Tag Archives: expenditures

Teach the Vote’s Week in Review: Sept. 28, 2018

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


Earlier this year in the Fall issue of ATPE News ATPE Lobbyist Kate Kuhlmann described how educators in Oklahoma, Kentucky, and West Virginia were poised to impact the legislatures of their respective states and what Texas educators could learn from their examples. This week Kuhlmann provided an update on what educators in Oklahoma have done in their legislatures:

 Oklahoma educators joined their local community members to deliver more blows to the legislators who voted against their priorities earlier this year – ousting six more incumbents. In all, there were 19 Republican legislators who voted against the Oklahoma pay raise for teachers, and only four will remain on the general election ballot in November 2018.

With the deadline to register to vote quickly approaching on Oct. 9 and with early voting beginning shortly thereafter on Oct. 22 now is the time to take the example of Oklahoma educator’s to heart, get informed about the issues and candidates in their districts, and head to the polls ready to make a difference.


On Tuesday, the Commission on Public School Finance met at the capitol to discuss

School finance commission meeting September 25, 2018.

recommendation provided to the commission by it’s working group on expenditures. The working group recommended reallocating money from the cost of education index (CEI) which uses an out of date funding formula, increasing the compensatory education allotment, and creating a new dual language allotment, among other things. The commission also discussed the ongoing issue with the General Land Office which chose to fund schools with only $600 million for the biennium meaning a $150-190 million dollar deficit from previous funding levels. The commission will have a total of six more meetings in the months of November and December to finalize it’s recommendations for the legislature. ATPEl Lobbyist Mark Wiggins provides additional insights into the meeting in this blog post. 

 

 


Federal law makers passed a spending bill on Wednesday that includes funding for the Department of Education in fiscal year 2019. The spending bill increases the overall federal education budget while singling out specific programs for funding bumps. The bill also includes the controversial provision that allows Title IV funds from the Every Student Succeeds Act (ESSA) to be used in order to arm teachers. President Trump is expected to sign the bill. Find more information in this blog post  by ATPE Lobbyist Kate Kuhlmann.

 


U.S. Representative Kevin Brady (R-TX) who chairs the U.S. House Ways and Means Committee, along with Ranking Member Richard Neal (D-MA), has introduced H.R. 6933 to amend Title II of the Social Security Act. The bill would replace the windfall elimination provision (WEP) with a formula equalizing benefits for certain individuals with non-covered employment. Read the full announcement here.

 

 

 


 

School finance commission discusses list of recommendations

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

School finance commission meeting September 25, 2018.

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

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

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

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

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

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

Reallocations of existing funding:

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

Increased spending on existing programs:

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

New programs:

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

Additional changes:

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

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

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

 

 

Expenditures group considers potential recommendations

The Texas Commission on Public School Finance working group on expenditures met Thursday morning to discuss the group’s recommendations. Group leader state Rep. Dan Huberty (R-Houston), who chairs the House Public Education Committee, indicated no vote would be taken Thursday.

The school finance commission expenditures working group meeting August 9, 2018.

The first potential recommendations related to repeals that could free up “pots of money” to be reallocated. Commission Chair Scott Brister expressed confusion over how specific programs are funded, and suggested eliminating most programmatic funding and directing it toward the basic allotment instead. This included a discussion of repealing the high school allotment, the 1992-93 hold harmless provision, the staff allotment, the gifted and talented allotment, the public education grant (PEG) allotment, the transportation allotment, the local option homestead exemption for certain districts, the recapture discount, and the early agreement credit.

The staff allotment provides $250 for each part-time employee and $500 for each full-time not subject to the minimum salary schedule, which includes counselors and librarians – basically anyone who is not a teacher. State Sen. Royce West (D-Dallas) indicated he would be hesitant to repeal this allotment because he believes it serves its intended purpose. State Board of Education (SBOE) Member Keven Ellis contended that districts would be unlikely to reduce staff if that allotment were to go away.

State Sen. Larry Taylor (R-Galveston), who chairs the Senate Education Committee), proposed repealing the gifted and talented allotment. Sen. Taylor argued that most schools are already receiving five percent of their funding through this allotment, and including it into the basic allotment could allow districts more spending freedom. Sen. West clarified that members are not proposing that this money go away, only that it be delivered through a different mechanism, such as the basic allotment.

The discussion regarding the transportation allotment followed much the same logic. However, Member Ellis noted that rural districts face disproportionate transportation costs due to physical size and population density. Sen. Taylor suggested tying the funding to mileage. Sen. West offered the idea of weighted funding based on mileage. Chair Brister then questioned the value of schools having buses in general, suggesting that some districts would do better to simply encourage parents to carpool.

Rep. Huberty suggested PEG grants should be left alone because they offer a real incentive for districts to accept transfer students. It’s important to note that this is often cited as a key component of the public school choice system.

The group discussed using current year values for Foundation School Program (FSP) calculations, which would affect districts experiencing positive growth and negative growth differently. Rep. Huberty also noted that districts in which a significant portion of the local property wealth is tied to mineral wealth could experience more volatility.

Sen. Taylor suggested that pre-K is one of the areas in which districts could invest general dollars that have been untethered from specific programs, as discussed. The group discussed whether to incentivize half-day or full-day pre-K in order to achieve the goal of getting students reading by the third grade.

The group also discussed changing the equalized wealth level and simplifying the funding tiers, the recapture system in general, and the basic allotment. Brister contended that discussing recapture should be the purview of the working group on revenue, which is led by state Sen. Paul Bettencourt (R-Houston). With regard to the basic allotment, members expressed concern over tying the hands of future legislatures by tying funding to a rising cost such as inflation.

Members discussed the adjusted allotment, and Sen. Taylor proposed additional funding for charters. Sen. West quickly voiced opposition to charter expansion and the group quickly moved onto the next topic.

A larger discussion focused on the cost of education index, which was passed in 1984 and last updated in 1991. Member Ellis discussed moving to a more relevant index that includes teacher salaries. Sen. Taylor suggested districts also experience large variations in the cost of transportation, which could play a part in a CEI replacement. Rep. Huberty pointed out that even if the CEI were updated today, it would be out of date again within a few years.

The group took a look at the district size adjustments for small- and mid-sized districts, and Brister expressed the feeling that many smaller districts should be consolidated. Member Ellis noted that many rural districts have already consolidated services such as transportation and food services. Sen. Taylor suggested looking for ways to encourage districts to consolidate.

Regarding special education, Rep. Huberty indicated he did not feel comfortable tweaking weights and arrangements, and special education funding should be based on need. Huberty confirmed there will be more money pumped into special education, and members should wait and see how that funding affects the system before making modifications. Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez said the increased cost of complying with order to serve all qualifying special education students is projected to be $682 million in fiscal year (FY) 2019, $1 billion in FY 2020, and $1.55 billion in FY 2021. Rep. Huberty also asked to explore fulfilling more private placement services within districts; for example, districts could offer incentives to improve retention of high-performing special education teachers.

On the issue of attendance, Sen. Larry Taylor suggested moving away from attendance-based funding requirements. Again, the argument for doing so was to give districts more flexibility, particularly at the high school level.

Members continued to focus on flexibility with regard to career and technical education (CTE), while expressing support for encouraging CTE and expanding middle school programs from eighth to as early as sixth grade. Regarding compensatory education, members discussed moving the identifying mechanism away from using free and reduced-price lunch. Members also looked at expanding the definitions to serve more low-income students who may not technically qualify under the current system. Regarding weights, the group discussed a hypothetical increase to the compensatory education weight to between .225 and .275.

Moving onto English Language Learners (ELLs), Sen. Taylor suggested the state incentive dual language over bilingual education where possible by offering a separate weight, rather than just increasing the bilingual weight.

On the issue of facilities funding, Rep. Huberty pointed out that legislators already voted to increase the new instructional facilities allotment (NIFA), but the system was stretched so thin that the anticipated benefit was not fully delivered. The next step would be to increase the cap from $25 million to $100 million. Sen. West again voiced concern about the saturation of charter schools.

The group then discussed staffing, beginning with a proposal to allow staff members’ children to take advantage of free pre-K. Rep. Huberty then talked about teacher compensation, including programs intended to incentivize top teachers to work at campuses facing the toughest challenges. Lopez suggested a tiered pay program that rewards high-performing teachers would have a low initial startup cost, but would ramp up over time. Member Ellis emphasized the need for local control in setting salaries and implementing locally-developed programs, such as the Dallas ISD program that is often cited as an example of a working performance pay system. Sen. Taylor suggested providing funding for this on the back end for districts that have already put these programs into practice.

Members were unanimous in its support for mental health and wellness programs, but indicated the subject may be beyond the purview of the commission.

The group noted changes to the Teacher Retirement System (TRS) of Texas ranging from adjusting the anticipated rate of return to rising drug costs and benefit reductions. Chair Huberty also indicated this subject may best be tackled by the relevant legislative committees. Notwithstanding this, the group entertained a discussion of requiring charter schools to pay into TRS at the same rate districts are required to pay. Lopez noted the interaction between district TRS contributions and the CEI, should the CEI go away.

Rep. Huberty asked TEA to pull a report together within the next 30 days, so the working group can schedule another public meeting to formally adopt its recommendations. Brister suggested getting recommendations to the full commission by mid- to late October so that the commission could consider them in November.

Expenditures group takes hard look at textbooks

The Texas Commission on Public School Finance working group on expenditures met Wednesday morning to listen to a final round of witnesses invited to discuss issues related to school spending.

At the beginning of the meeting, group leader state Rep. Dan Huberty (R-Houston) announced plans to solicit formal recommendations from all witnesses who’ve testified before the working group. The group’s five members will meet again July 11, the day after a scheduled July 10 meeting of the full commission, and vote on which recommendations to endorse.

School finance commission working group on expenditures meeting June 6, 2018.

Texas Education Agency (TEA) staff opened Wednesday’s testimony with a review of the instructional materials allotment (IMA), and members of the group expressed interest in increasing the flexibility of IMA funds. State Rep. Diego Bernal (D-San Antonio) suggested consulting teachers as to how much physical textbooks are currently used in the classroom, and hypothesized that use is declining. Members seemed to unanimously support the idea of encouraging more reliance on technology and cheaper or free online resources, while freeing up IMA funds for other purposes.

Members also expressed frustration with textbook makers over the ongoing costs of keeping physical textbooks, while many educators are supplementing their instruction with materials found online at no charge. State Sen. Royce West (D-Dallas) suggested instructing TEA and the Texas Higher Education Coordinating Board (THECB) to develop a working relationship and establish a timetable wherein the legislature mandates universities to develop open-source materials aligned to the Texas Essential Knowledge and Skills (TEKS), which school districts would be required to use for classroom instruction. Sen. West contended this would address both textbook costs and complaints by higher education institutions that Texas high school graduates are not college-ready.

The discussion then turned to bilingual education and dual language. Witnesses testified that dual language programs are more effective than traditional English as a second language programs, but carry higher start-up costs. This includes textbooks in both English and Spanish, for example. Rep. Huberty noted that costs would necessarily be compounded with each additional language, such as programs for students who speak Vietnamese. West and Bernal expressed interest in legislation ordering a study of the costs of implementing more dual language programs.

Members also heard about funding for gifted and talented (GT) and career and technical education (CTE) programs. Each carries additional costs, but achieves important outcomes. The working group also heard from TEA staff regarding the high school allotment, and discussed the idea of folding the high school allotment into the basic allotment. This was a component of House Bill 21, the school finance reform bill authored by House leadership during the regular session of the 85th Texas Legislature.

Additionally, members discussed the adjustments for sparsity, and for small and medium-sized districts. Commission Chair Scott Brister has repeatedly advocated consolidating school districts as a way to reduce costs, and TEA indicated that these adjustments total roughly $600 million annually. Staff explained the Existing Debt Allotment (EDA) and New Instructional Facilities Allotment (NIFA), and representatives from fast-growth school districts testified to the importance of funding for new facilities.

Finally, a representative with out-of-state education reform think tank EdBuild suggested improving equity by decoupling school funding from average daily attendance (ADA) and instead using the number of students for whom a school is responsible. Rep. Huberty noted that ADA provides an incentive for districts to ensure that students are actually in the classroom. The EdBuild representative also suggested that by allocating some adjustments at the district level instead of per student, Texas’s school finance system creates unnecessary conflict and confusion between how charter schools and traditional ISDs are funded.

 

Expenditures working group addresses special ed

The Texas Commission on Public School Finance working group on expenditures led by state Rep. Dan Huberty (R-Houston) met Friday at the Texas Capitol to discuss special education spending.

As he testified in Thursday’s meeting of the full commission, Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez testified the total state special education allotment in fiscal year 2018 is estimated at over $3 billion. This allotment is distributed according to subordinate weighted funding calculations for different instructional settings and is tied to contact hours. This year, 490,000 students are enrolled in special education, marking an increase of 40,000 since lawmakers ended TEA’s de facto 8.5 percent cap on special education enrollment.

School finance commission working group on expenditures meeting May 4, 2018.

Steven Aleman with Disability Rights Texas (DRT) and Kristin McGuire with the Texas Council of Administrators of Special Education (TCASE) testified that special education is a service, not a place. Furthermore, they testified that the current weights are outdated and the funding formula is not transparent. McGuire said inclusive settings are almost always the most desired outcome, but the system is not set up with this in mind. The current funding weights haven’t been updated since 1993.

McGuire noted that many dyslexic students are not receiving adequate services, and the State Board of Education (SBOE) is in the process of updating the dyslexia handbook. Commission and SBOE Member Keven Ellis (D-Lufkin) confirmed the board hopes to finalize a new handbook in the fall.

Aleman suggested reducing the number of steps involved in calculating special education funding, which could save districts money currently spent on consultants need to aid in navigating the funding process. Aleman also suggested undertaking a systemic study of the costs of weights, settings and services, and suggested weights should be updated. Additionally, the state should move toward a service intensity-based funding system, as opposed to a setting-based system, and should extend special education services to students with disabilities that are currently classified differently, such as under Section 504.

Responding to questions from the working group members regarding the true cost of special education services, McGuire said advocates nationwide have struggled to get a concrete handle on the subject. Huberty indicated that advocates need to offer hard numbers if they believe additional funding is necessary.

Justin Porter, Executive Director for Special Populations at TEA, responded to a number of questions from the board. Porter testified that children struggling with reading or math who may not have exhibited a clear disability and are currently served through interventions would be the most likely population to comprise a majority of students entering the special education program as a result of doing away with the special education cap. Huberty noted these would likely be students with dyslexia, autism or related disorders. Dyslexic students are served by the special education system in many other states, but that is not the case in Texas.

Porter testified that absentee rates among special education students could anecdotally be attributed to services outside of the public school setting, such as medical procedures, and indicated that untethering funding from daily attendance for special education students may be worth consideration. Working group members also asked TEA for a breakdown of the sources of funding used to provide transportation to special education students.

Regarding Section 504, Porter said TEA has no authority over 504, but is trying to offer more guidance to school districts in this area. Porter suggested 504 protections are generally offered to students in need of a variety of accommodations, such as those suffering from food allergies.

Huberty concluded by suggesting that providing resources for parents to spend outside the classroom may be more effective than increasing resources in the classroom, and suggested advocates bring more solutions to the table.