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Governor Abbott declares emergency items, includes teacher pay

Texas Governor Greg Abbott announced a total of six emergency items in Tuesday’s State of the State address to a joint session of the 86th Texas Legislature. The State of the State is traditionally delivered by the governor at the beginning of each legislative session, and is the state equivalent to the national State of the Union address delivered by the president.

The governor often uses the State of the State as an opportunity to announce emergency items for the current legislature. The first 60 days of the legislative session are meant for organization and bill filing, and legislators cannot vote on bills until after 60 days have passed. Emergency items declared by the governor are the only exception.

Standing ovation for teacher pay announcement during State of the State address, Feb. 5, 2019.

Governor Abbott listed six emergency items on Tuesday: School finance reform, teacher pay, school safety, mental health, property tax relief, and disaster response.

What does this mean functionally? The legislature may vote on bills under these emergency headings immediately instead of waiting for the March 8 deadline, theoretically granting them a one-month head start ahead of other bills. Yet few of these bills have been filed, and none have begun the committee process that marks the first major step in a bill’s journey to becoming a law. For this reason, the practical impact of designation as emergency items has more to do with sending a signal to legislators and the public that these are the governor’s top priorities.

In addition, each of these items is expected to require a significant amount of state funding. The budget offered by the Texas House would provide $7.1 billion in new revenue for public education, contingent upon spending a significant portion of that money on providing property tax relief, ostensibly by rebalancing the state and local share of education funding. Increasing the state’s share will ease the burden on local property taxpayers, but will not increase overall public school funding. To increase overall school funding will require spending additional money on top of what is required to ease local tax pressure.

Increasing teacher pay will require another tranche of state funds. The Texas Senate has proposed Senate Bill (SB) 3, which would grant teachers a $5,000 annual raise. The bill’s cost is tagged at $3.7 billion for the first biennium. Gov. Abbott’s comments today on teacher pay implied that he prefers a plan under development by House leaders to provide a differentiated pay program that could create a path for select teachers to earn as much as $100,000. This would apply to far fewer teachers than the Senate’s plan and consequently carry a much smaller price tag.

School safety, mental health, and disaster response will each require further funding. Fortunately, the biennial revenue estimate delivered by Texas Comptroller Glenn Hegar in January projects legislators will have roughly $12 billion more than they budgeted the previous two years. It’s important to note that some of that money will be taken up by inflation and population growth. Some of the emergency items, such as disaster response, are prime targets for one-time spending from the Economic Stabilization Fund. The state’s “rainy day fund,” as it is often called, is projected to total $15.4 billion by the end of 2021.

Teach the Vote’s Week in Review: Feb. 1, 2019

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


Legislators and SBOE members gathered for the board’s swearing-in ceremony, Jan. 28, 2019.

The State Board of Education (SBOE) held its first meetings of the new year this week in Austin. ATPE Lobbyist Mark Wiggins attended the meetings and provided updates for our blog.

Things kicked off on Monday when all members of the board, both newly elected and re-elected, were sworn in by Senate Education Committee Chair Larry Taylor (R-Friendswood). Members of the board adopted operating rules for the body, discussed the board’s authority in relation to charter schools, and also approved committee assignments and officer elections,  including naming Marty Rowley (R) of Amarillo as Vice Chair and Georgina Perez (D) of El Paso as Secretary of the board. Additional committee assignments and chair appointments can be viewed in this blog post from Wiggins.

On Tuesday, the board was briefed by Texas Commissioner of Education Mike Morath on the “State of the State of Public Education” annual report. Morath also discussed the creation of curriculum guides by the Texas Education Agency (TEA), educator compensation, and other topics as noted in this blog post. Wednesday, the board participated in a learning roundtable at the Austin Convention Center where it discussed its Long-Range Plan for Public Education, a list of goals and recommendations to improve public schools by 2030.

Lastly, the SBOE ended its meetings by unveiling today the new logo for the Permanent School Fund, which was designed by Melissa Richardson of Dripping Springs High School as part of a contest. The board will meet again on April 2-5, 2019.

 


SPECIAL ELECTION UPDATE: El Paso residents turned out on Tuesday to elect a new state representative for Texas House District 79. El Paso Community College Chairman, Art Fierro, won the House seat with 53% of the votes in the special election. Fierro will be completing the term of former Rep. Joe Pickett who resigned recently due to health complications. Fierro’s term will expire in 2021. ATPE congratulates Representative-Elect Fierro and looks forward to working with him.

Meanwhile, some Houstonians will still have to wait in order to find out who will be replacing former Rep. Carol Alvarado, who vacated her House seat in District 145 order to run successfully for the Texas State Senate in another special election for Senate District 6. As for the new representative for House District 145, the race has been narrowed down to two Democratic candidates, Christina Morales and Melissa Noriega. The date of the runoff election for HD 145 has not yet been announced.

Lastly, one more seat in the Texas House remains vacant, that of San Antonio Democrat Justin Rodriguez who vacated his seat to run for (and get elected) Bexar County commissioner. Early voting for the House District 125 special election begins Monday with the election being held on Feb. 12. View profiles of the special election candidates on Teach the Vote, and read more about each race in this article by The Texas Tribune.

 


Earlier today, the Texas Education Agency (TEA) released its accreditation statuses for Texas public schools for the 2018-19 school year. The statuses based on academic accountability ratings and the Financial Integrity Rating System of Texas (also known as School FIRST) recognize schools and districts that meet certain academic and financial benchmarks. According to TEA, 99% of Texas schools were designated as accredited for the 2018-19 year. More information can be found in this press release from the agency.

 


House Committee on Public Education

The House Public Education Committee convened its first meeting of the regular session this week. Led by Chairman Dan Huberty (R-Kingwood) who is serving his third term as chair, the committee heard from Texas Education Agency (TEA) staff about issues such as STAAR testing, educator certification, and TEA’s Special Education Strategic Plan. The committee will reconvene several times over the next two weeks to hear invited testimony from members of the Texas Commission on Public School Finance and other stakeholders regarding the commission’s recommendations for school finance reform. Learn more in this blog post from ATPE Senior Lobbyist Monty Exter, who attended this week’s first hearing.

 


The House Appropriations Committee also began meeting this week. ATPE Senior Lobbyist Monty Exter attended the first few meetings and provided this update. After opening remarks from Chairman John Zerwas (R-Fulshear), including some gentle ribbing about punctuality that will likely turn into a session long running joke, the committee heard from what is likely the last stop on the Comptroller’s biennial revenue estimate tour. The committee also received from the Legislative Budget Board (LBB) some high-level budget numbers, including  on public education and the Teacher Retirement System (TRS). The committee is scheduled to hear more in-depth testimony on TRS, school safety, and school finance on Monday, Feb. 4. Most of the truly in-depth work on the initial House budget bill is done by subcommittees, including an Article III subcommittee that reviews the education portion of the budget. The members of those subcommittees are determined by the chairman of the Appropriations Committee and will likely be named next week.

The Senate Finance Committee also continued to meet this week but on areas other than public education. The Senate committee will turn its attention to education funding later this month, and ATPE’s lobby team will provide updates here on our Teach the Vote blog.

 


 

Comptroller announces $119.12B available for legislators to spend

Texas Comptroller Glenn Hegar announced Monday that the 86th Texas Legislature is forecast to have $119.12 billion available for general-purpose spending when the regular session begins tomorrow, Jan. 8, 2019.

Click the image to view a larger version. Credit: Office of Texas Comptroller Glenn Hegar

The announcement came today as part of the comptroller’s biennial revenue estimate, which is delivered to legislators before each session begins and consists of a forecast of how much revenue the state expects to receive and how much of it can be spent.

The state is projected to take in $107.32 billion in general revenue-related tax collections in the 2020-2021 fiscal biennium, which is up from $99.27 billion collected in 2018-2019. The next biennium begins with a balance of $4.18 billion carried over from 2018-2019, along with $14.16 billion in additional general revenue-related collections. A total of $6.34 billion of available revenue is reserved for transfers to the economic stabilization fund (ESF), also known more commonly as the state’s “rainy day fund,” as well as highway funds.

Legislators began 2017 with a $104.9 billion BRE, and the 85th Texas Legislature ultimately passed a $107.2 billion budget. The 2018-2019 revenue estimate was revised upward several times as economic conditions improved. In the 2020-2021 revenue estimate, Hegar noted increased economic growth in 2018 fueled by oil production in the Permian Basin, but urged caution looking beyond the 2019 horizon.

“Looking ahead to the 2020-21 biennium, we remain cautiously optimistic but recognize we are unlikely to see continued revenue growth at the unusually strong rates we have seen in recent months,” Hegar wrote in the official report. “Oil prices have dropped sharply since October, financial markets have demonstrated increased volatility, interest rates have been rising and U.S. trade policy remains uncertain. As the nation’s leading export state, the Texas economy in particular is exposed to potential reductions in international trade.”

“Because of this heightened uncertainty, this revenue estimate is based on a projection of continued but slowing expansion of the Texas economy,” Hegar concluded.

Much of the $119.12 billion legislators will be have for budgeting the next two years is already spoken for. The Center for Public Policy Priorities (CPPP) correctly points out in its BRE analysis that legislators will have to immediately make a $563 million back payment to Medicaid, funding that was deferred last session in order to fund public education.

CPPP predicts it will cost roughly $112 million for the state to maintain the current level of services, based upon factors including inflation and school enrollment growth. Legislators will also have to decide where to find $2.7 billion of supplemental funding for Hurricane Harvey recovery costs. That could come out of general revenue or the rainy day fund.

You can read the comptroller’s full report here.