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CTE Shell 2 - CTE Funding + Finance

 

Tier 1: Funding & Finance

  • State Allotment (PIC 22): Deep dives into weighted funding (1.1, 1.28, 1.47), the 55% rule, and allowable cost guidance.

  • Perkins V & SSA: Documentation for districts in the Shared Services Arrangement, grant application timelines, and EDGAR compliance.

  • Legislative Updates: Dedicated section for HB 2 implementation and state budget shifts.

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CTE Funding + Finance

Effective CTE funding for districts requires more than just a formula; it requires alignment. Stay ahead of HB 2 updates and federal Perkins V requirements by leveraging resources designed to synchronize your program goals with district financial operations. Vital resources districts should access are under Additional Funding Resources.

 

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State Allotment (PIC 22)

CTE Weighted Funding

The 87th Texas Legislature passed HB 1525, which amends state law realted 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

Tip: Funding is calculated per Contact Hour. 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.

 

 

 

 

Perkins V + SSA

 

 

 

 

Funding Opportunities

 

2025-2026 Summer CTE Grant

The 2025-2026 Summer CTE Grant is designed to support the expansion of Career and Technical Education (CTE) and Work-Based Learning (WBL) opportunities during the summer. This funding helps remove common barriers, ensuring more students can access meaningful career pathways. The 2025-2026 Summer Career and Technical Education Grant is available on the TEA Grant Opportunities webpage. Additional details can be found in the Program Guidelines.

📅 Application Window: November 17, 2025 - January 13, 2026

📅Grant Period: June 30, 2026 through September 30, 2026 (if funded)

🎯 Grant Purpose: Breaking Down Barriers

This grant provides support to local education agencies (LEAs) to offer students access to career preparation through summer CTE programs and work-based learning experiences. The grant is designed to promote the implementation of high-quality programs of study and work-based learning opportunities aligned to labor market demands. The funding is specifically intended to remove potential needs or gaps in providing summer CTE and WBL opportunities. These needs often include:

  • Transportation

  • Student scheduling constraints

  • Certified teacher availability

  • Addressing local industry needs

 

 

 

 

Additional Funding Resources

  • 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 Career and Technical Education Allotment & Perkins V Guidance

    This is the primary source for the "weights" that determine your budget. Texas uses a tiered funding system where different courses receive different levels of extra funding based on their complexity and alignment with high-demand careers.

    • The State Allotment: Explains the current weights (e.g., 1.1 for basic CTE courses, 1.28 for Level 1 & 2 courses in a program of study, and 1.47 for Level 3 & 4 courses). It also includes information on the $150 per student bonus for P-TECH campuses.
    • Perkins V: Provides the federal grant guidelines (The Comprehensive Local Needs Assessment or CLNA) required to access federal money.