Tag Archives: CPPP

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.

From CPPP: Promising School Finance Bills Stuck in Texas Legislative Limbo

Chandra Villanueva_CPPPBy Chandra Villanueva, Senior Policy Analyst, Center for Public Policy Priorities (CPPP)

Last month we were pleased to see the Texas House of Representatives approve a bill that would take some good steps toward remodeling our neglected school finance system. That proposal, House Bill 21 sponsored by Chairman Dan Huberty, has been sent to the Senate and is awaiting referral to a committee.

It’s in the interest of the 5.2 million Texas children in public schools – and their future employers – that the Senate consider and approve HB 21.

Meanwhile the Senate Education Committee has approved some good school finance reform bills sponsored by Chairman Larry Taylor that explore cost-neutral options for simplifying the overly complex school finance formula. These bills also deserve to move to the full Senate and on to the Texas House for approval:

SB 2142 – Repeal of the High School Allotment – Districts receive $275 through the high school allotment for each student in grades nine to 12 to supplement academic offerings and provide services to students at-risk of dropping out. This allotment is considered inefficient because funding is generated for every student in high school, rather than only for those in need, and it is not tied to an actual cost for serving students. It is the intent of the author that funding otherwise allocated under the high school allotment be used to increase the basic allotment. HB 21 also repeals the high school allotment. This bill has been sent to the House and is awaiting referral to a committee.

SB 2143 – Basic Allotment Increase – The basic allotment is the per-student funding amount and the primary building block of the school finance formula. This bill increases the basic allotment to $5,140 to reflect current levels of funding set in the 2016-2017 budget. This bill has been sent to the House and is awaiting referral to a committee.

SB 2144 – Commission on Public School Finance – This bill creates the Commission on Public School Finance, a 15-member commission tasked with developing recommendations to improve the state’s method for funding schools. This commission has the potential to bring innovative ideas to the next legislative session. This bill has been referred to the House Public Education Committee.

SB 2145 – Simplified School Finance System – This bill would strip out many outdated elements and unneeded complexities from the formula and reduce the system down to one tier, from its current two-tiered system. While this plan does a lot to improve equity, or fairness between districts, no additional funding is added to the system. This bill is currently pending in the Senate Education committee.

We encourage the Texas Legislature to move forward with these promising school finance bills. The children, parents and employers of Texas are watching.

 

This post has been republished with permission from the Center for Public Policy Priorities (CPPP).