Tiered Weighted Funding

The 87th Texas Legislature passed HB 1525, which amends state law related to weighted funding for students who take career and technical education (CTE) courses.  The legislation establishes that, beginning with the 2021-22 school year, for each full-time equivalent student in average daily attendance in an approved CTE program in grades 7 through 12, a district is entitled to weighted funding as follows:

• Tier 1: 1.1 for CTE courses not in an approved program of study;

• Tier 2: 1.28 for levels one and two CTE courses in an approved program of study, as identified by the agency; or

• Tier 3: 1.47 for levels three and four CTE courses in an approved program of study, as identified by the agency.

• Bonus: P-TECH or New Tech Network Campus Enrollment:   +$150/ADA

Contact Hours

 Funding is calculated per Contact Hour to determine FTEs. If a student is in a double-blocked (2-hour) Level 3 course, they generate significantly more revenue than a student in a single-period Level 1 course.

Attendance

The CTE Funding formula uses the average minutes a day a student attends the course.

In Texas school finance, the 55% Rule is a statutory requirement that dictates how much of the Career and Technical Education (CTE) Allotment must be spent on direct program costs. Essentially, for every dollar the state sends your district specifically for CTE, at least 55 cents must be reinvested directly into that program.

To comply with the rule, districts must distinguish between "Direct" expenditures (the 55%) and "Indirect" expenditures (the remaining 45%). 

The 55% (Direct Costs)

These are expenses that can be specifically linked to a CTE student’s classroom experience. In accounting terms, these are coded to Program Intent Code (PIC) 22.

• Teacher Salaries: The portion of a teacher’s salary spent teaching CTE-coded courses.

• Instructional Materials: Textbooks, software licenses, and consumable supplies used in labs.\

• Specialized Equipment: Welding rigs, culinary ovens, high-end computers for Graphic Design.

• Industry Certifications: Fees for student exams (e.g., AWS Welding, Adobe, CNA).

• Travel: Transporting students to competitions or work-based learning sites.

The 45% (Indirect Costs) 

The state allows the remaining 45% of the allotment to be used for general district overhead.

• Facilities & Utilities: Heating, lighting, and general maintenance of the school building.

• Central Administration: Salaries for the Superintendent, HR, or the Business Office.

• Security: Campus security officers and monitoring systems.

Commong Audit Pitfalls – Districts often fail the 55% rule not because they didn't spend the money, but because they documented it incorrectly:

Split-Funding Teachers: If a teacher spends 3 periods teaching Algebra (PIC 11) and 3 periods teaching Engineering (PIC 22), only 50% of their salary counts toward the 55% rule. If the district codes 100% of their salary to PIC 22, an auditor will flag it.

Mixed-Use Equipment: A computer lab used for both CTE and general "study hall" cannot be paid for 100% with CTE funds.

Under-utilizing PIC 22: Sometimes finance departments accidentally code CTE supplies to "General Instruction" (PIC 11), making the district look like it is underspending on its CTE program.

The transition from self-reported data to an autocoded course completion system reported in PEIMS became effective for the 2020-2021 school year. The Perkins V Indicator report is generated from this data set to measure the performance of CTE programs in Texas at the local and state levels. The following resources will provide local education agencies (LEA) and stakeholders with information on the new autocode system. LEAs interested in developing a local version of the CTE autocode system can access the technical documents at PEIMS Calculation Tipshttps://www.texasstudentdatasystem.org/tsds/education-data-warehouse/peims-calculations-tech-tips under CTE auto calculation.

Carl Perkins V Grant is a federal grant that requires districts to use the money to enhance and align current CTE programs with local workforce demands and improve student performance. Needs should be identified in the districts Comprehensive Local Needs Assessment every 2 years.

Grant may be used for:

• Resources for Labs and Classrooms
• PD for CTE Teachers
• Programs of Study Connected to Post-Secondary
• Career Exploration and Development

Perkins SSA Members Meeting Dates

• TBD

CTE Shared Service Agreement (SSA)

The Region 14 ESC serves as the fiscal agent for school districts within the region that are allocated less than $15,000 federal basic grant career and technical education funds. The consortium fiscal agent provides services to enable districts that would otherwise be ineligible to receive federal grant funds the opportunity to receive a prorate share of consortium funds. The primary functions of the fiscal agent are;

•  To assist in the organization of the consortium through consultation with local district administrators

•  Prepare the Career and Technical Education joint application

•  Negotiate with TEA in behalf of the consortium members

•  Prepare and file amendments as necessary

•  Represent the consortium at TEA meetings

•  Plan and conduct information meetings as needed

•  Assist local districts personnel in preparing and filing required reports,

•  Maintain financial accounting of all expenditures

The federal Perkins grant provides formula allocations for Local Education Agencies (LEA) to develop more fully the academic, technical, and employability skills of secondary education students who elect to enroll in CTE programs. LEA's must demonstrate that they are fulfilling requirements for uses of funds with the Perkins grant award or a combination of the Perkins grant award and other funds.  The link below includes a video series that provides resources to support LEAs with completing their Perkins local application of funds. 

Texas State Plan for Strengthening Career and Technical Education for the 21st Century Act ( Perkins V)

R-PEP State Initiative

TRPN/Summer Grant

Jet Grant

Dual Credit Equipment Grant

**Add links

Redirect to Data + Accountability Page

TEA Student Attendance Accounting Handbook (SAAH), Section 5

• The SAAH is the regulatory document for school funding. Section 5 is dedicated entirely to CTE. Since funding is based on "contact hours" (the amount of time a student spends in a CTE class), if you do not code your students correctly in your PEIMS system according to this handbook, you will lose money. 
•  What it covers: Rules for eligible days of attendance, how to calculate CTE full-time equivalents (FTEs), and documentation required for audits.
• Why it’s essential: It defines the technical requirements for how a district actually captures the weighted funding available for CTE courses.

TEA: Summary of Finances

PEIMS Calculations-Tech Tips TSDS (texasstudentdatasystems.org)