Tag Archives: finance committee

Teach the Vote’s Week in Review: Jan. 27, 2017

Here are this week’s news highlights and a preview of education-related happenings next week:


office binders draft billAmid all the bills that will be filed for this session, the only one that the 85th Texas Legislature must pass is the state budget for the next two years. Legislative leaders in both the House and Senate last week revealed early plans for a new state budget, but the Senate was quick to convene hearings this week to flesh out the details for its proposal, housed in Senate Bill (SB) 1. ATPE Lobbyist Monty Exter attended those hearings and testified Tuesday on behalf of ATPE. Read his blog post to learn more about the budget hearings, along with a joint meeting of the Senate Education Committee and a Senate Finance work group on school finance that took place today. For the latest developments, you can also follow @TeachtheVote or any of our individual lobbyists on Twitter.

 


President Donald Trump’s nominee to oversee the U.S. Education Department (ED) continues to rankle educators and concerned parents nationwide. Betsy DeVos, the Michigan billionaire tapped to become the next Secretary of Education, is now the subject of a deluge of calls and letters to Capitol Hill.

ATPE Lobbyist Kate Kuhlmann has been writing about the confirmation process, including a confirmation hearing last week before the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee that did not go smoothly for DeVos. Many Democrats in the Senate have publicly announced their intentions to vote against confirming DeVos, largely due to concerns about her lack of public education experience, her outspoken advocacy for privatization, and concerns about conflicts of interest revealed during a required ethics review.From all indications, however, DeVos continues to enjoy the support of the Republican majority.

The HELP committee is scheduled to take a vote on DeVos’s nomination on Tuesday, Jan. 31, after which the full Senate will weigh in on her confirmation. ATPE members who would like to communicate with U.S. Senators John Cornyn (R-TX) and Ted Cruz (R-TX) about Betsy DeVos are encouraged to use our simple tools at Advocacy Central (member login is required). Sample phone scripts and email messages are provided for your convenience. Learn more here.

 


ATPE Lobbyist Mark Wiggins reports that the State Board of Education (SBOE) will meet next week in Austin, where two new members will be sworn in alongside those reelected in November.

Georgina C. Pérez (D-El Paso) and Keven Ellis (R-Lufkin) will be the two new faces on the board. ATPE had a chance to visit with each at an orientation meeting before the holiday break. Pérez is a retired teacher, and has many former students on staff. A lifelong El Paso resident, Pérez runs an organization that builds libraries in poor communities. Ellis is a former school board member, and fills the seat previously held by Thomas Ratliff (R-Mount Pleasant). Ellis is an Aggie dad and chiropractor. Both freshmen expressed hope for a productive year on the board.

Donna Bahorich

Donna Bahorich

Members Ken Mercer (R-San Antonio), Donna Bahorich  (R-Houston), Barbara Cargill (R-The Woodlands), Tom Maynard (R-Florence), Sue Melton-Malone (R-Robinson) and Marty Rowley (R-Amarillo) won reelection to the body. Earlier this week, Gov. Greg Abbott reappointed Bahorich to chair the 15-member board. Resuming her role as chair effective February 1, her new term will expire February 1, 2019. The board will elect a vice-chair and secretary and assign committees after Tuesday’s swearing-in ceremony.

The board’s agenda next week will include a public hearing and first reading vote on curriculum standards (TEKS) for English and Spanish Language Arts and Reading, as well as a hearing and first reading vote on efforts to streamline the science TEKS. The board will also discuss the schedule and instructional materials to be included in Proclamation 2019.

Any fireworks next week are likely to stem from public testimony on the science TEKS. At the November 2016 meeting, members of the committees assigned to review the TEKS shared their findings and recommendations with the board. Science teachers charged with studying the biology TEKS recommended removing a handful of passages related to evolutionary science over concerns about mastery and grade level appropriateness. Some viewed those passages as encouraging discussion of creationism. At the moment, it’s unclear how the changes in board membership could affect the final vote on the proposed edits.

Stay tuned to Teach the Vote for updates on next week’s SBOE meetings.

 


NO VOUCHERS

This week saw private school vouchers dominate the discussion in and around the pink dome in Austin.

Gov. Greg Abbott and Lt. Gov. Dan Patrick addressed private and charter school supporters bused to the Texas Capitol on Tuesday to promote National School Choice Week. The “school choice” verbiage is being used to market a variety of voucher programs this session, most notably education savings accounts (ESAs) and tax credit scholarships.

The anti-voucher Coalition for Public Schools, of which ATPE is a member, hosted a legislative briefing and press conference Monday to break down what’s actually being proposed under the school choice slogan. Voucher programs threaten to remove more resources from a school finance system that is already critically underfunded. According to data compiled by Governing, Texas ranked 42 out of 50 states in per-pupil spending in 2014. The state spent $8,593 per student in 2014 dollars, $2,416 below the national average of $11,009.

As reported last week on our Teach the Vote blog, Senate Bill (SB) 542 by Sen. Paul Bettencourt (R-Houston) and House Bill (HB) 1184 by Rep. Dwayne Bohac (R-Houston) fall into the tax credit scholarship category. Those bills have already been filed, but we’re still awaiting what is expected to be Lt. Gov. Patrick’s signature voucher proposal, likely in the form of an ESA. Senate Bill (SB) 3 has been reserved for the school voucher bill that will be one of Patrick’s top three priorities this session.

The House budget has proposed adding $1.5 billion in public school funding pending meaningful school finance reform, and has shown little appetite for a voucher program that would divert limited public tax dollars to private businesses. On Tuesday, Patrick demanded the House allow an “up or down vote” on vouchers this session. The lieutenant governor could roll out his preferred voucher bill as early as next week. Stay tuned for updates.

 


Today, ATPE Governmental Relations Director Jennifer Canaday wrote a blog post for Teach the Vote about the status of a politically motivated effort to ban educators from using payroll deduction for their association dues. The House Committee on State Affairs has released a new report on the issue after studying it during the interim. The report highlights arguments on both sides of the debate and concludes that legislators should carefully consider such input and, in particular, which groups would be affected by a bill to eliminate payroll deduction options.

Bills now pending in the 85th legislative session would prohibit school district employees from using payroll deduction for association dues – even dues paid to groups like ATPE that support the right to work and are not union-affiliated. At the same time, the bills (SB 13 and HB 510) would ensure that other public employees such as police officers and firefighters could continue to pay union dues via payroll deduction. The decision to single out educators while exempting other public employees makes it all the more obvious that the sponsors of these bills are really trying to stifle advocacy efforts within the school community.

17_web_Spotlight_AdvocacyCentral_1Read more about ways you can help protect educators’ right to use payroll deduction in today’s blog post, and if you’re an ATPE member, please be sure to check out our additional resources on the payroll deduction bills and communication tools at Advocacy Central.

 


17_web_Spotlight_ATC_RegistrationOpenThere’s only one week left for ATPE members to sign up for ATPE at the Capitol, happening March 5-6, 2017, at the Renaissance Austin Hotel and the Texas State Capitol. Friday, Feb. 3 is the deadline for housing, registration, and applications for financial incentives. ATPE members won’t want to miss this opportunity to hear from legislative leaders and interact directly with their own lawmakers about the education issues taking center stage this legislative session. Register, view schedule updates, and find all other details here. (ATPE member login is required to access Advocacy Central and the registration page for ATPE at the Capitol. Contact the ATPE state office if you need assistance logging in.)

Senate Bill 1: The budget’s starting point

Background with money american hundred dollar billsThe Senate Finance Committee this week began a string of meetings to flesh out plans for a Texas state budget for the next two years. Following an organizational meeting on Monday, the committee began hearing testimony Tuesday on Article III of the budget, which includes public education. Both in her written statement and over and over again in comments during Monday’s and Tuesday’s hearings, committee chairwoman Sen. Jane Nelson (R-Flower Mound) called Senate Bill (SB) 1 a “starting point” from which the senators on the finance committee, and eventually the entire Senate, can work to produce the Senate’s eventual budget proposal.

So where did Chairwoman Nelson and her colleagues start?

On Monday, Nelson began by laying out a budget that spends roughly $3 billion less in general revenue than its predecessor over the last biennium (House Bill 1 of 2015) and $4-6 billion less than would be needed to maintain the level of services funded during the current biennium considering inflation and population growth. She also started lowering expectations by laying out a budget proposal that spends about a billion dollars less than the revenue the state is projected to bring in, according to the comptroller.

While the numbers were not promising, the chairwoman also started the process by announcing two work groups that would be tasked with proposing solutions for two of the state’s most pressing budgetary and policy trouble areas, school finance and the out-of-control cost of health care. The two areas of the budget that these issues impact account for more than 85 percent of the state’s discretionary budget.

On Tuesday, the actual work of going through the budget one agency at a time began. First up; Texas Education Agency (TEA), which includes the $42 billion Foundation School Program (FSP), followed by the Teacher’s Retirement System (TRS), and Texas’s schools for the visually impaired and the deaf.

Several members of the committee spent the majority of Tuesday morning trying to prove, while convincing no one, several points: (1) That the state is not under-funding education; (2) thet neither local property taxes nor recapture dollars have been spent outside of the education budget; and (3) that high property taxes and the disparity between significant increases in local revenue dedicated to education versus much smaller increases in state revenue going to education should be blamed on local tax assessors and school boards, not the legislature. The committee also heard from TEA staff about spending on the various projects administered by the agency outside the Foundation School Program. Many of these standalone programs are funded at levels below the current biennium, and several have been zeroed out completely in the base budget.

Tuesday afternoon, the committee heard from the Commissioner of Education and from executive directors of TRS, the Texas School for the Visually Impaired, and the Texas School for the Deaf. Each presented their exceptional items, budget requests above and beyond the agencies’ base budget needs. Brian Guthrie, the executive director of TRS, had the most challenging reception from the senators, several of whom would like to abandon Texas’s defined benefit pension system and replace it with a defined contribution 401(k)-style system that would both reduce state liability and result in increased profits for wealthy campaign donors. Ultimately, Sen. Joan Huffman (R-Houston) redirected questioning away from the TRS pension trust fund, which is in reasonably good health, and toward the separate TRS-Care health insurance fund, which over the years has become unsustainable in its current form and will run out of money in the upcoming biennium without significant structural changes and increased funding.

After the committee concluded the testimony from the state agency heads, they heard public testimony, including from ATPE. In addition to a general plea for prioritizing education spending, we requested the committee’s consideration in three specific areas. First, we asked that the senate approve TEA’s full funding request of $236 million for the high quality pre-kindergarten grant created last session, for which the current draft of SB 1 provides only $150 million. Second, we asked that the legislature increase state funding for health insurance for active educators. The state has not increased its share of funding for TRS-ActiveCare since that program began in 2001, and funding that was once in line with what private employers provide is now far less than the private market and woefully inadequate. Finally, ATPE echoed much of the rest of the education community in requesting that additional school property tax revenue collected due to increased property values be used to increase the education budget instead of being used to replace state dollars that legislators want to spend elsewhere – in other words, the concepts of “supplement not supplant” and property tax transparency.

If this was the Senate’s starting point, what are the next steps?

Today, Jan. 27, the work group tasked with reimagining the school finance system will meet for the first of what will likely be several times. It is a joint meeting with the Senate Education Committee, chaired by Sen. Larry Taylor (R-Friendswood). They will be taking invited testimony from several stakeholder and school finance experts. At some point in the coming weeks, the Article III (education) subcommittee will also meet and begin to negotiate potential changes from the base budget. The work of these two groups will eventually inform both the budget and a separate school finance bill that would then have to be negotiated with the House, before a final budget and possibly and school finance bill finally makes its way to the governor’s desk.

Stay tuned to Teach the Vote and atpe.org/advocacy for updates as the budget-writing process continues.

Both chambers release versions of proposed Texas budget

Lt. Gov. Dan Patrick confirmed yesterday that Senator Jane Nelson (R – Flower Mound) will continue to serve as the chair of the Senate Finance Committee for the 85th legislative session. Upon her reappointment, Sen. Nelson filed the Senate’s budget bill, Senate Bill 1.  SB 1 spends $103.6 billion in state revenue over the next two years, which is $1.3 billion less than the Comptroller’s 2018 and 2019 revenue projection.

The Senate issued a press release highlighting the fact that the budget includes “$2.65 billion to cover enrollment growth in public schools and $32 million more for high-quality pre-k programs.” This is $86 million less than the additional $118 million that would be needed to extend current pre-k funding to cover both years of the upcoming biennium.

Girl showing bank notesAs filed, SB 1 represents a continuation of current school funding formulas. However, according to the Senate press release, Nelson calls  “making sure the school finance system better meets the needs of students” a critical decision to be made by lawmakers this session.

Other specific items outlined in the budget per the SB 1 press release include:

  • $1 billion to address state hospital and mental health facility needs;
  • $63 million to clear the waitlist for community mental health services;
  • $20 million for a program to help veterans dealing with PTSD or other mental health issues;
  • $260 million to improve Child Protective Services;
  • $25 million for high caliber bulletproof vests for Texas law enforcement officers;
  • $800 million for border security measures approved last session; and
  • A 1.5 percent across-the-board spending reduction for all expenditures not related to public education.

The Senate press release on SB 1 can be found here.

On the House side, Speaker Joe Straus has not yet named which representative will replace former Rep. John Otto (R – Dayton) as the new chairman of the House Appropriations Committee. Otto did not seek re-election in 2016. Still, the House did release its version of a plan for the base budget yesterday, too. The Speaker’s press release touts the House budget plan as one that “puts additional resources into public education, child protection and mental health while increasing state spending by less than 1 percent.”

The House budget proposal:

  • Funds enrollment growth of about 165,000 students over the next two years;
  • Includes an additional $1.5 billion for public education that is contingent upon the passage of legislation that reduces recapture and improves equity in the school finance system; and
  • Includes $108.9 billion in general revenue.

The Speaker’s press release can be found here.

Senate Finance Committee acts on House budget

The House is ahead of the Senate in the budget process, having already approved its version of the two-year state budget (House Bill 1) and sent it to the Senate. Procedurally, the next step is for the House budget to be reviewed and voted on in the Senate Finance Committee before it is considered by the full Senate. Today members of the Senate Finance Committee discussed and voted out HB 1, but only after substituting it with the Senate’s version of the budget in its entirety, which is common practice.

Looking at the budget numbers alone for comparison is somewhat misleading and requires a deeper examination of the investments each chamber’s respective budget plan calls for in education. The Senate version, while increasing funds compared to the last biennium, still lags that of the House, and it includes money to replace funds lost from proposed tax cut legislation. The full Senate is expected to hear and debate the Senate budget soon, after which each chamber will appoint members to serve on a budget conference committee where differences are ideally ironed out. If an agreement cannot be reached by the end of the session, the legislature would be required to return for a special session.

Stay tuned for more updates as the budget adoption process continues.

TRS up in Senate Finance Committee

The Senate Finance Committee is wasting no time in getting the budget process underway. Yesterday the committee met and took up TEA funding. Today the committee will begin discussing appropriations for the Teacher Retirement System (TRS).

The proposed Senate budget, Senate Bill (SB) 1, contains funding to undo the budget cuts for TRS enacted in 2011 by bringing the state contribution rates for both the TRS trust fund and TRS-Care health insurance program back to 2011 levels (1 percent for TRS-Care and 6.4 percent for the TRS Trust Fund). Although this is a welcomed change, TRS has requested that the state increase its contribution rate to TRS a half a percent each year of the biennium. This would bring the state contribution rate to 6.9 percent in 2014 and 7.4 percent in 2015, which is what the TRS actuary recommended to help bring the trust fund to actuarial soundness. According to statute, the fund must be actuarially sound before any cost-of-living increases can be granted.

ATPE supports the TRS request, and will be testifying before the committee today to share our priorities for TRS this session. They are:

  • Preserving the defined benefit plan design for all current and future TRS members.
  • Increasing the state’s contribution rate to make the fund actuarially sound.
  • Ensuring the viability of the TRS-Care retiree health insurance program, which is projected to run out of funding sometime after 2015.

For more information on the debate over converting TRS from its current defined benefit plan (DBP), which guarantees participant’s benefits for meeting eligibility requirements, to a defined contribution plan (DCP), in which member contributions are invested and subject to market fluctuations like a 401k, click here.

Senate Finance Committee to take up TEA funding

The Senate Finance Committee is wasting no time getting the budget process rolling. Just a couple of days after being named, the committee is meeting this morning to discuss the state’s revenue projection, the constitutional spending cap, and several agencies in article III of the state budget, including the Texas Education Agency (TEA).

ATPE will testify before the committee later this afternoon. “The state of Texas is projected to accrue more in tax collections than at any point in history, yet the Senate public education budget still does not fund public education at 2011 levels,” says ATPE Lobbyist Josh Sanderson. “I will be telling the Finance Committee why it is imperative that we make the necessary investment in public education to achieve the results that are required of our schools, educators, and students.”

Both the Texas House and Senate filed their respective base budget bills for the session last week. Both proposals are very conservative and do little to restore the massive cuts in education funding enacted last session despite the nearly $9 billion budget surplus recently announced by the comptroller.

“The state has more than enough money to pay back the $5 billion in cuts made in 2011. The question is do they have the will,” said Sanderson.

Stay tuned for updates as the budget process progresses. The committee is scheduled to take up TRS funding tomorrow.