Tag Archives: recapture

Texas House committee begins school finance discussion

The House Public Education Committee met Tuesday to discuss school finance legislation, including the House’s priority school finance bill announced Monday by Chairman Dan Huberty (R-Houston). Underscoring the issue’s importance to the House, Speaker Joe Straus (R-San Antonio) greeted committee members shortly before the hearing began.

Speaker Joe Straus (R-San Antonio) expresses support to House Public Education Committee members taking up priority school finance legislation

Speaker Joe Straus (R-San Antonio) expresses support to House Public Education Committee members taking up priority school finance legislation

Unveiled Monday, House Bill 21 would be funded by a budget rider that would allow the basic allotment to be increased to $5,350 from $5,140 per student. The bill is anticipated to create new transportation funding at $125 per student through the basic allotment that would be open to recapture districts. HB 21 would roll both the high school allotment and the additional state aid for non-professional staff into the basic allotment. The bill would lower recapture by approximately $163 million in 2018 and $192 million in 2019, and create a hardship grant to assist districts that will lose money once ASATR expires. Additionally, HB 21 would add a 0.1 weight for students with dyslexia and repeal a hold harmless for districts identified as Chapter 41 in 1993. Model runs were posted Monday for 2018 and 2019.

With a fiscal note of $1.6 billion over the biennium, Huberty described the bill Tuesday as a “big lift.” If passed, it would mark the first time in decades that the Texas Legislature meaningfully addressed the school finance system without the threat of a court order.

Seven other bills were slated for hearing before HB 21. The first, HB 223 by state Rep. Donna Howard (D-Austin), would provide districts the option of providing childcare services or assistance with childcare expenses to students at risk of dropping out through the existing compensatory education allotment. Since the allotment provides a set amount of funding, the change would not fiscally impact the state.

HB 1245 by state Rep. Philip Cortez (D-San Antonio) would allow students to take CTE courses beginning in the eighth grade. By extending weighted funding to the middle school level from the high school level, the bill carries a fiscal note estimating expenses to the state of $39.7 million in 2018 and $50.6 million in 2019.

HB 395 by state Rep. Cecil Bell (R-Magnolia) would include technology applications courses, such as computer science, in weighted funding for CTE courses. The bill as filed carries a fiscal note of $21 million in 2018 and $23.7 million in 2019, but Bell suggested the committee substitute delaying implementation could result in no fiscal impact in 2018. Supporters testified the inclusion would eliminate confusion and provide districts slightly more room and flexibility in their budgeting.

HB 186 by vice-chair Diego Bernal (D-San Antonio) would order the Texas Education Agency (TEA) to conduct a study regarding the costs of educating educationally disadvantaged students and students of limited English proficiency. The study would determine whether the compensatory allotment and bilingual education allotment provide adequate funding to accomplish their intended purposes, and if not, how much additional funding is needed. Bernal argued Tuesday that the weights for each have not been adjusted since the 1980s, and achievement gaps remain between 18 percent and 27 percent.

ATPE lobbyist Monty Exter testified in support of the bill, citing research confirming the importance of investing adequate resources in order to achieve the best educational outcomes for both groups. ATPE expressed a desire to work with the committee to take steps toward increasing the weights this session.

HB 587 by state Rep. Dwayne Bohac (R-Houston) would create a new technology applications course allotment weighted at the same 1.35 multiplier as the CTE allotment. The bill is aimed to accomplish the same goal as HB 395 by Bell, and carries a similar fiscal note estimating a cost of $44.7 million over the biennium.

HB 883 by state Rep. Ken King (R-Canadian) would raise the adjusted basic allotment multiplier for CTE to 1.60 from 1.35. King explained funding has not caught up with expanded options for CTE courses and increasing technology expenses. According to the fiscal note, the change would cost the state an estimated $950 million over the biennium.

Huberty laid out HB 21 with a reference to the recent school finance lawsuit that reached the Texas Supreme Court, which upheld the current system despite heavily criticizing it. Regardless of the lawsuit, Huberty said, “Texans know that now is the time to help our students.”

After years of roughly splitting the cost of public education with local taxpayers, the state’s share of funding has dropped precipitously in recent years, and will sink to 39 percent in 2019 if nothing is done. Legislative budget writers have taken advantage of rising property values to decrease state spending. That means local taxpayers have shouldered an increasingly outsized share of the burden through increasingly burdensome property taxes.

Huberty explained HB 21 will reduce the need for higher property taxes and begin to reduce the amount of money taxpayers have to send away for recapture. The chairman described the hardship provision grant as a “glidepath” for districts that will lose ASATR funding. The grant would be capped at $100 million per school year for the state.

“We can’t fix the entire school finance system this year, but we can start trying,” Huberty said.

ATPE lobbyist Monty Exter testified in support of HB 21, emphasizing it is a “first step” in a more sweeping reform. ATPE advocated in favor of including language to study the weights, as well as increasing support for educators, particularly in terms of health care. ATPE recommended finding ways to increase funding for some of the larger statewide programs established in statute, such as pre-K and bilingual education, and cautioned against potential unintended consequences stemming from the changes to transportation funding.

After hearing several hours of testimony, Huberty notified the committee his intention to take the day’s recommendations under advisement and present a committee substitute at next week’s hearing, at which point HB 21 could be taken up for a vote.

The last bill of the day focused on extending ASATR. With ASATR scheduled to expire this year, HB 811 by King (R-Canadian) would extend ASATR through 2021 at an estimated cost of $402 million over the next two years. The funding would benefit some 160 school districts that continue to receive varying levels of funding, many of which warn of serious financial problems once the funding runs out.

All bills were left pending. The committee will resume discussion of school finance and other bills next Tuesday, when possible action is expected.

Huberty leads House committee in school finance talks, dismisses vouchers

The Texas House Public Education Committee met today, Feb. 28, to take up the weighty subject of school finance, which is a priority item for House leadership under Speaker Joe Straus (R-San Antonio). The lengthy hearing featured invited testimony from 24 witnesses, including state agencies, school districts and organizations focused on school finance.

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Dan Huberty

To kick off the hearing, Chairman Dan Huberty (R-Kingwood) rattled off a number of statistics related to public education.

The state added 69,175 students in fiscal year 2016, and is projected to add 75,824 students in 2017 and another 81,796 students in 2018. Out of 320 charters awarded by the state, 176 remain active while 144 have closed. A total of 241,336 students are enrolled in charter schools and 228,774 are enrolled in private schools.

Of the state’s 1,024 public school districts, 241 paid recapture for 2015. The Texas Education Agency (TEA) estimates 229 will pay recapture for 2016, and the number is expected to increase to 264 by 2019. In fiscal year 2016, 249 districts received Additional State Aid for Tax Reduction (ASATR) at a cost of $340 million. If ASATR is allowed to remain in effect, TEA estimates 156 districts would receive payments in fiscal year 2018 at a cost of $200-250 million.

A total of 156 bills have been referred to the House Public Education Committee thus far this session, and the committee anticipates receiving another 131 bills that have been filed and are awaiting referral. The House budget, House Bill (HB) 1, includes $44 billion in all funds for the Foundation School Program (FSP) for fiscal year 2017-18, including a $1.5 billion increase in public education funding contingent upon school finance reform.

Huberty at Tribune interview 02-28-17Before presiding over today’s committee hearing, Chairman Huberty participated in an early morning discussion hosted by the Texas Tribune and sponsored in part by ATPE. There, Huberty told Texas Tribune executive director Evan Smith that school finance reform could take two to three sessions to complete. He also confirmed the Senate’s voucher proposals are dead in the House. Huberty pointed out that Texas already has robust “school choice” in the form of charters, magnet schools, public school transfers, and other options. The chairman emphasized that handing out public tax dollars to private ventures without any accountability is at odds with conservative principles.

Committee testimony began Tuesday afternoon with a brief rundown of the laws and legal decisions impacting public education funding. For example, the Cost of Education Index (CEI) has not been significantly changed since 1990. Of critical relevance to school finance discussions, the Texas Constitution prohibits a statewide property tax. TEA general counsel Von Byer testified that while the state can rely on local property taxes to help fund schools, it can’t set up a system where the state directly controls that property tax.

House leaders have wisely pointed out the see-saw relationship between state and local funding for schools. As the share of public education funding provided by the state has steadily declined over the years, local property taxes have risen in order to make up the difference. Chairman Huberty repeatedly pointed out that meaningful property tax relief is necessarily contingent upon the state taking the burden back from local districts.

The majority of testimony focused on districts representing a variety of financial challenges. The committee heard from Dallas ISD, which is about to enter recapture while facing a concurrent drop in enrollment. The state’s largest district, Houston ISD, faces a looming $160 million recapture payment, despite serving a historically impoverished student population. The district has already cut $40 million of that from classrooms, including cuts to teachers, tutoring programs, nurses, librarians, social workers, and counselors.

Houston ISD recommended the committee increase the basic allotment, count full-day pre-K students in weighted average daily attendance (WADA), restore the transportation allotment for all Chapter 41 districts, include the homestead exemption in the school funding formula, and allow districts a mechanism to reattach real property detached by TEA in order to meet wealth equalization requirements.

Austin ISD, which is scheduled to pay the state’s largest recapture payment of $536 million next year, noted that the state relies on district recapture payments to reduce its funding responsibility by $2 billion. As property values and inflationary costs increase, the state – not districts – benefits. Austin ISD suggested lawmakers tie property value increases to an increase in the basic allotment, update the CEI, allow Chapter 41 districts to receive the transportation allotment, include full-day pre-K in WADA, and increase the number of “golden pennies” of taxing capacity exempt from recapture available for local districts.

Other district administrators testified regarding the myriad issues facing public schools, including rapid growth that in many cases outpaces available facilities funding, growing populations of students with special needs and English Language Learners, and an increasing proportion of low-income students locked in generational poverty.

HPE02-28-17Representing fast-growth school districts, Denton ISD superintendent Jamie Wilson recommended increasing funding under the New Instructional Facilities Allotment (NIFA), as well as options to provide more flexibility when it comes to setting local tax rates. The South Texas Association of Schools advised against structural changes to the school finance system, but encouraged lawmakers to allocate the additional $1.5 billion under HB 1 toward the basic allotment and commit to educational cost studies during the interim.

KIPP Public Charter Schools co-founder Mike Feinberg testified that public charter schools receive less per-pupil funding than traditional schools, which is often offset by fundraising, financing, or both. Feinberg fielded questions regarding student due process, the accuracy of much-touted wait list numbers, and the state’s liability for charters that have accessed bonds backed by public tax dollars. Huberty notably inquired how quickly charters would be able to expand if additional facilities funding were made available, and hinted at a role for future charters focused on special needs populations.

Gary VanDeaver

Gary VanDeaver

Rep. Gary VanDeaver (R-New Boston) inquired several times as to the effect on state funding if a student who is new to Texas were to choose a charter school as opposed to a traditional public school. The question received varying answers, with witnesses noting that funding levels vary from district to district.

Among those working on an overall plan to simplify the system, Ray Freeman with the Equity Center outlined a proposal to stabilize and streamline funding through a single-sentence formula. Pursuant to a system overhaul, Freeman indicated lawmakers may desire a transition plan funded through a budget line item.

Vice-chairman Diego Bernal (D-San Antonio) noted that as demographics shift and wealth inequality deepens, the “average student” of today looks different from that of years past. More than half of Texas students are Hispanic and 59 percent are economically disadvantaged. Considering these changes, Bernal suggested lawmakers may want to reassess some funding methods based on certain special populations in favor of reorienting the system as a whole.

The hearing concluded with testimony from organizations whose advocacy is not limited to the public education realm. Huberty sharply questioned a representative from the pro-voucher Texas Public Policy Foundation over why voucher supporters oppose any accountability for public tax dollars diverted to private institutions.

The committee will begin considering specific school finance-related legislation when it meets next Tuesday, March 7. Stay tuned to Teach the Vote for updates.

House Public Education Committee convenes first meeting

HPE02-21-17

The House Public Education Committee met at the Texas State Capitol on Feb. 21, 2017. The committee heard invited testimony only.

The House Public Education Committee held its first meeting of the 2017 legislative session today, Feb. 21. Newly-appointed chair Rep. Dan Huberty (R-Kingwood) began the hearing by appointing state Rep. Ken King (R-Canadian) chair of the Subcommittee on Educator Quality, where he is joined by Rep. Alma Allen (D-Houston) as vice-chair and Reps. Harold Dutton (D-Houston), Morgan Meyer (R-Dallas), and Gary VanDeaver (R-New Boston).

Chairman Huberty kicked off the hearing by noting the committee’s efforts to address school finance during the interim. After the Texas Supreme Court ruled the current system “lawful but awful,” according to Huberty, the committee spent much of 2016 working on fixes under the leadership of then-outgoing Public Education Committee chair Jimmie Don Aycock (R-Killeen) and Appropriations chair John Otto (R-Dayton).

Notably, Huberty vowed the committee would get to work on school finance early, and suggested the topic would be the focus of hearings during the next two to three weeks.

Texas Education Agency (TEA) Commissioner Mike Morath briefed the committee on agency operations and priorities. The agency currently serves roughly 5.3 million students and oversees $56 billion in funds. About 348,000 teachers are employed across 8,685 campuses. Texas boasts an 88 percent high school graduation rate, despite serving a student body that is almost 60 percent economically disadvantaged.

Morath highlighted a brief list of priority initiatives, including an agency “lesson study” initiative – a professional development tool used to develop best approaches to individual Texas Essential Knowledge and Skills (TEKS) components – as well as high-quality pre-kindergarten, math innovation zones, and rolling out the “A through F” accountability system.

Chairman Huberty pressed the commissioner on several areas of recent interest, beginning with informal “caps” on special education enrollment unveiled by a Houston Chronicle investigation. Morath told the chairman the special education performance indicator at issue had “outlived its usefulness.” House Bill 363 filed this session by Huberty would require TEA to cease using the indicator. Morath assured the chair, “If for some reason it doesn’t pass, we’re going to do it anyway.”

Chairman Huberty also asked the commissioner about TEA’s interaction with testing vendor Educational Testing Service (ETS) over faulty STAAR tests. Morath said the agency has imposed financial penalties on ETS. Continuing on the testing subject, Huberty prodded Morath on efforts to shorten the STAAR test as required by Huberty’s House Bill 743 from the 2015 legislative session. Morath indicated the process of creating a shorter test has cost the agency more than anticipated, and teachers may not have been provided adequate practice time with testing changes.

In response to Huberty’s inquiry regarding Districts of Innovation (DOI), Commissioner Morath testified that 105 districts have applied for DOI status thus far. According to the commissioner, the most popular exemptions are from teacher certification requirements, the first day of instruction, and class-size limits.

With regard to charter schools, Morath told the committee the state currently hosts 178 public charter entities, which operate a total of 603 campuses and serve roughly 245,000 students – about five percent of the total student population. A total of 22 entities have had their charters revoked, and seven have been non-renewed.

Chairman Huberty pointed out the state has not reached the charter cap and is not in danger of doing so. Rep. VanDeaver, a former superintendent, noted that in districts forced to pay recapture such as Houston ISD, the state pays more to educate a student in a charter school than in a public school.

Finally, the committee received a briefing from Comal ISD Superintendent Andrew Kim, who chaired the Texas Commission on Next Generation Assessments and Accountability. The 15-member commission was convened as a result of House Bill 2804 in 2015, and delivered a report to the legislature in August 2016, which included nine final recommendations for new systems of student assessment and public school accountability. You can read the commission’s full report here.

Chairman Huberty concluded today’s hearing by announcing that the committee will begin school finance discussions at the next meeting. The committee will hear from school districts when it meets again next Tuesday, and school finance bills will be posted for hearing the following week. Once those bills are voted out, Huberty said the committee will take up accountability issues, including A through F.

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Rep. Dan Huberty

Related: House Public Education Committee Chairman Rep. Dan Huberty will be one of our legislative panelists for ATPE at the Capitol, our upcoming political involvement training event exclusively for ATPE members on March 5, 2017.

 

Senate Bill 1: The budget’s starting point

Background with money american hundred dollar billsThe Senate Finance Committee this week began a string of meetings to flesh out plans for a Texas state budget for the next two years. Following an organizational meeting on Monday, the committee began hearing testimony Tuesday on Article III of the budget, which includes public education. Both in her written statement and over and over again in comments during Monday’s and Tuesday’s hearings, committee chairwoman Sen. Jane Nelson (R-Flower Mound) called Senate Bill (SB) 1 a “starting point” from which the senators on the finance committee, and eventually the entire Senate, can work to produce the Senate’s eventual budget proposal.

So where did Chairwoman Nelson and her colleagues start?

On Monday, Nelson began by laying out a budget that spends roughly $3 billion less in general revenue than its predecessor over the last biennium (House Bill 1 of 2015) and $4-6 billion less than would be needed to maintain the level of services funded during the current biennium considering inflation and population growth. She also started lowering expectations by laying out a budget proposal that spends about a billion dollars less than the revenue the state is projected to bring in, according to the comptroller.

While the numbers were not promising, the chairwoman also started the process by announcing two work groups that would be tasked with proposing solutions for two of the state’s most pressing budgetary and policy trouble areas, school finance and the out-of-control cost of health care. The two areas of the budget that these issues impact account for more than 85 percent of the state’s discretionary budget.

On Tuesday, the actual work of going through the budget one agency at a time began. First up; Texas Education Agency (TEA), which includes the $42 billion Foundation School Program (FSP), followed by the Teacher’s Retirement System (TRS), and Texas’s schools for the visually impaired and the deaf.

Several members of the committee spent the majority of Tuesday morning trying to prove, while convincing no one, several points: (1) That the state is not under-funding education; (2) thet neither local property taxes nor recapture dollars have been spent outside of the education budget; and (3) that high property taxes and the disparity between significant increases in local revenue dedicated to education versus much smaller increases in state revenue going to education should be blamed on local tax assessors and school boards, not the legislature. The committee also heard from TEA staff about spending on the various projects administered by the agency outside the Foundation School Program. Many of these standalone programs are funded at levels below the current biennium, and several have been zeroed out completely in the base budget.

Tuesday afternoon, the committee heard from the Commissioner of Education and from executive directors of TRS, the Texas School for the Visually Impaired, and the Texas School for the Deaf. Each presented their exceptional items, budget requests above and beyond the agencies’ base budget needs. Brian Guthrie, the executive director of TRS, had the most challenging reception from the senators, several of whom would like to abandon Texas’s defined benefit pension system and replace it with a defined contribution 401(k)-style system that would both reduce state liability and result in increased profits for wealthy campaign donors. Ultimately, Sen. Joan Huffman (R-Houston) redirected questioning away from the TRS pension trust fund, which is in reasonably good health, and toward the separate TRS-Care health insurance fund, which over the years has become unsustainable in its current form and will run out of money in the upcoming biennium without significant structural changes and increased funding.

After the committee concluded the testimony from the state agency heads, they heard public testimony, including from ATPE. In addition to a general plea for prioritizing education spending, we requested the committee’s consideration in three specific areas. First, we asked that the senate approve TEA’s full funding request of $236 million for the high quality pre-kindergarten grant created last session, for which the current draft of SB 1 provides only $150 million. Second, we asked that the legislature increase state funding for health insurance for active educators. The state has not increased its share of funding for TRS-ActiveCare since that program began in 2001, and funding that was once in line with what private employers provide is now far less than the private market and woefully inadequate. Finally, ATPE echoed much of the rest of the education community in requesting that additional school property tax revenue collected due to increased property values be used to increase the education budget instead of being used to replace state dollars that legislators want to spend elsewhere – in other words, the concepts of “supplement not supplant” and property tax transparency.

If this was the Senate’s starting point, what are the next steps?

Today, Jan. 27, the work group tasked with reimagining the school finance system will meet for the first of what will likely be several times. It is a joint meeting with the Senate Education Committee, chaired by Sen. Larry Taylor (R-Friendswood). They will be taking invited testimony from several stakeholder and school finance experts. At some point in the coming weeks, the Article III (education) subcommittee will also meet and begin to negotiate potential changes from the base budget. The work of these two groups will eventually inform both the budget and a separate school finance bill that would then have to be negotiated with the House, before a final budget and possibly and school finance bill finally makes its way to the governor’s desk.

Stay tuned to Teach the Vote and atpe.org/advocacy for updates as the budget-writing process continues.

Teach the Vote’s Week in Review: Jan. 20, 2017

Here are education news highlights for this Inauguration Day edition of our wrap-up:


 

President Donald J. Trump took the oath of office today on the steps of the U.S. Capitol. Immediately upon being sworn in as the nation’s 45th president, Trump gave a rather nontraditional inauguration speech more reminiscent of his days on the campaign trail, painting a bleak picture of the current state of U.S. economic affairs and vowing to help America “win again.” On education, Trump made reference to “an education system flush with cash but which leaves our young and beautiful students deprived of all knowledge.” Media pundits were quick to respond that measures such as graduation rates have generally shown improvement despite the fact that a majority of states have decreased their education spending in recent years.

The inauguration festivities this weekend cap off a busy week in Washington, where Trump’s cabinet picks have been undergoing confirmation hearings on the hill. Former Texas governor Rick Perry, nominated to head the U.S. Department of Energy, fielded questions yesterday during a low-key and noncontroversial session with the Senate’s Energy and Natural Resources Committee and is expected to face little resistance to his confirmation. The same cannot be said of Trump’s pick to lead the Education Department (ED). Education Secretary nominee Betsy DeVos failed to temper growing fears at her confirmation hearing earlier this week. The hearing was held late Tuesday in the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee. While HELP Committee Chair Lamar Alexander (R-TN) praised her nomination and his Republican colleagues on the committee seemed in step with advancing her nomination as early as next week, Democrats expressed serious concerns.

As reported by ATPE Lobbyist Kate Kuhlmann in her full report of this week’s hearing, the questions DeVos refused to answer, or in some cases couldn’t answer, are getting the most attention. She failed to promise to preserve funding for public schools and expressed confusion over the nation’s special education law, the Individuals with Disabilities Education Act (IDEA). Not surprisingly, she also dug in hard on her support for vouchers, refusing to tie apples-to-apples accountability and reporting requirements to public money sent to schools outside of the traditional public school system.

A mandatory ethics review on DeVos was also released today. The review identified 102 potential financial conflicts of interest, from which she has agreed to disassociate. Senators will have until Tuesday to look over information on these conflicts of interest; the committee’s vote is expected to be held that day. Look for more from Kate on the vote and the ethics review next week.

Following the hearing, concerns about DeVos grew outside of the Capitol as well, and the expressed dissatisfaction for her nomination grew significantly on social media. Texans can call or write their senators to register their disapproval for DeVos’s nomination. ATPE members, log in to Advocacy Central to access contact information for Senators John Cornyn (R-TX) and Ted Cruz (R-TX) if you’d like to send a quick message to your senators about Betsy DeVos.

 


U.S. Dept of Education LogoThe U.S. Education Department (ED) wrapped up its final days under the Obama administration this week. As we have been reporting on Teach the Vote, it is the department expected to be headed up soon by billionaire Betsy DeVos, who despite nationwide opposition from the education community has ample Republican support to achieve more than the votes needed for Senate confirmation. In the meantime, though, there will be a very temporary change in leadership at ED. It was announced this week that Phil Rosenfelt, the deputy general counsel for ED, will be the acting secretary between the end of Secretary John King’s term as of today, and the confirmation of ED’s next secretary.

In his final week of work, Secretary King oversaw the issuance of two new non-binding guidance documents (find those here and here) and withdrawal of the controversial proposed rule on “supplement, not supplant.” The latter is a piece of federal law that requires states to show that federal money is only used to bolster a state’s education budget, not replacing any dollars that would otherwise be dedicated to education. ED’s interpretation of the law as it was slightly altered under the Every Student Succeeds Act (ESSA) altered the way states must demonstrate compliance. While the department compromised on many elements of the original proposal as it progressed through the rulemaking process, the latest version still garnered considerable disagreement among stakeholders. Most expected the rule to face elimination under the Trump administration. The department explained that it simply ran out of time under the current administration.

 


Earlier this week, Texas Senate and House leaders shared details on their respective plans for writing the state budget to cover the next two years. ATPE Lobbyist Monty Exter shared highlights of the two proposals in a blog post earlier this week. The Senate Finance Committee, chaired once again by Sen. Jane Nelson (R – Flower Mound), will commence hearings on its budget bill, Senate Bill (SB) 1, next week. The committee is slated to begin taking testimony Tuesday on Article III, the portion of the budget that covers public education, and ATPE’s Exter will be there to share our input. Watch for more coverage of the budget hearings next week on Teach the Vote.

Dollar fanThe House budget proposal calls for spending a bit more money on public education than the Senate’s version, and leaders on the House side have even expressed interest in looking to the state’s Economic Stabilization (“Rainy Day”) Fund for additional resources this session. The House plan includes contingency language that would authorize an extra $1.5 billion for public education if the 85th Legislature passes a school finance bill that reduces recapture and improves equity. As ATPE Lobbyist Mark Wiggins writes for our blog today, increasing the state’s share of education funding is the key to lowering property tax burdens at the local level, and that is expected to be a prominent talking point during Tuesday’s budget hearing.

 


The first major private school voucher legislation was filed this week. Senate Bill (SB) 542 by Sen. Paul Bettencourt, and its companion House Bill (HB) 1184 by Rep. Dwayne Bohac, are a rehash of the tax credit scholarship legislation filed last session by Bettencourt, Bohac, and others. The tax credits for funding scholarships to be used at private schools are one of several varieties of private school voucher that Lt. Gov. Dan Patrick and like-minded senators have been pushing for multiple sessions. While a related voucher bill did pass the Senate in 2015 with significant assistance from the lieutenant governor, Bettencourt and others pushing for privatization found little appetite for vouchers in the House.

ATPE circulated this letter to lawmakers in 2015 opposing similar, though not identical, tax credit voucher bills in the 84th session. ATPE continues to oppose this and all forms of voucher legislation during the 85th legislative session and urges lawmakers in both chambers to do the same this year. For a preview of what is likely to the session’s other primary voucher vehicle, Education Savings Accounts, check out ATPE Lobbyist Monty Exter’s recent blog post, ESAs: A Bad Deal for Students in Need.

CPS square logoRelated: The anti-voucher Coalition for Public Schools, of which ATPE is a member, will hold a legislative briefing and press conference on Monday, Jan. 23. A pro-voucher rally sponsored by Texans for Education Opportunity, Aspire Texas, and other groups is happening Tuesday at the capitol in connection with National School Choice Week.

 


Sen. Larry Taylor

Sen. Larry Taylor

Lt. Gov. Dan Patrick announced his Senate committee assignments for the 85th Legislature this week. There were few changes from last session in terms of committee leadership, with Sen. Larry Taylor (R-Friendswood) continuing to oversee the Senate Education Committee and Sen. Jane Nelson (R-Flower Mound) again chairing the Senate Finance Committee that will write the state’s budget. Sen. Joan Huffman (R-Houston) stays on as chair of the Senate State Affairs Committee, where her bill to take away educators’ right to payroll deduction for their association dues is expected to be heard.

Sen. Lois Kolkhorst (R-Brenham) will no longer serve on the Senate Education Committee, having been tapped instead to chair the Senate Committee on Administration. She is one of three senators from last session’s education committee roster being replaced; also gone are Sens. Sylvia Garcia (D-Houston) and Jose Rodriguez (D-El Paso). The new senators joining the education committee this year are Bob Hall (R-Edgewood), Brian Hughes (R-Mineola), and Carlos Uresti (D-San Antonio). These appointments reflect the lieutenant governor’s decision to change the Republican-Democratic split on the committee from 7-4 back in 2015 to its new party breakdown of 8-3. Patrick also stacked the committee with several supporters of privatization, hoping to clear a path for his priority voucher legislation to move quickly through the Senate.

For more on the Senate committee announcement and a link to the full roster, check out this week’s blog post from ATPE Lobbyist Kate Kuhlmann. House committee assignments have not yet been released.

 


17_web_Spotlight_ATC_RegistrationOpenFinally, ATPE members are reminded to register for ATPE at the Capitol, our upcoming political involvement training and lobby day event in March. This is the best chance for educators to learn more about the high-profile education bills being deliberated this session with presentations from ATPE’s lobbyists and legislative leaders like Senate Education Committee Chairman Larry Taylor. Best of all, ATPE members will be empowered to add their voices to the debate, meeting with their lawmakers face-to-face on Monday, March 6, at the Texas State Capitol. The registration deadline is Feb. 3, and complete details for ATPE at the Capitol are available on our website here.

Education investment: The key to real tax relief

Mortgage calculator. House, noney and document.If there’s one thing most Texans can agree on, it’s that property taxes are too dang high.

What gets dicey is trying to sort through the myriad schemes put forth in the last few years by state lawmakers trying to cut local taxes over which they have little direct control. They’ve proposed tweaks to the rollback rate, increased the homestead exemption, and filed bills targeting local appraisal districts. That’s a lot of work by a lot of smart people you’ve sent to Austin with your tax dollars.

So.

Does your tax bill look any better?

In 2013, the Lincoln Institute of Land Policy ranked Texas as having the 15th highest per capita property tax in the country. Despite our high property taxes, Texas ranks 45th in overall K-12 education spending and 49th in adjusted per-pupil expenditures, according to our performance on the “Quality Counts” state report card from Education Week.

Why is that?

Speaking to a joint hearing of the House Public Education and Appropriations Committees in September 2016, outgoing Appropriations Chairman John Otto (R-Dayton), put it simply. “The burden is shifting to the locals,” he said.

According to the Legislative Budget Board, local school spending, as approved by local voters and their elected school boards, increased 34 percent from 2008 to 2015. During the same period, the amount the state spent on local schools increased by just 4.8 percent.

The school finance relationship is like a see-saw, with state funds on one side and local tax dollars on the other. When state spending goes down, local school districts have to raise taxes in order to fund services at the same level. This year, the state will pay 38 percent of the cost to fund schools, while the burden that falls to local property owners will be 52 percent.

Under the state’s recapture rules for maintaining equity in our school finance system, those local taxes you pay are also tied to school districts all over the state. That means in cities with high property values such as Austin and now Houston, a significant chunk of local property tax revenue must be shipped out of town to help fulfill the state’s obligation to maintain funding equity in other districts.

The total amount of transfers under recapture – commonly referred to by some as “Robin Hood” – has grown to $2 billion, with Austin ISD accounting for $583 million of recaptured funds in 2016. The math works out to 28 percent of statewide recapture falling on the shoulders of local taxpayers in Austin alone.

This week, the House and Senate each submitted their proposals for the 2018-19 state budget, and financial wonks are still crunching the numbers to determine whether either plan would effectively fund school services at current levels. Both claim to do so.

What we do know is that in the House plan, Speaker Joe Straus (R-San Antonio) has proposed an additional $1.5 billion boost in education funding “contingent upon the passage of legislation that reduces recapture and improves equity in the school finance system.”

If legislators are serious about reducing local property taxes, this is where it starts. It’s simple math.

Back to the see-saw: The only way to achieve meaningful property tax relief is for the state to assume more responsibility for the share of school funding it has passed on to you through local property taxes. Any other proposals you hear – and you will hear plenty – are empty measures meant to delay your outrage over your property tax bill for another two years.

In a December 2016 column, The Texas Tribune’s executive editor Ross Ramsey concluded, “Had the state kept its share of school funding constant for the past 10 years, voters might not be griping about rising property taxes.”

Tired of griping? Then let’s get serious. By boosting state investment along with taking a real shot at reforming the school finance system, the House is on the right track. We’ll find out if the rest of the legislature is serious as well.

Both chambers release versions of proposed Texas budget

Lt. Gov. Dan Patrick confirmed yesterday that Senator Jane Nelson (R – Flower Mound) will continue to serve as the chair of the Senate Finance Committee for the 85th legislative session. Upon her reappointment, Sen. Nelson filed the Senate’s budget bill, Senate Bill 1.  SB 1 spends $103.6 billion in state revenue over the next two years, which is $1.3 billion less than the Comptroller’s 2018 and 2019 revenue projection.

The Senate issued a press release highlighting the fact that the budget includes “$2.65 billion to cover enrollment growth in public schools and $32 million more for high-quality pre-k programs.” This is $86 million less than the additional $118 million that would be needed to extend current pre-k funding to cover both years of the upcoming biennium.

Girl showing bank notesAs filed, SB 1 represents a continuation of current school funding formulas. However, according to the Senate press release, Nelson calls  “making sure the school finance system better meets the needs of students” a critical decision to be made by lawmakers this session.

Other specific items outlined in the budget per the SB 1 press release include:

  • $1 billion to address state hospital and mental health facility needs;
  • $63 million to clear the waitlist for community mental health services;
  • $20 million for a program to help veterans dealing with PTSD or other mental health issues;
  • $260 million to improve Child Protective Services;
  • $25 million for high caliber bulletproof vests for Texas law enforcement officers;
  • $800 million for border security measures approved last session; and
  • A 1.5 percent across-the-board spending reduction for all expenditures not related to public education.

The Senate press release on SB 1 can be found here.

On the House side, Speaker Joe Straus has not yet named which representative will replace former Rep. John Otto (R – Dayton) as the new chairman of the House Appropriations Committee. Otto did not seek re-election in 2016. Still, the House did release its version of a plan for the base budget yesterday, too. The Speaker’s press release touts the House budget plan as one that “puts additional resources into public education, child protection and mental health while increasing state spending by less than 1 percent.”

The House budget proposal:

  • Funds enrollment growth of about 165,000 students over the next two years;
  • Includes an additional $1.5 billion for public education that is contingent upon the passage of legislation that reduces recapture and improves equity in the school finance system; and
  • Includes $108.9 billion in general revenue.

The Speaker’s press release can be found here.

85th Texas Legislature will face tight budget

Get ready to tighten your belts.

Before each session, legislative budget writers wait with bated breath to hear the state comptroller hand down from on high the magic number that will guide their spending for the next 140 days. That number comprises the core of the biennial revenue estimate (BRE).

ThinkstockPhotos-185034697_gavelcashThe comptroller is basically the state’s top accountant, and crafting the BRE is the office’s biggest responsibility. Divined from tax receipts and economic trends, the BRE is a best guess as to how much tax money will be available for lawmakers to spend over the next two years. The legislature is legally bound to keep spending within that number, which makes an austere forecast about as welcome as a skunk at a garden party.

At a formal press conference this morning at the Texas Capitol, Comptroller Glenn Hegar’s BRE presentation for the 2018-19 biennium was marked by a subtle, yet unmistakably skunky fragrance.

Hegar announced the 85th Texas Legislature will have $104.9 billion available for general revenue spending, roughly $8 billion less than lawmakers got the green light to spend in 2015. Factors contributing to the pinch include sluggish growth in tax revenues – due in no small part to stubbornly low oil prices – and lawmakers’ decision last session to dedicate $5 billion in sales tax revenue to the highway fund.

According to the Texas Tribune, state Rep. Drew Darby (R-San Angelo), who appears poised to chair the House Appropriations Committee, suggested the number is $5 billion to $6 billion less than it would take to fund state services at current levels. Combine that with the governor’s directive that each agency cut its budget by four percent, and a picture of a penny-pinching budget battle takes shape.

Girl showing bank notes

When money is tight, we find out what our priorities are. We at ATPE believe investing in future generations should be at the top of the list.

Public education still hasn’t fully covered the $5.4 billion cut by the legislature in 2011. With enrollment growth outpacing teacher hiring, class sizes continue to increase, to the detriment of students. Per-student funding still lags 2011 levels in some districts. To top it off, the state has steadily decreased its share of school spending, forcing school districts to rely more and more on local property taxes to make up the difference.

But there is still room for optimism.

Even without a court mandate, House leadership under Speaker Joe Straus (R-San Antonio) has expressed a strong desire to fix the school finance system this session. There’s been growing talk of increasing the basic per-student allotment. If a friendly Republican administration in Washington, D.C. provides relief in previously disputed areas of the budget, such as health care and border security, the result could be more state money freed up for other priorities.

It’s a matter of deciding what’s important.

Our children deserve a world-class education that doesn’t cost parents their home. If lawmakers truly want to cut property taxes, there’s a simple fix: Shift the burden of education funding back to the state. It will require taking a hard look at the budget and making tough choices about public spending, but it can be done. We’re optimistic that Texans will keep their eye on the ball this session and not be distracted by repackaged voucher schemes, teacher bashing bills, and smoke and mirrors tax cuts.

If we can maintain that focus, then we’ll end up with a budget that reflects our values as Texans.

Teach the Vote’s Week in Review: Nov. 11, 2016

Here is your Veterans Day edition of our weekly wrap-up, featuring post-election news and more from this week:

 


Election resultsThe 2016 election came to a close this week. At the national level, voters chose the presidential candidate who is expected to bring change to Washington, but in Texas, things look pretty similar to how they looked going into the last legislative session. There were only a handful of Texas House seats where the incumbent or incumbent party lost reelection, and no seats altered in the Senate, leaving the balance of power in the Texas Legislature largely the same. ATPE Lobbyist Monty Exter provided more analysis on the outcome of the election state-wide here.

A state election story that the education community and policymakers were watching on election night dealt with the outcome of a school finance measure on some Houston voters’ ballots. The measure asked voters to authorize or not authorize the city’s first recapture payment under a provision in Texas school finance law commonly referred to as “Robin Hood.” Voters ultimately decided to not authorize the $162 billion payment, which would have been used to equalize funding for property-poor districts throughout the state. ATPE Lobbyist Mark Wiggins has more on this complex decision made by Houston voters and the effects it could have on the upcoming legislative session.

ThinkstockPhotos-523002181_IVotedAt the federal level, ATPE Lobbyist Kate Kuhlmann penned some initial thoughts on how public education will fare under a Trump presidency here. While his broad plans for education are still fairly uncertain, President-elect Trump has made it clear that he will push for a national voucher program for Title I funds and will seek to significantly reduce the role the federal government plays in education. He also appears to be in the same camp as education reformers. In fact, it was reported late this week that two education reformers working for the American Federation for Children confirmed that they have been contacted by President-elect Trump’s transition team regarding their interest in the Secretary of Education post. The American Federation for Children, which supports school choice, advised President-elect Trump during his candidacy.

 


The State Board of Education holds its next regular meeting starting on Tuesday, Nov. 15. The full agenda can be viewed here for the four-day meeting running through next Friday. It will be the last meeting for two of the board’s members who did not seek re-election this year: Martha Dominguez (D) and Thomas Ratliff (R). ATPE thanks them both for their service.

On Tuesday the board will decide on the amount of money it will move from the Permanent School Fund to the Available School Fund, making it available for the legislature to appropriate to the instructional materials allotment. They will also continue to discuss the board’s long range plan for education and the board’s upcoming legislative priorities. On Wednesday the board will hear from the Commissioner of Education at 9 a.m., and then the board will discuss a range of curriculum items for the remainder of the day. Those will include revision of the ELAR TEKS, continued monitoring and feedback of the new Math TEKS, and the streamlining of the Science TEKS. On Thursday, the board will break into subcommittees. Of particular note the Committee on School Initiatives will consider ratifying six chapters of amended SBEC regulations, which cover educator preparation, educator certification, and educator disciplinary rules.

Anyone wishing to sign up to testify on one of these topics can do so here. If you would like to turn in written testimony, please feel free to contact the ATPE lobby team for further assistance. Stay tuned next week for updates on the SBOE’s actions.

 


U.S. Dept of Education LogoThis week was the final opportunity to submit comments on the U.S. Department of Education’s (ED) rule proposal pertaining to a federal funding provision under the Every Student Succeeds Act (ESSA). The provision, referred to as “supplement, not supplant,” is aimed at ensuring Title I schools receive their fair share of state and federal funding. While “supplement, not supplant” is nothing new to federal education law, the language did change slightly under ESSA, and as we have reported, ED’s interpretation of that new language is controversial.

Many comments submitted raise concern over how the rule proposal would realistically affect states and districts, but some express support for rules they believe will help ensure the highest-need and most undeserved students get the resources they deserve. Congressional Republicans again expressed their concern over the rule proposal’s “broad and inaccurate conclusions” with regard to Congress’s intent, this time in a letter signed by 25 Republican Members of Congress, including the education committee chairs in both chambers. The Democratic education committee leaders submitted their own letter, expressing concern over some unintended consequences, but calling the proposal a “step in the right direction.” The concern is not a totally partisan one, however; last week a bipartisan Congressional letter was sent to President Obama regarding the undue state burdens created by the provision and ED’s poor interpretation of Congressional intent. Read more about that letter and ED’s rule proposal in this informative article published by the the Washington Post.

One yet-to-be-determined affect of the election, is how President-elect Trump will approach ESSA regulations made by the Obama administration. It’s safe to predict that these regulations pertaining to “supplement, not supplant,” if finalized, would be altered, at the very least.

Related: You still have one week left to share input with the Texas Education Agency on how our state should implement ESSA-related policies at the state level. TEA’s ESSA Public Input Survey remains open through 5 p.m. on Friday, Nov. 18.

 


The Texas Education Agency (TEA) shared information this week on the call for nominations for the 2017 Presidential Awards for Excellence in Mathematics and Science Teaching (PAEMST). Administered by the National Science Foundation in conjunction with the White House, the PAEMST is the highest honor for math and science teachers in the country.

A student and teacher working together in a classroomTeachers of grades 7-12 math or science, including computer science, will be recognized in all 50 states. Some high school CTE and tech apps teachers are also eligible to apply. The nomination deadline is April 1, 2017, and applications are due by May 1, 2017. Eligible teachers who submit a completed application will earn 25 continuing professional education (CPE) credit hours, too.

Recipients of the award receive $10,000 and a trip to Washington, D.C. to be formally recognized. Additional information on PAEMST eligibility criteria and the award process can be found here.

 


Thank you, Veterans, for your service to our country!

Houston throws down gauntlet on school finance reform

I lived in Houston for ten years.

It’s where I finished high school, graduated from college, and began my first career as a fuzzy-cheeked radio broadcaster. It’s where I gleefully watched my alma mater, the Houston Cougars, win a C-USA title, my beloved Astros make their World Series debut, and the Rockets come devastatingly close to a championship season after season. It’s a fantastically diverse and dynamic city; yet to many Houstonians, it seems that no matter what Houston does, few outside its boundaries ever seem to notice.

Now a vote on a relatively obscure proposition on Tuesday’s ballot has arrested the attention of many lawmakers in Austin.

ThinkstockPhotos-481431733On Tuesday, Houston voters decided not to authorize the city’s first recapture payment of $162 billion, part of a roughly $1 billion obligation over the next four years. Under the state’s school finance equalization formula, referred to as “Robin Hood” by some, school districts that are considered “property-wealthy” must return some of the money collected from their local property taxes to the state, which in turn delivers that money to poor districts that lack the tax base necessary to support healthy schools. Ironically, some of those property-wealthy districts still enroll high numbers of students from families living in poverty. Houston ISD officials argue that instead of sending away the funds, their district needs that money instead to educate a high proportion of low-income students in their own district.

It’s a predicament endured for years by Austin ISD, another property-wealthy district that serves a high proportion of economically disadvantaged children, yet is expected to pay more than $400 million in recapture this year. The number of Texas districts paying recapture stands at 250 and rising, and it is a major reason many districts are lobbying the 85th Texas Legislature to reform the school finance system when it convenes in January.

But things are complicated.ThinkstockPhotos-185034697_gavelcash

In response to a lawsuit filed by more than 600 school districts, the Texas Supreme Court in May ruled that the state’s school finance system met the minimum requirements under the Texas Constitution. While the final opinion from Justice Don Willett urged lawmakers to fix a “Byzantine” and “undeniably imperfect” system, it removed the threat of a court mandate to do so.

Houston’s new Mayor Sylvester Turner is no stranger to the Texas Legislature. The long-time state representative and former vice-chair of the powerful House Appropriations Committee spearheaded a campaign urging Houston voters living within HISD boundaries to reject authorization of the recapture payment this election and force a standoff — gambling that state legislators will be spurred into action by voters and constituents in Texas’s largest school district publicly rejecting the state’s school finance system.

It’s a big gambit.

After Houston voters on Tuesday declined to authorize the recapture payment, Commissioner of Education Mike Morath notified HISD trustees early Wednesday that under the law, $18.2 billion in taxable property needed to meet the recapture amount will be detached from the district and annexed to one or more property-poor districts.

So will the ruckus raised in Houston Tuesday ring in the ears of important folks beyond Space City’s orbit?

Falling US MoneyThe question of whether the move will increase pressure on lawmakers to initiate a long and complicated school finance overhaul is a big unknown. The recapture amount owed by Houston is dwarfed by Austin’s, yet lawmakers have thus far been unmoved by AISD’s many pleas for change. While some House leaders have expressed interest in reform, a requested four percent across-the-board reduction in state agency spending will complicate things significantly.

ATPE has long advocated for meaningful school finance reforms to make the system more responsive to our students’ needs, as illustrated by our member-adopted legislative program, which includes the following:

ATPE supports a public education funding system that is equitable and adequate to provide every student an equal opportunity to receive an exemplary public education. ATPE also supports any form of state revenue enhancement and tax restructuring that accomplishes this goal, empowers the state to be the primary source of funding, and creates a more stable funding structure for our schools. We strongly support efforts to increase funding levels to meet the needs of a rapidly growing and changing population and to increase funding equity for all students.

Ultimately, school finance reform could come by degrees, and meaningful progress could be made this session. I expect calls for legislation to update the decades-old Cost of Education Index (COI) and the similarly vintage transportation allotment, as well as a bill by state Rep. Donna Howard (D-Austin) that would amend the Texas Constitution to require the state to shoulder at least half the cost of public education. We’ll be keeping an eye out for you. Stay tuned to Teach the Vote and ATPE.org for updates.