School+Finance+Week+3

** & counselors ** || 281.00 || 307.00 ||
 * **GROUP 2 – Assignments 1-6 ** ||
 * || ** District #1 ** || ** District #2 ** ||
 * ** % Economically Disadvantaged ** || 93.3% || 20.7% ||
 * ** Total Refined ADA Adjusted for Decline ** || $ 3,893.75 || $ 4,032.94 ||
 * ** Weighted ADA (WADA) ** || $ 5,555.82 || $ 4,794.08 ||
 * ** Revenue per WADA @ Compressed Rate ** || $ 5,044.00 || $ 7,206.00 ||
 * ** Total target revenue for the M&O ** || $ 28,023,556.08 || $ 34,546,140.48 ||
 * ** Number of teachers, librarians, nurses, **
 * ** 2010 Local District Property Value ** || $ 145,968,635.00 || $ 2,916,187,709.00 ||
 * ** I&S Tax Collections ** || $ 94,871.00 || <span style="font-family: Calibri; font-size: 10pt; line-height: normal; margin: 0in 0in 0pt; tab-stops: decimal 85.2pt; tabstops: decimal 85.2pt;">$ 8,836,256.00 ||
 * ** Chapter 46 (EDA) totals ** || <span style="font-family: Calibri; font-size: 10pt; line-height: normal; margin: 0in 0in 0pt; tab-stops: decimal 71.7pt; tabstops: decimal 71.7pt;">$ 572,716.00 || <span style="font-family: Calibri; font-size: 10pt; line-height: normal; margin: 0in 0in 0pt; tab-stops: decimal 85.2pt; tabstops: decimal 85.2pt;">$ - ||
 * ** Compensatory Education Allotment ** || <span style="font-family: Calibri; font-size: 10pt; line-height: normal; margin: 0in 0in 0pt; tab-stops: decimal 71.7pt; tabstops: decimal 71.7pt;">$ 3,835,006.00 || <span style="font-family: Calibri; font-size: 10pt; line-height: normal; margin: 0in 0in 0pt; tab-stops: decimal 85.2pt; tabstops: decimal 85.2pt;">$ 633,369.00 ||

Everything except Total Target Revenue for M&O was from the documents provided. I multiplied WADA * Revenue per WADA @ Compressed Rate to get the Total Target Revenue...wasn't sure if that was the right calculation or not. Brenda

Part 1


 * Position Statement Discussion**

District 1 with the lower ADA recieves the higher WADA because of their percent of economically disadvantaged (ED) indentified students. The State of Texas will reimburse for the large percentage of students represented in the ED catergory through compensatory funds. District 2 did not have enough of the "weighted" students in comparison to District 1. The State allows for additional funding or allotments for ED students and this translates to more money for the smaller district due to its percent of ED students and the impact of those statistics on the WADA.

*Shaun....I revised our position statement to reflect the other weighted categories that affect WADA, not just the ED....my addition is in " red " text below. Just for reference, I added the chart above comparing the percentages in each category. I think all of it worked together to reflect the higher WADA, although ED certainly has the greatest impact. What do you think? Brenda
 * || District #1 || District #2 ||
 * **<span style="font-family: Arial,Helvetica,sans-serif; line-height: normal; margin: 0in -13.7pt 0pt 0in;">Economically **
 * <span style="font-family: Arial,Helvetica,sans-serif; line-height: normal; margin: 0in -13.7pt 0pt 0in;">Disadvantaged ** || <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">93.3% || 20.7% ||
 * **LEP** || 48% || 2% ||
 * **Special Education** || 9% || 7% ||
 * **Bilingual** || 41% || 2% ||
 * **Vocational Education** || 24% || 14% ||
 * **Gifted & Talented** || 5% || 4% ||

Brenda, looks good. Thanks for addressing the additional impact of those groups like bilingual and CTE students.


 * Can we go ahead and post this position statement to EPIC so we can mark this one off our list of things to do? What do you think? **


 * Yeah, lets go for it, no problem. You should be able to cut and paste it to the site. What about Part 2 Comments about the Calculations. Part 6 statement as well. We could post those too. What do you think? **

District 1 with the lower ADA receives the higher WADA because of its higher percentages in the various components of weighted programs in the WADA calculation including economically disadvantaged, LEP, special education, bilingual, vocational, and gifted and talented. The largest impact, however, on WADA for the two districts is in District 1 because of their percent of economically disadvantaged (ED) identified students. The State of Texas will reimburse for the large percentage of students represented in the ED category through compensatory funds. District 2 did not have enough of the "weighted" students in comparison to District 1. The State allows for additional funding or allotments for students in these categories which translates to more money for the smaller district due to its high percentage of ED students and the impact of those statistics on the WADA.
 * I'm doing it now....1:51 p.m. **
 * PART 1 IS POSTED ON THE FACULTY BLOG AS FOLLOWS: **

Part 2 <span style="font-family: 'Arial','sans-serif'; font-size: 11pt; margin: 5pt 0in;">After making these calculations, please:
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">post a comment about your calculations on your Wiki group site,
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">post a comment on the faculty section blog, and
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Comment and compare your calculations with at least **__two__** other cohort Wiki group submissions.

Comment about the Calculations
 * PART 2 IS POSTED ON THE FACULTY BLOG AS FOLLOWS: **

The review of all the available data concerning sample District 1 and 2 PEIMS Snapshot information and other related figures was interesting to say the least. One of our group members created a table to organize the data to complete the tasks at hand. The table was posted on a wiki for our group to participate in dialogue and analysis. By observing the table it is very clear that these two sample districts are very different, which will help with contrasting these groups in future assignments. Now that we have this data the most difficult task ahead is understanding what the infomration means and how to apply it in a budgetary format.

=As a group, develop a 2 – 4 page paper addressing the following:= Not sure if the first bullet of Part 3 makes sense. Maybe I am just reading it wrong.
 * Part 3**
 * =The intent of the WADA (Weighted Average Daily Attendance) was to provide more money and professionals working directly with students in District 2 Example than in the District 1 Example because the percentage of economically disadvantaged students but the action failed to accomplish that goal in this case;=
 * =Discuss your group’s thoughts on the differences and the potential positive and negative impact to each program funded under M & O (Maintenance & Operations).=

Shaun & Derek...here is my attempt at the first part of our 2-4 page paper on WADA. I have pulled in the various resources from EPIC to explain WADA and its relation to funding, but, like Shaun, have no idea what bullet #1 is referring to in relation to personnnel and staff, etc. Would anyone like to continue with this and add info regarding bullet #2???

<span style="display: block; line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 1; text-align: center;"> **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Group 2 – Week 3, Part 3 ** <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in 0in 0pt; text-indent: 0.25in;">The Foundation School Program (FSP) is a program consisting of a system of formulas for determining state and local funding of Texas schools resulting in the support of a basic instructional program for all school children in the 1,032 school districts in Texas. Currently, the FSP consists of two parts, or tiers. The first tier provides funding for a basic program. The second tier provides a guaranteed yield system so that school districts have substantially equal access to revenue sufficient to support an accredited program.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in 0in 0pt; text-indent: 0.25in;">The Coalition to Invest in Texas Schools website (2010) states that in order to treat school districts fairly in funding, Weighted Average Daily Attendance (WADA) is used to measure the extent students are participating in special programs. Lamar University Associate Professor of Educational Leadership, Dr. Lu Stephens, added that WADA is based on the number of students attending the school district and the type of students attending the school district. She provided an example stating that a district receives additional program allocations if students attending the schools are economically disadvantaged. Weighted programs in the WADA calculation include special education, vocational, bilingual, gifted and talented, and compensatory education. Obviously, school districts with students with additional educational needs require added funding to properly educate their students. WADA recognizes the additional costs of educating those students and equalizes the playing field. The goal of the weighted student count is to distribute guaranteed yield funding.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in 0in 10pt; text-indent: 0.25in;">WADA calculation is a component of FSP Tier 1. According to the Coalition to Invest in Texas Schools website (2010), calculating WADA is a complex exercise. The concept of WADA in effect converts all of a school district’s students with their different weights to a calculated number of regular students required to raise the same amount of Tier I revenue. A school district’s WADA will be greater than its Average Daily Attendance (ADA). The greater the number of students eligible for special entitlements, the greater a school district’s WADA will be. However, Chapter 41 of the __Texas Education Code__ (TEC) created an equalization feature of the funding formula by putting a cap on wealth per WADA. The TEC established an equalized wealth level for the school year and gave districts above this level several methods to either reduce wealth or increase ADA in order to achieve the equalized wealth level. These methods include: consolidating school districts; consolidating school tax bases; deannexing and annexing property between school districts; and contracting to educate children in another school district and paying the state for student attendance credits. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in;">As previously mentioned, weighted programs in the WADA calculation include special education, vocational, bilingual, gifted and talented, and compensatory education. A comparison of the two districts with regard to these weighted programs is as follows:

**<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">DECLINE ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">$3,893.75 ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">$4,032.98 ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">PROGRAMS AFFECTING WADA **  ||
 * =  ||=  **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">District #1 **  ||=  **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">District #2 **  ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Economically Disadvantaged ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">93.3% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">20.7% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">LEP ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">48% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">2% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Special Ed ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">9% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">7% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Bilingual ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">41% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">2% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Vocational Education ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">24% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">14% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">G/T ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">5% ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">4% ||
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">TOTAL REFINED ADA ADJUSTED FOR **
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">TOTAL REFINED ADA ADJUSTED FOR **
 * = **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">WADA ** ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 44.1pt; tabstops: decimal 44.1pt;">$5,555.82 ||= <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; tab-stops: decimal 41.85pt; tabstops: decimal 41.85pt;">$4,704.08 ||

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; text-indent: 0.5in;">The largest difference in the WADA weighted programs is in their Economically Disadvantaged populations. The information provided for this assignment shows that District #1 has 93.3% economically disadvantaged while District #2 has only 20.7% economically disadvantaged. This will have a significant impact on WADA. District #1 also has significantly larger populations in LEP, Bilingual, and Vocational Education. Although they also have larger Special Education and Gifted and Talented populations, these percentages are only slightly higher. Even though District #1 has a smaller Refined ADA Adjusted for Decline as compared to District #2, their WADA is higher than District #2.

<span style="color: #ff0000; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; text-indent: 0.5in;">Each of the above mentioned districts' M&O funding programs are very different. There are several statistics that led our group to believe this is an accurate statement. One major indicator is the percent of economically disadvantaged (ED) for District #1, but other factors may not be noticeable to the casual observer. WADA calculations provided each district with funding and District #1 benefited the most from this financial adjustment. Reviewing the WADA/Compressed rate category, District #2 received a substantial amount of money per student compared to District #1. An assumption can be made that District #2 was held harmless due to state funding changes since 2006. Another disparity is the property tax values between these two districts. District #1 has very low property values that will ultimately affect the school district, especially if the district is losing students and property values are decreasing. District #2 is a very wealthy school with tremendous potential for growth and opportunity to increase student success through hiring quality teachers/staff and through maintenance of facilities or with newer facilities. Overall, there are very little similarities between the two districts in question.

<span style="color: #ff0000; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; text-indent: 0.5in;">By reviewing each of the districts' basic statistics, there are definite possibilities for positive and negative impacts on their programs. For example, a positive impact for District #1 would be an increase in property values and sharp increase in student enrollment. If those two factors are taken into consideration for District #1, it could translate to more revenue that could provide more funding for M&O. A negative factor for District #1 is its low property values. These low values will not translate to increases in funding for M&O and the district would ultimately have to depend on WADA monies and other state or federal allotments to maintain a well-oiled school machine. On the other hand, District #2, in our opinion, is in very good financial shape. It is easy to see the positive attributes of this school district. Based on their compressed WADA funding, they have a tremendous amount of money to provide adequate supplies, materials, and quality educators for their students. A potential negative for District #2 could occur if a budget was adopted by the board of trustees that was based on significant increases that were not realized. For example, the district budgeted for an increase of fifty additional students, but actually lost fifty students. This would be a net loss of a hundred students that would affect the budget and could cause the district to dip into their fund balance. Something similar could happen if property values dropped drastically and the district did not prepare for those potentialities.

<span style="color: #ff0000; font-size: 12pt; line-height: normal; margin: 0in -13.7pt 0pt 0in; text-indent: 0.5in;">This assignment was challenging because some of the information is very new and the funding methods have many variations that can have an impact on either District #1 or #2. Our group would agree that this was a difficult week of activities because we consider ourselves neophytes in the area of school finance.

Amen, Shaun!!!!! If you think we are ready to post, let me do it so I can correct the spacing on the references below. The formatting did not come across correctly for the reference section. Or, you can surely do it if you know how to format for "hanging indent".

<span style="display: block; line-height: 200%; margin: 0in -13.5pt 0pt 0.5in; text-align: center; text-indent: -0.5in;"><span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 200%; text-align: center;">REFERENCES <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 200%; margin: 0in -13.5pt 0pt 0.5in; text-indent: -0.5in;">Coalition to Invest in Texas Schools (2010). //School funding 101 – determination of school district spending.// Retrieved January 30, 2011, from []. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 200%; margin: 0in -13.5pt 0pt 0.5in; text-indent: -0.5in;">Coalition to Invest in Texas Schools (2010). //School funding 101 - glossary.// Retrieved January 30, 2011, from []. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 200%; margin: 0in -13.5pt 0pt 0.5in; text-indent: -0.5in;">Texas Education Agency (January, 2010). //Budgeting update 14: A module of the Texas education agency financial accountability system resource guide.//

**<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Part 5 **

 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Prepare a group conclusion on the possible condition of facilities in both districts and the potential impact on student learning.

During our review of the statistics for District 1 and 2 it became apparent that we had two very different school finance situations. The more we discussed and studied the data, it seemed as if District 2 was in much better financial shape and had a large I&S fund that could elude to a recent bond issue to improve facilites and, in turn, impact student learning. Upon further investigation, the Existing Debt Allotment (EDA) funds help pay for debt. Interestingly, we discovered that Chapter 41 districts don't receive EDA funds. In the two sample districts we were asked to review, District #1 had $572,716 in Chapter 46 (EDA) funds whereas District #2 had none. However, District 2 has approximately $8.8 million in I&S to pay its bond debt. District 2 has a higher property value and may be a Chapter 41 district, therefore, they do not receive EDA funds. Based on the data provided, we think that District #2 has nicer facilities as compared to District #1 and has more resources for its students.

I like your addition, Shaun. Do you think we are ready to post #5?

<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Determine the Compensatory Education Allotment for each district
 * Part 6**

<span style="font-family: 'Arial','sans-serif'; font-size: 11pt; margin: 5pt 0in;">Share insights about your group determination and statement by:
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Develop a group statement on the potential impact on student learning from the Compensatory Education Allotment.
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">post your group statement and a comment on your Wiki group site,
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">post a comment on the faculty section blog, and
 * <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Comment on group statements from at least **__two__** other cohort Wiki group submissions.

PART 6 IS POSTED ON THE FACULTY BLOG AS FOLLOWS: <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Our understanding of the Compensatory Education Allotment (CEA) is limited in some ways, but overall we have a grasp of the basics behind this important funding mechanism. Through wiki group discussions, we have shared several benefits to the CEA. The funds are predominately affected by the rate of a district's free and reduced lunch program participants. Hence the reason to "compensate" districts for this deficiency <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">in local tax funds and or family/community household incomes. <span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">If districts plan and set goals using the site-based decision making approach, students can be greatly impacted by the CEA. The purpose of the CEA funds is to address specific statewide as well as local issues facing the at-risk population. A focus to reduce dropout rates, increase state assessment scores and passing percentages, minimize disciplinary infractions, increase promotions from one grade level to the next, and incorporate character/health related curriculum. The aformentioned programs are just a few of the uses for the CEA fund. By conducting a needs assessment using AEIS data and other types of statistics, a goal-driven plan can be created to effectively utilize the CEA funding.

<span style="font-family: 'Arial','sans-serif'; font-size: 11pt;">Comment from Brenda...I believe the goal-diven budget process is an effective means of utilizing CEA funding....very well stated, Shaun.