Board Agenda - November 07, 2006

IX. Contract for the Education of Non-resident Students under Chapter 41

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: 10 minutes

Description:

A. Approval of contracts with partner districts B. Approval of memorandum of agreement for cash flow The Contracts submitted for the Education of Non-Resident Students are made and entered into by and between the Plano Independent School District and the Partner Districts pursuant to the Texas Education Code, Chapter 41, Subchapters A, D, and E and rules adopted by the Commissioner of Education as authorized by Section 41.006, Texas Education Code. The primary purpose of these Contracts is to reduce PISD's wealth per weighted student in average daily attendance ("WADA") to the statutorily required wealth level as established by the Texas Education Code, Section 41.002.

Due to HB1 and new legislation, the District is limited in the number of Chapter 41 contracts that are available between partner districts. In August, the Board approved a combination of Option 3 and Option 4 payments that have been approved by TEA. By entering into the Option 4 contract agreements with partner districts, the District will save $504,677. Also, due to new legislation, the profits partner districts make must be sent to the State or a Regional Education Service Center. Therefore, all the submitted partner district contracts will be managed and facilitated by the Region 8 ESC. A Memorandum of Cash Flow Agreement is necessary to comply with this requirement.

Below are the attachments that identify the Education of Non-Resident Students Under Chapter 41 for the 2006-07 school year.

A  -  Summary of Option 3 and Option 4 Contracts
B -  Sample Contract with Partner District
C-  Sample Memorandum of Cash Flow Agreement

The Contracts are effective on September 1, 2006 and expire on August 31, 2007. The Contracts shall be in effect only after approval by the Boards of Trustees of both the PISD and the Partner, and approval as to form by the Texas Commissioner of Education.

Copies of Contracts are available for public review in the Business Services Department.

Recommendation:

The administration recommends that the Board approve the Contracts for the Education of Non-Resident Students between Plano ISD and the Partner Districts as submitted for the school year 2006-07 and the corresponding Memorandum of Cash Flow Agreement.

Business Impact:

Estimated Value: $15,190,248 WADA Cost
Budget/Financial Implications: Budgeted General Operation Fund

Summary:

Appendix:

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