1. Preliminary MCR Release for Tax Year 2023

 

The TEA has released the preliminary Maximum Compressed Rates (MCR) for tax year 2023 based on submissions from the Local Property Value Surveys (LPVS) and the adjustment from the SB 2 (88^th SS #2) compression.

 

The FSP system should now show your district’s LPVS status as “Approved”. As a reminder, the preliminary MCR in the FSP system will continue to show the values based on a $40,000 Homestead exemption and the MCR prior to the additional $0.107 reduction. The Final MCRs will incorporate adjustments under SB 2 (88^th SS #2) and at the lower compressed Tier I rate.

 

As a reminder, for all remaining tax calculation items, districts should utilize the $100,000 Homestead exemption values. The Truth-in-Taxation calculation worksheets that districts utilize on the on the comptroller's website, such as the allowed debt rate and no-new-revenue rate, will use the lower certified value with the $100,000 homestead exemption recognized. This is important because it will be the value used to collect taxes for tax year 2023 (for fiscal year 2023–2024).  

 

Next Steps for MCR

• No additional action is required unless the district chooses to appeal the calculated rate. The rate will become final after August 11, 2023.

 

• If you choose to appeal your preliminary MCR, a final determination will be issued to your school district no later than August 31, 2023.

 

• District appeals must be received by August 11, 2023, and should be submitted electronically to the attention of Amy Copeland on district letterhead, signed by the superintendent, to taxprograms@tea.texas.gov. 

 

Tax Rate Adoption

The maximum rate districts can adopt without going to the voters for a Voter Approval Tax Rate Election is the district’s maximum Tier One compressed rate (MCR), as discussed above, plus the greater of: 

• five golden pennies; or 
• the number of Tier Two voter-authorized enrichment pennies levied in the prior year

 

The Tier II enrichment pennies are subject to compression only in a year when the state increases the guaranteed yield on those copper pennies via an increase in the basic allotment. At this time, this has not occurred. More on this will come later if the Legislature decides to increase the basic allotment through future special sessions or during the next regular session.  

 

Districts will use the preliminary MCR (or wait for their final MCR, if appealed) published on TEA’s website to calculate the M&O portion of their voter-approval tax rates (VATRs), and these rates will be used for state aid purposes.

 

If voters approve the increased homestead exemption, the preliminary state certified "T2" values from the Texas comptroller’s Property Tax Assistance Division will reflect the $100,000 exemption and will be incorporated into the 2023–2024 Summary of Finances (SOF) reports in February 2024.

 

You can view the TAA letter for additional information or contact taxprograms@tea.texas.gov.

 

 

2. SOF Template

 

 The new R5 file dated 08/01/2023 fixes issues related to the Rate to Maintain and the Notice tabs. 

 

Since the preliminary MCRs were just released, be on the lookout for Omar to publish another template with those values loaded into the system.

 

 

3. Additional Days School Year

 

Additional Days School Year (ADSY) adds half-day formula funding for school systems that add instructional days to any of their elementary schools (Texas Education Code (TEC), §48.0051). Districts will generate half-day funding for each instructional day after their 180^th instructional day, up to their 210th instructional day.

 

ADSY funding is available at the campus level and programs can utilize anywhere from one to 30 additional days with design flexibility as long as it meets eligibility requirements. The list of requirements can be found within the TAA letter.

 

TEA is requesting that all LEAs who anticipate utilizing ADSY funding in 2023-2024 complete the ADSY 2023-2024 Implementation Survey by August 25, 2023.

 

This survey includes the submission of a school calendar with evidence of a 180-day instructional calendar, which will be used to verify eligibility compliance and serve as required evidence for any ADSY waivers in the 2023-2024 school year, as well as helping to identify projected ADSY implementation trends to better inform ADSY supports.

 

Beginning in the 2023–2024 school year, participating campuses are eligible for up to five days of ADSY waivers for missed instructional days throughout the year due to weather, health, or safety reasons. These waiver days are for the purpose of ensuring compliance with the 180 days of instruction requirement and are distinct from the Missed School Day waiver. The list of waiver requirements can be found within the TAA letter.

 

You can view the TAA letter for additional information or contact ADSY@tea.texas.gov.

 

 

4. Dyslexia Support Updates

 

During the 88^th Texas Legislature (Regular Session), House Bill 3928 was passed and impacts dyslexia evaluation, identification, and instruction. TEA is working to update all impacted technical assistance resources and webpages since the changes are in effect beginning with the 2023-2024 school year.

 

The State Board of Education's (SBOE’s) proposed timeline for its required changes will be communicated as that timeline is determined and communicated to TEA. While the SBOE completes its rulemaking process to update the Dyslexia Handbook, it is critical that LEAs comply with the requirements of HB 3928 and use the HB 3928 FAQ document for assistance with implementation.

 

Be aware that there might be additional funding and expenditure requirements with an increased service for dyslexia related student instruction. Currently, the spending requirement is 100% of the assigned PIC in the Summary of Finance.

 

You can view the TAA letter for additional information or contact sped@tea.texas.gov.