Region One€¦ · • Gov. Abbott and other leaders asked state agencies to plan for a . 5 percent...

5/22/2020

Region OneFinance Advisory Council

© 2020 Moak, Casey & Associates

Today'sOutline


COVID-19 UPDATE

FEDERAL FUNDINGUPDATE

STATE FUNDINGUPDATE$

COVID-19 Update


Total Cases

U.S. now has almost 1.6 million cases

52,268 cases reported in TX:

• 467 in Hidalgo County• 498 in Webb County• 664 in Cameron County

5/22/2020

COVID-19 Update


New Cases Reported in Texas

45/22/2020

COVID-19 Update


New Unemployment Claims

55/22/2020

COVID-19 Update



65/22/2020

Hidalgo County

966 833

3,356

7,758 7,770

6,581 6,320

4,897 5,051

4,251

For Weeks Ending

COVID-19 Update



75/22/2020

Cameron County

352 294

1,288

3,810 3,657

3,116 2,971

2,178 2,049 1,675

For Weeks Ending

COVID-19 Update



85/22/2020

Webb County

130 154

672

1,447

2,077 2,095

1,877

1,538 1,617

1,218

For Weeks Ending

COVID-19 Update


Reopening Schools

95/22/2020

Governor announced that, beginning June 1, schools could re-open their facilities for certain in-person instructional activities including:

• Optional summer school programs (in-person attendance cannot be required);

• Special Education assessments; • Individualized tutoring; and• Specialized assessments.

https://gov.texas.gov/uploads/files/press/EO-GA-23_phase_two_expanding_opening_COVID-19.pdf

COVID-19 Update


Reopening Schools

105/22/2020

• Districts also have the option of allowing staff on to campuses to conduct remote video instruction or to perform administrative duties.

• TEA has published minimum health protocols that must be met. For example, no more than 11 individuals, including the teacher should be in a classroom. More guidance can be found here.

• Reports of UIL working with state leaders to allow athletes/band to resume some in-person training beginning June 8.

https://tea.texas.gov/texas-schools/health-safety-discipline/covid/minimum-standard-health-protocols-for-school-employees-in-school-building-during-campus-closures-per-executive-order-no-ga-23

https://tea.texas.gov/sites/default/files/covid19-summer_program_operational_considerations.pdf

Today'sOutline


COVID-19 UPDATE




State FundingADA Adjustment

5/22/2020

General State Funding FAQ

• ADA from 5th/6th six-week attendance period won’t impact funding for 2019-20.

• 4th period in 2019-20 needs to end on last school day before closure.

• Avg. over first 4 periods will be adjusted according to 2018-19 ratio.

https://tea.texas.gov/sites/default/files/covid/general_state_funding_faqs_5.7.pdf


Refined ADA | 2018-19 School Year

25,579.2 25,375.7 24,698.6 24,346.6 23,959.8 23,363.6

1st 6 Weeks 2nd 6 Weeks 3rd 6 Weeks 4th 6 Weeks 5th 6 Weeks 6th 6 Weeks

Avg. Over First 4 Periods: 25,000.03

Avg. Over All 6 Periods: 24,553.92


24,553.92 / 25,000.03 = .9825/22/2020



5/22/2020

• This adjustment factor will be applied to all other 2019-20 ADA/FTE counts.

• Very likely that not all student sub-populations follow this same historical pattern.

• TEA State Funding Division says SOF will reflect this adjustment at near-final settle-up (September 2020).

• Migrant districts will also be subject to thisadjustment.



5/22/2020

• TEA has not yet announced what kinds of adjustments will be in place for the 2020-21 school year.

State Funding


• Commissioner urged school districts to consider amending their calendar for next school year to combat COVID-19 slide.

• HB 3 provides half-day formula funding for up to 30 additional instructional days, beginning Sept. 1, 2020.

• TEA published a new guide for districts considering the move.

• For non-DOIs, it may be easier to implement such a calendar change by adopting a year-round school designation.

Additional Days School Year Incentive

5/22/2020

https://tea.texas.gov/sites/default/files/covid/2020-21_Calendar_Guidance_and_FAQs.pdf

State Funding


Districts adopting additional days in their 2020-21 calendar will not receive the extra funding until final settle-up in April/May 2022.


5/22/2020

State Funding


• TEA is extending the online testing window in the fall and spring.

• Administration for paper tests will not be given the same flexibility.

• New FAQ with additional details coming “pretty soon.”


5/22/2020


State FundingTransportation Allotment

5/22/2020

• There will be no hold harmless/adjustment for the transportation allotment.

• TEA’s explanation: Transportation allotment didn’t cover the full cost of the services anyway.

State Funding


Districts are still required to maintain the “30 percent” raises.

Teacher Compensation Increases

5/22/2020


State FundingTax Compression

5/22/2020

• Tax compression under HB 3 will not be impacted by COVID-19.

• Commissioner nor Comptroller have authority to freeze property values, and Governor has come out against it.

• Comptroller is planning to continue with PVS in 2020.


State FundingExisting Debt Allotment

5/22/2020

• TEA will not consider alternative methods for determining EDA assistance in the 2022-2023 biennium.

• EDA assistance will still be determined based on payments made in the last year of the 2020-2021 biennium.


State FundingAnnual Financial Report Waiver

5/22/2020

• Districts with a July 1 fiscal year start can submit a waiver toextend the due date of their AFR to Jan. 28th.

• Districts can find information on how to submit the waiver here.

https://tea.texas.gov/sites/default/files/covid/covid-19-afr-due-date-extention.pdf


State FundingNew Instructional Facilities Allotment

5/22/2020

• Application opened May 15th and closes July 15th.

• HB 3 increased total annual allotment to $100 million.

State Budget

© 2020 Moak, Casey & Associates 255/22/2020

• Gov. Abbott and other leaders asked state agencies to plan for a 5 percent cut.

• Roughly 75 percent of the General Revenue-Related budget wasexempt from this cut, including FSP and TRS contributions.

• This equates to a roughly $1.5 billion cut to non-exempt services.

State Budget


• Consistent message from TEA and state leadership is that no cuts to schools are being discussed for the 2020-21 school year.

• However, once the full impact of COVID-19 on the economy is known, that could change. Expect a robust discussion on budget cuts come January.


As I meet with each agency to review their appropriation requests, I will begin at ZERO.

SEN. JANE NELSON, CHAIR OF SENATE FINANCE


Our House committee will … make sure we continue to keep, and further, the gains made under HB 3.

REP. DAN HUBERTY, CHAIR OF HOUSE PUB. ED.

Today'sOutline


COVID-19 UPDATE



CARES Act

© 2020 Moak, Casey & Associates5/22/2020

• TEA has published CARES Act entitlements for each district.

• Of $1.13 billion distributed from the ESSER Fund, Region One districts will receive $177 million.

Elementary and Secondary School Emergency Relief Fund

https://tea.texas.gov/sites/default/files/covid/2019-2020-CARES-Entitlement-Amounts-by-LEA.pdf

CARES Act


• TEA will use CARES Act money from the ESSER Fund to replace state funding.

• Districts will have to apply for funding and grant application will be released in June.

• Will also come with extra reporting requirements and spending restrictions.


CARES Act


• TEA will reduce each district’s 2019-20 ADA by an amount that results in a funding loss equivalent to the district’s CARES Act grant award.

• This reduced ADA amount will only be for M&O funding calculations. I&S funding will be based on ADA calculated using methodology described earlier.


More info can be found in TEA’s new CARES Act FAQ document

https://tea.texas.gov/sites/default/files/covid/COVID-19-CARES-Act-Funding-and-Expense-Reimbursement-FAQ.pdf

CARES Act


• Leadership has announced that a portion of the state’s Coronavirus Relief Fund (CRF) money can be accessed by schools for COVID-19 expenses.

• Reimbursements will be capped at amount equal to the greater of $50,000 or $250 per compensatory education student.

Coronavirus Relief Fund

CARES Act


To be allowable, reimbursements for necessary costs must:• Have been incurred due to COVID-19 pandemic;

• Not be accounted for in the most recently approved budget as of March 27, 2020; and

• Be incurred from March 1, 2020, through May 20, 2020.

This statutory requirement constitutes a supplement, not supplant provision for CRF funds.


CARES Act


Examples of allowable costs include:

• Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions; and

• Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures.


CARES Act


Examples of unallowable costs include:

• Costs reimbursable under other programs (i.e. FEMA, TDA).

• Payroll costs for employees whose work duties are “not substantially dedicatedto mitigating or responding to the COVID-19 public health emergency.”


CARES Act


• Reimbursement amount is 75 percent of eligible costs. However, if applications exceed state’s expectations, this may be reduced.

• Expenses reimbursed through other programs are not eligible for CRF reimbursement.

• Application is expected to open around July 20, 2020 and close on September 15, 2020.


More info can be found in TEA’s new CARES Act FAQ document

https://tea.texas.gov/sites/default/files/covid/COVID-19-CARES-Act-Funding-and-Expense-Reimbursement-FAQ.pdf

CARES Act


Governor’s Emergency Education Relief Fund

What do we know for certain right now about the GEERF?

• Of $3.0 B total, Texas will be allocated $307 million.

• Gov. Abbott has considerable discretion over how this is spent. Staff wasn’t ready to release any details.

• U.S. Education Secretary Betsy DeVos urged governors to focus on costs related to remote learning.

Federal Stimulus


• Negotiations are heating up between parties in Congress over a 5th stimulus package.

• Democrats have passed the $3 trillion HEROES Act out of the House that includes a $90 billion state fiscal stabilization fund.

• Republicans have become increasingly open to an additional package, though not at the same scale.

5/22/2020

Phase 5?

Questions &Comments

© 2020 Moak, Casey & Associates5/22/2020 40

Lynn M. MoakDaniel T. Casey

Partners

Susan MoakKari Ruehman

Administrative Staff

Buck Gilcrease, Ed. D.Joe WisnoskiTerry FaucheuxCatherine KneppJohn GreyGretchen HoffmanMonica ZdrojewskiJosh HaneyAssociates

Kathy MathiasLarry Groppel, Ed. D.

Thomas V. Alvis, Ph. D.Alicia Thomas, Ph. D.

Mary McKeown-Moak, Ph. D.Consultants

901 S. MoPac Expressway, Bldg. III, Ste 310, Austin, TX 78746Phone (512) 485-7878 Fax (512) 485-7888

www.moakcasey.com

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Region One€¦ · • Gov. Abbott and other leaders asked state agencies to plan for a . 5 percent...

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