1. (a) Equitable funding formula. As authorized by the Texas Education Code (TEC), §33.156, the Texas Education Agency (TEA) shall establish the funding of local Communities In Schools (CIS) programs in accordance with this section. State and federal funds remaining after allocations described in subsection (c)(1) of this section shall be allocated to local CIS programs.

2. (b) Developing programs.

   1. (1) A developing program shall receive a funding amount each year for no more than four years, including the first-year start up funding.
   2. (2) A developing program that has met all the requirements for establishing a local CIS program before the fourth year may request to be considered as a local CIS program for funding determined under subsection (c)(2) of this section if approved by the TEA.

3. (c) Allocation.

   1. (1) Annually, after federal and state funds for the CIS program have been set aside for administration, no more than 10% may be allocated for the following:

      1. (A) CIS database development and maintenance;
      2. (B) competitive grant opportunities for special initiatives in accordance with subsection (e)(2) of this section; and
      3. (C) state leadership activities benefitting local CIS programs in accordance with §89.1509(c) of this title (relating to Other Provisions).

   2. (2) Local CIS programs shall receive a funding amount each year to be allocated based on the following criteria:

      1. (A) an equal base amount of funds, as determined by the TEA;
      2. (B) no less than 50% nor more than 80% of the specified funding amount based on the relative proportion of the number of case-managed students to be served by each local CIS program to the total number of case-managed students to be served by all local CIS programs;
      3. (C) no more than 25% of the specified funding amount based on performance benchmarks, as determined by the TEA; and

      4. (D) no less than 5.0% nor more than 15% of the specified funding amount based on the weighted financial resources of the individual communities and school districts, if less than the average financial resources of all school districts participating in the program.

         1. (i) Data elements used for calculation of the financial resources allocation. Weighted financial resources will be determined using the following data elements for the first year of the preceding biennium:

            1. (I) taxable property values determined in accordance with Government Code, Chapter 403, Subchapter M, for school districts listed in each program's current grant application;
            2. (II) weighted average daily attendance (WADA), as reported by the school districts and verified by the TEA, in school districts listed in each program's current grant application; and
            3. (III) the number of eligible students at the campus level, as reported by the school districts and verified by the TEA, in school districts listed in each program's current grant application.

         2. (ii) Method used for calculation of the weighted financial resources. Weighted financial resources of a local CIS program are calculated in the following way.

            1. (I) The weighted average taxable property value per WADA (wealth per WADA) for all local CIS programs is determined by first multiplying the wealth per WADA for each district within the CIS program by the district's WADA, summing the results for all districts, and then dividing the resulting sum by the total WADA in the CIS program.
            2. (II) The average wealth per WADA for all CIS programs is then calculated.

            3. (III) A local CIS program with a below-average wealth per WADA receives weighted financial resources. The weighted financial resources for a local CIS program with a below-average wealth per WADA are calculated as follows.

               (-a-) The weighted eligible students number is derived by dividing the eligible students number by the ratio of the local CIS program's wealth per WADA to the average program wealth per WADA.

               (-b-) The weighted eligible students numbers for all programs with a below-average wealth per WADA are summed.

               (-c-) The ratio of each individual program's weighted eligible students to the total weighted eligible students is applied to the total amount allocated for the financial resources allocation. This amount forms the program's financial resources allocation.

   3. (3) The TEA may choose, for the purpose of minimizing disruption in services as a result of changes in funding allocation, to limit the annual amount of changes in funding allocation from one biennium to the next. This may include limiting the increase or decrease from the prior-year funding to an amount no more than 25% of the change produced by the provisions of this subsection and/or by establishing minimum and maximum funding amounts.
   4. (4) If there is no increase in the funds appropriated by the General Appropriations Act for the state CIS program, the TEA may choose to maintain CIS program funding allocations at the current level.
   5. (5) If there is a decrease in the funds appropriated by the General Appropriations Act for the state CIS program, each local CIS program's allocation may be reduced proportionally.
   6. (6) If a local CIS program declines to accept allocated grant funds, the TEA may competitively redistribute grant funding among participating local CIS programs.
   7. (7) The TEA may reallocate any funding not used in the first year of the biennium to the second year of the biennium.

4. (d) CIS program replication and expansion. Should the legislature authorize an increase in the funds appropriated for the state CIS program or should funds become available because of loss of program funding or grant revocation, the TEA may designate an amount of the increase to be reserved for replication and/or expansion.

   1. (1) Replication. The TEA may determine and retain a funding amount for replication of the CIS program in areas of the state that are not served by a participating CIS program. Replication funds may be made available through a competitive request for application process or through any other process the TEA deems necessary. First-year replication funding may be a one-time planning grant for the development of a business plan. Any funds not used for replication may be used for expansion.

   2. (2) Expansion. The TEA may determine and retain a funding amount for expansion of the CIS program using any one or a combination of the funding methods specified in subparagraphs (A)-(D) of this paragraph, in addition to allocation of funds in accordance with subsection (c)(2)(A), (C), and (D) of this section. Funds allocated for expansion will become part of the funding allocation.

      1. (A) Proportion of eligible students. An amount determined by the TEA may be distributed to each local CIS program based on the relative proportion of the number of eligible students attending school districts served by the respective program to the number of eligible students in all districts served by the CIS program. Funds provided to local programs for expansion must be used to serve the district(s) for which the program received expansion funding.
      2. (B) Proportion of total case-managed students. An amount determined by the TEA may be distributed to each local CIS program based on the relative proportion of the number of case-managed students as identified in the current year's grant application for each local CIS program to the total number of case-managed students for all CIS programs.
      3. (C) Program allocation. An amount determined by the TEA may be distributed to each local CIS program based on the ratio of the total amount of grant funding allocated to the local CIS program to the total amount of grant funding allocated to all local CIS programs.
      4. (D) Competitive process. Funds may be distributed through a competitive request for application process.
      5. (E) Decline of expansion funds. If a local CIS program declines to accept grant funds for the expansion of a program, the total amount of grant funding available for expansion will be redistributed in accordance with this paragraph among local CIS programs participating in expansion activities.

5. (e) Availability of additional funding opportunities. Pursuant to the TEC, §33.154(a)(7)(C), the TEA will make available to local CIS programs and developing programs information regarding state and federal grant opportunities.

   1. (1) Other funding. Should other funding sources become available for CIS, these funds may be made available for replication, expansion, and/or special initiatives and allocated through such processes as the TEA deems appropriate to include the funding methods in subsection (d) of this section.
   2. (2) Special initiatives. If the TEA partners or contracts with other agencies or entities to implement special initiatives, activities, or programs that support dropout prevention efforts, local CIS programs will have the discretion of whether to participate in the special initiatives. Selection of local CIS programs for participation may be determined by the TEA and the partner, or contractor, depending on the variables of the initiative. Notwithstanding funds appropriated by the General Appropriations Act for the state CIS program, the TEA may designate no more than 10% for competitive grant opportunities for special initiatives in accordance with subsection (c)(1)(B) of this section.
6. (f) Funding plan. Each local CIS program shall develop a funding plan addressing the local, state, and federal resources available to ensure that the level of service is maintained and describing how those resources will be coordinated to continue delivery of CIS services in the region if state funding is reduced.

Source Note:The provisions of this §89.1503 adopted to be effective February 26, 2009, 34 TexReg 1237; amended to be effective December 27, 2011, 36 TexReg 8820.