rate: Review 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 the settle up process beginning in September 2026, including attendance, final TY 2025 property values, frozen levy data, and estimated tax collections. In the meantime, districts and charter schools should continue to use local state aid templates to estimate settle up (under/over allocations), as districts and charter schools have access to more up-to-date local information.
Resources and Contact Information:
Please see the State Funding Data Elements, Sources, and Timelines (February 2026) resource for more information on various data elements used in the SOF reports.
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.
Questions related to property value data or SR submissions should follow the Comptroller’s standard processes outlined by the PTAD.
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