Regardless of any applicable credits, a district identified as subject to the provisions of TEC, Chapter 41, must exercise one or more of the available options to reduce wealth to ensure that wealth will be properly equalized. For each year in which one or more options to equalize wealth is exercised, the commissioner determines the cost and the associated cycle. Such discounts may be obtained for certain programs approved by the commissioner and described in the wealth equalization handbook published yearly by the commissioner. This paragraph is effective for the 1999-2000 school year and expires on September 1, 2001. Written documentation must be provided to the commissioner to verify the total tuition paid and the amount per student.
Any amount earned by a district is deducted as a credit against the amount owed to equalize wealth.
If a credit exceeds an amount owed, the difference is paid to the district. A final settle-up will be made during September of the following year. Initially, the cost to equalize wealth is projected by the commissioner based on estimates of the district's WADA for TEC, Chapter 41, and expected tax collections. For districts exercising Option 3 or 4, the cost estimate may be updated by the commissioner periodically throughout the year. For Options 3 and 4, the final cost to equalize wealth is determined by the commissioner when audited tax collections and data elements for the calculation of WADA for TEC, Chapter 41, are final and available, after the close of business for the school year.