1. (a) The Coordinating Board determines allocations for the TEG Program on an annual basis as follows:

   1. (1) The Coordinating Board will invite eligible institutions to participate; those choosing not to participate will be left out of the calculations for the relevant year.

   2. (2) The allocation share for each institution choosing to participate will be its three-year average share of the total statewide amount of the total amount of TEG funds that eligible students at an approved institution could receive if the program were fully funded, subject to the limits in Texas Education Code, §61.227(c) and (e), based on the students who met the following criteria:

      1. (A) Enrollment on at least a three-quarter-time basis;
      2. (B) A Student Aid Index, calculated using federal methodology, that results in demonstrated Adjusted Gross Need greater than zero;
      3. (C) Maintain satisfactory academic progress in his or her program of study as required by §22.24(a)(3) of this subchapter (relating to Eligible Students);
      4. (D) Classified as a Resident of Texas;
      5. (E) Be enrolled in an approved institution in an individual degree plan leading to a first associate degree, first baccalaureate degree, first master's degree, first professional degree, or first doctoral degree;
      6. (F) Be required to pay more tuition than is required at a comparable public college or university and be charged no less than the tuition required of all similarly situated students at the institution; and
      7. (G) Not be a recipient of any form of athletic scholarship.
   3. (3) The source of data used for the allocations are the three most recently certified Financial Aid Database (FADS) reports submitted to the Coordinating Board by the institutions.
   4. (4) A student's TEG need may not exceed the least of his or her adjusted gross need, tuition differential, or the TEG maximum award as set in accordance with Texas Education Code, §61.227(c).
   5. (5) A student's exceptional TEG need plus TEG need may not exceed the least of the student's adjusted gross need, tuition differential or 150 percent of the current year's statutory TEG maximum award as set in accordance with Texas Education Code, §61.227(c).
   6. (6) The maximum amount of need that may be recorded for any single student in the allocation calculation may not exceed the sum of his or her TEG need plus his or her exceptional TEG need.
   7. (7) The total amount allocated for an institution may not exceed the sum of the individual maximum amount of need for all students calculated using the sources of data outlined in paragraph (3) of this subsection.
   8. (8) Verification of Data. The Coordinating Board will provide the TEG allocation spreadsheet to the institutions for review and the institutions will be given 10 business days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the spreadsheet accurately reflects the data they submitted or to advise the Coordinating Board of any inaccuracies.
   9. (9) The Coordinating Board will complete allocations for both years of the state appropriations' biennium at the same time. For the allocations process of the second year of the state appropriations' biennium, the sources of data outlined in paragraph (3) of this subsection will be utilized to forecast an additional year of data. This additional year of data, in combination with the two most recent years outlined in paragraph (3) of this subsection, will be utilized to calculate the three-year average share outlined in paragraph (2) of this subsection. Institutions will receive notification of their allocations for both years of the biennium at the same time.

2. (b) Reductions in Funding.

   1. (1) If annual funding for the program is reduced after the start of a fiscal year, the Coordinating Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.
   2. (2) If annual funding for the program is reduced prior to the start of a fiscal year, the Coordinating Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.

Source Note:The provisions of this §22.29 adopted to be effective November 29, 2010, 35 TexReg 10503; amended to be effective March 4, 2014, 39 TexReg 1366; amended to be effective March 4, 2015, 40 TexReg 925, amended to be effective February 22, 2017, 42 TexReg 686; amended to be effective November 29, 2017, 42 TexReg 6625; amended to be effective August 27, 2018, 43 TexReg 5505; amended to be effective May 18, 2023, 48 TexReg 2500; amended to be effective May 15, 2025, 50 TexReg 2789.