Category Archives: School Finance

Teach the Vote’s Week in Review: Dec. 7, 2018

Here’s the latest update on education news and legislative developments from your ATPE Governmental Relations team:


The State Board for Educator Certification (SBEC) met today in Austin. On the agenda was the approval of new teacher certification standards, performance standards for preparation program accreditation status, and principal and teacher surveys. The board gave final approval (subject to SBOE review) to the pedagogy and professional responsibilities (PPR) standards for the new Trade and Industrial Workforce Training Certificate and to updated performance standards under the accountability system for educator preparation programs (EPPs). The board also approved final versions of the previously piloted principal and teacher surveys to be used for EPP accountability. Minor changes were made to the surveys; a number of duplicative questions were removed to avoid data overlap.

The bulk of the meeting was spent on a discussion item regarding a proposal from the Texas Education Agency (TEA) to redesign the teacher certification process in Texas. The item was not up for action today, but still drew a large number of testifiers. The addition of a performance-based, portfolio-style certification assessment drew the most attention. Testifiers expressed concerns with cost, problems with the edTPA design, and fears of shrinking the teacher candidate pool, among others. Supporters raised the need for higher rigor in order to ensure teacher candidates receive adequate preparation, and they stressed that more than just a multiple choice certification exam should be required to demonstrate knowledge. The redesign item was only a discussion today, so no action was taken. For more on the discussion today, read this Twitter thread from ATPE Lobbyist Kate Kuhlmann.

 


With the regular session of the 86th Legislature only a month away now, school finance continues to dominate discussions about which education-related issues lawmakers will tackle earnestly in 2019. ATPE’s lobbyists have been reporting on the deliberations this year of the Texas Commission on Public School Finance, which was tasked with making recommendations for legislative changes to the state’s beleaguered school funding system. A final report is expected from the commission this month.

Many of those recent school finance discussions involving legislators and policymakers have centered around the desire to provide property tax relief for homeowners and cap the amount of local taxes that can be levied by school districts and other municipalities. Decreasing the taxing burden at the local school district level is a popular idea, along with requiring the state to assume responsibility for funding a larger portion of the state’s education budget. But as Ross Ramsey writes in his analysis this week for the Texas Tribune that we’ve republished here on Teach the Vote, it remains unclear where additional revenue might be generated to offset the reduction in local property taxes. ATPE’s lobby team will continue to participate in and report on the discussions about school finance as we head into the upcoming legislative session.

Rep. Gary VanDeaver, ATPE Executive Director Shannon Holmes, and Rep. Travis Clardy at the TAMS conference, Dec. 6, 2018

On the heels of a competitive 2018 election cycle, many elected officials have also been talking about raising teacher pay. This week, two state representatives debated the issue of teacher compensation during a conference hosted by the Texas Association of Midsize Schools. ATPE Executive Director Shannon Holmes was invited to moderate the panel discussion, and ATPE Lobbyist Mark Wiggins provided this blog post about the event.

 


Register to attend the 2019 ATPE at the Capitol event taking place in Austin on Feb. 24–-25, 2019! ATPE members, this is your opportunity to be a part of the process when the Texas Legislature convenes next month.

On Sunday, Feb. 24, you’ll learn about the top education issues that will be on the front burner next session and receive training on how to become an effective advocate for your profession. On Monday, Feb. 25, you’ll head to the Texas Capitol along with hundreds of ATPE members to directly speak to legislators and their staff.

To learn more about this exciting event, please log in to atpe.org/advocacy-central to register (there is no registration fee). The deadline to register online for this event and book hotel rooms is Jan. 24, 2019. Take advantage and register early as hotel rooms are booking up fast. Please feel free to contact government@atpe.org. with any questions.

 


Houstonians will be heading to the polls once more on Dec. 11 to determine who will represent them in the state senate during the upcoming legislative session. After Sen. Sylvia Garcia vacated her seat to run for Congressional District TX – 29, a seat she won last month, a Senate District 6 special election was called by Gov. Greg Abbott in order to fill her seat. The two women leading the race to replace Garcia are well known Houston Democrats Rep. Carol Alvarado of Texas House District 145 (HD 145), Rep. Ana Hernandez of Texas House District 143 (HD -143), Democrat Mia Mundy, and Republican Martha Fierro. If a single candidate fails to capture 50 percent of the vote on Tuesday, there could be a runoff in January after the legislative session has begun. Early voting in the race ends today. Harris County voters can find poll locations and sample ballots here.

Dec. 11 will also be election day for a number of local races across the state, so find out what’s on your local ballot here.


From The Texas Tribune: A tight-fisted Texas Legislature with expensive ambitions

Analysis: A tight-fisted Texas Legislature with expensive ambitions” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

The Texas Legislature’s strong allergy to tax increases might be abating — just as long as you don’t call them tax increases.

They’re not saying so out loud — no point in riling up a price-sensitive electorate before the holidays, before the upcoming legislative session — or before lawmakers are ready to make their sales pitch.

But the talk of school finance as a top legislative priority guarantees a conversation about taxes. While there are many great policy reasons to mess with that persistent and gnarly issue, the political motivation here is simple: Texas property owners have made it clear to their representatives that they want lower property taxes.

When you do hear lawmakers talking about tax increases next year — whatever euphemisms they choose — they’ll be talking in terms of how that money will pay for property tax cuts. Cutting everyone’s current most-hated tax is the only way to explain so many conservative legislators making serious noises about increasing state revenue.

Given the way the state pays for public education — with a combination of local property taxes, and state and federal funding — the only ways to lower property taxes are to cut public education spending or to find money elsewhere to offset property tax cuts.

In the state’s 2019 fiscal year, the local share of school finance spending is estimated to be 55.5 percent of the total, while the state’s share is expected to be 35 percent, according to the Legislative Budget Board. The rest comes from the federal government.

The last time the Texas Legislature tackled school finance, the local and state shares matched. Years of rising property values – and rising local property tax revenue with them – have allowed the state to lower its share.

The price tag for a rebalancing would be enormous, though. And in spite of Democratic gains in last month’s elections, Texas still has a Republican-dominated state government, with GOP majorities in both the House and Senate, and Republicans in every statewide office. Many of them got where they are by opposing anything that sounded like higher taxes, which makes the road ahead pretty interesting.

If you do some quick arithmetic on those 2019 estimates, it would take a $5.7 billion increase in annual state spending to rebalance the state and local shares of public education spending. Doing that would put them both back where they were in 2008 — each covering about 45 percent of the load.

That’s easier to do on the back of an envelope than it is to do in the Legislature. The budget ahead is tight. House and Senate leaders have to pass what’s called a “supplemental appropriations bill” to take care of shortages in the current budget, Hurricane Harvey recovery costs, and so on. Early guesstimates are that they’ll start more than $5 billion short of what they need for the next budget — and that’s before they even bring up the expensive school finance project.

The governor already is circulating a document that dares to mention taxes in the title: “Improving Student Outcomes and Maintaining Affordability through Comprehensive Education and Tax Reforms.”

That gets right to the politics of the situation: State leaders are interested in easing property tax burdens, and school finance is the biggest lever in their toolkit. It’s also way out of balance and happens to need fixing. Lawmakers often blame the imbalance on school funding formulas. But they’re the authors of those dreaded formulas, and this is also a chance to put something better in place.

But it’s the tax problem — the price of owning property — that has made their price-sensitive voters potentially receptive to increases in other taxes. New money could come from eliminating exemptions, from property appraisal reforms, from raising existing tax rates or creating new taxes — any number of things. They’ll decide the details when they meet. They’ll figure out what to call it, too: It might be remarkable to see “tax” in the title of the governor’s presentation, but its neighboring word — “reform” — is the political touch.

They want to lower property taxes to make their voters happy, and to accomplish that expensive task without stirring up a new revolt from a different set of taxpayers.

At the end, someone in Texas has to pay for this stuff.

 

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/12/03/tight-fisted-texas-legislature-school-finance-property-tax/.

 

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.

Teach the Vote’s Week in Review: Nov. 30, 2018

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


During the final interim meeting of the Senate Education Committee on Tuesday, lawmakers discussed mandate relief and innovation, the Pathways in Technology Early College High School (P-TECH) program, and educator misconduct. Members of a working group of policy stakeholders, which included ATPE, agreed to send 20 recommendations to be considered during the 86th legislative session next year. ATPE member Aletha Williams testified on the need for mentors in the teaching profession in order to help retain employees. The committee also discussed implementation of Senate Bill (SB) 7, an educator misconduct bill passed last session, and discussed the possibility of creating a “Do Not Hire Registry”  for educators who have previously engaged in misconduct. ATPE Lobbyist Kate Kuhlmann provides more information in this blog post.

 


School finance commission working group meeting, Nov. 27, 2018.

The Texas Commission on Public School Finance working group on revenue met Tuesday to finalize its recommendations before they’re presented to the full commission. The group debated the merits of recapture, often referred to more commonly as “Robin Hood,” the mechanism by which the state redistributes funds from property-rich districts to property-poor districts. While Sen. Paul Bettencourt (R-Houston), who chairs the group, expressed his desire to do away with recapture, others such as Rep. Diego Bernal (D -San Antonio) and Rep. Ken King (R – Canadian) questioned how equity could be preserved without the program or how Texas could implement a “sharing” system among recaptured funds. Ultimately the working group voted to advance the governor’s tax cap plan, which would increase funding for schools that improve outcomes and cap property tax growth at 2.5 percent, as well as Bettencourt’s recapture “sharing” plan to the full commission.

The full commission is meeting today and will meet at least twice more in December to receive recommendations from the working groups and finalize its report to the legislature. A more detailed account of Tuesday’s meeting can be found in this post by ATPE Lobbyist Mark Wiggins.


According to data from the Texas Secretary of State, more than 7 million registered voters in the state did not participate in the midterm elections earlier this month. Members of the Texas Educators Vote coalition, including ATPE, are working to change that.The group aims to create a culture of voting in schools and communities and demonstrate how rewarding and easy it can be to for ordinary people to perform their civic duty. You can help their efforts by participating in this voter registration survey that asks educators to share details on their involvement in get-out-the-vote (GOTV) efforts and, specifically, efforts to help eligible students become registered to vote. The survey provides information to the Texas Civil Rights Project, which creates a map of high schools where students are registered to vote. Submissions must be completed by 5 pm on Friday, December 7.

 


ATPE Lobbyists Monty Exter and Kate Kuhlmann and GR Director Jennifer Mitchell met with visiting education experts from Armenia on Nov. 30, 2019, at the ATPE state office.

Members of the ATPE lobby team had the privilege of meeting today with a delegation from Armenia to discuss education issues, including school funding, recruiting and retaining high-quality teachers, and the role of educator associations in advancing the education profession.

The group is visiting the United States as part of the U.S. State Department’s Visitor Leadership Program, which fosters citizen-to-citizen diplomacy for emerging leaders and coordinates opportunities for cross-cultural sharing between dignitaries from over 90 countries. The program was formed shortly after WWII and boasts such famous alumni as Tony Blair, Anwar Sadat, Margaret Thatcher, Nicolas Sarkozy, Indira Gandhi, and others.

During their visit to Texas, the education experts from Armenia also met with representatives of the Texas Education Agency and visited local schools. Other cities they will visit during their trip to the U.S. include San Antonio, plus Pensacola, Florida, Cleveland, Ohio, Boston, Massachusetts, and Washington, DC. Representing ATPE during today’s meeting were Governmental Relations Director Jennifer Mitchell and lobbyists Monty Exter and Kate Kuhlmann.

 


Finance commission group finalizes recommendations

The Texas Commission on Public School Finance working group on revenue met Tuesday at the Texas Capitol to discuss recommendations to deliver to the full commission. State Sen. Paul Bettencourt (R-Houston), who leads the working group, indicated he is open to using the economic stabilization fund (ESF), which is commonly referred to as the “Rainy Day Fund,” to help fund public education.

School finance commission working group meeting November 27, 2018.

Bettencourt opened the meeting suggesting that state revenues are looking bullish heading into the next budget biennium. Again, Sen. Bettencourt emphasized his priority is phasing out the “Robin Hood” system of wealth equalization through recapture. According to Bettencourt, freezing recapture would cost approximately $2.3 billion.

Before Bettencourt began his presentation, commission member and Austin ISD Chief Financial Officer Nicole Conley Johnson told the group she had identified $14 billion in new programs to propose to the commission.

According to figures Bettencourt provided to the group, the state comptroller increased the revenue estimate for the next biennium to $110.2 billion in July 2018 from $104.9 billion in 2017, a $5.3 billion increase. During the first two months of fiscal year (FY) 2019, sales tax revenues, which represent 58 percent of all state tax collections, are expected to be up ten percent compared to FY 2018.

Bettencourt asserted two point upon which most agree: Without school finance reform, the state’s share of public education funding will continue to shrink, and the amount of funding districts pay into recapture for wealth equalization will continue to increase. Bettencourt emphasized his prediction that increased revenue in FY 2019 will provide additional general revenue (GR) which will be available to help fund schools.

State Rep. Diego Bernal (D-San Antonio), who is vice-chair of the House Public Education Committee, raised a question over how equity would be preserved if legislators make changes to or eliminate the recapture system. State Rep. Ken King (R-Canadian), who is also a member of the House Public Education Committee, also raised a concern that any increase in school funding will need to be sustainable.

Bettencourt presented the governor’s tax cap plan as the solution. The plan would increase funding for districts that increase teacher pay and improve student outcomes, however Rep. Bernal noted that outcomes-based funding threatens to reward districts that already have the resources necessary to improve while neglecting districts that have failed to improve precisely because they lack the necessary resources. The plan would also limit property tax revenue growth to 2.5 percent per year, which the plan promises to make up for with state funding.

Another proposal discussed by Bettencourt is one presented by the Texas Public Policy Foundation (TPPF), a far-right pro-voucher organization, which would aim to eliminate all school district maintenance and operations (M&O) property taxes. This would cost roughly $51.3 billion for the 2018-19 biennium. The TPPF proposal claims to be able to pay for itself by dedicating future increases in state revenues to public education, but Bettencourt conceded that this is an optimistic view.

Bettencourt also briefly discussed the idea of “sharing” recapture. In this plan, property value growth would be divided by thirds, and the benefits from the growth in property values would ostensibly be shared. Additionally, Bettencourt suggested using the increase in production severance taxes – largely due to oil and gas activity in the Permian Basin – to help fund public education. This funding stream currently already flows to public education and general revenue, with an overflow stream that is bifurcated between highway funding and the ESF. Despite the Senate’s opposition to spending ESF dollars in previous legislative sessions, Bettencourt indicated he’s now open to spending ESF money to help fund public education. Johnson argued that this represents a redirection of existing revenues and does not represent the new revenue necessary to improve school performance.

The working group voted to advance each of the proposals except the plan offered by TPPF to be considered by the full commission. Rep. King made the motion to table the TPPF plan, which he declared nonsensical. Several members expressed similar concerns. Closing the meeting, commission chair Scott Brister suggested that legislators should feel less constrained by court rulings enforcing equity. As a justice, Brister was a dissenting voice in the West Orange-Cove school finance ruling.

The full commission will meet Friday, again on December 5, and at least once more during the third week of December. The commission will get a chance to react to Tuesday’s recommendations and will arrive at a decision by the December 5 meeting on what the final report should look like. The following meeting will focus on what the report should say. The commission is required to submit its report to the legislature by December 31.

Brister asked commission members to do their best to reach a unanimous consensus on recommendations, and said that in lieu of a minority report, individual members will be allowed to place letters in an appendix to the final report.

 

Teach the Vote’s Week in Review: November 16, 2018

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


TEA Commissioner Mike Morath addresses SBOE, November 14, 2018.

The State Board of Education (SBOE) met this week to discuss a variety of topics in what would be its last series of meetings before the year’s end.

On Wednesday, the board voted to increase its distribution from the Public School Fund to 2.9%.  This action takes place after a dispute earlier this year between the SBOE and the General Land Office’s School Land Board (SLB). Both the SBOE and the SLB manage investment portfolios that fund public education, but an unusual move by the SLB to bypass the SBOE and put funding directly into the Available School Fund (ASF) means that the SBOE will have less money to support classrooms directly.

Other topics of discussion this week included the streamlining of the Texas Essential Knowledge and Skills (TEKS) for social studies, the board’s final discussion on the Long Range Plan (LRP) for public education, and the SBOE’s legislative priorities for the upcoming session in 2019.

The Board also heard from Texas Education Agency (TEA) Commissioner Mike Morath. The commissioner addressed concerns that the agency’s Legislative Appropriations Request (LAR) seeks less state funding than in previous years, telling the board the agency is simply following the funding formulas established by the legislature.

During the Board’s discussion with Commissioner Morath, members also requested updates on issues such as Senate Bill (SB) 1882, a bill passed during the 85th legislative session that allows public school districts to partner with privately-run charter schools; the recent ruling by the 5th Circuit Court of Appeals that upheld the U.S. Department of Education’s punitive actions against Texas for underfunding special education programs; and transparency regarding the instructional materials portal launched in 2017.

 


In a press conference earlier this week, state Rep. Dennis Bonnen (R-Angleton) announced that the race for Speaker of the Texas House of Representatives was “over,” as he had secured enough pledges for votes to make him the definitive winner. While the Speaker’s race won’t officially be over until January, when the House convenes for the 86th legislative session and formally votes for the next speaker, that hasn’t stopped Bonnen from proceeding as the presumptive speaker-elect, hiring key staff and putting in place a transition team.

Rep. Bonnen suggested that school finance will be the top priority of the Texas House in the upcoming legislative session, and he has vowed to work with his counterpart across the rotunda. Bonnen and Lieutenant Governor Dan Patrick released a joint statement this week affirming their commitment to unity and working together in the upcoming session. Rep. Bonnen wrote, “The Lieutenant Governor and I share a strong commitment to doing the people’s business.”


School finance commission working group on revenues meeting, November 13, 2018.

On Tuesday, the Texas Commission on Public School Finance working group on revenues discussed the issue of wealth equalization through recapture, which is commonly referred to as “Robin Hood” under the current school finance system.

Led by state Sen. Paul Bettencourt (R-Houston), the group heard testimony from a variety of stakeholders, including former state Sen. Tommy Williams, who testified on behalf of the governor’s office. Williams delivered the first public explanation of the governor’s plan to cap local tax revenue. A detailed account of the meeting can be found in this blog post by ATPE Lobbyist Mark Wiggins.

 

 


Finance commission group meets to discuss revenues

The Texas Commission on Public School Finance working group on revenues, led by state Sen. Paul Bettencourt (R-Houston), met Tuesday at the Texas Capitol to hear testimony. Sen. Bettencourt began the meeting by stating the state must “wean” itself off of the “Robin Hood” system of wealth equalization through recapture.

School finance commission working group on revenues meeting November 13, 2018.

Bettencourt set a target date of November 27 for a vote on recommendations and anticipated sharing those recommendations with the full commission in December. The commission’s report is due to the legislature by the end of December.

Austin ISD Chief Financial Officer Nicole Conley Johnson followed up Bettencourt’s remarks by stating a separate goal of identifying $6 billion in additional funding for public schools. Johnson and Bettencourt have stood on opposite sides of most school funding discussions.

Dale Craymer, president of the Texas Taxpayers and Research Association (TTARA), was the first witness invited to testify. Craymer testified that the recapture system is likely required based upon school finance court rulings, and noted that reducing recapture and reducing property taxes are not one in the same. Craymer suggested property taxpayers could be provided relief by using value growth to reduce the compression percentage downward, yet offered no direction with regard to relief for schools. Craymer suggested legislators must first determine what outcomes are desired before determine how much funding is needed.

Chandra Villanueva with the Center for Public Policy Priorities testified that recapture is necessary to level the playing field between school districts with vastly unequal property wealth. Instead, Villanueva testified that the overall system has failed and suffers from underfunding. Villanueva suggested instead updating the costs of education, adjusting for inflation, and slowing the growth of charter schools, which are pushing some districts into recapture.

Scott Brister, who chairs the commission, challenged the notion of inadequate funding. Villanueva responded that adequacy targets are an appropriate goal, and waiting to invest more resources only deepens the deficit lawmakers must eventually address. Johnson launched into an impassioned explanation of the fiscal challenges facing schools, which have seen funding decline while being asked to do more.

Vance Ginn with the Texas Public Policy Foundation (TPPF), a think tank funded by supporters of school privatization, offered a number of discredited claims regarding school funding, and argued for eliminating school district property taxes in favor of reduced state funding.

David Thompson testified that the shift from the state toward local property taxpayers is being driven by value growth, and urged legislators should commit at least a portion of value growth to increasing the basic allotment every session. Thompson also recommended closing a number of tax loopholes, such as for online retailers, and increasing the gas tax.

Speaking on behalf of Gov. Greg Abbott, former state Sen. Tommy Williams testified that the state should pay teachers more and reduce the burden of property taxes, which will require additional state funding. Notwithstanding this, Williams said funding should not be increased without accompaniment by school finance reform. The governor’s plan contains three essential elements: Rebalancing the state share of funding, paired with compression of local school property taxes rates; slowing the growth of local property tax bills; and treating all students equally, based on individual student needs as opposed to school district property values, which will require reducing the growth of recapture.

Williams then proceeded to outline the governor’s plan, which can be found here. In it, the governor’s office suggests capping school district Tier 1 maintenance and operations (M&O) tax revenue growth at 2.5 percent and replacing the lost funding with state dollars. The plan does not specify a funding mechanism or source. The plan also proposes outcome-based bonuses, awarding charter school attendance credits, and paying stipends to teachers who teach in more difficult classrooms, along the lines of Dallas ISD’s ACE program. This marked the first time the plan has been presented in public.

Asked by Sen. Bettencourt what the governor’s idea of additional state aid looks like, Williams suggested he would rather lawmakers not “back into that number” from available revenue, but rather to try and put a price tag on the recommendations from the commission’s working group on expenditures. Johnson followed up with a question regarding how much it would cost to buy down the tax rates as suggested by the governor. Williams did not offer an estimate.

Teach the Vote’s Week in Review: Nov. 2, 2018

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


Carl Garner

In the weeks prior to the upcoming midterm elections, many people across the state have been bombarded with a slew of campaign ads featuring members of both parties vying for the votes of the general public. One such ad features Lieutenant Governor Dan Patrick discussing a $10,000 raise that he alleges he championed for educators. But there’s a problem: no such thing ever happened. ATPE Past State President Carl Garner quashes  that claim and explains why such rhetoric is offensive in this guest post.

 

 

 

 

 


Over the past two weeks of early voting we’ve been highlighting what’s at stake for educators in the 2018 midterm elections. This past week we’ve examined a myriad of issues like why it’s important to elect pro-public education candidates to the State Board of Education and why vouchers are a threat to public schools. Over the years, teachers have had to deal with a barrage of attacks: attempts to limit their ability to join professional associations, school funding cuts, and exorbitant increases in health care costs, to name a few. That has made an already demanding job that much more difficult. With Nov. 6 a few days away, it’s time for educators to asses the hand they’ve been dealt and whether the legislature is holding up its end of the bargain; then vote accordingly.

Read more from the 12 Days of Voting series:

 


Governor Abbott showcased his plan to patch up the state’s school finance system to business leaders and educators earlier this week. Without having received the recommendations of the Commission on Public School Finance, which has not yet concluded its work (although it is expected to report its findings by the end of this year), Abbott has proposed a plan that would limit the amount of property tax revenue school districts can raise and would give school districts financial rewards for improving student performance. The proposal gave pause to Rep. Diego Bernal (D-San Antonio), vice chair of the House Public Education Committee. Bernal had this to say with regards to the proposal:

“It would be a shame if school finance was merely a Trojan horse for his property tax agenda,” he said. “What that means is that it’s not about the students at all.”

Read more about the proposal and see the text of the document in this article by the Texas Tribune. 

 

 


School finance commission discusses list of recommendations

The Texas Commission on Public School Finance met Tuesday at the Texas Capitol to hear recommendations from the working group on expenditures, which is led by House Public Education Committee chairman and state Rep. Dan Huberty (R-Houston).

School finance commission meeting September 25, 2018.

Texas Education Agency (TEA) Commissioner Mike Morath began the hearing by presenting the agency’s annual report, which purported to show an increase in education funding since 2007. Responding to questions from commission members, Morath conceded that the numbers were not adjusted for inflation.

State Sen. Paul Bettencourt (R-Houston) asked Morath to explain the dispute between the General Land Office (GLO) and the State Board of Education (SBOE) over public education funding. Morath stated that through the School Land Board (SLB), the GLO sent $750 million to public education for the last biennium. The GLO only sent $600 million for this biennium, bypassing the SBOE, and representing a roughly $150-190 million decrease in funding.

Sen. Bettencourt appeared to come down on the side of the SBOE in the dispute. SBOE Member Keven Ellis (R-Lufkin) suggested that the dispute will require a legislative fix. The entire SBOE sent a letter asking GLO Commissioner George P. Bush to reconsider the action and increase funding, but Bush refused to do so.

Commission Chair Scott Brister suggested that on the big question, whether to increase public school funding is not up to the commission. Member Ellis rightly pointed out that while it’s true the legislature is the only body that can appropriate funds, it is certainly the commission’s duty to discern what appropriate funding levels are and to make recommendations accordingly. This point was backed up by Austin ISD CFO Nicole Conley Johnson.

Brister added that the commission will require a half dozen meetings in November and December in order to finalize its report.

Rep. Huberty then walked the commission through a list of 22 recommendations from the working group on expenditures, beginning with reallocating cost of education index (CEI) funds. The recommendations are as follows:

Reallocations of existing funding:

  1. Reallocate cost of education funds. The CEI was last updated in 1991 and provides adjustment for cost of educating children in different parts of the state. Huberty argued that this formula is outdated and that funding could be rerouted to add $2.9 billion to the basic allotment.
  2. Reallocate Chapter 41 hold harmless funds worth $30 million annually.
  3. Reallocate Chapter 41 early agreement credit funds for an annual savings of $50 million.
  4. Reallocate gifted and talented allotment funds worth $165 million annually. Rep. Huberty and state Sen. Royce West (D-Dallas) emphasized that gifted and talented (GT) programs will not go away. Pflugerville ISD Superintendent Doug Killian cautioned that districts could come to view GT programs as an unfunded mandate, and suggested weighting GT funding instead. Todd Williams also voiced concern that eliminating dedicated GT funding could lead districts to underidentify GT students as a way to cut costs.
  5. Reallocate high school allotment funds worth $400 million annually.
  6. Move from prior year to current year property values worth $1.8 billion. Huberty suggested that this would more accurately reflect the current needs of school districts. Killian cautioned that this change will cost Pflugerville, which is a fast-growth district, $22.7 million in the first year. Conley Johnson added that this could add uncertainty to the budgeting process for districts.

Increased spending on existing programs:

  1. Increase compensatory education allotment from 0.2 to a spectrum of between 0.225 and 0.275, based on the concentration of severely challenged students. This would be worth $1.1-1.2 billion. Commissioner members engaged in a lengthy discussion on identifying metrics with which to identify need other than qualification for federal free and reduced lunches.
  2. Change the transportation allotment to a mileage-based approach based on at least $0.80 cents per mile appropriated by the legislature.
  3. Provide transportation funding to Chapter 41 districts, at an annual cost of $60 million.
  4. Recreate the small- and mid-size district adjustments as a standalone allotment, at an estimated cost of $0-400 million. Rep. Huberty argued that this would create more transparency.
  5. Increase the new instructional facilities allotment (NIFA) to $100 million per year, which would be a direct benefit to fast-growth school districts.
  6. Expand career and technical education (CTE) funding to 6th through 8th grades, at an annual cost of $20 million.

New programs:

  1. Create a new dual language allotment at 0.15, at an annual cost of $15-50 million. This is aimed to incentivize schools to transition from bilingual to more effective dual language programs.
  2. Create a new dyslexia allotment of 0.1, at an annual cost of $100 million. Currently districts do not receive direct funding for students with dyslexia, despite the fact the number of dyslexic students in Texas is estimated to be anywhere from 2.5 to more than ten percent.
  3. Create a new early childhood support allotment of 0.1, at an annual cost of $786 million. This would benefit students from kindergarten through 3rd grade, and could be used to fund any program that seeks to improve 3rd grade math and reading, including full-day pre-K.
  4. Create a 3rd grade reading bonus of 0.4, at an annual cost of $400 million. This is a simple incentive for students to meet grade level in 3rd grade reading. Williams suggested granting students facing social or economic challenges a greater reward.
  5. Create a college, career, and military readiness bonus at an annual cost of $400 million. This would provide additional funding for each graduating senior who does not require remediation after graduation or who is able to directly enter the workforce or military. This is intended to support the state’s “60×30” goals.
  6. Create a new teacher compensation program, at an annual cost of $100 million. This is a merit-based pay program that would allow certain educators to earn more by performing well on certain evaluation systems. Teachers would also be rewarded for teaching at campuses with higher levels of disadvantaged students. This program could grow significantly in size depending upon district participation. Williams acknowledged that local development involving teachers is incredibly important, and measures other than student STAAR results should be considered. Williams suggested it would be incumbent on the commissioner to develop a set of minimum standards.
  7. Create an extended year incentive program at an annual cost of $50 million. This would be aimed to reduce summer learning losses.

Additional changes:

  1. Utilize remaining funds from reallocations to increase the basic allotment.
  2. Change the guaranteed yield on tier II copper pennies from a set dollar amount to a percentage of the basic allotment.
  3. Link the tier II golden penny yield to a set percentile of wealth per student.

Many of these recommendations were also supported by recommendations from the working group on outcomes, led by Todd Williams. Williams congratulated Huberty on his working group’s efforts to find more efficient ways to provide the support students need, and added that the system will nonetheless need more money. In a final conversation around spending, Brister continued to suggest that more funding is not necessarily the solution. Member Ellis emphasized that the commission must address the adequacy of public education funding.

The working group on revenues, led by Sen. Bettencourt, is now the only working group yet to produce recommendations. Bettencourt pushed back on warnings that time is running short for the commission to complete its work, but did not provide a timeline for his work product.

 

 

School finance commission subcommittee approves expenditures plan

The Expenditures Subcommittee of the Texas Commission on Public School Finance met this week to lay out and vote on their recommendations back to the full commission. Based on both the recommendation and what the committee members had to say, it became clear that their primary goal is to drive dollars into increasing the basic allotment. They also have secondary goals of shifting funds out of programs not tied to educational programming and into programs designed to increase educational attainment for harder-to-teach students, particularly economically disadvantaged populations and English language learners.

The committee has not publicly released its report yet, but a summary breakdown of the recommendations can be found below. A video archive of the full subcommittee meeting, which lasted a little under an hour, is also available.

Group 1 – Reallocations of existing programs. This group represents approximately $5.3 billion to be spent on increasing existing initiatives and creating new initiatives.

  • Reallocate the Cost of Education Index (CEI) – $2.9 billion
  • Reallocate the 92-93 Hold Harmless – $30 million. This program only impacts 12 -20 school districts.
  • Reallocate the Ch. 41 Early Agreement Credit – $50 million. Eliminates a program that currently pays property wealthy districts to sign an annual contract by Sept. 1 agreeing to pay the state what they owe in recapture. The discount did not require districts to prepay or early pay.
  • Reallocate the Gifted and Talented (GT) allotment – $165 million. This recommendation eliminates the stand-alone allotment but does not eliminate other requirements to provide GT education from the Texas Education Code (TEC). Currently 99.9% of districts are at the 5% GT cap, meaning the same dollars can be more efficiently flowed out to schools through the basic allotment.
  • Reallocate the High School Allotment – $400 million.
  • Move from prior year to current year property values – $1.8 billion.

Group 2 – Increased spending on existing programs

  • Increase state compensatory education allotment from 0.2 to a spectrum that ranges from 0.225 and 0.275 as part of a tiered system that pays out higher amounts to campuses with more severely challenging populations. Currently, the recommendation is still based on free and reduced lunch but could use a more sensitive metric.
  • Change the transportation allotment to a millage-based approach at 0.83 cents per mile, to be set by appropriations.
  • Allow Ch. 41 districts to get compensated by the transportation allotment at a $60 million cost.
  • Fund the stand-alone small-size and mid-size district adjustment between $0 and $400 million outside the basic allotment, depending on where the basic allotment is set.
  • Increase the New Instructional Facilities Allotment (NIFA) to $100 million. This represents a $76 million increase over last session.
  • Expand Career and Technical Education (CTE) funding to include sixth through eighth grades – $20 million.

Group 3 – New programs

  • Create a dual language allotment of 0.15 at a cost of between $15 and $50 million. This new allotment would be in lieu of (not in addition to) the bilingual allotment; you can either get the bilingual allotment or the dual language allotment, but not both.
  • Create a dyslexia allotment of 0.1 – $100 million.
  • Create a Kindergarten through third grade ELL/economically disadvantaged allotment of 0.1 – $786 million. This money is not tied to outcomes and can be used to fund any program that seeks to improve reading and math on grade level by grade three, including paying for full day Pre-Kindergarten programs.
  • Create a grade three reading bonus of 0.4 – $400 million. This provides incentive money for students meeting grade level in reading on the 3rd grade standardized test.
  • Create a College, Career, and Military Readiness Bonus – no specific weight – $400 million. This is envisioned as a reallocation of the High School Allotment and is aimed to drive the state’s “60/30” goals.
  • Create a teacher compensation program – $100 million. This is the governor’s performance pay program. It is formula-based, not grant-based, and is not subject to appropriation. There will likely be no fiscal note for the program until year three, and it is envisioned to grow over time.
  • Fund an extended year summer pilot program – $50 million. This program is intended to reduce summer learning losses for disadvantaged students.

Additional changes recommended:

  • Change the guaranteed yield on the copper pennies from a set dollar amount to a percentage of the Basic Allotment. When the yield was set, the dollar amount used represented approximately 88% of the basic allotment. Now it is much less. Increasing the guaranteed yield increases state entitlement, which helps property poor districts and recapture districts.
  • Decouple the golden pennies from Austin ISD.

Stay tuned to Teach the Vote for reporting on future actions of the commission.

Teach the Vote’s Week in Review: Aug. 31, 2018

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


State leaders have been busy talking about the issue of school safety this week. On Thursday, Gov. Greg Abbott’s office released a “School Safety Action Plan Summary” as a follow up to its previously released “School and Firearm Safety Action Plan.” It outlines measures being implemented by school districts to address violence in schools. Highlights include offering educators training in Mental Health First Aid to help them identify the signs and symptoms of mental health and substance abuse issues through a course eligible for eight hours of Continuing Professional Education (CPE) credit. Another program featured in the report is the School Marshal program that trains school employees authorized to carry arms on how to respond to violent incidents in schools.

State Board of Education Chair Donna Bahorich was a part of a separate school safety discussion earlier this week in Montgomery, Alabama. Bahorich participated in a federal panel facilitated by the Federal Commission on School Safety in which she spoke on the need to remove the stigma surrounding mental health and seeking mental health treatment. You can read more on these school safety discussions in our blog post from ATPE Governmental Relations Director Jennifer Mitchell here.


Gov. Greg Abbott has been making the rounds in recent weeks to visit with school leaders and others to discuss school finance and teacher compensation, in particular. Based on some of his comments, including those written in a new op-ed piece, the governor has seemingly become a proponent of increased school funding and property tax relief. ATPE Lobbyist Mark Wiggins explains why the governor’s recent comments deserve a closer look in the context of recent legislative actions. Check out Mark’s blog post here.


ELECTION UPDATE: Important races will decided in the general election slated for November. What can you do now to prepare? First, make sure you are registered to vote before the deadline. Ask friends, family members, and colleagues if they are registered.

Take the educator’s oath pledging to vote and visit the website of our Texas Educators Vote coalition to find additional nonpartisan election resources.

Research the candidates to find out where they stand on public education issues. ATPE’s Teach the Vote website features profiles of every candidate running for the Texas Legislature, State Board of Education, Governor, and Lieutenant Governor. Profiles include incumbents’ voting records, responses to ATPE’s candidate surveys, contact information for the campaigns, information about noteworthy endorsements by other organizations, and a calendar of events submitted by the candidates themselves or third parties. Have the candidates running in your area responded to our candidate survey? If not, ask them why not! Invite them to contact ATPE at government@atpe.org for additional information.

Dates to put on your calendar now:

  • Last day to register to vote in the general election: Oct. 9, 2018
  • Early voting: Oct. 22 – Nov. 2, 2018
  • Election Day: Nov. 6, 2018

This week two national union-affiliated educator groups in Texas filed a lawsuit against Commissioner of Education Mike Morath over his interpretation of a new law regarding school district-charter school partnerships. Passed by the legislature in 2017, Senate Bill (SB) 1882 identifies a path for school districts to partner with an open-enrollment charter school or other entity to operate one or more of its campuses. While originally intended as a lifeline for campuses facing harsh progressive sanctions under Texas’s accountability system, the new law has been eyed by some districts as a potential strategy for accessing additional funding outside of the typical school finance structure, and in some instances at the expense of school employees’ rights and protections.

The unions’ lawsuit claims that commissioner’s rules adopted after SB 1882 was passed last year violate state law. While ATPE shares concerns about how the district-charter partnership law is being interpreted and used, we do not believe it is likely that the courts will intervene in this matter. For that reason, instead of pursuing costly litigation that is unlikely to produce a remedy, we’ve chosen to support the local advocacy efforts of our members while continuing to lobby for state-level legislative improvements to our school finance and accountability systems.

ATPE supports innovation but believes it need not come at the expense of educators. While maybe not as splashy as well-publicized legal filings, our success in defeating local efforts that could strip away educators’ rights proves the effectiveness of our strategy at the local level. ATPE is also working hard to shape the debate around school finance and bills that are expected to be filed in the 2019 legislative session, urging lawmakers and those vying to become lawmakers this election cycle to prioritize funding for such critical needs as educator compensation, protecting the TRS pension fund, and providing affordable healthcare for active and retired school employees.

Stay tuned to our blog here at Teach the Vote for the latest news about our advocacy efforts around this and other issues.