SBOE Set to Increase Indirect Cost Allotments
The State Board of Education (SBOE) met last week to adjust the indirect cost allotment rule, 19 TAC Chapter 105, Subchapter B Section 105.11 as required by the 82nd Texas Legislature during its special session. The legislature did not reduce funding for CTE when cuts were made to the foundation school program. However, the legislature directed the SBOE to reduce the indirect cost allotment proportional to the average in statewide cuts.
In preparation for action by the SBOE, the TEA recommended that the indirect cost allotment for CTE be raised from 40% to 42% for the 2011-2012 school year. Looking beyond the current school year, the SBOE amended the proposed rule with the following language: “For 2012-2013 and each year thereafter a district may choose to use a greater indirect cost allotment under Sections 42.151, 42.153, 42.154 and 42.156 to the extent the district receives less funding per weighted student in state and local maintenance and operations revenue than in the 2011-2012 school year. The commissioner shall develop a methodology for a district to make a determination under this section and may require any information necessary to implement this subsection.”
It was explained at the SBOE meeting that districts would have the flexibility to make a request to the agency to raise the indirect cost allotment and that the agency would have to approve the district's request. The SBOE is expected to officially adopt the proposed rule at its November meeting on second and final reading.
If you wish to contact your SBOE representative regarding the proposed rule prior to the November meeting, visit this link for contact information. http://www.tea.state.tx.us/index4.aspx?id=3803 Members may also submit written or oral testimony before the SBOE takes a final vote on second reading in November. http://www.tea.state.tx.us/index4.aspx?id=1156
If contacting a member of the SBOE, be sure to reference the proposed adjustment to the indirect cost allotment rule, 19 TAC Chapter 105, Subchapter B Section 105.11 as required by the 82nd Texas Legislature. While cuts to programs vary among districts, be knowledgeable about the dollar amount two percent represents for your district and what would be cut as a result of this funding loss whether it is equipment, consumables, staff development or other. Remind them that CTE programs support college and career readiness standards as part of the accountability system for education and prepare students for entry into higher education and the workplace. We should be investing as much as possible in programs like CTE that show results. According to the TEA, students in CTE have higher attendance rates, lower drop out rates, higher graduation rates and higher scores on standardized tests.
In accordance with the Texas Education Code, Chapter 42.154(c), funds generated by CTE, other than the indirect cost allotment, must be used in providing CTE programs in grades nine through 12 or for students with disabilities in grades seven through 12. Indirect costs include student transportation; general administration; facilities acquisition and construction; and the Function 90 series of the general fund.
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View SBOE agenda and public testimony forms.
http://www.tea.state.tx.us/index4.aspx?id=1156