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IMPACT AID: OVERVIEW AND BASICS

IMPACT AID: OVERVIEW AND BASICS. NCIS CONFERENCE April – 2010 Robert Edmonson Executive Director Business Services Copperas Cove ISD. The Answers To Such Questions As:. WHAT IS FEDERAL IMPACTION? WHAT IS IMPACT AID? WHY IS THERE AN IMPACT AID PROGRAM?

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IMPACT AID: OVERVIEW AND BASICS

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  1. IMPACT AID:OVERVIEW AND BASICS NCIS CONFERENCE April – 2010 Robert Edmonson Executive Director Business Services Copperas Cove ISD

  2. The Answers To Such Questions As: • WHAT IS FEDERAL IMPACTION? • WHAT IS IMPACT AID? • WHY IS THERE AN IMPACT AID PROGRAM? • WHAT ARE THE MAJOR PROVISIONS OF THE LAW? • HOW DO SCHOOLS GET THE MONEY? • WHAT ARE THE PAYMENTS BASED UPON? • HOW IS “NEED” DETERMINED? • HOW IS A DISTRICT’S PAYMENT COMPUTED?

  3. WHAT IS FEDERAL IMPACTION? • Military Base • Indian Trust or Treaty Land • Federal Low Rent Housing Project • Civil Service (Government) Activities • VA Hospitals • Federal Prisons • Federal Parks • Federal Office Buildings • Soldiers and Sailors Relief Act • Exemption from state/local taxes

  4. WHAT IS THE EFFECT OF FEDERAL IMPACTION ON LOCAL SCHOOLS? • Non-local students brought into the area; and • Due to Non-taxable status of federal land, the ability of the school to raise revenue is reduced • Federal ownership of homes • Federal ownership of places of work • Indian Trust and Treaty lands • Due to Soldiers and Sailors Relief Act, military personnel may be exempted from vehicle/personal property taxes

  5. Generally, schools have three sources of revenue: • State Aid amounts to about 50% of revenue • Taxes on local business/industries amount to about 25% of revenue • Taxes on local homes and vehicles amount to about 25% of revenue Federal Activities IMPACT two of these three sources

  6. A Federal Financial Impact?

  7. WHAT IS IMPACT AID?To make up for this negative federal impact, • In 1950, Congress passed Impact Aid • PL 81-874 (operations) • PL 81-815 (facilities) • Impact Aid is the ORIGINAL Federal Education Program • Title I, IDEA, etc. were all amendments to the Impact Aid law • Impact Aid was the vehicle to get the ESEA put into law • Major changes in the 1994 Reauthorization • Last reauthorization 2002; now referred to as Title VIII of PL 107-110

  8. Impact Aid is a UNIQUE Federal Education Program • Impact Aid goes straight to the LEAs, no state rake-off • Impact Aid is SUPPLANT, not supplement • By Federal law, states can NOT consider IA when calculating the amount of state aid • Exception: EQUALIZATION!!!!!!! (more later on this)

  9. Impact Aid has always been flexible with local control IA is one of the ONLY federal education programs that sends funds directly to the school district, thus there are few strings and little bureaucracy The funds are used for the benefit of all students in the district There is no “rake off” by the states to fund bureaucrats Most Impact Aid goes into the General Fund May be used as the local school decides May be used for any legal purpose under state law SUPPLANT, SUPPLANT, SUPPLANT

  10. REVIEW Impact Aid is the “umbrella program” that provides financial assistance to schools that are impacted by federal activities. These federal activities include: • Federal ownership of land (removing it from the tax rolls); and/or • Bringing additional students into the area that the school is required to educate DO MORE WITH LESS

  11. Impact Aid Has Five Different “Pots of Money” • § 8002- FEDERAL PROPERTYpayments to LEAs with a large percentage of federal property • § 8003 (b)- BASIC SUPPORTpayments for federal students • § 8003 (d)- DISABILITYpayments for federal students who have disabilities (SPED) • § 8007- CONSTRUCTIONpayments to heavily impacted LEAs for capital/construction needs • § 8008- DoED FACILITIESpayments to LEAs to maintain facilities owned by DoED

  12. Impact Aid is one of the largest federal education programs. In FY 2010, the total appropriation for Impact Aid is $1,276,183,000

  13. Most of the Impact Aid Appropriations are in § 8003

  14. § 8002 pays for LAND • Acquired by federal government since 1938; and • Not acquired by exchange for other federal property; and • Assessed valuation of property is at least 10% of the total district valuation when the property was acquired; and • The school is not receiving substantial increases in revenues from federal activities on the property.

  15. § 8002 pays for LAND • Local assessor determines the “highest and best use” of adjacent non-federal property and uses this to “value” the federal property • School district’s tax rate multiplied by the estimated valuation of the federal property to determine maximum payment • Insufficient appropriations to pay for maximum payment, so “waive payments” are used to prorate the payments to the need.

  16. § 8003 pays for STUDENTSWho are the federal students? • Military • Indian Trust and Treaty Lands • Civil Service employees • Low Rent Housing Students • Others who work on federal land A district may have only one type of federal student or they may have all types.

  17. Challenges and Changes in Impact Aid • Impact Aid has not received sufficient appropriations (not enough money) • Impact Aid is the ONLY major federal education program that is NOT “forward funded” (delayed payments, difficulty budgeting and accounting for) • Impact Aid has seen massive demographic changes in the last 15 years due to BRAC, Iraq, other deployments, NCLB AYP requirements, and even welfare reform (fewer federal students)

  18. Demographic changes have been massive across the nation. • In 1994, there were 2,454 LEAs getting §8003 funds • In 2010, there are only 1,211 LEAs still receiving these funds (including all the new Charter schools) • 51% decrease!

  19. Nationally, there are fewer and fewer federal students reported each year. • Nationally, there were 1,768,222 federal students in 1994. • By 2010, there were only 935,527 • This is a drop of 48%

  20. Nationally, the decreases in the number of federal students seem to be accelerating in the last few years.

  21. How have the types of students changed nationally since 1994? • Almost 196,000 military students (36% drop) (Military on-Base -92,000 or -47%; Military off-Base -103,000 or -29%) • Almost 274,000 Low Rent Housing students (53% drop) • Over 381,000 Civilian students (64% drop) • About 8,900 Indian Lands students (7% drop)

  22. Changes in the last 6 years…..

  23. Changes in the last 6 years…..

  24. HOW MANY FEDERAL KIDS ARE WE TALKING ABOUT NOW? About 935,500 Nation-wide

  25. HOW DO I GET THE MOST FOR MY DISTRICT? • Know the LAW • Become familiar with REGULATIONS • Implement proven PROCEDURES • DO THE MATH!!!!!!!!!!!!!!! • Use contacts with the community (NETWORK) • Use contacts with DoED!!!!!!!!!! • Use “The Hill” (only in case of emergency)

  26. Maximizing § 8003 Impact Aid FundsWhat’s The Process? What Are The Steps?HOW DO WE GET PAID? Since §8003 pays for Federal Students, we have to count them and send the count into DoED • The count is the STUDENT SURVEY • Sending the count in to DoED is the APPLICATION

  27. STUDENT SURVEY • The count of different types of federal students enrolled in the school district • Required every year • The survey date is chosen by the district • At least three days after start of school; but before January 31 • Results of survey will be put on the application sent to DC

  28. Hints for the Student Survey • Pick a day with the highest FEDERAL enrollment • Early in the week (Monday)..NEVER a Friday • Preferably in the latter part of the month • One person in charge district-wide; campus coordinators at each campus • Training • Data support (enrollment lists, friendly forms, etc.)

  29. Student Survey Two methods may be used to gather the information • A Student Survey Forms--signed by the parent • A Source Checks--signed by the school and the appropriate agency (Tribal official, Housing officer, Housing Authority Director, etc) School districts may use either of these methodologies or may use both!

  30. Student Survey Survey Forms--signed by the parent • Student’s name, address, birth date, grade, school, teacher, parent’s name • If living on federal property --the name of the property • If parent is military--the name, rank, and branch of service of the parent • If parent is civilian working on federal property--the name, address of federal property, employer • Must be dated and signed by the parent on or after the official survey date

  31. Student Survey Source Checks--certification of federal students for each federal property claimed • Signed by the school and the federal property official….not signed by the parent • Same information required for each federal student • School official signs that the info on grade, school, teacher, birthday for all listed students is correct as of the survey date • Federal property official signs that information on residence, military status, employment info is correct as of the survey date

  32. Student Survey For every federal student claimed, you need to have either: • Student survey form signed and dated by the parent on or after the survey date OR • Source check listing the student signed and dated by the federal property official on or after the survey date Or you can have both!!

  33. The results (numbers and types of federal kids) from the survey will be put on the application These numbers of kids will determine the amount of funding the district receives from: • § 8003 (b)(1) Basic Support • § 8003 (b)(2) Heavy Impact (3 yrs) • § 8003 (d) Disability • § 8007 Construction

  34. Types of Federal Students • SPED living on Indian Lands(Indian A SPED) • SPED Military living on other Federal property (US and Foreign)(Mil A SPED) • SPED Military not living on Federal (US and Foreign)(Mil B SPED) • Non-SPED living on Indian Lands(Indian A) • Non-SPED Military living on other federal property (US and Foreign)(Mil A) • Non-SPED Military not living on federal property (US and Foreign)(Mil B) • Civilian living on Federal property in the SD and parents work on federal property(Civ A) • Civilian living in federal LRH project in the SD(LRH B) • Civilian not living on federal property, but parents work on federal property in the state(Civ B)

  35. HINTS ON FEDERAL STATUS • Military does NOT include Reserves (unless they were on ACTIVE DUTY on the Survey Day) • Military does NOT include National Guard (unless they had been FEDERALIZED on the Survey Day….National Guard is a STATE, not Federal agency) • Post Offices do NOT count as Federal Property (unless located in Federal Building or on military base) • Indian Lands MUST be Trust or Treaty Lands (some areas of Reservations have been sold off or are taxable) • Low Rent Housing ONLY counts if it is a Federal Project (State or Local Housing Areas do not count)

  36. Survey results for the Application Have all survey forms turned in from each campus. Forms divided into SPED and Non-SPED Check off from master enrollment list (will indicate what forms are missing) Begin checking the forms and dividing them out into groups

  37. Survey results for the Application….specifics!!What do we do now? Use any source checks to double-check the survey forms • If no forms for a student, are they on a source check? If so, we can count them! Sub-divide each of the groups by property Alphabetize by property within groups

  38. Survey results for the ApplicationWhat do we do now? • SPED Military on federal property Table 1 • SPED living on Indian Lands Table 1 • SPED Military off federal property Table 2 • non-SPED Military on fed propertyTable 3 • Civilians living & working on federal propertyTable 3 • non-SPED living on Indian Lands Table 3 • non-SPED Military off federal property Table 5 • non-Military in federal Low Rent Housing Table 4 • Civilians working on federal property Table 5

  39. Remember…… You can use the survey forms AND source checks for students without forms!

  40. SURVEY FORMS Military on Post 12 Military off Post 35 Low Rent Housing 25 Civ work only 25 97 No Survey TOTAL On Source + 2 = 14 + 1 = 36 + 3 = 28 + 5 = 30 + 11 = 108 Example:

  41. The survey is done and we have our count…now what? We have to turn our count into the DoED in the APPLICATION

  42. The Application • Required to be filed EVERY YEAR • Info from survey put into the application • Used to determine NEXT year’s money • Due to DoED and SEA by Jan 31 (normally) • 1 copy to DoED electronically; 1 copy to SEA • If late (up to 60 days), then 10% penalty to LEA • If more than 60 days late, then NO MONEY!!! • Signatures by Board Authorized Representative

  43. APPLICATION HINTS • Send all required data, signatures, and info • §8004—Indian Policies & Procedures (IPP) • Make sure the math adds up!!!!!!!! • E-Submissions are only way to file now • Keep several copies for your records • Read instructions • Call DoED if you have questions!!!!!!!!!!!

  44. Another Hint:Students may only be claimed once each year and listed only on one Table! Student living in a Federal Low Rent Housing Project on Indian lands whose father is active duty military and whose mother is a civilian who works on Federal Property A Student May Only Be Counted on One Table Each Year!!!!!!!!!!

  45. Other Tidbits About the Application Second Survey Date- • Allowed, but full survey/application procedures have to be done again • Results of Second survey averaged with the results of the Original survey Amendment- • Do ASAP!!!!!!! • Electronically is preferred • Letter and Tables being amended • Strike through and initial changes • Must be postmarked before September 30!!!

  46. TABLES 9 & 11HOUSING RENOVATION • Allows students that do not live on federal property to be counted as if they lived on federal property if the federal property is undergoing renovation • Applies to Indian Lands and Military • Renovation must be due to FEDERAL decision • Limit on number of students..must still be served by the LEA • Can be a LARGE FINANCIAL IMPACT!!!!

  47. Records and Information must be kept for 3 YEARS after final payment for that year (5 years)(Hint: In a fireproof vault) • Student survey forms (alpha by table and property) • Source Checks for each property • Student enrollment reports for LEA as a whole and by campus for the survey date • Copy of Board Minutes naming Authorized Rep • Previous Year’s IDEA count, audit, State Summary of Finance • BACK-UP for everything put into the application

  48. WHY? • Regulations require it • Field Reviews (AUDITS) • Results of these can either give more funds to the school or take them back

  49. The Process to Get Money Student Survey results from Fall, 2009 put onto Application sent to DoED in Jan, 2010 and this Determines Dollars for 2010-2011 school year APPLICATION IS IMPORTANT

  50. APPLICATION TO DOLLARSTHE FORMULA§ 8003 (b) BASIC SUPPORT • Student Numbers from Application converted to Average Daily Attendance (ADA-Fed definition) • ADA then multiplied by Federal Student weights--called Weighted Federal Student Units (WFSUs) • WFUs multiplied by Local Contribution Rate (LCR)---the dollar driver The result is the District’s Maximum Payment

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