Tag Archives: school finance

School finance commission considers first round of recommendations

The Texas Commission on Public School Finance met Tuesday morning to discuss recommendations from the working group on outcomes, lead by Todd Williams. Commission Chair Scott Brister opened the meeting by requesting suggestions for how to pay for the various recommendations the commission has received.

Texas Commission on Public School Finance meeting July 10, 2018.

Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez was the first invited witness, and provided an overview of how public education in Texas is funded. Currently, the state pays 36 percent of the total cost of funding schools. Excluding local recapture, the bulk of funding – 51 percent – is carried by local property taxes. Recapture, which is also local funding but was counted separately for the purposes of Lopez’s presentation on Tuesday, amounts for three percent of funding. The remainder comes from federal funding.

According to TEA’s numbers, state funding on a per-student basis has remained flat since 2008. When adjusted for inflation, this represents a decline in actual dollars. In the same time period, the biggest increase in funding has come from local property taxes. Legislative Budget Board (LBB) Assistant Director John McGeady explained that while the LBB and TEA use different calculations to determine state spending, both sets of data show the state’s share of funding has steadily declined over the past decade.

Williams introduced the same recommendations the working group approved last week, which include outcome-based incentives at the 3rd, 8th, and 12th grade levels. The 3rd grade reading gateway would be supplemented by increased funding for schools with high populations of economically disadvantaged and English learner students that could be used to provide full-day prekindergarten. The 8th grade incentives would target reading and Algebra I, and 12th grade would focus on indicators of post-secondary readiness.

The recommendations from the outcomes working group also include a performance pay system that would reward teachers who complete more rigorous educator preparation programs, provide higher pay for educators according to locally-developed, multi-metric performance evaluation programs, and incent administrators to direct the highest performing educators into campuses and grade levels with the greatest need.

State Sen. Paul Bettencourt (R-Houston), who has argued against increasing school funding, argued fiercely against objective data presented by Williams that indicate Texas will miss its “60×30” goal by two decades years. The goal is to ensure that 60 percent of Texas 25- to 34-year olds obtain a postsecondary degree or certificate by 2030. According to current rates of postsecondary attainment, the state will not reach this goal until 2051. Bettencourt argued businesses rely on net migration into the state, despite the fact that this necessarily reduces the number of high paying jobs available to students educated in Texas.

Williams told the members he would welcome feedback on the recommendations, and suggested more testimony could be taken, specifically from the Texas Higher Education Coordinating Board (THECB) regarding 60×30 progress. State Rep. Diego Bernal (D-San Antonio) suggested the working group could collect comments and produce a revised draft.

Williams estimated the cost of implementing the recommendations at $1 billion annually, or $2 billion per biennium. This would gradually increase to $2.5 billion annually over a ten-year period, as districts meet stretch goals and additional districts phase in the recommendations. This could ultimately save the state money by higher-paid workers contributing more state taxes, and fewer state resources would be needed for uninsured medical costs and incarceration. The expenditures working group is expected to meet August 9 to work on recommendations. House Public Education Committee Chair Dan Huberty (R-Houston), who leads the expenditures working group, said more than 200 recommendations have been received. The full commission does not plan to meet until September.

Brister said the commission will not hold a vote until the total cost of recommendations can be calculated and until the commission can determine from where the money to pay for them will come.

Working group releases first set of school finance recommendations

The Texas Commission on Public School Finance working group on outcomes met Tuesday in Austin to consider recommendations based on more than 60 hours of testimony heard by the commission since its first meeting in January.

School finance commission working group on outcomes meeting July 3, 2018.

Group leader Todd Williams began the meeting reading from a detailed report that suggested the state should invest more dollars in specific strategies to accelerate reaching the “60×30” goal of ensuring 60 percent of students go onto post-secondary success by the year 2030.

Common themes from testimony included the importance of early intervention, since only 60 percent of students arrive at school kindergarten-ready. The report indicated teachers are the most important in-school factor in student outcomes, and funding should ensure that every teacher candidate has access to high quality educator preparation programs, ensure they stay in the profession and classroom, and ensure they address student challenges as early as possible.

In order to achieve post-secondary achievement, the report suggested funding should ensure graduates do not require remediation in higher education and that achievement of a post-secondary credential is not only expected, but achievable, affordable and supported. In addition, the report suggested systemic incentives, including ensuring that financial incentives are tied to the achievement of our most critical outcomes.

The working group’s formal recommendations encompass three core principles: Ready to learn, ready to teach, and ready to earn. According to the report, funding should include some specific incentives within the formula funding tied to specific goals at critical gates.

The first of these incentive gates is 3rd grade reading, and the working group is recommending providing an additional weight for low income and/or English language learners for pre-K through grade 3. At each district’s discretion, dollars from this 3rd grade reading investment would be sufficient to be used to fund full day pre-K, tutoring interventions, expanded dual language programs, specialized multi-year early childhood professional development, and a longer school year.

The second incentive is funding for every 8th grader who meets the state’s standard in reading and Algebra I. This is expected to help increase college readiness. The third incentive is funding for every high school graduate assessed as college or career ready, who successfully achieves industry certification or enrolls in college or the military. Incentives for rewarding low-income student achievement should be higher in recognition of the greater associated challenges. State Rep. Diego Bernal (D-San Antonio) was emphatic that incentives should not further increase inequity in the school funding system.

The fourth incentive is to provide the optional ability for districts to implement multi-measure evaluation systems and fund higher teacher distinction levels to attract and retain high-quality teachers. The working group noted the issues with current salary levels in recruiting and retaining teachers, and expressed the goal that districts be able to pay top-quality teachers more. Melissa Martin, the only teacher on the commission, said she’s torn over performance pay. Martin voiced concern that evaluations are property constructed and not totally subjective, which could introduce campus politics into the process.

The working group included the following additional recommendations:

  • Adjust compensatory education funding (currently $3.9 billion annually) in recognition that “free and reduced lunch” percentages are a very simplistic measure and do not adequately reflect the varying levels of poverty that exist throughout the state.
  • Strongly consider eliminating the five end-of-course (“EOC”) STAAR assessments and replacing with either SAT or ACT assessments that can measure growth based on a pre-SAT/ACT assessment given in 9th grade vs. a SAT/ACT assessment given in the 11th grade.
  • For districts choosing to implement a full day Pre-K program, consider crediting the appropriate full-day attendance for purposes of funding within the Foundation School Program.
  • TEA financially incent dual language strategies and disallow ELL pullout strategies as an accepted approach toward ELL instruction for larger districts exceeding 5,000 students (this subset of districts educates roughly 80% of all Texas students).
  • Align the current CTE weight of 1.35 (equivalent to $2.2 billion annually) toward CTE programs of study that are vigorously tied to the attainment of living wage credentials aligned with current workforce need and/or which provide students with critical financial literacy skills.
  • Amend legislation to require that failing ISD elementary and middle school campuses may be reconstituted after three years with an ACE-like school reconstitution plan (where better educators have been purposely placed at the struggling campus) with the state providing matching funds to reduce district costs.
  • To reduce prison recidivism and its associated costs to the state, TEA should amend the accountability system to incent school districts to help formerly incarcerated individuals receive their high school diploma or GED.
  • State funding should target professional development training towards schools/districts willing to launch blended learning and personalized learning pilots that help students matriculate faster than their peers if necessary, providing net savings in the long run to the state due to paying for less seat time.
  • Schools should be incentivized by the academic accountability system by creating a separate post-secondary readiness academic distinction. In addition, additional state funding should be awarded if the high school achieves the post-secondary readiness academic distinction.

The working group also expressed support for researching the costs associated with providing all-day pre-K for teachers’ children. The report concludes, “For us to succeed requires very substantive, immediate action on the part of the state (emphasis in original document) – we simply cannot “tweak” our K-12 system to meet this critical objective. Only by making strategic, impactful investments above current levels in the key areas noted, and implementing the innovative structural formula changes that are necessary, can we ensure Texas remains a thriving economy that all of its citizens can participate in.”

The recommendations carry an estimated $1 billion annual price tag, which would average out to about $200 per student and a 4 percent increase in the current basic allotment – still below 2008 inflation adjusted funding levels. This would gradually increase to $2.5 billion annually by 2030, which would average out to $450 per student, which would only be achieved if all districts implement performance pay programs. According to the report, this would still place Texas in the lowest quartile of per-student spending compared to other states.

The report argues these measures could pay for themselves by creating up to $4 billion in incremental potential yearly earnings and up to $250 million in additional state sales taxes for each yearly graduating cohort. Better-prepared graduates will earn more money and pay more in taxes. The report suggests success could also reduce growth in the approximate $12 billion the state spends each year in uninsured medical costs and incarceration.

The report, as amended, was approved with a unanimous vote of the five working group members. You can read all of the recommendations in the full draft report from the outcomes working group here, however some of the recommendations were altered or struck in Tuesday’s meeting. This article contains the most up-to-date versions of the recommendations. The full commission meets July 10.

Teach the Vote’s Week in Review: May 4, 2018

It’s been a busy week of school finance discussions in Austin. Here’s your wrap-up of this week’s education news from ATPE Governmental Relations:


Panelists discuss school finance at an event hosted by the Texas Tribune and co-sponsored by ATPE on May 4, 2018.

The Texas Commission of Public School Finance and its various subcommittees or “working groups” were busy this week. The commission’s working group on expenditures for the Texas Commission on Public School Finance met this morning to discuss education spending. The working group is chaired by Rep. Dan Huberty (R-Kingwood), who also chairs the House Public Education Committee. Today’s meeting followed an appearance by Huberty and other commission members as part of a panel discussion on school finance hosted by the Texas Tribune. ATPE was a sponsor of that event.

At today’s expenditures working group meeting, several witnesses discuss funding formulas for special education and anticipated future funding needs for those programs. Learn more about today’s hearing in this blog post from ATPE Lobbyist Mark Wiggins who attended the meeting.

Texas Commission on Public School Finance working group on outcomes meeting May 2, 2018.

The Commission’s working group on outcomes met Wednesday to discuss early childhood education and post-secondary education among other topics. The group, which is led by Todd Williams of Dallas’s Commit Partnership, also includes high school teacher and ATPE member Melissa Martin, Rep. Diego Bernal (D-San Antonio), Sen. Larry Taylor (R-Friendswood), and Superintendent of Pflugerville ISD Doug Killian.

The working group on Wednesday listened to testimony from TEA Deputy Commissioner Penny Schwinn regarding the amount of money Texas spends per student on testing and whether or not more online testing is a viable option for the future. Schwinn also gave testimony on kindergarten readiness, stating that only 59 percent of Texas children are prepared when they enter kindergarten.

H.D. Chambers, Superintendent of Alief ISD, gave testimony about a “teacher crisis” currently facing Texas, noting that any meaningful change in education policy must be accompanied by a raise in teacher pay. Chambers also gave input on how improved professional development programs have raised the quality of pre-k in his district, the potential benefits of public-private partnerships for pre-k, and the difference between traditionally certified and alternatively certified teachers. Chambers questioned the STAAR test as an accurate measure of student progress.

Read more about the outcomes working group meeting here in this blog post by ATPE Lobbyist Mark Wiggins.

 


The full School Finance Commission also met Thursday to discuss early childhood education, the weights and allotments under the states’ current budget, and the Permanent School Fund.

Testimony provided by Alexandra Hale of Good Reason Houston suggested that veteran teachers be placed in pre-k classrooms to maximize impact. Meanwhile, former U.S. Undersecretary of Education, Linus Wright suggested the elimination of grade 12 in order to provide more funding for early childhood education. TEA Chief School Finance Officer Leo Lopez offered testimony regarding the six categories (special education, compensatory education, career and technical education, Public Education Grants, and the High School allotment) that receive weighted funding under the current school finance structure and account for 28% of the state’s Tier I education funds. Lastly, outgoing SBOE member David Bradley (R-Beaumont) updated the commission on the status of the Permanent School Fund (PSF).

ATPE Lobbyist Mark Wiggins was on hand to cover the meeting described more in depth in this blog post.

 


Texas Commissioner of Education Mike Morath announced Tuesday that six school districts are seeking “Turnaround Partnerships.” The partnerships were created with the passage of Senate Bill (SB) 1882 during the 85th legislative session in 2017, and they allow for districts with campuses that fall into the Improvement Required (IR) status of the state’s accountability system to enter into partnerships with institutes of higher education, non-profits, government entities, or charter school in order to improve education outcomes. The six districts seeking partnerships are Austin ISD, Ector County ISD, Hearne ISD, San Antonio ISD, Victoria ISD, and Waco ISD. You can find more details here.

 


ELECTION UPDATE: Tomorrow, May 5th, marks the first of two important elections that will be happening this month. At stake in tomorrow’s election will be issues specific to your community like school board elections and school bond propositions. These are important elections that set the tone for the local policy decisions and funding of your community’s public schools. All registered voters are eligible to vote in tomorrow’s election, although not all voters have municipal races or proposals on their ballots. To find out what’s on your local ballot, visit your county election website, use VOTE411.org to generate your local election voter guide, or check out the resources available from your local League of Women Voters. As part of our commitment to supporting a culture of voting, ATPE encourages all Texas educators to find out about their local elections and vote in every election possible, starting tomorrow, May 5.

If you happen to live in House District 13, you’ve also got a special election happening tomorrow, May 5. Voters in that district will select a new state representative to fill the unexpired term of former Rep. Leighton Schubert, who recently resigned from office. The same candidates running in tomorrow’s special election are also on the ballot this election year for a full term of office to begin in January 2019. Learn more about the race in this article from the Texas Tribune.

For many Texas voters, there is a second opportunity to vote this month. The second round of primary elections, where many of the state’s elections will be decided, will take place on May 22nd with the Democratic and Republican party runoff elections. As we approach that date, ATPE is highlighting a few of the runoff contests where education has emerged as a preeminent topic. Find out more about the Republican candidates competing for the votes of House District (HD) 4 residents in this latest blog post by ATPE Lobbyist Monty Exter. Stay tuned to the Teach the Vote blog next week for more runoff previews, and be sure to check out our candidate profiles here on Teach the Vote.

 


 

Teach the Vote’s Week in Review: April 27, 2018

Here’s your weekly wrap-up of education news from ATPE Governmental Relations:


This May, many Texans will be making not one, but two trips to the ballot box. ATPE wants to ensure that all educators are aware of the two important elections taking place next month.

Saturday, May 5th is the uniform election date when municipal propositions, elections, and issues will be decided. Meanwhile, Tuesday, May 22nd is when state level primary runoff elections will be held. While any registered voter can participate in the May 5th municipal election, participation in the primary runoffs depends on whether you previously voted in the March primaries and in which primary election you voted.

For more information about the candidates and your eligibility to vote in the upcoming primary runoffs, check out this new blog post by ATPE Lobbyist Monty Exter.

 


Texas has a new “Grow Your Own” grant program designed by the Texas Rural Schools Taskforce to address  challenges faced by rural school districts and foster a more robust and diverse teaching force. This week, TEA released the names of the 25 school districts that received the 2018-19 “Grow Your Own” grant. Read more about them in this blog post from ATPE Governmental Relations Specialist Bria Moore.

 


The Texas Education Agency has finalized its plan to address special education. Professional development for special education teachers; resources and outreach for parents of special needs children; funding at the district level for students previously denied access to special education services; and additional staffing and resources were the four final measures proposed by TEA in its efforts to redress issues plaguing special education in the state. While the proposed measures would cost the state $212 million over the next five years, TEA is unable to commit additional funds to support the plan leaving the burden to fund these measures on the shoulders of the 86th Legislature which is set to reconvene in 2019. ATPE Lobbyist Kate Kuhlmann explains more about the plan in this blog post.

 


Houston ISD has notified district teachers of its plan to begin staff layoffs. As reported by the Houston Chronicle this afternoon, district employees received correspondence informing then that an unspecified number of layoffs would begin shortly due to budget constraints in the district. The financial strain of Hurricane Harvey coupled with new recapture woes have resulted in a projected deficit of $115 million for the district. The HISD administration has said that the number of layoffs will depend on how many teachers leave the district through attrition at the end of this school year.

Today’s announcement comes on the heels of a highly contentious HISD board meeting earlier this week that was shut down when protests broke out over a planned vote to turn over management of some of the district’s struggling campuses to a charter school operator. That move is part of a plan authorized by new legislation that ATPE opposed in 2017. Schools otherwise facing closure have an option to partner with charter holders for a temporary pause in their progressive sanctions, and HISD has proposed this course of action for 10 of its campuses despite heavy opposition from the community. Waco ISD also took similar action this week, opting to partner with a charter operator to avoid the closure of five struggling campuses in that district.

Stay tuned to Teach the Vote for updates on this developing story.

 


TEA finalizes plan to improve special education

The Texas Education Agency (TEA) has released its final action plan to address special education in Texas, which has been under scrutiny since 2017. That’s when reporting unveiled what the agency is now acknowledging was an arbitrary and illegal benchmark for the amount of students receiving special education services. After intervention from the federal government and significant stakeholder feedback, TEA’s final plan seeks to repair systematic issues that, in part, denied special education services to a disturbingly large number of Texas schoolchildren.

In a press release issued yesterday, TEA identified four major actions under the plan: a special education professional development system for educators; resources for parents of students who may need special education services and an accompanied outreach effort; funding for school districts providing services to students previously denied; and additional staffing and resources at TEA to support special education services and increase oversight.

TEA has identified some funding for administration of the plan, but highlights that “TEA cannot legally commit additional funds outside of those that are appropriated by the Texas Legislature and the US Congress.” The agency said the plan is designed to work within existing appropriations and identifies a proposed budget of $212 million over the next five years. Stakeholders have argued funding is insufficient to produce effective delivery of the plan, but it will be up to the legislature to allocate additional money for the purpose of increasing adequate services under the plan. The plan does include a commitment from TEA to request additional funding from the 86th Legislature during the 2019 regular session for local special education needs.

The state’s final strategic special education plan and more related information can be viewed at TEA’s Improving Special Education in Texas webpage. The full press release announcing the final plan can be found here.

Teach the Vote’s Week in Review: April 20, 2018

Here’s your weekly wrap-up of education news from the ATPE Governmental Relations team:

 


The Teacher Retirement System (TRS) of Texas board of trustees held multiple meetings this week in Austin.

Highlights of the quarterly meetings included discussions of new rates and policy designs for TRS-ActiveCare for the 2019/2020 school year; the need for increased authorization to hire additional full time employees (FTEs) at the agency; the introduction of the new TRS Communications Director; and a discussion of and failed vote on lowering the TRS pension fund’s expected rate of return.

ATPE Lobbyist Monty Exter attended both the committee and board meetings and penned this wrap-up for our Teach the Vote blog earlier today.

 


The House Public Education Committee held an interim hearing on Wednesday. Topics discussed included the continuing impact of Hurricane Harvey on the state’s public schools, plus implementation of recent education-related bills dealing with school finance, the accountability, system, and student bullying.

Commissioner of Education Mike Morath updated the committee on the state and federal governments’ response to Hurricane Harvey and the 1.5 million students in its affected school districts. Morath indicated that he will propose a new commissioner’s rule in June to provide a plan for accountability waivers for school districts that were forced to close facilities and suffered the displacement of students and staff.

The committee also heard testimony about the controversial “A through F” accountability system that is being implemented in Texas. School districts will be assigned A-F ratings in August, while campus A-F ratings will be released the following year. A number of witnesses during Wednesday’s hearing expressed concerns about the new rating system and its heavy emphasis on student test scores.

For more on the hearing, check out this blog post from ATPE Lobbyist Mark Wiggins.

 


With interim committee hearings in full swing this month, paying for Texas public schools and teachers remains a hot topic.

On Wednesday, the House Appropriations Committee heard from Texas Comptroller Glenn Hegar and others about the status of the state’s Economic Stabilization Fund, often referred to as the “Rainy Day Fund.” Read more about recommendations being made for use of the fund to support the state’s funding needs in this blog post from ATPE Lobbyist Monty Exter.

Also this week, our friends at the Texas Tribune shared insights on how Texas teacher pay stacks up against other states. ATPE Lobbyist Monty Exter is quoted in the article republished here on Teach the Vote.

 


The Texas Commission on Public School Finance also convened again this week, with a Thursday meeting focused on tax policy issues and sources of funding for the state’s school finance system. ATPE Lobbyist Kate Kuhlmann has a rundown of that meeting here. She also shared the below update from today’s Expenditures Working Group meeting which covered the cost of education index, compensatory education, and the transportation allotment.

One unsurprising word could be used to summarize testimony from invited panelists at this morning’s Expenditures Working Group meeting: update. On all three topics discussed, expert witnesses pointed to updating both the methodology behind the funding tied to each topic and what each topic intends to address. For the cost of education index, Texas A&M University Bush School Professor Lori Taylor noted that the index is based on teacher salaries and employment patterns from 1990. Taylor is the same expert behind a recent Kansas study on school finance, which determined that state should invest an additional $2 billion in school funding. During this morning’s meeting in Austin, Taylor and the other panelist agreed the cost of living index has value, but needs significant updating; it was suggested that to better account for evolving costs of education, the commissioners should consider recommending a requirement that the state update the index (or even the entire finance system) every 10 years.

Similarly, school districts and other school finance stakeholders pointed to the need for better targeted funding for students supported by a broader category of compensatory education services, and the legislative budget board shared different way to approach funding transportation costs. Watch an archived live stream of the full meeting here for more on the discussions.

 


 

From The Texas Tribune: Texas teachers’ pay is average. But their pensions are among the lowest in the country.

By Alex Samuels, The Texas Tribune

Photo by Jacob Villanueva/iStock

Today’s Texplainer question was inspired by reader Tiffany Adair.

Hey, Texplainer: How do employment benefits for Texas educators compare to those in other states?

This question has been a point of contention between lawmakers and educators for many years. Texas teachers say they’re frustrated due to a lack of state funding for public education. But lawmakers say the uncertainty surrounding the budget makes it hard to allocate better benefits for educators.

If you look at the raw numbers, Texas ranked 27th in the nation for teacher pay in 2016, according to the National Education Association. On average, Texas teachers earned $51,890 — roughly $6,500 below the national average.

However, teachers have long argued that inadequate funding for public schools cuts into their salaries. During the 2008 fiscal year, the state covered roughly 48.5 percent of the cost of public education, according to the Legislative Budget Board. By the 2019 fiscal year, that figure will be closer to 38 percent. Over the same period, teacher salaries remained about the same [Texas teachers, on average, earned roughly $47,000 in 2008].

“One of the biggest costs to education are the teachers and other employees at a school district. That’s the biggest cost to the state,” said Clay Robison, a spokesman for the Texas State Teachers Association. “When you start cutting education in Texas, you’re shortchanging teachers. We’re already behind the national average when it comes to teacher pay, and we’re getting further behind.”

But salaries aren’t the only component to consider when looking at how Texas teachers fare compared to their peers in other states, said Ed Allen with the American Federation of Teachers.

“When looking at a nationwide comparison, most people factor in the salaries. But when teachers get older, what’s being paid into retirement and the health insurance becomes a really big deal,” Allen said.

When it comes to health care benefits, advocates say Texas teachers are stuck in 2002. That’s when state lawmakers created the plan known as TRS-ActiveCare. The teacher health insurance program, which is run by the Teacher Retirement System of Texas, requires the state to contribute $75 per employee toward monthly health care premiums.

Nearly 430,000 public school teachers and retirees are covered under the plan, which is used by many of the state’s 1,200-plus school districts. Since the program went into effect, employees’ share of premiums have more than doubled, while the state’s contribution to teacher’s health care has remained the same.

“When your salary is barely going up year after year, health care costs are going up considerably and you’re not getting any additional money put toward those healthcare cost by your employer — which is the state in this case — then effectively you’re taking a year over year cut to your salary,” said Monty Exter, a lobbyist at the Association of Texas Professional Educators.

Under the TRS-ActiveCare program, districts are also required to put a minimum of $150 per employee per month toward health insurance premiums, with the option of contributing more. But Exter said that can be difficult for districts as education budgets are squeezed.

Joel Solomon, a senior policy analyst with the National Education Association, said it’s hard to compare Texas teacher health insurance programs to other states since the structure of such programs varies nationwide. But, he said, “when we look at educators’ health benefits around the country and how important … ensuring quality health benefits to educators are, what we see in Texas is deeply troubling.”

When it comes to retirement funding, a majority of states pay into both a pension plan and Social Security. Texas is in the minority of states that only pay into a pension fund and does not pay into Social Security for the majority of its teachers — which means most Texas teachers won’t have access to Social Security benefits when they retire. Fewer than 50 of the state’s districts participate in Social Security on their own.

Among states that only offer a pension plan for teachers, Texas is dead last when it comes to funding its pension programs — by a lot.

For years, Texas only paid 6 percent — the constitutional minimum — into the Teacher Retirement System. It now pays 6.8 percent, according to the National Association of State Retirement Administrators. And the Texas Constitution says the state’s contributions to pension funds can’t eclipse 10 percent without a constitutional amendment approved by voters.

“The next closest non-Social Security state had a retirement contribution rate at least double ours,” said Ann Fickel, the associate executive director of the Texas Classroom Teachers Association. The median contribution for the other 14 other states that don’t pay into Social Security for their teachers is around 18 percent, she added.

“As retirees’ costs rise, especially for medical care, there will be pressure on lawmakers to find a way to increase benefits for retired teachers,” Fickel said.

The bottom line: When it comes to teacher pay, Texas ranked 27th in the nation — right around the middle. But Texas is dead last in teacher retirement funding and puts a little more than the minimum into the Teacher Retirement System.

Disclosure: The Texas State Teachers, the Association Association of Texas Professional Educators and the Texas Classroom Teachers Association have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/04/20/texas-teachers-employee-benefits-dead-last-retirement-funding/.

 

Texas Tribune mission statement

The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

School finance commission focuses on tax policy

The Texas Commission on Public School Finance met today in Austin to cover an agenda focused on tax policy. The day included invited testimony from a series of witness representing both out-of-state entities and Texas-based stakeholders.

National representatives offered individual assessments of the Texas taxing structure as well as perspectives on various reforms. The representatives hailed from the Tax Foundation, Tulane University’s Murphy Institute, the Lincoln Institute of Land Policy, and the Institute on Taxation and Economic Policy. Their individual presentations centered around a variety of policy reforms, including revisions to the property tax, an expansion of the sales tax base, changes to corporate taxing, better tax transparency policies, an update to the gas (or vehicle usage) tax, and a focus on more targeted relief over broad based relief. The broad look at tax policies seemed to drive an overall message that some combination of reforms is the best approach.

The commission also heard from the Texas Education Agency and the Comptroller’s Office regarding Texas’s current sources of funding for public education. The high-level presentation focused on the coordinating chart, which identified the Foundation School Program appropriations and their 2018-2019 biennium levels.

Texas-based entities invited to testify included a range of stakeholders. While many of the same broad tax policy reforms mentioned by the national panelists were addressed, the group offered perspectives more narrowly focused on the Texas taxing and school finance systems. For example, one testifier highlighted a lack of taxpayer transparency with regard to how certain tax revenues are directed. While some education funding is diverted to other budget areas, other revenue is used to supplant the state’s share of education funding when those dollars are intended to be supplemental funding.

Links to the witnesses presentation materials can be found here and a recording of the meeting can be viewed here. The commission’s Working Group on Expenditures will meet tomorrow morning and will hear invited testimony on the cost of education index, compensatory education, and the transportation allotment.

The Rainy Day Fund roadshow makes a stop in the House Appropriations Committee

The House Appropriations Committee, similar to its counterpart in the Senate, heard a number of interim charges Wednesday. Of note for public education, and for educators in particular, was an interim charge to continue to study strategies to use the Economic Stabilization Fund (ESF), also known as the “rainy day fund,” to generate additional revenue for state obligations without compromising the fund’s intended purpose. The charge instructed lawmakers to evaluate the current methodology used to set the ESF cap.

The committee heard testimony on ESF investment history, utilization, and investment practices from the Legislative Budget Board, the state comptroller, and the Texas Taxpayers and Research Association, whose executive director helped draft the legislation that brought the ESF into existence.

Read more about Comptroller Glenn Hegar’s plan to invest ESF dollars to create new revenue stream to fund state priorities and why that revenue is needed, in this previous Teach the Vote blog post.

Teach the Vote’s Week in Review: April 6, 2018

Here’s a wrap-up of your education news from ATPE:


The Texas Education Agency (TEA) made several announcements this week regarding the draft plan to address special education in Texas. In addition to accepting public comments on the latest version of the draft plan, TEA has scheduled two hearings where members of the public are invited to express their input. Information on the two meetings is as follows:

  • Thursday, April 12, at ESC Region 1 – 1900 West Schunior, Edinburg, Tx.
  • Monday, April 16, at ESC Region 10 – 400 East Spring Valley Road, Richardson, TX.

Both meetings will begin at 1 pm, and those wishing to share feedback are asked to register onsite beginning at 12:30 pm (registration will end when the meeting begins). Registered participants will be called in the order they are registered and will be limited to three minutes. The hearing will end when all have testified or at 3 pm, whichever comes first. Those unable to attend either hearing can submit their written comments by email at TexasSPED@TEA.texas.gov by April 18 at noon.

To learn more about the two public hearings and the chance to submit written testimony, view TEA’s full press release, visit TEA’s special education webpage, and read ATPE Lobbyist Mark Wiggins’s post from earlier this week.

 


Texas Commissioner of Education Mike Morath sent a letter to school administrators today regarding three recent changes to how the spring 2018 State of Texas Assessments of Academic Readiness (STAAR) exams will be administered. The three changes involve offering medical exemptions for qualifying students, allowing for the transcribing of student responses that are recorded in the test booklet onto a blank answer document, and relaxing the rules around classroom displays. His letter indicates these moves are being made in response to district feedback and in an effort to “do all I can to help make this a positive experience and reduce stress for students and school district and charter school personnel.” Read Commissioner Morath’s full letter to learn more.

 


It was a busy Wednesday at the Capitol this week, and your ATPE Governmental Relations team was there to cover all the action. ATPE Lobbyist Monty Exter covered the Senate State Affairs Committee meeting, where pension and healthcare issues were the topic of discussion. That meeting included conversations about the factors affecting the Teacher Retirement System (TRS) of Texas pension fund and the TRS-Care retiree health insurance program. For more information on how the hearing unfolded, read Exter’s recap of the meeting or watch an archived webcast. You can find ATPE’s testimony, and other public testimony, at the end of the recording.

 


The Texas Commission on Public School Finance met this week in Austin for a discussion on property taxes and their role in the school finance system. A smaller working group of commission members met Wednesday to discuss outcomes. The highlight of Wednesday’s meeting was former Assistant U.S. Secretary of Education Tom Luce, who suggested it’s time to do “more with more, not more with less” when it comes to funding public schools in Texas. This was particularly compelling advice from Luce, considering he was a key player in the state’s last major school finance reform – all the way back in 1984.

All 13 members of the commission met Thursday to hear several panels discuss property taxes. While there was general agreement on the burden imposed by property taxes, the debate between some members over how to calculate the state’s share of public education spending continued anew. Importantly, state Rep. Diego Bernal (D-San Antonio) requested the state prepare a list of school revenue sources that have been cut over the last 10 years. You can read a full recap of Wednesday’s working group meeting by ATPE Lobbyist Mark Wiggins here, and a rundown of Thursday’s full commission meeting here.

 


The Senate Education Committee rounded out a busy Wednesday in Austin with a hearing to discuss interim charges related to virtual schools, “high quality education opportunities,” and the federal E-rate program. ATPE offered written testimony to the committee concerning the virtual education charge, cautioning against moves to further expand the Texas Virtual School Network without carefully considering the status of virtual schools’ performance. Recent research highlights concerns regarding these schools nationwide and a look at Texas accountability measures fail to paint a drastically different picture in Texas. ATPE Lobbyist Kate Kuhlmann was at the hearing and offers more on the discussion here.