| (a) Eligibility. Certain restrictions apply to debt and to
school districts eligible for the existing debt allotment (EDA).
(1) Debt eligible for the EDA is an existing obligation of
a school district made through the issuance of a bond for instructional or
non-instructional purposes pursuant to Texas Education Code (TEC), Chapter
45, Subchapter A, or through the refunding of bonds as defined in TEC, §46.007.
Lease-purchase arrangements authorized by Local Government Code, §271.004,
are not eligible. Taxes must have been levied for payment of the principal
and/or interest on eligible debt in the 1998-1999 school year.
(2) Eligible debt does not include any portion of an existing
obligation that has been approved for financial assistance with the instructional
facilities allotment (IFA) as defined in §61.1032 of this title (relating
to Instructional Facilities Allotment), in accordance with TEC, Chapter 46.
(3) A district must collect its share of the EDA to be
eligible for state assistance.
(b) Limits on assistance. The amount of state assistance is
limited by the lesser of a calculated existing debt tax rate (EDTR) for eligible
debt or an appropriated debt tax limit.
(1) The calculated EDTR is a rate determined with the debt
limit resulting from calculations specified in subparagraphs (A) or (B) of
this paragraph, as appropriate, multiplied by $100. The product is then divided
by an estimate of current average daily attendance (ADA) multiplied by either
a $35 yield or a greater amount provided by legislative appropriations.
(A) For the 1999-2000 and 2000-2001 school years, the debt
limit on the calculated EDTR is based on the lesser of 1998-1999 or current
year debt service.
(i) For this purpose, 1998-1999 debt service is the greater
of either:
(I) the actual 1998-1999 debt service payment for bonded debt
minus any 1998-1999 state and local shares of the IFA; or
(II) the 1998-1999 interest and sinking fund collection amount
minus the 1998-1999 local share of the IFA.
(ii) For this purpose, the current year debt service payment
excludes the state and local shares of an IFA for bonded debt for which state
aid was paid in 1998-1999.
(B) Beginning with the 2001-2002 school year, the debt limit
on the calculated EDTR is based on the lesser of the current year debt service
payment or the interest and sinking fund tax collection amount for eligible
bonds for the final year of the preceding fiscal biennium.
(i) For this purpose, the interest and sinking fund tax collection
amount excludes any local share of the IFA for the final year of the preceding
fiscal biennium.
(ii) For this purpose, the current year debt service payment
excludes the state and local shares of an IFA for bonded debt for which state
aid was paid in the last year of the preceding biennium.
(2) The EDTR used in the funding formula cannot
exceed the appropriated limit ($.12 for 1999-2000 and 2000-2001) or a greater
rate as provided by TEC, §46.034(d).
(c) Data and payment cycles. The necessary data elements to
calculate state assistance for existing debt and the associated payment cycle
are determined by the commissioner of education.
(1) An initial, preliminary payment of state assistance will
be made as soon as practicable after September 1 of each year. This payment
will be based on an estimate of ADA; the taxable value of property certified
by the Comptroller of Public Accounts for the preceding school year as determined
in accordance with Government Code, Chapter 403, Subchapter M; and the amount
of taxes budgeted to be collected for payment of eligible bonds. Districts
will supply information about budgeted taxes in July on a data collection
survey.
(2) A final determination of assistance for a school year
will be made at the close of business for the current school year when final
counts of ADA and collection amounts for eligible debt are available. This
determination will also take into account, if applicable, a reduced property
value that reflects either a rapid decline pursuant to TEC, §42.2521,
or a grade level adjustment pursuant to TEC, §42.106.
(A) Any additional amounts owed will be paid as soon as practicable
after the final determination is made.
(B) Any overpayment will be subtracted from the EDA in the
subsequent year. If no such assistance is due in the subsequent school year,
the Foundation School Fund will be reduced accordingly. If no payments are
due from the Foundation School Fund, the district will be notified about the
overpayment and must remit that amount to the Texas Education Agency (TEA)
no later than three weeks after notification.
(d) Deposit and uses of funds.
(1) Funds received from the state for assistance with existing
debt must be deposited in the district's interest and sinking fund and must
be taken into account before setting the interest and sinking fund tax rate.
(2) State and local shares of the existing debt allotment
must be used for the exclusive purpose of making principal and interest payments
on eligible debt.
(e) Refinancing of eligible debt.
(1) A district that refinances eligible debt in part or in
full must inform the TEA's division responsible for state funding in writing
and must provide appropriate documentation related to the refinancing.
(2) The portion of the debt eligible for state assistance
on refunded bonds is subject to the same limits as eligible debt that has
not been refinanced.
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