Tag Archives: 86th legislature

School finance commission discusses initial recommendations

School finance commission meeting Dec. 11, 2018.

The Texas Commission on Public School Finance met Tuesday in Austin to discuss recommendations for the commission’s report, which is due to the legislature by the end of the month. The initial draft recommendations can be viewed here, and additional resources can be found here.

The draft report includes a recommendation that the 86th Texas Legislature “inject significant additional annual state revenue” through new strategic allotments and weights outlined in the commission’s report, including about $1.7 billion in specific areas. The report adds that for the purposes of new funding, members should note that an increase of $500 million in state funding is equal to a roughly 0.9 percent increase over the last budget biennium. This would be formula funding, targeted at the neediest studies, and tied to specific outcomes.

Commission Chair Scott Brister voiced reservations, suggesting that asking the legislature for significant additional funding is not the commission’s job. He later clarified that his chief opposition was to placing a dollar figure on additional funding. Several members pushed back, including House Public Education Committee Chair Dan Huberty (R-Houston), who said he would not sign a report that does not call for additional school funding.

The report also calls for reallocating $5.34 billion in existing funds to more impactful spending and greater system-wide equity. The commission recommends significant investment to substantially increase third grade reading levels. Outcomes-based funding would be targeted toward early literacy and post-secondary access of career, military, or higher education without remediation.

The commission is recommending a high-quality teacher allotment, initially funded at $200 million, for districts wishing to offer differentiated compensation to pay their most effective educators higher salaries sooner in their career. This would be contingent on districts creating locally-developed, multi-measure evaluation and compensation systems based on an outline created by the legislature. This includes the state setting a goal that top teachers have a path to a $100,000 salary and incentivizing districts to assign top teachers to the most challenging campuses.

Finally, the draft report calls for statutorily increasing the basic allotment, though it does not specify a specific amount. It calls for increasing the yield on “copper pennies” and compressing the rate in order to provide tax relief, as well as reducing the role of recapture in the school finance system. The report makes no recommendations regarding special education, instead suggesting that the current corrective action plan approved by the U.S. Department of Education should be completed before any additional reforms are discussed.

Discussing the commission’s major findings, Brister acknowledged that schools are being asked to do more than ever before. This includes higher security standards and providing for the physical and mental well-being of students in addition to educating them. He then asked to strike language from the report that says the state has failed to adequately fund public education.

After breaking for lunch, the commission returned for more in-depth discussion on individual recommendations. Commission member Todd Williams of the Commit Partnership in Dallas pointed out that the teacher compensation portion of the plan (Section D) does not include specific funding for strategic staffing such as that implemented by the Dallas ISD ACE program, which is intended to incentivize top teachers to teach at the highest-need campuses. Williams argued the evaluation system and strategic staffing system should be treated as separate and funded accordingly.

State Sen. Paul Bettencourt (R-Houston) then laid out the recommendations from the working group he chaired on revenues. The group’s primary recommendation is to adopt Gov. Greg Abbott’s plan to cap local property tax revenue growth. The plan suggests capping growth at 2.5 percent annually, and replacing revenue lost by school districts with state funding. The governor’s office does not specify how much this would cost or from where the replacement funding would come.

Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez presented a chart addressing the three plans endorsed by Bettencourt’s group, which suggests that the governor’s plan would reduce local maintenance and operations (M&O) tax collections by nearly $1 billion and increase school district revenue by $300 million in 2020 at a cost of roughly $1.3 billion. By 2023, the governor’s plan is projected to reduce M&O tax collection by $3.7 billion while increasing school district revenues by $74 million. Lopez pointed out that this is primarily a tax relief plan, as opposed to a school finance plan, which explains why future funding is projected to flatten out.

The commission discussed the level of emphasis that should be placed upon the governor’s revenue cap plan. Members pointed out the interrelation of property taxes and school finance, as well as the need to focus on the commission’s statutory charge, which is to fix the school finance system. The governor’s plan alone would not change the fundamental mechanics of the school finance system.

Sen. Bettencourt has argued that the state’s coffers will be flush heading into the next budget cycle based on tax revenue from booming oil and gas production, but the state comptroller has yet to release a formal biennial revenue estimate (BRE) with hard numbers upon which to base a budget. State Rep. Ken King (R-Canadian), who represents oil and gas-dependent west Texas, cautioned against relying on oil and gas as a reliable, long-term funding source. A combination of the governor’s plan and the commission’s recommendations for additional public education spending could add up to a price tag north of $5 billion for the upcoming budget biennium.

The commission is scheduled to meet next Wednesday, Dec. 19, 2018, to vote on final recommendations. The commission is required by law to submit its report to the legislature by December 31.

ATPE’s Shannon Holmes facilitates teacher pay discussion

ATPE Executive Director Dr. Shannon Holmes moderated a panel discussion on teacher compensation Thursday at a conference for the Texas Association of Midsize Schools (TAMS). The discussion included state Reps. Gary VanDeaver (R-New Boston), who is a member of the Texas House Public Education Committee, and Travis Clardy (R-Nacogdoches), who filed a high-profile teacher compensation bill in 2017 during the 85th Texas Legislature.

Both representatives agreed about the need to increase teacher compensation, which has become a major topic of discussion heading into the 86th Texas Legislature. Some of the most serious plans proposed thus far have featured differentiated pay, in which top-performing teachers are eligible for higher paychecks. Rep. VanDeaver noted that the major concern with these plans revolves around how top-performing teachers are identified. ATPE has consistently warned that student test scores should not be the primary metric for this purpose.

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

Rep. Clardy acknowledged that a critical part of any raise this session will be identifying state funding for that purpose. Legislation addressing teacher pay during the 2017 special session did not include state funding and instead asked districts to pay for raises out of their own pockets, which effectively tabled the discussion.

The conference featured other panels related to public education, including one featuring state Reps. Diego Bernal (D-San Antonio) and Ken King (R-Canadian), both members of the House Public Education Committee, as well as State Board of Education (SBOE) Member Keven Ellis (R-Lufkin). All three serve on the Texas Commission on Public School Finance, which was created in part by the failure of a House-sponsored school finance reform bill last session. Rep. Bernal vowed that if the commission fails to come up with a real plan to reform the finance system before the new session begins, the House will come up with its own plan and challenge the Senate to pass it.

Thursday’s event furthered underscored the extent to which the focus will be on public education in the upcoming legislative session. Many lawmakers who have seemed uninterested in addressing school finance in the past are now championing reform efforts. Rep. King and others suggested Thursday that the results of the most recent election sent a strong message that Texas voters want legislators who will advance the interests of public education.

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: 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.

 

 


Teach the Vote’s Week in Review: Sept. 14, 2018

It’s been a busy week in Austin. Here are highlights from the ATPE Governmental Relations team:


SBOE meeting Sept. 14, 2018.

Today culminates the end of a jam-packed week for the State Board of Education (SBOE), and ATPE’s lobby team was there throughout the week to testify and provide updates on the board’s activities for our Teach the Vote blog. Here are some highlights:

First, on Tuesday the body began its week by convening to discuss controversial social studies TEKS (Texas Essential Knowledge and Skills) that have been the subject of much political debate and social media attention. The board also took time on Tuesday to discuss its Long Range Plan for Public Education (LRP), which sets objectives for education through the year 2030. ATPE Lobbyist Mark Wiggins was on hand to commend the group on its thoughtful process, but also to suggest that the board take steps to increase the rigor of Educator Preparation Programs (EPPs) and insist that teacher pay not be too closely linked to evaluations and test scores. Perfecting amendments to the plan, most of which were in line with ATPE’s desired outcomes, were offered by SBOE Chairwoman Donna Bahorich.

The board kept its momentum going into Wednesday when it discussed special education and school funding. With an update from Commissioner of Education Mike Morath, the board learned that quite a bit of progress had been made on the state’s corrective action plan for special education with 70% of vacant positions filled. Morath also announced that TEA would be reviewing its contracting process, which comes after the Texas State Auditor’s office lobbed criticism at the agency for questionable contracting practices. Morath briefed the board on the A-F ratings that were given to school districts earlier this year. He also noted the decline in “IR” or “Improvement Required” districts across the state. Lastly, Morath informed the board of TEA’s Legislative Appropriations Request (LAR), which included two exceptional requests for funding for compensatory services for districts (in order to help them comply with the SpEd corrective action plan) and $50 million in funding for health and safety, $20 million of which is to be earmarked to comply with the governor’s school safety plan.

Later Wednesday afternoon, the SBOE also approved the funding distribution from the Permanent School Fund (PSF) for the 2020-21 biennium. Funds will be distributed at a rate of 2.75%. SBOE members expressed concerns regarding the deposit of funds into the Available School Fund (ASF) by the General Land Office (GLO), a move that will result in districts receiving $225 million less per year than normal. Several members of the board suggested actions in response to this action, including asking the GLO to reverse its actions and requesting that the GLO provide extra funding to cover the interest of the distribution.

On Thursday, the SBOE Committee on School Initiatives met to consider a rule proposed by the State Board for Educator Certification (SBEC) that would offer accelerated paths to certification for certain skill sets. The elected SBOE has statutory authority to review all rule actions taken by SBEC, a board whose members are appointed by the governor. SBOE members may veto SBEC rules but cannot make changes to them; SBEC rules for which the SBOE takes no action automatically become effective. For this week’s meeting, ATPE Lobbyist Mark Wiggins testified against the SBEC rule change regarding certain teaching certificates on the grounds that it exceeded the scope of the 2017 legislation upon which it was based, House Bill (HB) 3349. The rule change, as approved by SBEC earlier this summer, would have allowed certain educators to circumvent 300 hours of training in areas like pedagogy that are essential to normal pathways to certification. Members of the SBOE committee unanimously recommended rejecting the SBEC rule, and the certification rule change was ultimately rejected by a unanimous vote from the full SBOE board today, which will force SBEC to reconsider its action on implementing HB 3349.

Lastly, the full board met today to approve the first draft of language for the LRP, deciding to wait until November for final approval. SBOE members also finalized a formal letter to the GLO requesting that it cover the funding shortfall caused by its actions. Read more about the board’s actions in today’s blog post from ATPE Lobbyist Mark Wiggins.


As we have reported previously on Teach the Vote, ATPE has been an advocate for programs and resources to help prevent youth suicide. In 2015, we successfully advocated for the passage of an educator training bill aimed at preventing student suicides. Still, suicide, especially among Texans age 15-34, persists as a public health problem despite laws passed to prevent it. In this news feature by CBS Austin’s Melanie Torre this week featuring ATPE Lobbyist Monty Exter, Torre examines why the risk of teen suicide is still on the rise in Texas.

 


With the 2018 general election inching closer, and a major special election already underway his week in one San Antonio-area legislative district, ATPE wants to remind educators about the importance of voter turnout. Earlier this week, Texas Secretary of State Rolando Pablos released a statement urging voters to make sure they are registered to vote before the October 9th deadline. Pablos encourages Texans to plan their trips to the ballot box and to make sure they know what’s on their ballots.

“Prepare yourself, inform yourself, and empower yourself” – Rolando Pablos, Texas Secretary of State.

There’s a lot at stake this fall. We urge educators to view and share ATPE’s nonpartisan election resources here on Teach the Vote, including searchable profiles of every candidate vying for the Texas Legislature, State Board of Education, Governor, or Lieutenant Governor in 2018.

Meanwhile, early voting has already begun and continues through this evening in the special election runoff  to fill the vacant seat in Texas Senate District 19. Those SD 19 residents who miss early voting should play to get out and vote during their last change on Tuesday, Sept. 18th. The candidates in the runoff happening now are Democrat Pete Gallego and Republican Pete Flores. Find polling locations and additional information, courtesy of the Bexar County Elections Department, here.

Tuesday’s special election results and the outcomes of several high-profile races on the ballot in November could dramatically change the outlook for education bills moving through the Texas Legislature, and particularly, the Texas State Senate. In recent sessions, Lt. Gov. Dan Patrick has used the combination of a Republican super-majority in the Senate and his heavy-handed brand of managing the upper chamber to usher though a bevy of anti-public education bills, such as private school voucher proposals and legislation to take away educators’ rights to use payroll deduction for their voluntary association dues. How those same types of bills fare in 2019 will depend on the outcome of this fall’s elections. In this new post, ATPE Lobbyist Mark Wiggins breaks down the calculus of voting this fall.


ThinkstockPhotos-465016790_moneyThis week also proved to be insightful in terms of previewing discussions we’ll hear during the 2019 legislative session about both the state’s education budget and efforts to reform our school finance system.

Both the Texas Education Agency (TEA) and the Teacher Retirement System of Texas (TRS) laid out their Legislative Appropriations Requests (LARs) to the Legislative Budget Board this week. Details and links to video footage of TEA Commissioner Mike Morath and TRS Executive Director Brian Guthrie explaining their respective requests can be found here. ATPE Lobbyist Monty Exter provided additional analysis in this blog post.

Also this week, the Expenditures Subcommittee of the Texas Commission on Public School Finance convened to vote on their recommendations for the full commission. A breakdown of the committee’s goals, which include putting more funding into the basic allotment and shifting funds away from programs not directly tied to educational programming, can be found in this blog post by ATPE Lobbyist Monty Exter.

 

TEA and TRS both lay out their budget requests to LBB

During a full day of marathon hearings on Wednesday, Texas Education Commissioner Mike Morath and Teacher Retirement System (TRS) Executive Director Brian Guthrie both laid out their agencies’ Legislative Appropriations Requests (LARs). The presentations were made to a panel of staffers representing the Governor’s and Lt Governor’s offices, as well as House and Senate budget writers.

ATPE previously issued a statement about the state’s continued shift in reliance on local property taxes, and away from non-property tax revenue, to fund public education represented in TEA’s LAR. The agency’s LAR predicts a reduction of $3 billion in state aid, or $1.5 billion per year, over the next biennium.

There is an available video archive of Morath’s presentation in addition to TEA’s full LAR document, which lays out much of the commissioner’s agenda for the next two years.

Guthrie laid out his agency’s substantial appropriations request later in the day, which included increased contributions of $1.6 billion for the biennium to cover the decrease in projected investment revenue attributable to TRS’s lowering the assumed rate of return on pension fund investments. The TRS budget request also includes approximately $400 million in additional funding to cover the projected shortfall for TRS-Care, the retired educators’ health insurance program. While funding for the active educator health insurance program flows through TEA, not TRS, Guthrie did bring up the fact that the cost of active educator healthcare was also of concern and would be appropriate to address in the upcoming legislative session. While the funding does not flow through the agency, TRS does administer TRS-ActiveCare, which many districts use to provide insurance to their employees.

A video archive of Guthrie’s presentation is available to watch, in addition to the documents that TRS provided to the Legislative Budget Board for this week’s hearing.

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

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


Testifying at the House Appropriations Subcommittee on Article III this week, ATPE Lobbyist Monty Exter advocated for an expansion of the list of free and near-free drugs covered by TRS-Care. The subcommittee, which met Wednesday, oversees the state’s education budget, including the Teacher Retirement System’s pension fund and health insurance. A persistent lack of funding over the years has lead to an increased burden on both active and retired educators who have seen healthcare premiums rise with no increase in the percentage contributed to their pensions. The urgent need for more funding and resources for the TRS system will be a hot button issue during next year’s 86th Legislative Session, one that ATPE lobbyists will be tackling head on. Find out more about Wednesday’s subcommittee hearing in this article by ATPE Lobbyist Mark Wiggins.

 


The 2018 general election is right around the corner, but even closer than that is a special election runoff in Texas Senate District 19 (SD 19). The special election was called when former Sen. Carlos Uresti stepped down following his felony conviction. While all Texans are not be able to participate in this one special election, all Texans will feel the effects of its outcome as San Antonio residents decide who will take one of the Texas Senate’s 31 seats.

Next Monday through Friday, Sept. 10-14, voters in the district that runs from the greater San Antonio metroplex to the tiny town of Orla, Texas, will have a say in whether Democrat Pete Gallego or Republican Pete Flores represents them in the state’s upper chamber when the legislature convenes in January. For those who miss early voting, the special election runoff for SD 19 will take place Tuesday, Sept. 18, 2018.

 


The Texas Education Agency (TEA) posted its Legislative Appropriations Request (LAR) this week ahead of formally presenting it to the Legislative Budget Board next Wednesday. LARs lay out all of an agency’s intended expenditures for the upcoming biennium and are, as a group, the basis for what will eventually become the state budget. TEA’s LAR includes not only agency-level spending but also all of the funding that flows through the Foundation School Program and out to school districts. As has been the case in the past, the TEA document includes a statement about reductions in the anticipated level of state spending based on the reliance on an assumed increase in local property tax collections. For the upcoming biennium, the agency is assuming the state will supplant $1.5 billion in state revenue by relying on these local dollars. ATPE released the following press statement in response.


The House Public Education Committee released its preliminary report on school safety this week. The report follows the release of similar interim documents by a Senate committee and Gov. Greg Abbott, but the House report is unique in its focus on directing state funding to accomplish a number of goals aimed at preventing future tragedies like the school shooting in Santa Fe, Texas.

The report is the result of several interim hearings held over the summer at the direction of Texas House Speaker Joe Straus and committee chairman  Rep. Dan Huberty (R-Kingwood). Read a summary of the report’s findings and take a look at the full report itself in this post by ATPE Lobbyist Mark Wiggins.


The Texas State Board of Education (SBOE) is scheduled to meet Tuesday through Friday of next week, and the agenda includes a formal look at its Long-Range Plan for Public Education.

The plan is the result of more than a year of meetings and stakeholder input, which includes in-person conferences and an online survey seeking guidance from educators and community members all over the state. The final product includes recommendations related to attracting and retaining educators and lifting up the education profession. Follow ATPE Lobbyist Mark Wiggins on Twitter (@MarkWigginsTX) for updates on the plan, which will be discussed on Tuesday.

 

From The Texas Tribune: Republican Pete Flores, Democrat Pete Gallego set for runoff for Uresti seat

By Patrick Svitek, The Texas Tribune
July 31, 2018

Former U.S. Rep. Pete Gallegos (left), a Democrat, and Republican Peter Flores are running for state Senate District 19. Photo by Bob Daemmrich: Gallego/Campaign website

Republican Pete Flores, Democrat Pete Gallego set for runoff for Uresti seat” 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.

Republican Pete Flores and Democrat Pete Gallego are headed to a runoff in the special election to replace convicted former state Sen. Carlos Uresti, D-San Antonio.

With all precincts reporting Tuesday night, Flores led Gallego by 5 percentage points, 34 percent to 29 percent, according to unofficial returns. At 24 percent, state Rep. Roland Gutierrez of San Antonio came in third in the eight-way race, and he conceded in a statement. The five other candidates were in single digits, including Uresti’s brother, outgoing state Rep. Tomas Uresti of San Antonio.

The first-place finish by Flores, who unsuccessfully challenged Carlos Uresti in 2016, is a boon to Republicans in the Democratic-leaning district. In the home stretch of the race, Flores benefited from a raft of endorsements from Texas’ top elected officials including Gov. Greg Abbott, Lt. Gov. Dan Patrick, and U.S. Sens. John Cornyn and Ted Cruz.

Their heft will continue to be tested in a district considered friendly to Democrats, if not solidly in their column. After taking congratulatory calls from Abbott and Patrick, Flores issued a statement insisting a second-round victory was within reach.

“I know we can win this runoff,” Flores said. “We will win this runoff. The real work begins tomorrow.”

Rallying supporters in San Antonio, Gallego promised his campaign would not get outworked in the yet-to-be-scheduled overtime round. “I know, in the final analysis, we win,” he said.

The special election was triggered in June, when Carlos Uresti resigned after being found guilty of 11 felonies, including securities fraud and money laundering, tied to his work with a now-defunct oilfield services company. He was sentenced to 12 years in prison days after he stepped down.

Much of the action in the race centered on Gutierrez and Gallego, a former congressman and longtime state House member from West Texas. Gutierrez went after Gallego over questions about whether he lives in the district, among other things, while Gallego highlighted Gutierrez’s history of tax problems.

Flores, a former Texas game warden, was the best-known of three Republicans on the ballot Tuesday. He received 40 percent of the vote against Carlos Uresti two years ago in SD-19, which encompasses a 17-county area that starts on San Antonio’s East Side and sprawls hundreds of miles west.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/07/31/sd-19-special-election-results/.

 

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.

What’s happening at TRS this week?


This week, the TRS board of directors will discuss and likely take action on a recommendation to lower the assumed rate of return (RoR), based on investment forecasts provided by independent financial experts hired to assess all of the assumptions TRS staff uses for planning purposes. Should the board lower the assumed RoR it would be in line with broader trends in the public pension sector, including TRS’s peers. The vast majority of experts expect less robust investment returns in the near and mid-term future.

In order to maintain the long term health of the fund without decreasing pension benefits, contribution rates will need to be increased to offset an anticipated decrease in investment revenue. Unlike many local pension systems (e.g., municipal, police, and fire), the TRS board does not set contribution rates for either employees or employers; nor does the board set the benefits paid out to retirees. Both TRS contributions and benefits are completely determined by the Texas legislature. Should the legislature fail to pass a plan to provide adequate contributions over time, the only remaining options would be to reduce benefits, further weakening current and future retirees’ retirement security, or put the fund into a situation where benefits being paid out exceed revenues coming in, which would place the fund on a path to eventual insolvency.

The bottom line is that the burden is on the Texas legislature to step up and provide the necessary funding to ensure actuarial soundness of the TRS pension fund and give educators peace of mind that they will not face cuts in their pensions or other dramatic pension plan changes. Historically, the legislature has not been proactive in this area and has not prioritized funding for retired educators’ needs, opting to delay action until the pension fund reaches a crisis level.

Some educator groups have urged their members to flood TRS board members with calls and emails this week. We believe their calls to action, while well-intentioned, are misdirected, as the TRS board has virtually no authority over contributions or benefits and, with regard to investments, has a fiduciary duty to act in what it believes to be the best interest of the fund based on the prudent advice of its financial experts. In other words, TRS has few options at this time, given the legislature’s disregard over the course of decades for the growing financial needs of the pension fund.

The only way to avoid a major TRS funding shortfall that will hurt the educators who depend on the fund is legislative action, not action from TRS. With that in mind, educators who care about the short- and long-term health of TRS should be focused on the legislature, not the TRS board members. Current legislators who have not prioritized TRS funding have caused the current problem. Is it reasonable to expect those same legislators to now fix it, or does it make more since go to the polls in November and elect legislators who will prioritize TRS funding as part of a general dedication toward public education?

Check back tomorrow for a follow-up report on what action the board takes on the assumed RoR.

Working group releases first set of school finance recommendations

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

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

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

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

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

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

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

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

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

The working group included the following additional recommendations:

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

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

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

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

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