|(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 agreements authorized by Local
Government Code, §271.004, are not eligible. Payments demonstrating
eligibility for the EDA must appear on the debt service schedule contained
in the final official statement (FOS) or bond order. The debt service
schedule contained in the FOS (or in the bond order, if the bonds
are privately placed) and filed with the state information depository
will be used to determine eligible bond payments. Bond issues and
their related debt service payments that are not reported to the state
information depository are not eligible to receive EDA state assistance.
(2) Eligible bond payments include regularly scheduled
principal and interest payments that are made between September 1
and August 31 each year.
(3) A lease purchase refinanced with a general obligation
bond shall be eligible for consideration for the EDA in future years.
(b) Qualifying debt service. The following provisions
apply to the applicability of debt service payments for use in calculating
EDA state aid.
(1) Computation of qualifying debt service for fixed-rate
bonds shall be based on debt service schedules obtained from the state
information depository. Prepayment of a bond, either through an early
call provision or some other mechanism, shall not increase the state's
obligation or the computed state aid pursuant to the EDA. To the extent
that prepayments reduce future debt service requirements, the computation
of state aid shall also be appropriately adjusted.
(2) Computation of qualifying debt service for a variable
rate bond shall be based on the minimum payment requirement necessary
to meet the computed interest costs for the year.
(3) If a district issues debt that requires the deposit
of payments into a mandatory I&S fund or debt service reserve
fund, the deposits will be considered qualifying debt payments for
the purpose of the EDA if the district's bond covenant calls for the
deposit of payments into a mandatory and irrevocable fund for the
sole purpose of defeasing the bonds or if the FOS stipulates the requirements
of the I&S fund.
(c) Local share requirement. The following district
revenues qualify to meet the local share requirement of the EDA when
computing state assistance amounts.
(1) District revenues that qualify to meet a district's
local share requirement for the EDA are specified in the TEC, §46.032(b)
and (c). The commissioner of education will provide each district
with information about which tax collections were not equalized by
state assistance in the preceding school years and worksheets to enable
districts to calculate tax collections that will not receive state
assistance in a current school year. The commissioner will determine
the amount of excess collections, if any, to be applied to the EDA
local share requirement.
(2) I&S fund taxes collected during a school year
will be attributed first to satisfy the local share requirement of
debts eligible for EDA state aid for that school year and then to
satisfy the local share requirements of any Instructional Facilities
Allotment (IFA) debts for that school year.
(d) Limits on assistance. The following exclusions
apply to the amount of state assistance to which a district is entitled
under the TEC, Chapter 46, Subchapter B.
(1) For purposes of computing EDTR, as specified in
the TEC, §46.034, and in accordance with the provisions of the
TEC, §46.033, relating to eligible bonds for the EDA, tax collections
or payment amounts associated with bonded debt in the IFA program
shall be excluded from the calculation.
(2) Excess funds budgeted in prior tax years that conform
to the TEC, §46.032(c)(2) and (3), will not be applied for purposes
of computing a district's tax rate for the payment of eligible bonds
for the final year of the preceding state fiscal biennium as specified
in the TEC, §46.034(b).
(e) 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.
(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; estimates of the
taxable value of property under TEC, §48.269, as determined in
accordance with Texas Government Code, Chapter 403, Subchapter M;
and the amount of taxes budgeted to be collected for payment of eligible
bonds from the prior year Texas Student Data System Public Education
Information Management System (TSDS PEIMS) budget submission.
(2) A near 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, taxable value of property defined
by TEC, §48.256, for the current year as determined in accordance
with Texas Government Code, Chapter 403, Subchapter M, and tax collections
are available. If applicable, this determination will also take into
account a reduced property value that reflects a rapid decline pursuant
to TEC, §48.258.
(A) Any additional amounts owed will be paid as soon
as practicable after the near final determination is made.
(B) Overallocations determined at near final will first
be subtracted from the EDA or IFA entitlements in the subsequent school
year. If an overallocation cannot be recovered by reducing the subsequent
year's allocation, the district will be notified and the balance will
be collected from the district in accordance with the TEC, §46.009(e).
(3) A final determination of assistance for a school
year will be made after audited tax collections are submitted to the
Texas Education Agency (TEA) in the annual financial and compliance
(A) Any additional amounts owed will be paid as soon
as practicable after the final determination is made. Any additional
overallocations calculated as a result of the final determination
will be subtracted from entitlements in the subsequent school year.
(B) Adjustments to state assistance based on changes
in the final counts of ADA, changes to IFA eligible debt, or any other
reason must be requested no later than three years following the close
of the school year for which the adjustment is sought.
(f) Deposit and uses of funds.
(1) Funds received from the state for assistance with
existing debt must be deposited in the district's I&S fund and
must be taken into account before setting the I&S fund tax rate.
(2) State and local shares of the EDA must be used
for the exclusive purpose of making principal and interest payments
on eligible debt.
(g) Refinancing of eligible debt.
(1) A district that refinances eligible debt in part
or in full must submit the refinancing information to the state information
depository, which will send the revised information to the TEA division
responsible for state funding. Refinancing of eligible debt includes:
(A) the refunding of eligible debt through the issuance
of refunding bonds; and
(B) the conversion of the period, mode, or index used
to determine the interest rate for eligible debt in accordance with
the order authorizing the issuance or delivery of such eligible debt.
(2) The portion of the debt eligible for state assistance
on refinanced bonds is subject to the same limits as eligible debt
that has not been refinanced.
(3) If a refinancing transaction decreases the current
year bond payment requirement, the reduced payment amount shall be
the basis of determining the limit on funding.
(4) If a refinancing transaction increases the bond
payment requirement, the amount of increase will only be used to determine
state aid if the refinancing took place before the end of the previous
state fiscal biennium.
|Source Note: The provisions of this §61.1035 adopted to be effective December 12, 1999, 24 TexReg 10858; amended to be effective May 16, 2002, 27 TexReg 4017; amended to be effective September 5, 2004, 29 TexReg 8282; amended to be effective May 4, 2008, 33 TexReg 3415; amended to be effective June 19, 2018, 43 TexReg 3883; amended to be effective June 21, 2022, 47 TexReg 3534