The 89^th Regular Session that ended June 2, 2025 passed three new laws that mandate school districts report current and historical bond election activity and property tax rates, with the first deadline coming up Tuesday, September 30.

Two of these new regulations impact all local taxing units, so it’s not just school districts that need to be aware of the upcoming dates. However, public-school districts and charter schools are required to adhere to all three new laws.

Texas Bond and Tax Rate Reporting

This table summarizes the key requirements, deadlines, and penalties associated with the three new Texas laws governing bond election reporting for local taxing units, school districts, and charter schools.

Here’s what we currently know about the upcoming changes.

HB 3526 – Texas Bond Review Board Reporting

This law requires local taxing units to provide three annual reports to the Texas Bond Review Board (BRB) beginning this fall.

The bill outlines no penalties for missing the deadline. Additional guidance and report templates can be found on the BRB website.

September 30: Deadline for Authorized by Unissued Bond Report
Taxing units must submit a report detailing any bonds that have been authorized by voters, but remain unissued. These are bonds that have been approved by voters, but not sold on the market yet.

The guidance document from the BRB also includes estimating the minimum required annual debt service for the unissued bond as well as the estimated total debt service. Download a template of the authorized but unissued report.

We recommend you consult with your financial advisor when completing this report to ensure the numbers provided are accurate.

October 15: Deadline for Pre-Election Report
Taxing units must submit this report that details the propositions and ballot language of any bonds that will be put before voters in November of 2025 and subsequent years, 20 days prior to Election Day. This report also tracks the estimated minimum required annual debt service and the estimated total debt service. Download a template of the pre-election report. We recommend that districts contact their bond counsel for copies of the ballot language.

November 24: Deadline for Post-Election Report
After the election, taxing units must report the outcome of any propositions, including the ballot language and the vote tally. Download a template of the post-election report. In subsequent years, the report will be due 20 days after Election Day.

HB 103 – Texas Comptroller Reporting

January 1, 2026: Deadline for Texas Comptroller Report
One piece of legislation that includes penalties is HB 103, where there is a potential $1,000 civil penalty if a taxing unit does not provide the information within 30 days of the Texas Comptroller notice of the missed submission.

The requirements of this regulation are sweeping. To comply with HB 103, taxing units must provide all available current and historical information about bonds issued from 2015 to 2025 on the first deadline date, January 1, 2026.

The law requires the following information be submitted:

• Bond information for each bond proposed and issued, including an estimate of the minimum dollar amount required to be spent annually for debt service resulting from the bond issuance
• Ballot language for each bond proposition submitted to the voters
• Tax rate election ballot language and results
• Maintenance and Operations (M&O) election results for school districts and resulting tax rates, as well as ballot language of the propositions put before voters

Because the requirements are so broad and reach back ten years, we recommend that you contact your financial advisor and start now gathering this data.

The current plan is for the Texas Comptroller’s Office to email local governments in the upcoming months about HB 103 and open a data portal early December to begin collecting the historical data that is due January 1, 2026. We’ll send you an update when more information becomes available.

After this first deadline in January, taxing units will be required to submit bond information annually by August 7.

SB 843 – School Bond Reporting to Texas Education Agency (TEA)

Senate Bill 843 also requires school districts and charter schools to report bond information to the Texas Education Agency (TEA). This information includes proposed bonds, planned bonds, and issued bonds, as well as tax rate election information. As of this publication, TEA has no published due dates for this submission.

This bill requires TEA to forward the bond details to the BRB, and provides for a data entry system that would facilitate data sharing across agencies. While that new data platform has been funded, there is no published date on when that may be available.

These three pieces of legislation encourage transparency for the bonds local taxing units are issuing and how that impacts their debt service. This information may be used by the Texas Legislature for future legislative proposals relating to debt service. Because of the tight timelines, we encourage you to contact your financial advisor and your bond counsel to begin gathering information, particularly historic information, to complete the required forms.

If you have any questions regarding these requirements, please contact Laurie Mann at tnthelp@lgbs.com or Linebarger’s School Finance Consultant, Jim Schiele.

Jim Schiele is Linebarger’s School Financial Consultant. He offers free assistance to Linebarger school district clients as they navigate budgets and meet financial deadlines. He can be reached at jim.schiele@lgbs.com.

This content is intended and provided solely for educational and/or informational purposes. It is not intended to provide legal advice, nor does your receipt of this content create an attorney-client relationship. This content is not a substitute for the specific legal advice of an attorney licensed in your jurisdiction.

If you are a current or prospective client this content may be subject to the attorney-client privilege or the attorney work product privilege or otherwise be confidential. Any dissemination, copying or use of this content by or to anyone other than the designated and intended recipient(s) is unauthorized.

The post Texas’ New Required Bond and Tax Rate Reporting appeared first on Linebarger Goggan Blair & Sampson, LLP.

In August, the Texas Comptroller released its certified property values, which form the basis of Texas public school funding. What few districts realize is that now – not January – is the best time to decide whether to pursue a property value study (PVS) appeal or self-appeal.

Currently, Linebarger’s PVS clients receive personalized, comprehensive service. Our firm’s PVS Audit and Appeals Division is actively wrapping up 2022 school district property value studies and audits of the tax rolls will be finalized this fall.

Deadlines for other PVS audits are approaching next year, which is why I sat down with Robby Harbuck, Director, Property Value Study Appeals Division. Our conversation helps clear some of the confusion around the upcoming deadlines and sheds light on the next steps districts should consider this fall. Below is a transcript of our discussion.

Q: What’s happening right now in the PVS cycle?

A: The final values for the 2024 PVS were certified to TEA on August 15, 2025. If we identify a school district client with a potential issue, this is when we start the conversation about contracts and timelines.

This August 15, 2025 value certification also starts the three-year timeline for the 2024 SDPVS audit cycle, running until August 15, 2028. A district can file up to three audits for each cycle.

As far as the property value study process, those deadlines are ongoing, depending on what phase of the process you are in. For example, earlier this year, we finalized our 2021 School District Property Value Study (SDPVS) and the Texas Education Agency (TEA) posted the related payments throughout the spring and summer.

Right now, Linebarger’s PVS division is wrapping up the SDPVS for 2022. As part of this process, we have obtained the 2022 local tax rolls to complete our audit reviews. We will finalize our audits of the tax rolls for 2022 SDPVS audits this fall and winter.

We are confident in our process and our goal is to obtain for our school district clients the maximum financial gain to ensure no valuable revenue being left unclaimed. 

For invalid school districts that were receiving a state fund assignment, we filed 2024 SDPVS category appeals in the spring of 2025. We completed working on these appeals this summer and the state certified the final values to TEA on August 15, 2025.

Q: I was contacted by a competitor firm warning that we are behind in filing 2022 and 2023 audits.

As noted above, we are currently reviewing the 2022 SDPVS data to determine whether audit filings would be beneficial. Each potential filing is carefully evaluated to ensure it supports a positive outcome for a school district.

It is still very early in the cycle to file 2023 SDPVS audits. There are two years remaining for further evaluation of the local appraisal rolls. Premature filings may not reflect the most accurate or beneficial data for districts. It’s important to note that filing an audit is not always beneficial. Linebarger conducts a thorough review of the data to ensure that any filing will result in a positive outcome for the district, rather than having an adverse effect.

Recently our clients have received unsolicited phone calls and emails from an outside school financial services organization. These calls and emails have contained inaccurate and potentially misleading information and have caused undue concern with clients. 

Linebarger provides comprehensive SDPVS services, including both appeals and audits. In contrast, the competitor who contacted our clients offers limited services, focusing solely on audits without appeal support. This approach can leave districts vulnerable if appeal issues arise.

Q: What makes Linebarger different than this competitor?

Our process begins with a self-report appeal review, which allows for early correction of local adjusted rolls prior to certification to TEA.

This enables districts to receive additional funding during settle-up, rather than waiting years for audit results. The competitor does not conduct this review, requiring them to initiate and use up a district’s limited audits immediately. Remember, districts are limited to three audits. We choose the method and timing of those audits to benefit a district strategically.

Q: Should we be concerned about any upcoming deadlines?

A: Yes, the 2025 PVS will be released January 30, 2026—one day earlier than usual due to the calendar. That gives us only 40 days to gather data and file appeals, so districts need to be under contract and ready to go.

Q: What should school district leaders be doing now to prepare?

A: Look at your 2024 findings. If you’re in year two of grace, you’re likely out of grace for 2025 and at risk of losing funding.

If a district received a state fund assignment or is out of grace, they’re likely in jeopardy. We track all our clients and monitor others through delinquent tax lists. When the study is released, we reach out immediately. There’s only a 40-day window to act.

Districts should have a plan in place now—whether it’s with us, their appraisal district, or another firm.

Q: What happens if a school district can’t get board approval in time?

A: We move forward with an informal agreement. Most boards approve quickly once they understand the urgency. We don’t leave districts hanging.

Q: Are more school districts becoming invalid?

A: Actually, the trend is improving. In 2019, there were 220 invalid districts. That number dropped to 113 in 2024. Markets have stabilized due to interest rates, and we expect fewer invalids in 2025.

Q: Can school districts still file audits for previous years?

A: Yes. For example, 2022 audits can be filed until August 24, 2026. Audits address local value changes, while appeals fight state-assigned values. Both are important for recovering lost funding.

Q: What’s the difference between a category appeal and a self-report appeal?

A: Category appeals fight the state’s assigned value to bring it closer to the local value. Self-report appeals correct changes in the local tax roll—like late exemptions or ARB hearings—that TEA doesn’t automatically account for.

Q: Do appraisal districts file these appeals themselves?

A: Rarely. Most don’t have the staff or expertise. In 2024, we filed 190 appeals—33 category and 157 self-reports. Many districts were valid but still benefited from self-report appeals.

Q: What about homestead exemptions and their impact?

A: Late-filed homesteads increase deductions and reduce taxable value. We catch those through audits. If the mandatory exemption amount increases to $140,000, school districts will collect less, especially on debt service. TEA will hold districts harmless, but only for existing debt. The exemption cap reduces a district’s capacity to issue additional debt, which could hamper capital programs that have already been approved by taxpayers as well as future capital programs.

Q: Can you share a success story?

A: In 2024, we helped an independent school district move from invalid to valid. Their state-assigned value was $1.57 billion, and we reduced it to $1.44 billion through category and self-report appeals—resulting in an estimated $2.2 million in aid gain. We had five team members working on that case, including appraisers on the ground, to accomplish this.

Q: What’s the cost to districts for your services?

A: We work on contingency. If there is no benefit to the district, there’s no fee. We do not bill until TEA makes adjustments and payments. Many districts do not budget for this, but our fee is typically paid out of this additional aid gain.

I want to thank Robby Harbuck for his thoughtful answers and for taking time to answer our questions. If you have additional questions, feel free to contact me for assistance.

Jim Schiele is Linebarger’s School Financial Consultant. He offers free assistance to Linebarger school district clients as they navigate budgets and meet financial deadlines. He can be reached at jim.schiele@lgbs.com.

This content is intended and provided solely for educational and/or informational purposes. It is not intended to provide legal advice, nor does your receipt of this content create an attorney-client relationship. This content is not a substitute for the specific legal advice of an attorney licensed in your jurisdiction.

If you are a current or prospective client this content may be subject to the attorney-client privilege or the attorney work product privilege or otherwise be confidential. Any dissemination, copying or use of this content by or to anyone other than the designated and intended recipient(s) is unauthorized.

The post Act Now to Prepare for the Property Value Study Process appeared first on Linebarger Goggan Blair & Sampson, LLP.

In today’s rapidly evolving financial landscape for Texas school districts, the role of a Chief Financial Officer (CFO) has never been more critical. CFOs must navigate complex financial regulations, budget constraints, and ever-changing funding formulas while ensuring schools have the resources necessary to provide a quality educational program.

To meet these challenges head-on, school districts are turning to CFO coaching as a strategic investment in financial leadership.

What is CFO Coaching?

For Texas school districts, where state funding formulas and legislative changes frequently impact budgets, having a well-prepared CFO can mean the difference between financial stability and fiscal distress. Coaching ensures that financial leaders remain agile and equipped to address emerging challenges while aligning financial decisions with district goals.

The benefit of CFO coaching is that it’s tailored to the unique needs of each district and the experience level of each CFO. It offers personalized guidance to help finance leaders enhance their skills in budget management, compliance, financial forecasting, and strategic planning.

CFO coaching can help CFOs without specific school district experience with the tools and insights they need to make informed, strategic decisions. An ongoing program, CFO coaching takes a long-term approach to allow candidates to reach their full potential.

Key Benefits of CFO Coaching

• Ongoing mentorship
  CFO coaching provides ongoing mentorship for new CFO’s and Superintendents working with school finance.
• Enhanced Financial Literacy & Decision-Making
  CFO coaching strengthens financial literacy, helping CFOs interpret complex funding formulas, optimize resource allocation, and make data-driven decisions that benefit students and staff.
• Compliance and Risk Management
  Texas school finance laws are intricate and ever-changing. CFO coaching keeps financial leaders updated on regulatory requirements, reducing the risk of compliance issues and potential financial penalties.
• Improved Budget Planning and Efficiency
  Coaching can enhance the development of more effective budgeting strategies, maximizing resources, and focusing on the needs of students.  Budgeting is one of the most important functions of any district CFO and Superintendent and assistance in this area is critical.

Resources for Implementing CFO Coaching

School districts can implement CFO coaching in various ways, including mentorship programs, one-on-one coaching sessions, and partnerships with financial consultants specializing in public education.

Investing in CFO coaching is about strengthening the financial foundation of the entire school district. By equipping CFOs with the knowledge and skills needed by school finance personnel, Texas schools can improve their financial results.

• Linebarger’s Value-Added Services
  Our firm provides expert guidance on school finance. I can provide answers to specific questions or ongoing coaching services, our experienced PVS team can offer Property Value Study Appeals and Audits, and our TNT specialist Laurie Mann can take your questions about Truth-in-Taxation regulations.
• MoakCasey
  MoakCasey provides training on best practices in school finance, including journal entries, bank reconciliations, and fraud prevention. 
• Center for School Finance
  TASBO’s Center for School Finance provides resources, updates, and consultations to help school districts plan ahead and make informed financial decisions. 
• TASA Executive Coaching Network
  The Texas Association of School Administrators (TASA) offers executive coaching for school leaders, including CFOs, to enhance their leadership practices and achieve strategic goals. 
• School Finance Template Boot Camp
  TASA’s Boot Camp provides hands-on training for completing and updating the state funding template, project revenue, and monitoring state aid payments. 
• CFO Strategy Network
  This network, co-sponsored by the Texas Impact Network and the Texas Education Agency, offers peer advisory, expert engagement, and cross-district collaboration for CFOs. 

If I can support you in any way during this process, feel free to contact me for assistance.

Jim Schiele is Linebarger’s School Financial Consultant. He offers free assistance to Linebarger school district clients as they navigate budgets and meet financial deadlines. He can be reached at jim.schiele@lgbs.com.

This content is intended and provided solely for educational and/or informational purposes. It is not intended to provide legal advice, nor does your receipt of this content create an attorney-client relationship. This content is not a substitute for the specific legal advice of an attorney licensed in your jurisdiction.

If you are a current or prospective client this content may be subject to the attorney-client privilege or the attorney work product privilege or otherwise be confidential. Any dissemination, copying or use of this content by or to anyone other than the designated and intended recipient(s) is unauthorized.

The post CFO Coaching as a Strategic Investment for Your School District appeared first on Linebarger Goggan Blair & Sampson, LLP.

Americans are managing busy lives, checking their phones between meetings, errands, and family obligations. That’s why we’ve launched a smarter, more responsive way to reach individuals with delinquent government accounts—through a fully integrated digital communications platform that includes texting, email, and live chat.

It’s not a replacement for trusted methods like mailed notices or phone calls—it’s a powerful complement. And it’s helping us connect faster, more clearly, and more conveniently than ever before.

At Linebarger, we’ve spent nearly 50 years helping government entities nationwide recover the revenue they rely on—from delinquent property taxes and unpaid court fines to toll violations and other receivables. This new system reflects the same mission that has always guided our work: supporting our clients by serving their constituents with clarity, fairness, and respect.

Reaching People Via Text Message

A missed toll or unpaid court fine isn’t always an act of defiance—it’s often just a detail that slipped through the cracks. Our digital outreach helps people take action faster by reaching them where they already are: on their phones, in their inboxes, and online.

We’re using MMS (multimedia messaging service) technology to ensure our texts stand out from generic spam. Unlike standard SMS (short messaging service), MMS allows us to include our verified logo, a concise summary of the account, a toll-free phone number, and direct links to our vetted payment portal—ensuring the process remains simple, transparent, and accessible. The result is a message that’s recognizable, trustworthy, and immediately actionable.

Digital Convenience and Human Support

This technology doesn’t replace the human element—it enhances it. Behind every message is a team of highly trained customer service professionals who are ready to answer questions, explain options, and walk individuals through the resolution process.

We’re giving account holders more ways to engage and more reasons to trust the process.

A Smarter Way to Serve

This initiative reflects a broader truth we’ve long understood: when communication improves, so does compliance. When we help people resolve their obligations more easily, we help governments recover vital revenue more efficiently.

With national presence and decades of experience serving local and state governments, Linebarger is proud to lead the way in modernizing public-sector collections.

Paul Chapa is a Managing Partner and serves as chair of the firm’s Marketing Commitee.

This content is intended and provided solely for educational and/or informational purposes. It is not intended to provide legal advice, nor does your receipt of this content create an attorney-client relationship. This content is not a substitute for the specific legal advice of an attorney licensed in your jurisdiction.

If you are a current or prospective client this content may be subject to the attorney-client privilege or the attorney work product privilege or otherwise be confidential. Any dissemination, copying or use of this content by or to anyone other than the designated and intended recipient(s) is unauthorized.

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Ms. Stimpson’s recognition recognizes her commitment to helping local governments recover critical revenue that supports essential public services. Based in Fort Worth, she plays a pivotal role in the firm’s efforts to assist cities, counties, and school districts across Texas. Her work ensures that these entities can continue to provide the infrastructure and programs that communities rely on every day.

A graduate of the University of Houston Law Center, Ms. Stimpson began her legal career as a prosecutor, where she developed a strong foundation in public law and advocacy. Since joining Linebarger, she has become a trusted advisor to local governments, known for her precision, legal insight, and ability to build lasting client relationships.

This recognition is both personal achievement and also a reflection of the values and excellence that define the firm.

The post Partner Jordan Stimpson Named Top Attorney appeared first on Linebarger Goggan Blair & Sampson, LLP.

Linebarger’s legislative team will be traveling the state this summer to share key updates from the 89th Legislative Session.

Continuing education credits (two hours) will be offered for each session, including state bar CLEs and credits from Texas Department of Licensing and Regulation (TDLR). Credit approval is pending from the Texas Assessors-Collectors Association (TACA), the Texas Education Agency (TEA), the Texas Commission on Law Enforcement (TCOLE) and the Texas State Board of Public Accountancy (TSBPA).

For current status, including updated locations, inquire here.

Live Events by Date

Click on the event slide nearest you to send an email to the organizer to RSVP.

The post Attend Our 2025 Legislative Update appeared first on Linebarger Goggan Blair & Sampson, LLP.

One of the most effective tools for developing accurate revenue projections are state aid templates – and fortunately, these resources are free to use. I’ve identified two high-quality templates available to school districts that have updated formulas from the recent passage of House Bill 2 (HB 2), plus a third that I’ve developed for forecasting revenue.

MoakCasey Template

MoakCasey has developed a school finance template, created by two school finance experts.

Leo Lopez, Chief Financial Officer at MoakCasey, has more than two decades of experience in public school finance and served as Associate Commissioner for School Finance and Chief School Finance Officer at the Texas Education Agency (TEA). He played a key role in supporting the Texas Commission on Public School Finance and implementing House Bill 3, the historic school finance bill, passed by the Texas Legislature in 2019.

Josh Haney began his career at the Texas Comptroller’s Office, where he led revenue forecasting and fiscal impact analysis. He joined MoakCasey in 2019 during the passage of House Bill 3.

Linebarger’s wholly-owned subsidiary, Appraisal Collection Technologies (ACT) recently partnered with MoakCasey to provide additional services to the firm’s clients through a new teaming agreement.

Omar Garcia’s Template

I recommend downloading and populating both state aid templates with your district’s data since they generally require the same fields. After entering your data, review the results across both. If you see significant differences, check your entries for errors.

Linebarger Revenue Forecasting Template

Once you’ve entered the current data into one or both of the templates above, the next step is to forecast revenue based on projected changes in enrollment, average daily attendance (ADA), special populations.

Historical trends are typically the best predictors of future behavior. However, if you anticipate significant changes—such as new housing developments, shifts in the commercial/industrial base, or other demographic changes—be sure to incorporate those into your projections.

I have developed a new linear forecasting worksheet to help you forecast your district’s future values. Download my sample worksheet here. It includes editable fields, highlighted in yellow, where you can input your district’s data. Future years will auto-populate using linear regression.

Finalizing Projections and Next Steps

Once your future value projections are complete, add them to your preferred template. This will provide a reasonable estimate of your district’s revenue for the next four to five years.

Keep in mind that these projections are based on current law. Any future legislative changes may alter these projections. However, this current data remains valuable as a benchmark.

Once you’re confident in your projections, clearly communicate to your school board, district leadership, and community that the projections reflect the law as it stands today.

Reliable revenue projections are foundational to building a sound budget. In future posts, we’ll explore expense forecasting and how to integrate both revenue and expenditure projections into a comprehensive budget plan.

If I can support you in any way during this process, feel free to contact me for assistance.

Jim Schiele is Linebarger’s School Financial Consultant. He offers free assistance to Linebarger school district clients as they navigate budgets and meet financial deadlines. He can be reached at jim.schiele@lgbs.com.

This content is intended and provided solely for educational and/or informational purposes. It is not intended to provide legal advice, nor does your receipt of this content create an attorney-client relationship. This content is not a substitute for the specific legal advice of an attorney licensed in your jurisdiction.

If you are a current or prospective client this content may be subject to the attorney-client privilege or the attorney work product privilege or otherwise be confidential. Any dissemination, copying or use of this content by or to anyone other than the designated and intended recipient(s) is unauthorized.

The post Projecting District Revenue with Free Resources appeared first on Linebarger Goggan Blair & Sampson, LLP.

“This honor is truly special,” says Mr. Lewis. “To be named for this award by my peers means the world to me. I am honored to be named among the cadre of excellent attorneys who have come before me.”

Throughout his career, Glenn has been a tireless advocate for fairness and equity, mentoring countless young attorneys and contributing to initiatives that strengthen the legal profession in Tarrant County and beyond. His leadership and integrity have left a lasting impact on both the legal community and the broader public.

The Blackstone Award was presented at a special luncheon hosted by the TCBA, where colleagues, friends, and family gathered to honor this remarkable achievement and enduring legacy.

We extend our heartfelt congratulations to Mr. Lewis on this well-deserved honor. His recognition is not only a personal milestone but also a proud moment for our entire firm. His example continues to inspire us all to uphold the values of justice, service, and excellence.

The post Partner Glenn Lewis Receives the Prestigious Blackstone Award appeared first on Linebarger Goggan Blair & Sampson, LLP.

This strategic partnership underscores the commitment to supporting Texas school district clients with comprehensive, data-driven financial solutions. Through this collaboration, ACT and MoakCasey will integrate both companies’ suite of services to better support school districts’ unique planning and compliance needs.

Linebarger and ACT currently offer school district clients a range of services including property tax study and appeals services, truth-in-taxation training and consultation, ongoing legislative and regulatory updates, and financial and operational guidance. These valued services will remain a part of the firm’s client services offerings.

MoakCasey’s school finance services include bookkeeper training & fiscal management reviews, efficiency audits required for voter-approval tax rate elections (VATRE), in-depth financial data reviews of financial trends, truth-in-taxation assistance, revenue projections and state aid templates, property value study services, and innovative partnership guidance to unlock new revenue streams.

“Linebarger/ACT’s school district specialists include highly trained and experienced professionals in the arena of school finance who offer ongoing services to our clients throughout the year. With the augmentation of MoakCasey’s resources, we can deliver even more robust offerings to our clients,” says Richard Haass, Linebarger’s Chief Operating Officer.

“MoakCasey’s proven leadership and expertise in advancing Texas schools aligns perfectly with Linebarger and ACT’s mission to empower districts with the tools and insights they need to thrive,” said Dan Huberty, Ed.D., MoakCasey’s Chief Executive Officer. “Together, we are equipping school leaders with the financial clarity and strategic support necessary to navigate today’s complex education landscape.”

About Linebarger: ACT is a wholly-owned subsidiary of Linebarger Goggan Blair & Sampson, LLP. Linebarger is a nationally recognized law firm specializing in governmental collections, serving over 2,600 public sector clients across the United States. With a rich history dating back to 1976, Linebarger has built a solid reputation for its unwavering commitment to excellence, professionalism, and client service. The firm’s dedicated team of legal professionals is committed to providing innovative legal and collection solutions to public sector clients.

About MoakCasey: MoakCasey offers school districts nimble, customized and comprehensive services to facilitate leadership’s forecasting, planning and adaptation in the dynamic landscape of public schools. Our team is comprised of strong professionals with deep experience within Texas school districts, the Texas Legislature, Texas state agencies and education organizations.

The post Appraisal & Collection Technologies (ACT) Enters Strategic Agreement With MoakCasey to Enhance School Finance Services appeared first on Linebarger Goggan Blair & Sampson, LLP.

Before the Texas Legislature adjourned on June 2, it passed House Bill 2, which provides $8.5 billion in new funding for public schools. HB 2 allocates much of the increased revenue to staff raises as well as the allotment for fixed expenses and the per student allotment.

Governor Abbott signed the bill on June 4, but our understanding of the implications of HB 2 will continue to evolve. I’ll use this blog to describe how I’d approach the budget development process under the new school funding landscape. 

Review District Runs

Start with a review of the district runs produced by the Legislative Budget Board. These will provide a general estimate of your M&O revenue.  

• FY 2026 district runs
• FY 2027 district runs

While you shouldn’t use these numbers to set up your budget, they can provide helpful projections.

For the first time, the state has used enrollment for the calculation of one element of state funding. I’ll use a sample district to explain how to develop your budget. Below are the numbers for our sample district and definitions for each type of allotment calculation.

Teacher Raises

The bill contains $4.2 billion for teacher salary increases, provided through a new teacher retention structure.

In districts with more than 5,000 students:

• $2,500 for is provided for teachers with three to four years’ experience
• $5,000 for teachers with five or more years of experience.

For districts with 5,000 or fewer students:

• $4,000 for teachers with three to four years’ experience
• $8,000 for teachers with five or more years of experience.

The first question to answer is whether or not your district will also raise salaries for teachers with less than three years of experience. Funding for these raises is included in the allotment for “non-administrative staff pay” portion of the bill, which I breakdown in the section below. 

With a teacher shortage in Texas, competitive districts may want to consider additional raises, above the state allotment, to attract qualified teachers. Discuss this strategy with your HR department and leadership team, as teacher payroll drives every district’s budget. 

Once a salary structure and raise structure is confirmed, you can estimate the cost of your teacher pay for the upcoming year. Be sure to change the underlying formulas to account for these changes. If you use an average teacher salary, that number may increase significantly and will need to be applied to the estimated number of teachers at each experience level. 

It is likely you will need to model several budget scenarios to determine the impact given different teacher salary schedules.

Non-Administrative Staff Raises

HB 2 does not define the methodology for wage increases among non-administrative staff, giving you more flexibility here. Raises included under this provision include teachers who have less than three years’ experience, counselors, librarians, nurses, teacher assistants, custodians, food service staff, bus drivers, administrative assistants, and other support staff.

The increase for non-administrative staff pay raises is provided through a $45 per adjusted average daily attendance (ADA). The calculation of the impact of these raises requires an estimate of future ADA as well as accurate counts of employees in all of these areas; and estimates of any changes by categories in each of these areas.

For example, if you are opening a new school, you will see increases in some categories and decreases in others. You may have a reduction in the number of bus routes/bus drivers, but increase the number of librarians and administrative assistants.

Let’s apply this allotment to a district with an ADA of 7,520, which includes a salary increase for teacher with less than three years’ experience, along with other staff.

In this example, the district is $81,600 to the negative. With staff turnover during the school year, that deficit may change or even result in a surplus, depending on how long positions remain open. With total salaries in these categories of an estimated $21,000,000, savings from turnover and vacant positions of $81,600 is reasonable and may not require you to recalculate.

TEA has not released rules related to compliance in this area, so I recommend that a district ensure they spend the allocated amount on salaries for these employees.

Fixed Cost Allotment

The bill provides for an increased fixed cost allotment for utilities, transportation, fees for hiring retired teachers, health insurance premiums, and other employee benefits. This increase will help address the inflationary prices that have impacted the cost of these services.

In HB 2, the increase comes from allocating $106 per enrolled student, which is a departure from the typical ADA-based calculations. The accuracy of your projected increase will depend on how accurately you can estimate not only enrollment but attendance.

One way to estimate is to refer to the number you have for your current school year. Then, consider whether the number should be adjusted based on whether your district is growing or shrinking. You may also consult with a demographer to estimate this number going forward.

Here’s an example of the calculation using our sample district numbers from above.

Basic Student Allotment Increase

The final major increase from HB 2 includes a $55 increase in the basic allotment per weighted average daily attendance (WADA). Let’s take a look on how this impacts our sample district.

The Bottom Line

Taking this increase in the basic student allotment and adding the increase in fixed cost allotment, state revenue for our sample district increases by $1,398,000.  It is important to note that any changes in local values will impact state revenue. Make sure you review the information you receive from the CAD to populate your templates.  

Given an estimated total budget (net of salaries) of a district this size is anywhere from $45 million to $55 million, this increase is approximately 2.8 percent of your total budget to cover ordinary expenses.

For many districts, a 2.8 percent increase is critical to ongoing financial stability, however, HB 2 does little to solve the financial pressures faced by many districts.

My advice is to be cautious in allocating these increased allotments, as inflationary pressures are expected to continue and it’s difficult to predict the timing of any future M&O expense increase. Some financially strapped districts will face tough decisions, such as closing schools and reducing programs.

Other Provisions in HB 2

The remaining provisions in HB 2 that will impact your budget are not as significant as the items explained above. TEA soon will release templates that contain the calculations to determine state aid. Some of these provisions require increased spending in specific categories.

Other funding elements include:

• $677 million for early learning programs
• $430 million in additional school safety funding to increase the per-student allotment from $10 to $20 and to increase the per-campus allotment from $15,000 to $33,540 
• $850 million increase for special education to include a move to an intensity-based model of funding
• $300 million for an increase to the small- and mid-size school allotment
• $153 million for career and technical education
• $135 million for teacher preparation and certification initiatives, as the bill requires that all teachers in foundation courses will need to be certified by the 2029-30 school year

Next Steps to Develop a Budget

Work your template and, if possible, have someone else work the template or review your calculations.

1. Understand the provisions of HB 2 and be ready to explain the impact to your board and community. They should understand how the new legislation impacts the budget – and what issues it leaves unresolved.
2. Ensure compliance with the requirements, specifically those that target certain categories of expenditures. 
3. Model your salary calculations in multiple ways as personnel costs are critical to the budget. Gather information on retirements or resignations as soon as possible, which may impact the experience level for teacher raises.

In addition to HB 2, the legislature passed many other new laws that will impact school districts. Most of them will impact your board policy, while others may impact budget allocations. We’ll provide a more in depth look at these new laws in our legislative roadshow. Contact Pete Slover or Katy Estrada for additional details on those events.  

Consistent with previous years, this is going to be a difficult year to develop a budget with the addition calculation complexities and category requirements. If I can help in any way, please send me an email. We are here to assist with questions.

Jim Schiele is Linebarger’s School Financial Consultant. He offers free assistance to Linebarger school district clients as they navigate budgets and meet financial deadlines. He can be reached at jim.schiele@lgbs.com.

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