Published: yesterday
" To begin the new year, the Annual Transfer Exercise will launch on Thursday, January 1st, through April 15th, helping to reduce processors' overall inventories and state accounts. The Usage Analysis Exercise, which began on December 4, will conclude on Thursday, January 15.
- Glenda W
"
Annual Transfer Exercise - To begin the new year, the Annual Transfer Exercise will launch on Thursday, January 1st, through April 15th, helping to reduce processors' overall inventories and state accounts. This exercise occurs annually to alleviate excess inventory from processor and school district accounts by redistributing LBS for drawdown use. School districts requesting or transferring LBS will be conducted via SmartSheet starting Thursday, January 1, 2026.
The criteria require school districts to have a 1-month inventory or less. The request can be submitted up to 3 months in advance, based on the current average monthly usage, and must be delivered to their doorstep by June 30th, at the end of the program year. School districts listed on the Usage Analysis Exercise for no response / zero usage will not be eligible to participate in the transfer exercise.
Usage Analysis Exercise - Each school district was notified on December 4 of processor accounts showing usage below 20% or no usage. TDA requested that districts provide an explanation for the low usage, along with a usage plan, or indicate in the comment section how the account balance would be reduced before the end of the program year. The Usage Analysis Exercise, which began on December 4, will conclude on Thursday, January 15.
School districts that fail to respond / zero usage will be subject to inventory reductions. This year, accounts with usage below 20% will not be fully zeroed out. Instead, five months of inventory will remain in each affected account, calculated based on the account’s average monthly usage. Accounts with no usage and no response will be transferred to the state account. School districts from which inventory is removed will be ineligible or restricted from requesting the associated processor and material code combination during the January ordering season. Any inventory removed by TDA is considered a forfeiture of entitlement.
###