In an interview Tuesday morning, April 7, 2020, with Texas Tribune Executive Editor Ross Ramsey, Texas Comptroller Glenn Hegar repeated a statement he had already made to legislators in private last month regarding the combined economic impact of the COVID-19 pandemic and plummeting oil prices.
“I know that we are unfortunately in a recession,” said Hegar, whose office oversees the state’s finances. “I just don’t know how deep or how wide it’s going to be.”
The comptroller’s certification revenue estimate in October 2019 projected that the state would end the current budget cycle with a balance of $2.9 billion in general revenue and $9.3 billion in the state’s economic stabilization fund (ESF), which is often referred to as the “rainy day fund.” Hegar said he plans to release a revised revenue estimate in July, which he predicts will be several billions dollars less. Many are questioning just how much of a toll the double-whammy of a pandemic and an oil price war will take on the state’s budget — especially after legislators significantly increased public education funding under House Bill (HB) 3 in 2019.
Hegar said Tuesday the state is expected to have enough cash flow to meet its obligations through the end of the current budget, which runs through August 31, 2021. While contributions to the ESF are expected to decrease as a result of declining oil and gas revenues, the comptroller’s office is still projecting a balance of $8.5 billion in the fund by the end of the current budget cycle.
Altogether, Hegar said he does not believe legislators will need to be called into a special session this year to shore up the current budget, but he added that the start of the next legislative session in January 2021 will be quickly upon us. Next session, legislators anticipate facing the daunting task of funding state priorities over the next budget cycle with significantly less money available.
The reason less money will be available has to do with how Texas government is funded. Since Texas does not have an income tax, sales and use taxes account for 57% of state revenue. Local governments are funded by a combination of sales and property taxes. When places like bars, restaurants, and stores make less money, they send in less sales tax revenue. Surging unemployment has the same effect on sales taxes by depressing consumer spending, as well as inhibiting people’s ability to keep up with their property taxes.
All this is happening at the same time the demand for government services such as unemployment, healthcare, and food assistance is increasing. The result is an unprecedented strain on government at every level, yet Hegar noted that state agencies should look for ways to cut spending.
The comptroller’s office is currently working off of sales tax revenue reports released in March detailing economic activity that happened in February, which was before social distancing was enforced. April sales tax numbers will provide a better look at the economic impact of business closures and downsizing, but that report won’t be available until the end of May. Hegar is waiting on those numbers to give a better estimate of the impact on the state budget in the planned revised revenue estimate this summer.
So what does this all mean for public education? It’s still unclear. Hegar noted Tuesday that education and health and human services make up the two largest components of the state budget. Hegar noted that state leaders will likely begin discussing ways to cut agency spending during the current budget cycle, but he suggested that areas like the Foundation School Program (FSP) and Medicaid should be exempted from cuts this year. The FSP is the finance formula that flows funding for public education to local schools.
The state is also awaiting federal coronavirus aid recently passed by Congress, which will send billions of dollars to schools across the nation. Future federal aid packages are likely to have an additional impact on the state budget going into next session. There are already talks coming out of Washington about a fourth coronavirus stimulus bill that could provide as much as one trillion dollars in additional aid.
The one phrase Hegar repeated multiple times throughout this morning’s 45-minute interview was “managing expectations.” The comptroller was clear that the state is in the midst of a recession driven largely by the COVID-19 outbreak and aggravated by the oil price war. We still don’t know how many billions of dollars this will drain from the state’s budget going forward, but it will be significant. We’ll have a better look when the comptroller releases his revised estimate in July.
You can watch the full Texas Tribune interview with Texas Comptroller Glenn Hegar here.
On February 10, 2020, President Donald Trump released his budget proposal, which is a statement of his administration’s spending priorities across all sectors of government. Because the president’s budget is merely a proposal, any of these funding amounts would still need to be approved by Congress in order to be enacted. Historically, Congress has largely ignored President Trump’s funding proposals for education.
The education portion of the president’s 2021 budget recommendation is focused on “education freedom.” While cutting funding for the U.S. Department of Education by $5.6 billion, the proposal requests funds to provide up to $5 billion annually in “Education Freedom Scholarships.” Using these funds, states would be free to design their own scholarship programs, which could be used to send public dollars to private schools. This requested increase in voucher funding reflects the president’s statements during his State of the Union address last week, which my fellow ATPE Lobbyist Mark Wiggins reported on here and here for Teach the Vote.
Trump’s proposal also consolidates 29 federal education programs into one block grant totaled at $19.4 billion, which is $4.7 billion less than Congress approved for these programs in 2020. A list of the programs can be found here (see p. 9), which includes 21st Century Learning Centers, charter schools, school safety national activities, and the $16 billion Title I Grants. This change purportedly would cut the role of the Department of Education significantly by reducing staffing and administrative costs. Though this is labeled a “block grant,” funds would still be allocated using the Title I formulas. The proposal indicates that states and school districts could use the funds on any of the consolidated programs and would still have to follow key accountability and reporting requirements.
Consistent with the president’s affinity for career and technical education (CTE), the proposal also includes $2 billion for CTE state grants and $90 million for CTE national programs. Part of this $763 million increase would be funded by a proposal to double the fee for H1-B visas.
The president’s 2021 budget recommendation includes an increase of $100 million in funding for Individuals with Disabilities Education Act (IDEA) Part B grant funding, for a total of $12.8 billion. This increase is relatively small considering the overall funding needs for students with disabilities. (Texas appropriated over $2 billion for this purpose during the 86th legislative session.)
As was the case in previous presidential budget requests from the Trump administration, the proposal eliminates the Public Service Loan Forgiveness program, citing that it “unfairly favors some career choices over others.”
Review past reporting on President Trump’s budget requests for the 2018,2019, and 2020 fiscal years here on ATPE’s Teach the Vote blog.
On Tuesday, April 9, the Texas Senate passed its version of the state budget for the next two years. The Senate’s substitute version of House Bill (HB) 1 received unanimous approval from the upper chamber.
Like the House, the Senate set aside $2.7 billion in the budget bill for “tax relief,” although it is yet to be determined exactly how the money will be spent to achieve that goal. The Senate also dedicated $6.3 billion to public schools, $4 billion of which is reserved for a $5,000 across-the-board pay raise for all full-time teachers and librarians through Senate Bill (SB) 3. That leaves only $2.3 billion in the Senate’s bill to try to make changes to the larger school finance system.
The Senate’s budget proposal differs from the House’s plan, which delivers more than $6 billion to school districts with instructions to spend the first 25 percent of any increase in the basic allotment, or approximately $2.4 billion, on salary increases for all non-administrative staff. While amounts of such a pay raise, if passed, would vary from district to district, the House’s plan would average out roughly to about $1,300 per full-time employee.
Next, each chamber will appoint members to a conference committee that will work out the differences between the version of HB 1 that the Senate passed this week and the version of the bill that the House passed last month. For its part, the House has already appointed its five members of the critical budget conference committee: House Appropriations Chairman Rep. John Zerwas will chair the committee, joined by Reps. Greg Bonnen, Sarah Davis, Oscar Longoria, and Armando Walle. Once the Senate appoints its conferees, negotiators will have until the session ends in late May to reach an agreement. The budget is the only bill the Texas Legislature is constitutionally required to pass, so any failure to come to an agreement within the 140-day regular session would result in legislators being called back for a 30-day special session to finish the budget.
The state’s ongoing difficulty in providing resources for students with disabilities continues to make headlines. On Thursday, April 11, Representative Mary González (D – Clint) and Representative Morgan Meyer (R – Highland Park) held a press conference to address Texas’s consistent underfunding for students with disabilities and lack of compliance with federal spending requirements under the Individuals with Disabilities Education Act (IDEA). ATPE and other stakeholder groups representing educators, students, and advocates for people with disabilities participated in the bipartisan press conference.
The state’s inadequate spending on students with special needs could cost Texas as much as $223 million in lost federal funding. Under the IDEA’s maintenance of financial support requirement, each state must spend at least as much on special education as it did in the previous year or face a financial penalty. Read more about the millions in penalties Texas faces here.
The Senate Education Committee convened twice this week to take action on bills pertaining to virtual schools and other miscellaneous items. The first meeting of the committee on Tuesday featured testimony about which entity should manage the Permanent School Fund and a discussion of school turnaround options. The committee also heard an ATPE-supported bill by the committee’s chairman, SB 1895 by Sen. Larry Taylor (R-Friendswood), that would help educators receive professional development on blended learning.
Among the legislation voted out favorably by the committee on Tuesday were two bills pertaining to virtual schools, which ATPE opposed when they were heard by the committee the previous week. The committee advanced SB 2244 by Sen. Angela Paxton (R-McKinney), which prevents school districts from charging fees for virtual classes and makes it easier to enroll in virtual schools, and SB 1455 by Sen. Larry Taylor (R-Friendswood), which also expands virtual schools. ATPE previously submitted written testimony opposing both bills and citing research that calls into question the quality and performance of existing virtual schools. The committee also voted out a number of other bills, including SB 1256 by Sen. Paul Bettencourt (R-Houston) that cleans up portions of his educator misconduct bill passed last session.
During the Senate committee’s second hearing on Thursday, the bills discussed were mostly unrelated to each other. ATPE supported bills including SB 426 by Sen. Eddie Lucio,. Jr. (D-Brownsville), which would ensure that counselors spend the majority of their time counselling students as opposed to being assigned other duties such as test monitoring. The committee also took action on some pending bills, including a major school safety bill. Chairman Taylor’s SB 11, which ATPE had also supported, received a favorable vote by the committee on Thursday. SB 11 follows up on recommendations of the Senate Select Committee on Violence in Schools and School Security that met during the interim last year.
On Tuesday, April 16, the Senate Education Committee is slated to meet again and is expected to hear the House’s major school finance bill, HB 3. ATPE urges educators to contact their senators about this widely support bill and keep up the momentum for passing meaningful school finance reform and an educator pay raise this session.
The House Public Education committee held a marathon meeting on Tuesday, hearing 38 bills that mostly pertained to charter schools. Several of the bills were aimed at regulating the expansion of charter schools and how charter schools handle student discipline, eliciting hours of public testimony. Other bills heard on Tuesday included the ATPE-supported HB 228 by Rep. Matt Krause (R-Fort Worth) that would create new eligibility standards for Districts of Innovation (DOI), and HB 1853 by Rep. Leo Pacheco (D-San Antonio), which would require charter schools to hire certified educators and protect the rights of educators. ATPE also provided neutral testimony on HB 3904 by Chairman Dan Huberty (R-Kingwood), which is considered a clean-up bill for Huberty’s HB 22 that was passed last session.
Find more information on the bills considered and passed by the House Public Education committee in this blog post by ATPE Lobbyist Andrea Chevalier. The committee will meet again on Tuesday, April 16, where it will consider a diverse agenda, including some virtual schooling bills similar to those acted upon by the Senate committee this week. Stay tuned to Teach the Vote and follow us on Twitter for updates.
ATPE is encouraging educators to contact their senators asking them to oppose two bills that would infringe on educators’ free speech rights and limit the ability to teach students. SB 1569 by Sen. Pat Fallon (R-Prosper) and SB 904 by Sen. Bryan Hughes (R-Mineola) both deal with “political advertising” laws and are aimed at limiting the ability of school district employees and school board members to talk about political content while they’re at school.
SB 1569 has been placed on the Senate Intent Calendar for next week, meaning that it could come up for a floor vote as early as Tuesday. SB 904 has not yet been placed on the Senate Intent calendar but may also appear there at any time. While the authors did make some changes to these two bills compared to their versions as filed, ATPE remains concerned about likely negative consequences of SB 1569 and SB 904 and the chilling effect they would have on educators. For additional information, check out this blog post about the bills. ATPE members are urged to visit Advocacy Central for talking points and quick communication tools for reaching out to their senators.
The Texas House of Representatives debated its budget bill, March 28, 2019.
During a late night floor session on Wednesday, the Texas House unanimously approved a $251 billion state budget bill, House Bill (HB) 1. The bill includes a $9 billion appropriation for improving the state’s school finance system and providing property relief to homeowners. The public education-related funding increases in the House budget would be implemented via HB 3, Chairman Dan Huberty’s (R-Kingwood) omnibus bill that ATPE supports. The full House is slated to debate HB 3 on the floor next Wednesday, April 3.
On the other side of the Capitol, the Senate Finance Committee is preparing to approve its budget bill, Senate Bill (SB) 1, in the coming days. During a meeting yesterday, the committee decided to add money to its bill to match the House’s $9 billion funding proposal for public education. The two chambers are likely to disagree, however, on how that money should be spent.
Read more about the House’s big budget vote in this article from The Texas Tribune republished on our Teach the Vote blog. We urge ATPE members to use our convenient tools on Advocacy Central to send a message to House members thanking them for their vote on the budget to increase public education funding and urging them all to similarly support HB 3 next week.
ATPE State President Byron Hildebrand testified before a House committee, March 26, 2019.
This week two important bills affecting the Teacher Retirement System (TRS) advanced in both the House and Senate.
House Bill (HB) 9 by Rep. Greg Bonnen (R-Friendswood), which increases contributions to TRS and provides retirees with a 13th check, received a hearing the House Committee on Pensions, Investments, and Financial Services on Tuesday. The bill was left pending in committee but is expected to be voted out favorably in the near future. ATPE State President Byron Hildebrand testified in favor of HB 9 during the hearing.
Also, Senate Bill (SB) 12 by Sen. Joan Huffman (R-Houston) was voted out of the full Senate by a unanimous vote on Monday. SB 12, which ATPE also supports, raises the contribution rates into TRS, albeit differently from the House’s bill, and provides retirees with a 13th payment, but the payment would be lower. For more information on the differences between the two bills, check out this blog post by ATPE Senior Lobbyist Monty Exter.
On Tuesday, the Senate Education Committee chaired by Sen. Larry Taylor (R-Friendswood), heard a number of bills focused on student discipline issues. ATPE supported bills such as Senate Bill 1451, which prohibits negative action on a teacher’s appraisal solely on the basis of the teacher’s disciplinary referrals or documentation of student conduct, and Senate Bill 2432, which would add harassment to the list of conduct that will result in the mandatory removal of a student from the classroom. For more information on the bills heard, plus other pending bills that were voted on during this week’s committee hearing, check out this blog post by ATPE Lobbyist Mark Wiggins.
Meetings of the House Public Education Committee have been known to take on a theme and focus on bills that pertain to the same issue. The theme of this week’s meeting of the committee was school safety. Members of that committee on Tuesday heard 35 bills related to topics in school safety such as school hardening, access to mental health resources, and increased law enforcement on school campuses. ATPE registered a position in support of six bills including House Bill 2994 by Rep. James Talarico (D-Round Rock), which would require the Commissioner of Education to develop mental health training material for school districts. A thorough breakdown of the bills heard during this committee meeting can be found in this blog post by ATPE Lobbyist Andrea Chevalier.
FEDERAL UPDATE: On Thursday, March 28, 2019, U.S. Secretary of Education Betsy DeVos sat before the Senate Appropriations Committee to defend President Donald Trump’s proposed federal budget for the Department of Education. DeVos faced questions on her support for increasing federal funding for school choice while eliminating or decreasing funding aimed at teacher effectiveness, special populations, and loan assistance. Watch more coverage of the hearing here for the full scoop.
ELECTION UPDATE: The 86th Texas Legislative session is more than halfway over, and issues like school finance, teacher pay, and school safety remain key topics. This is a direct result of the tremendous educator turnout during the 2018 elections and proof of the power of democracy – informed and engaged citizens holding their elected officials accountable. Practicing and modeling civic engagement require voting in every election. On May 4, 2019, many Texans will have the chance to vote in local elections for school boards, mayoral seats, bonds, and more. Make sure your voter registration is up to date so you will be able to participate. The last day to register to vote in the May election is April 4. Early voting runs April 22-30, 2019. Visit VoteTexas.gov to learn more about how to register and vote.
Editor’s note: This story has been updated throughout.
In Dennis Bonnen’s first major test as speaker of the Texas House, the chamber he oversees resoundingly passed a $251 billion budget Wednesday after a long but largely civil debate — a departure from the dramatics that have typically defined such an affair.
Though lawmakers proposed more than 300 amendments to the spending plan, Bonnen, an Angleton Republican, and his chief budget writer, state Rep. John Zerwas, R-Richmond, finished the night with their budget plan largely intact. After 11 hours of relatively cordial discussion, lawmakers agreed to withdraw the vast majority of their amendments or move them to a wish list portion of the budget, where they are highly unlikely to become law.
The budget passed unanimously on the final vote. The legislation, House Bill 1, now heads to the Senate, whose Finance Committee was set to discuss its budget plan Thursday.
“I’m proud of where we are in the bill that we are sending to the Senate,” Zerwas said at the end of the marathon debate. “Each and every one of you should be incredibly proud of the work that you’ve put in here.”
The two-year spending plan’s highlight — a $9 billion boost in state funding for the public education portion of the budget — remained unchanged. Of that, $6 billion would go to school districts, and the remaining $3 billion would pay for property tax relief, contingent on lawmakers passing a school finance reform package.
The budget plan would spend $2 billion from the state’s savings account, commonly known as the rainy day fund, which holds more than $11 billion.
“I’m not here to compare it to previous sessions,” Bonnen told reporters after the House budget vote. “But I’m here to tell you we had a great tone and tenor tonight, and I’m very proud of the business that we did.”
Some of the more contentious budget proposals floated by lawmakers never reached the floor. An amendment from state Rep. Richard Peña Raymond, D-Laredo, for example, would have asked members to vote on the issue of across-the-board pay raises for public school teachers. Such a proposal has divided the Legislature this session, with Lt. Gov. Dan Patrick’s Senate in favor and much of the House opposed. Raymond withdrew his amendment Wednesday evening, saying he planned to bring up the issue again when the House debates its school finance bill.
A proposal from state Rep. Mayes Middleton, R-Wallisville, to prohibit disaster recovery dollars from benefiting noncitizens and “illegal aliens” was quietly withdrawn after sparking controversy earlier this week. Across the aisle, state Rep. Jessica González, D-Dallas, withdrew her amendment that would have required Gov. Greg Abbott’s office to prepare a report on domestic terrorist threats posed by white supremacists.
Bonnen worked behind the scenes in the days preceding the vote, House lawmakers said, in the hopes of avoiding the discord that has erupted during the chamber’s marathon budget debates in past sessions. On Tuesday, top lieutenants for Bonnen met for a handful of informal gatherings to offer concessions in exchange for lawmakers dropping some of their more controversial amendments, according to people familiar with the meetings.
The result was one of the shortest budget debates in recent memory. Lawmakers gave preliminary approval to the two-year spending plan minutes after the clock struck midnight. Under former House Speaker Joe Straus, lawmakers in 2017 and 2015 went home well into the morning, after several explosive exchanges between Straus’ allies and the chamber’s hardline GOP membership.
“This budget night is unlike any other I have experienced in my time in the House — both in it’s shorter duration and civil tone,” said state Rep. Matt Krause, a Fort Worth Republican and Freedom Caucus member, in a text message after the debate concluded. “I think Speaker Bonnen deserves the bulk of the credit for creating an environment of civility and decorum. This is how the Texas House should operate when debating the big issues for the state of Texas.”
So while Bonnen’s first budget night as speaker was hardly free of controversy — an argument over the effectiveness of the state’s “Alternatives to Abortion” program, for example, derailed movement on amendments for nearly an hour — the occasional spats paled in comparison with those of years past. There were no discussions at the back microphone of lawmakers’ sexual histories, as happened in 2015, and no one had to physically restrain House members to prevent a fistfight over the fate of a feral hog abatement program, as happened in 2017.
Still, state Rep. Jonathan Stickland, R-Bedford, continued his long-running campaign against the feral hog program. And though the exchange ranked among the evening’s rowdiest, it was more than tame by last session’s standards.
State Rep. Drew Springer, R-Muenster, again opposed Stickland’s amendment to defund the program, which reimburses local initiatives to eradicate wild hogs. Stickland responded, “Members, although I respect the thoughtful words of Rep. Springer … let’s end this program right here, right now.”
Stickland’s amendment failed, with just four votes in favor.
In an earlier dustup just before 2 p.m., state Rep. Sarah Davis, R-West University Place, who led the House budget negotiations over health and human services programs, was seen in a heated exchange with state Rep. Jeff Leach, R-Plano.
A few minutes later, Leach proposed an amendment that would allow Texas to expand Medicaid coverage for women up to a year after they give birth. To cover some of the costs, Leach’s amendment recommended cutting $15 million from a program in Abbott’s office that reimburses film and video game makers who work in Texas.
Extending postpartum Medicaid coverage “is simply more important and should be a higher priority” than the film incentives program, Leach said.
Democrats gathered at the back microphone to oppose the motion, saying the funding should come from elsewhere.
“I appreciate that you’re trying to help women’s health,” said state Rep. Donna Howard, D-Austin, who said she supported the film incentives as a job-creation program. “If we found another source, would you create another amendment?”
“I’m not going to agree to hypotheticals,” Leach replied. The amendment subsequently passed without a recorded vote after putting Democrats in the awkward position of voicing opposition to a Medicaid coverage expansion they otherwise supported.
A more ambitious Medicaid coverage expansion, which would have provided publicly funded health insurance to low-income Texans under the Affordable Care Act, failed for a fourth legislative session. The Medicaid expansion amendment brought by state Rep. John Bucy III, D-Austin, was rejected with 66 votes in favor and 80 opposed.
Still, Democrats saw some wins Wednesday. For example, an amendment by state Rep. Michelle Beckley, D-Carrollton, that would require the Department of State Health Services to conduct a study on vaccination rates among children at licensed child care facilities was approved in a 79-67 vote. Another successful amendment by state Rep. Chris Turner, D-Grand Prairie, directs the state to come up with a transition plan for when a pot of federal health care safety-net funding, known as the 1115 waiver, dries up in 2021 and 2022.
Complicating budget negotiations was news of an updated property tax reform proposal, which was expected to be laid out in committee before the House convened but was instead postponed until after the budget debate. Debate over that updated proposal, which drew opposition from Democrats and hardline Republicans, carried over onto the floor as its author, state Rep. Dustin Burrows, R-Lubbock, met with committee members to discuss the high-priority legislation.
The debate on the HB 1 ended with a procedural move spearheaded by Turner and Burrows to wrap up the remaining amendments and send them to the wish list portion of the wish list portion of the budget. That section of the budget, known as Article XI, is considered a graveyard for most line items.
Passing an amendment to the wish list is “just a way to get you off the main,” state Rep. Yvonne Davis, D-Dallas, said in protest earlier in the evening, shortly before one of her proposals was shot down.
The two-year budget wasn’t the only spending plan advanced by the House on Wednesday.
Lawmakers also approved a $9 billion supplemental spending plan to pay for leftover expenses that aren’t covered in the state’s current two-year budget, mostly for Hurricane Harvey recovery and health and human services programs.
A $4.3 billion withdrawal from the state savings account covers the largest share of expenses in the supplemental bill. Another $2.7 billion comes from the state’s general revenue, and $2.3 billion are federal funds.
The legislation, Senate Bill 500, returns to the Senate, whose stopgap spending plan approved earlier this month carried a $6 billion price tag.
Lawmakers in 2017 underfunded Medicaid, the federal-state health insurance program for the poor and disabled, requiring a $4.4 billion infusion of state and federal funds. The Legislature must pass the stopgap funding bill before the end of May if the Texas Health and Human Services Commission is to be able to pay health care providers on time.
The supplemental bill also includes:
Nearly $2 billion to reimburse school districts, state agencies and universities for costs they took on after Hurricane Harvey
About $1.3 billion to shore up a system that pays out teacher pensions, contingent on the passage of a pension reform bill, which includes $658 million from the state savings account to provide a one-time “13th check” made out to retired teachers
Nearly $11 million for the Santa Fe Independent School District, which experienced a mass shooting last year that left 10 dead and 13 wounded
$2 million for state mental hospital improvements, which includes funding to plan the construction of new hospitals in the Panhandle and the Dallas area.
Now that the bill filing deadline has passed and the 86th legislative session is beyond its halfway point, it’s time for the legislature to do the one thing that it is mandated to do in every session: pass a budget. “Budget Day,” though it doesn’t have an official date in each legislative session, is when the House or Senate passes its version of a budget bill. Things get heated, legislators stay on the floor until the wee hours of the morning, staving off delirium to fight for every penny possible for their constituents’ legislative priorities. At stake this session is the future of public education funding, deemed an emergency issue this session by Gov. Greg Abbott and a top priority of the leadership in both the House and Senate.
For its part on the school finance front, the House Public Education Committee unanimously approved Chairman Dan Huberty’s (R-Kingwood) comprehensive school funding bill, House Bill (HB) 3, on Tuesday of this week after making a number of changes requested by ATPE and other education stakeholders. Those changes included removing a controversial merit pay proposal from the bill. Read more about the revisions made to HB 3 in this blog post by ATPE Governmental Relations Director Jennifer Mitchell. The new and improved school finance and tax reform bill is expected to be brought up by the full House for a floor debate within a couple of weeks.
With the momentum behind major public education bills like HB 3, it is now up to lawmakers to put aside enough money for the next biennium to make those school funding proposals a reality. On the House side, those budget decisions will be made via HB 1, which is the House’s version of the budget bill that is scheduled for a floor debate next week. State representatives will be spending the weekend drafting and pre-filing their amendments to the massive budget bill before its lengthy budget debate happens on Wednesday, March 27. Stay tuned to Teach the Vote and be sure to follow us and our lobbyists on Twitter for updates on the budget debate next week.
House Public Education Committee hearing, March 19, 2019
In addition to approving HB 3 earlier this week, the House Public Education committee also heard 21 other bills when it met on Tuesday, March 19. The subjects of the bills ranged from the compensatory allotment to a proposal to make personal financial literacy courses mandatory for graduation. The committee also voted to send 14 previously heard bills to the House floor, including the high-profile school finance and tax relief bill, HB 3. For more information on the bills heard during Tuesday’s committee meeting, read this blog post by ATPE Lobbyist Andrea Chevalier. Next Tuesday, the committee will meet again to hear a long agenda full of school safety bills.
Senate Education Committee hearing, March 19, 2019
The Senate Education committee also met Tuesday, March 19, to hear a number of bills, including several relating to educator misconduct. Most of the bills heard on that subject were filed by Sen. Paul Bettencourt as follow-ups to his Senate Bill 7 enacted by the legislature in 2017. The Senate Education Committee voted to advance three bills to the Senate floor. Read more in this blog post from ATPE Lobbyist Mark Wiggins. On the agenda for next week’s Senate Education Committee hearing are several bills relating to student discipline.
Two high-profile bills positively affecting Teacher Retirement System (TRS) pension benefits are slated for legislative action next week.
First, Senate Bill (SB) 12, by Sen. Joan Huffman (R-Houston) is on the calendar for debate by the full Senate next week. As we reported in last week’s wrap-up, SB 12 was previously heard and approved by the Senate State Affairs Committee. SB 12 would shore up the educator pension fund by gradually increasing what the state, school districts, and educators contribute to TRS over a period of six years.
The second bill is House Bill (HB) 9 by Rep. Greg Bonnen (R-Friendswood), which is scheduled for a public hearing by the House Pensions/Investments/Financial Services Committee on Tuesday morning, March 26, 2019. ATPE will be testifying in support of the bill. HB 9 would increase contributions to the TRS pension fund placing the entirety of the responsibility of paying for the contribution increase on the state. It also provides for TRS retirees to receive a 13th check equal to up to $2400 of their annuity payment.
Despite their different methods, both of these ATPE-supported bills are aimed at making the pension fund actuarially sound, which would make it possible for the state to provide a much-needed cost of living adjustment to those retired educators who are receiving TRS benefits.
In each fiscal year (FY), which runs October 1 through September 30, the President releases his vision for the country’s budget. It really is just that- a statement on how the President believes money should be spent based on his (or her) priorities. Actual fiscal determinations are made by Congress. For example, past presidential budgets have proposed eliminating Title II of the Every Student Succeeds Act (ESSA), which provides over $2 billion in grants to states to improve teacher effectiveness. However, Title II has remained intact because Congress will not eliminate it.
The 2020 presidential budget proposal includes $62 billion for the Department of Education (ED) to provide K-12 and higher education programs and funding, which is an $8.5 billion or 12% decrease compared to what Congress enacted in the last budget. President Trump’s budget plan cuts K-12 education by $5.1 billion and calls for eliminating at least 16 programs. While maintaining current levels of funding for large programs such as Title I and the Individuals with Disabilities Education Act (IDEA), the President’s budget pushes multiple controversial programs such as school privatization marketed as “school choice,” charter school expansion, and performance-based compensation, as well as funding for magnet schools and school safety. The proposal includes the following:
Creating a federal tax credit costing up to $50 billion over 10 years for donations to scholarship programs for families of elementary and secondary students to subsidize private school tuition
$500 million (an increase of $60M) to fund the opening, expansion, and facilities of charter schools
$107 million to expand magnet schools
$50 million in new funding for districts participating in the Title I student-centered funding pilot, which allows districts to to use federal, state, and local funding for public school choice
Raising the percentage of Title I dollars states can use to fund expanded educational choice for disadvantaged students from 3% to 5%
Increasing the funding for the DC Opportunity Scholarship program, which awards scholarships for low-income students to attend private schools in Washington, DC
While the bulk of Title II under ESSA would be eliminated yet again, the FY 2020 Presidential budget proposes two main initiatives that affect teachers:
$200 million for the Teacher and School Leader Incentive grant program, which would support performance-based compensation systems and human capital management systems that include either mentoring of new teachers or increased compensation for effective teachers
$300 million (an increase of $170M) for Education Innovation and Research, mainly for studying teacher-driven professional development (PD) and providing stipends for teachers to attend PD
As for school safety, the budget includes:
$700 million ($354M increase) in Department of Education, Justice, and Health and Human Services grants to give states and school districts resources to implement the recommendations of the Federal Commission on School Safety (FCSS)
$200 million (increase of $105M) will go to ED for School Safety National Activities, which provides grants to states and school districts to develop school emergency operations plans, as well as counseling and emotional support. $100M of this will be used for a School Safety State Grant program to implement the recommendations of the FCSS
Other points of interest include TEACH grants, which award annual amounts up to $4,000 to eligible undergraduate and graduate students to become full-time teachers in high-need areas for at least four years. The Presidential budget proposes cutting funding to this program by $3.1 million. The Public Service Loan Forgiveness program, which allows the cancellation of federal student loans for non-profit and government employees after 10 years of on-time payments, is also eliminated in the budget.
In addition to the aforementioned maintained levels of Title I and IDEA funding, the FY 2020 Presidential budget proposal would maintain current levels of funding for many programs including state assessments, English language acquisition programs, migrant education, neglected and delinquent education, education for homeless children and youths, and rural education.
The budget would decrease funding to Indian education programs and impact aid, which helps to offset revenue loss to districts that serve areas that include federal lands. The budget plan also shifts around more than $12B in IDEA funding, cutting some programs entirely while increasing funding to others.
Lastly, the budget proposes elimination of many programs, including arts in education, full-service community schools, Promise neighborhoods, and Special Olympics educational programs. However, don’t despair! Remember, the president’s proposed budget is a suggestion and a statement of his priorities. Given the split control of the U.S. House of Representatives, it is even less likely that President Trump’s proposals as described here ultimately will be enacted.
The entire proposal includes all areas of funding across the government. If you don’t want to read the whole thing, check out the administration’s three-page overview. Keep in mind that these documents were created by the White House and do not represent an objective analysis.
ATPE will continue to monitor and report on the federal budget discussions in Washington with assistance from our DC-based federal lobby team. Stay tuned to Teach the Vote for updates.
Both the Texas House and Senate released their preliminary budget proposals for the 2020-21 biennium this week. A key feature of each chamber’s plan was how much more funding had been proposed for public education, likely resulting from the uptick in educator engagement at the polls last year and in policy discussions over the interim.
The House proposal for public education funding includes a 17.2 percent increase from general revenue, while the Senate’s proposal would increase funding from general revenue by 10.3 percent. The Senate Finance Committee has already released a full schedule of upcoming budget hearings, including one on Feb. 11 to discuss the public education portion of the budget. Expect similar hearings to be scheduled in the House once Speaker Dennis Bonnen releases a list of House committee assignments, likely later this month.
On Tuesday, Sen. Jane Nelson (R-Flower Mound) filed Senate Bill 3 (SB 3) relating to additional funding to school districts for classroom teacher salaries. The low bill number indicates that this is a high priority bill in the upper chamber. In short, both the House and Senate are trying to signal to the public that they’ve received the message loud and clear from voters: it’s time to properly fund public education. But don’t count your chickens before they hatch, as it’s important to remember that a filed bill does not a law make.
Now is the time for educators and community members to continue to press their point so that House and Senate budget negotiations will proceed with a sharp focus on the needs of Texas public schools. To keep abreast of what’s happening at the legislature on the budget, teacher pay bills, and other pieces of legislation, and to contact your legislators directly, visit our Advocacy Central page for ATPE members only.
For more on the House and Senate budget proposals that have been filed, read this week’s blog post by ATPE Lobbyist Mark Wiggins. Also, check out last night’s episode of the Spectrum News program CapitalTonight featuring an interview with ATPE Senior Lobbyist Monty Exter discussing the proposals to increase public education funding this session.
The League of Women Voters (LWV) has created a survey designed to capture information about how Texas voters find information on voting and elections. LWV encourages users who take the 10-20 minute survey to think of it as a “scavenger hunt” where after being asked a few questions users will set out to hunt down information on the Texas Secretary of State’s website. More information about the scavenger hunt can be found here.
Earlier today, Lt. Gov. Dan Patrick announced who would be chairing each of 16 Senate committees this session. Sen. Larry Taylor (R-Friendship) will remain the chair of the Senate Education committee. Meanwhile, Sen. Joan Huffman (R-Houston) will be chair of the Senate State Affairs committee while Sen. Paul Bettencourt (R-Harris County) will chair the new Senate Property Tax Committee.
Online registration for ATPE at the Capitol will close Thursday, Jan. 24, and ATPE members won’t want to miss this opportunity to get up close and personal to the action at this year’s legislative session. Funding for public education along with calls for increased educator compensation have emerged as issues at the forefront of this session. Now more than ever we need educators to visit the legislature and advocate for their profession. ATPE at the Capitol will be held on Feb. 24-25, with political involvement training taking place on Sunday, Feb. 24, and visits with House and Senate members happening on Feb. 25.
There is no registration fee for ATPE members to attend ATPE at the Capitol, and ATPE also has funds available to assist some local units and individual members defray their travel costs for attending the event. Incentive funds will be awarded on a first-come, first-served basis upon a showing of demonstrated need and subject to certain eligibility criteria. The deadline to apply for travel incentives is also Jan. 24, 2019. Hotel rooms at the J.W. Marriott hotel, where the event will be held, are available for booking using the special link found on the event’s registration page. Hotel reservations must also be booked by Thursday’s deadline in order to take advantage of special discounted room rates.
We hope to see many ATPE members alongside our professional lobby team next month during ATPE at the Capitol!
The Texas House of Representatives and Texas Senate released their initial budget recommendations this week, and each includes significant additional funding for public education.
The proposals drafted by the Legislative Budget Board (LBB) represent each chamber’s opening bid in budget negotiations for the 2020-21 fiscal biennium. The budget is the only bill the legislature is constitutionally required to pass within its 140-day session. If it fails to do so, lawmakers will be called back into one or more special sessions until a budget is passed.
The 2020-21 House budget proposal includes $7.1 billion in additional general revenue funds appropriated for public education, which represents a 17.2 percent increase over the 2018-2019 biennium. Looking at all funds, public education would see a $10.1 billion, 16.7 percent increase, under the House’s proposal.
The base budget is structured around sufficient funding to maintain services at the current level, and the additional funding comes from a single budget rider that appropriates an additional $9 billion contingent upon the 86th Texas Legislature enacting legislation to increase the state’s share of Foundation School Program (FSP) funding, enhancing district entitlement, reducing recapture, and providing local property tax relief.
77. Additional Foundation School Program Funds for Increasing the State Share, Enhancing School District Entitlement, Reducing Recapture, and Providing Tax Relief. It is the intent of the Eighty-Sixth Legislature to adopt comprehensive school finance legislation and provide local property tax relief. In addition to amounts appropriated above in Strategy A.1.1., FSP – Equalized Operations, and Strategy A.1.2., FSP – Equalized Facilities, $4.5 billion in fiscal year 2020 and $4.5 billion in fiscal year 2021 is appropriated out of the Foundation School Fund No. 193 to be used for the purposes specified in this rider.
The amounts appropriated in this rider are contingent on enactment of legislation supporting school districts and charter schools by increasing the state share of the Foundation School Program, enhancing district entitlement, reducing recapture, and providing local property tax relief, while maintaining an equitable system of school finance. Options may include, but are not limited to, increasing the Basic Allotment and providing additional funding for early childhood education, special education, and teacher compensation.
A portion of the amounts appropriated in this rider shall be used to provide local property tax relief. Funds shall be used to enable the compression of local maintenance and operations (M&O) property tax collections, pursuant to the provisions of the legislation, while ensuring school districts do not receive less total state and local funding through the FSP.
The $9.0 billion in Foundation School Fund No. 193 appropriated in this rider represents new state funding for school districts and charter schools above amounts estimated to fully fund current law. The $43.6 billion in current law appropriations provided above in Rider 3 includes the amount necessary to fully fund $2.4 billion in enrollment growth and $2.2 billion in additional state aid above 2018-19 funding levels associated with the increase under current law in the Guaranteed Yield associated with the Austin Independent School District in accordance with §41.002(a)(2) and §42.302(a-1)(1) of the Texas Education Code.
The Senate’s proposal would increase public education funding by $4.3 billion or 10.3 percent from general revenue, or $7 billion all funds — an 11.6 percent increase. This proposal includes an additional $3.7 billion to provide all teachers with a $5,000 raise effective at the start of the 2019-20 school year and $2.3 billion to reduce reliance on recapture. Senate Bill (SB) 3 filed Tuesday by state Sen. Jane Nelson (R-Flower Mound) would authorize the pay raise, if passed. Lower bill numbers are generally reserved each session for high-priority bills.
The governor, lieutenant governor, and speaker have each declared increasing teacher pay a high priority this session. Due to the publicity surrounding teacher pay, ATPE expects several teacher compensation bills to be filed this session. Our governmental relations team will be analyzing each one to determine how it is structured with regard to who is eligible and the extent to which it includes stable, reliable, and long-term state funding.
Providing additional money for teacher compensation and public education funding were the main topics in Tuesday’s Inauguration Day speeches at the Texas Capitol. Educators should note that this shift in focus among the state’s leaders is a direct result of educators’ increased involvement in the 2018 primary and general elections. Teachers, parents, and public education supporters sent a strong message that Texans demand better school funding and teacher pay. Even in instances where the pro-public education candidate was not elected, the strong showing by public school advocates successfully forced many elected officials to reexamine their stance on public education issues.
Make no mistake, we are only at this point because educators voted, rallied, and lobbied legislators like never before. Educators must keep a close eye on lawmakers over the next five months to ensure they follow through on their promises. ATPE will be bringing you regular updates on legislative proceedings, including changes to these early drafts of the budget and various compensation bills, and educators should remain vigilant and ready to make your voices heard at a moment’s notice. Visit ATPE’s Advocacy Central to learn more and share your own views on school funding and educator compensation with your own elected officials.
Texas Comptroller Glenn Hegar announced Monday that the 86th Texas Legislature is forecast to have $119.12 billion available for general-purpose spending when the regular session begins tomorrow, Jan. 8, 2019.
Click the image to view a larger version. Credit: Office of Texas Comptroller Glenn Hegar
The announcement came today as part of the comptroller’s biennial revenue estimate, which is delivered to legislators before each session begins and consists of a forecast of how much revenue the state expects to receive and how much of it can be spent.
The state is projected to take in $107.32 billion in general revenue-related tax collections in the 2020-2021 fiscal biennium, which is up from $99.27 billion collected in 2018-2019. The next biennium begins with a balance of $4.18 billion carried over from 2018-2019, along with $14.16 billion in additional general revenue-related collections. A total of $6.34 billion of available revenue is reserved for transfers to the economic stabilization fund (ESF), also known more commonly as the state’s “rainy day fund,” as well as highway funds.
Legislators began 2017 with a $104.9 billion BRE, and the 85th Texas Legislature ultimately passed a $107.2 billion budget. The 2018-2019 revenue estimate was revised upward several times as economic conditions improved. In the 2020-2021 revenue estimate, Hegar noted increased economic growth in 2018 fueled by oil production in the Permian Basin, but urged caution looking beyond the 2019 horizon.
“Looking ahead to the 2020-21 biennium, we remain cautiously optimistic but recognize we are unlikely to see continued revenue growth at the unusually strong rates we have seen in recent months,” Hegar wrote in the official report. “Oil prices have dropped sharply since October, financial markets have demonstrated increased volatility, interest rates have been rising and U.S. trade policy remains uncertain. As the nation’s leading export state, the Texas economy in particular is exposed to potential reductions in international trade.”
“Because of this heightened uncertainty, this revenue estimate is based on a projection of continued but slowing expansion of the Texas economy,” Hegar concluded.
Much of the $119.12 billion legislators will be have for budgeting the next two years is already spoken for. The Center for Public Policy Priorities (CPPP) correctly points out in its BRE analysis that legislators will have to immediately make a $563 million back payment to Medicaid, funding that was deferred last session in order to fund public education.
CPPP predicts it will cost roughly $112 million for the state to maintain the current level of services, based upon factors including inflation and school enrollment growth. Legislators will also have to decide where to find $2.7 billion of supplemental funding for Hurricane Harvey recovery costs. That could come out of general revenue or the rainy day fund.