This entry is recorded for purposes of Exhibit A-3 only if the underfunded amount is to be collected subsequent to the 60 day requirement. According to GAAP, school districts that have received more FSP funds than they have earned must record the excess as deferred revenue. Exhibit 16 shows the entry to defer FSP revenue at the end of the fiscal year. This law placed a limit on the amount of wealth a school district may have per student for foundation fund purposes. The recaptured revenues are used to help fund the Foundation School Program across the state.
School Districts can use a combination of the options if they so choose.
The boards of trustees of two or more school districts may agree to establish a consolidated school district to reduce the wealth per WADA to an acceptable level. The consolidated school districts need not be contiguous. In addition, the agreement should be consistent with rules found in Subchapter D, Chapter 13, Texas Education Code . Accounting treatments for the Chapter 41 consolidation of school districts are the same as for any other consolidation of school districts. By agreement, budget balanced school districts may opt to detach property and have it annexed by a school district whose wealth is below the equalized level.