HB64 TPP Supplement
Am. Sub. H. B. 64 provides that no city, exempted village and local school district should receive less in FY16 than it did in FY15 in terms of total state education aid plus any current expense reimbursement for TPP phase-out and/or public utility deregulation. For districts whose sum total in FY16 amounts to less than their sum total in FY15, TPP Supplement is calculated by subtracting the sum total for FY16 from the sum total for FY15.
Since the calculation of the supplement in FY16 is predicated on FY15 and FY16 state education aid and the calculation of this aid for these years is a function of various data elements and factors that are still subject to change and in some cases may not finalize until months after the end of FY16, a finalized calculation of the supplement would have had to be postponed to long after the end of the fiscal year.
In order not to delay the distribution of this fund to recipient districts, we initiated the calculation in April 2016 based on semi-finalized data extracted from the FY15 Final #3 and FY16 April #1 payment files. At that point we distributed 80% of the calculated amount and left the remaining 20% to be used as a funding cushion for future data updates that could result in recapture of funds. In this manner, rather than having to take money back for overpayments upon the recalculation of the supplement, we simply adjust the 20% undistributed portion of the payment. In this manner we reduce the chances of having to recapture funds for overpayment.
With the FY15 Final #4 and the FY16 Final #2 payment files (most recent files as of the date of this report) and in view of the fact that many districts have expressed a desire to receive the remainder of their supplement sooner rather than later, we decided to run the calculation of the FY16 supplement based on these two files to determine the positive and negative adjustments that need to be applied to the initial calculation.
The spreadsheet contained here provides the details of the FY16 calculation of the TPP supplement. There are two worksheets in this file. The first one labeled ‘Revised Calculation’ has the latest calculation of the fund. In this worksheet, the figures in columns ‘D’ and ‘E’ reflect the sum total of the state education aid and any current expense TPP/Deregulation reimbursement as the titles indicate. The figure in column ‘F’ shows the positive difference between the amounts in the previous columns; it is the amount of the supplement. The figure in column ‘G’ shows the initial distribution eligible districts have received at the time of the initial calculation and the figure in column ‘H’ shows the positive or negative adjustments resulting from the update of the data. Column ‘I’ simply counts the number of the eligible districts for this supplement calculated based on the recent calculation.
The second worksheet shows the step-by-step calculation of the initial supplement that was calculated in April 2015 and 80% of that calculation which was distributed at the time.
Please keep in mind that TPP Supplement is different from the reimbursements for TPP phase-out or the public utility Deregulation. The calculation of this supplement does not affect the calculation of the reimbursements that are distributed in November and May of each fiscal year. Also, TPP Supplement receipt is unrestricted fund that could be deposited in the district’s GRF.
Direct your questions to Daria Shams Daria.Shams@education.ohio.gov.
Last Modified: 3/28/2023 2:26:34 PM