March 25th is the deadline to submit your comments to TEA on their proposed changes to Charter FIRST.

March 25th is the deadline to submit your comments to TEA on their proposed changes to Charter FIRST.

March 22, 2024 | Financial Management

Currently, TEA is proposing two changes to the Charter FIRST Worksheet used to establish the Charter’s Financial Accountability Rating. The effective date for these changes is June 4, 2024. This means that your closed 2022-2023 school year financials will use the updated FIRST worksheet to establish your LEA’s 2023-2024 FIRST rating. Below is a summary of what those changes are and attached is a copy of the Charter FIRST Worksheet with the changes proposed.

You have an opportunity to submit Public Comment to TEA regarding these changes, and any other indicator for that matter. The deadline to submit these comments is March 25th. Link to submit Public Comment: https://www.jotform.com/210613401561138

Proposed Changes:

Indicator #14 – The calculation for indicator 14 would be revised to compare administrative costs to total costs instead of instructional costs. The thresholds for indicator 14 would be adjusted to reflect the revised administrative cost ratio calculation so that charter schools with lower administrative costs ratios, which suggest they are effectively managing their administrative expenses, receive the maximum points for this indicator.

  • This change would allow your school to include all of your functional expenses to the administrative portion of the ACR equation besides functions 11, 12, 13, and 31. With this suggestion, there is also a change in the ADA Size and Threshold Ratio. (Visible on the Proposed 2024 Charter FIRST worksheet).
    • (A/B) < threshold based on CS size where
      A = Sum of amounts for functions 21 and 41
      B = Total Expenses

Includes object codes 61XX – 64XX in fund codes 199, 420, 266, 281, 282, and 283.

  • This change also includes updates to the ADA Size and the Threshold Ratio as shown below.
Threshold Ratio (based on ADA size)
ADA SIZE 10 8 6 4 2 0
> 1,000 < 0.0850 > 0.0850   <   0.0975 > 0.0975   <   0.1100 > 0.1100   <   0.1225 > 0.1225   <   0.1350 > 0.1350
500 to 1,000 < 0.0900 > 0.0900   <   0.1025 > 0.1025   <   0.1150 > 0.1150   <   0.1275 > 0.1275   <   0.1400 > 0.1400
< 500 < 0.1165 > 0.1165   <   0.1290 > 0.1290   <   0.1415 > 0.1415   <   0.1540 > 0.1540   <   0.1665 > 0.1665

Indicator # 21 – A new indicator 21 would be added to read, “Did the charter school receive an adjusted repayment schedule for more than one fiscal year for an over-allocation of Foundation School Program (FSP) funds because of a financial hardship?”

We encourage you to submit your comments if you have any concerns about these changes or any other Charter FIRST indicator for that matter.

Click here for the full Charter FIRST amendment with the two proposed changes listed.

For a listing of other Proposed Rules open for public comment and their deadlines, please visit this TEA site. https://tea.texas.gov/about-tea/laws-and-rules/commissioner-rules-tac/proposed-commissioner-of-education-rules

Questions?