Tag Archives: budget

Teach the Vote’s Week in Review: Sept. 21, 2018

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


The Board of Trustees of the Teacher Retirement System (TRS) met this week to discuss such topics as premiums for the state’s healthcare plan for retired educators. After receiving a more favorable update on the estimated shortfall for TRS-Care and hearing lawmakers indicate that the legislature will provide needed funding, the board intends to try to keep premiums and benefits stable. Read more about the board’s discussions this week in this blog post by ATPE Lobbyist Monty Exter.

 


Senator-elect Pete Flores (R-San Antonio)

Voters in Senate District 19 turned out for a special election runoff on Tuesday to decide who will represent them in the Texas Senate until the 2020 elections. Gathering 53% of the vote, Republican Pete Flores was the race’s clear winner and will be filling the seat left vacant by former Sen. Carlos Uresti who resigned this year.

Flores’s win flips the seat long held by Democrats into the Republican column heading into the 2019 legislative session. The change makes it that much easier for the upper chamber’s Republican super-majority to pass Lt. Gov. Dan Patrick’s agenda, especially with another Democratic vacancy generated by the anticipated race to replace Senate District 6’s Sen. Sylvia Garcia, who is running for Congress. Garcia’s seat would not be filled until a special election occurs well after next year’s legislative session begins.

ATPE Lobbyist Mark Wiggins breaks down how this impacts the upcoming legislative session and what it means for contests in the November election in this blog post.

 


Are you already registered to vote? If so, don’t stop there…  take the next step!

Tuesday, September 25 is National Voter Registration Day, and thousands of volunteers across the U.S. will be mobilized to help others register to vote and get informed about elections. Perhaps if you’re already to vote you can go the extra mile by asking friends and family if they’ve registered and reminding them of these important dates:

  • The deadline to register to vote in November is Oct. 9, 2018.
  • Early voting runs Oct. 22-Nov. 2, 2018.
  • Election Day is Nov. 6, 2018. 

You can also encourage your friends and family to check out the Candidates section of TeachtheVote.org for more information on the candidates vying for seats in the Texas House, Texas Senate, State Board of Education, Governor, or Lieutenant Governor.

The first Friday of early voting, Oct. 26, is Student Voting Day in Texas. Encourage the students you know to get registered and participate in the upcoming election. Voting is more than just a civic duty; it’s how we work together to create positive change in our communities and its important that we get everyone involved.

 


No action is good action: TRS committee takes no action on TRS-Care premiums

The Teacher Retirement System (TRS) Board of Trustees is meeting today and tomorrow. This morning, TRS Chief Healthcare Officer Katrina Daniel updated the board’s Benefits Committee on the most recent fund balance shortfall for TRS-Care. Today’s update noted that as a result of several positive factors, that shortfall has fallen to approximately $240 million for fiscal year  2021, the second year of the upcoming biennium.

TRS-Care had already moved in a substantially positive direction by the time the agency laid out its legislative appropriations request (LAR) last week. The LAR had incorporated the shortfall, which was estimated to be $410 million as of June 30, 2018.

Since June, TRS has made significant progress in contract negotiations with Humana, the current third-party administrator of TRS-Care Medicare Advantage. The new contract will result in considerable additional savings to TRS-Care that brings the shortfall down to the approximately $240 million mark discussed today.

Based on the June 30 numbers, which have only improved, both House and Senate leaders have requested that the TRS board not raise premiums for retirees, but instead rely on their assurances that the legislature will fully fund the shortfall during the upcoming legislative session. Based on those assurances, TRS Executive Director Brian Guthrie recommended that the board take no action on increasing rates for TRS-Care.

in addition to leaving premiums the same for the upcoming year, the benefits side of TRS-Care will also remain the same for the upcoming plan year.

The TRS board documents related to this discussion can be found here, or you can watch an archived video of the discussion. The healthcare discussion starts at the beginning of the video.

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.

 

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.

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.

Commissioner updates SBOE on SpEd, contracting, budget

The Texas State Board of Education (SBOE) opened its Wednesday meeting with an update from Education Commissioner Mike Morath.

The commissioner began by praising the board’s work on the Long-Range Plan for Public Education, and suggested that there is significant overlap with the agency’s own strategic plan.

TEA Commissioner Mike Morath testifying before the SBOE, September 12, 2018.

Morath caught members up to speed on the recent debate over a cosmetology course, and indicated that the course is not expected to go away. The commissioner testified he asked staff to look into ways to ameliorate the high cost of the associated licensure.

Regarding special education, Morath claimed progress in a number of areas. The commissioner said the agency has accomplished more than half of the items under the corrective action plan. The agency was tasked with setting up a large field apparatus, and 70 percent of 55 vacant positions have been filled, including all leadership positions. Justin Porter, who helped write the corrective action plan, is the special education director.

A total of 14 grants have been posted, and an additional five have been completed internally and will be finished within the next couple months. Statements of work have been drafted for 15 of the contracts related to strategic plan.

On a separate but related note, Commissioner Morath acknowledged recent contracting issues that resulted in a rebuke from the Texas State Auditor’s office, while defending staff involved. Morath state that starting in November of last year, the agency initiated a top-to-bottom review of contracting practices.

With regard to the agency’s legislative appropriations request (LAR), in which the agency submits its budget requests for the next biennium to the Texas Legislature, Morath noted that the agency is requesting two exceptional items. These consist of $50 million to support districts providing compensatory services in order to comply with the special education corrective action plan, and roughly $50 million for health and safety, $20 million of which is aligned to the governor’s school safety plan.

The commissioner then offered a review of “A through F” school district ratings, which were released in August. Additionally, Morath noted that the state saw a one-year reduction of 247 “improvement required” (IR) campuses. This marks the last set of campus ratings under the “met standard” or IR labeling system, and campuses will instead receive A-F ratings next August.

Finally, Commissioner Morath briefed members on the first TEA annual report on the state of public education in Texas and solicited feedback from members. Relating to teacher recruitment and retention, Morath noted board members will receive a briefing on the Texas lesson study initiative tomorrow.

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: Analysis: School districts are getting report cards. They shouldn’t be the only ones.

Analysis: School districts are getting report cards. They shouldn’t be the only ones.” 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.

A “Come and Take It” flag depicting an apple instead of the traditional cannon at the Save Our Schools rally at the Texas Capitol on March 12, 2011. Photo by Bob Daemmrich.

It’s time to start grading the papers of the people elected to run the state of Texas, to translate voters’ thoughts and feelings about the way things are going into the job reviews that will be delivered in this year’s general election.

It’s the seasonal cycle of this electoral democracy. We elect them. They do stuff. We decide whether to keep or replace them.

Elected officials adore this sort of judgement when it’s directed at others.

Later today, for instance, the state will issue its inaugural set of A-F grades for more than 1,000 public school districts. That has agitated a lot of Texas educators; when the grades are out, odds are good that it will agitate — in ways both negative and positive — parents, business people and taxpayers. If the politicos are lucky, it will divert angst over public education in Texas away from the folks who’ll be on the November ballot.

Accountability is an admirable thing in politics. It can show citizens where responsibility lies, the better to direct their blame and, more to the point, where to repair or replace policies that don’t work.

It can also diffuse responsibility. When today’s school grades come out, keep an eye on who’s taking the heat and who’s getting the credit. Ask yourself, as it unrolls, whether the right people are getting the right kind of attention.

This is supposed to be a way for the government ministers in Austin and the public across the state to see what results they’re getting for their money. It’s controversial, to say the least. Educators contend the grading system is both too general — not taking the complexity of any given school district into account — and too reliant on standardized tests and other inappropriate yardsticks that don’t give accurate readings of educational progress. Many are not crazy about grades of any kind, but they’re irked that these grades, in their view, will give voters and policymakers false readings about school districts’ performance.

But for a Legislature that can’t muster a consensus for what public schools should do and what they should cost, it’s a way to outsource the blame from the pink building to local “educrats.”

It’s a pre-election test of whether voters trust politicians more than teachers.

Education isn’t the only forum for this sort of deflection. The telling sign is when the people at the top try to separate themselves from the people who work for them, a strategy that allows them to make policy and take credit for passing laws while also blaming someone else when the execution of those instructions falls short.

Maybe the blame should crawl up the management ladder; they’d rather you didn’t make the connection.

Rats, mold and other filth in state buildings? The budgeteers at the Capitol have been skimping on building maintenance and upkeep for years. Multi-billion-dollar contracting troubles at the Health and Human Services Commission? That sort of thing happens if you put all those disparate agencies into one pot and then wander off, forgetting the second part of the business maxim: “Put all your eggs in one basket — and then watch that basket very carefully.”

A federal “zero tolerance” immigration policy that splits adults and children at the border and then cannot reconnect them — whether they’re staying here or being sent home? That is, in fact, a bureaucratic nightmare. But it’s a product of bad design, of putting a policy in place before figuring out how it’s going to work. The blame for that kind of empty-headed governance belongs at or near the top of the organization chart. Roughly 500 of those kids are still unattached to the adults with whom they entered the country. That terrible foul-up took place at the border, but the credit and blame really belong to the high officials who got things rolling.

This is going to be a hard day for some school superintendents and school boards and a great day for others. In both situations, some of them deserve it. Some of them don’t. Examine the results. Make your own judgements. And when you pass out cheers and jeers, think of the people who are responsible for education policy who aren’t on today’s report cards.

They’ll be on your election ballot a few weeks from now.

 

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/08/15/analysis-texas-school-report-card-election-2018/.

 

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: July 27, 2018

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


The Board of Directors for the Teacher Retirement System (TRS) met this week to discuss the pension fund’s assumed rate of return. Today the board voted to reduce the rate of return from 8% to 7.25%, anticipating a decline in investment revenue. It is now up to the legislature to provide additional funding for TRS in order to prevent a shortfall and stretch the already dwindling resources of educators even further. ATPE Lobbyist Monty Exter testified at the TRS board meeting and explains more about the decision in this post, which also includes a fact sheet provided by TRS staff.


 This week the Senate Select Committee on Violence in Schools and School Security met to discuss the last of the four charges assigned to them by the Lt. Governor. The panel heard invited and public testimony regarding best practices for preventing violence in schools and other topics. Not much longer after the hearing, Lt. Gov. Dan Patrick released a statement in which he said he would not support “red flag” laws, laws aimed at seizing the guns of those deemed a danger to themselves or others, citing failed legislation from last session as well as Gov. Abbott’s recent reticence to support red flag laws. The committee will now deliberate and release a report during the first week of August. More details about the hearing can be found in this post by ATPE Lobbyist Kate Kuhlmann.


Lt. Gov. Dan Patrick currently has no plans to debate his Democratic opponent, Mike Collier, despite repeated calls from the Collier campaign and many voters interested in the race for lieutenant governor. In a statement to the Texas Tribune, Allen Blakemore, a strategist for the Patrick campaign said the following:

“It’s no secret Lt. Governor Patrick relishes debates, but since his opponent shows no sign of grasping even the most basic rudiments of state government, our campaign has no plans to debate him,”

In response to this statement, the grassroots educators group Texans for Public Education offered to facilitate the debate by offering assistance “with location,  moderation, with time and date…” and other details. The full statement from the group can be read here.

Read more in this story from the Texas Tribune.


Earlier this week, both the U.S. House and Senate approved legislation aimed at revising the federal law that governs career and technical education (CTE). The Senate first passed a bill reauthorizing the Perkins Career and Technical Education Act. The House concurred with the Senate’s changes and the bill was sent to the President. At this time, President Trump has not yet signed the bill, but it is likely that he will. ATPE Lobbyist Kate Kuhlmann provides more information here.


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.