Tag Archives: funding

Runoff Spotlight – Get to know the candidates in House District 4

When it comes to public education, the Texas Legislature has incredible power to decide how our students are educated, how our schools are funded, and how our educators are treated. From per-pupil funding to student testing to teacher pay and benefits, these issues and more will be at the forefront of the 2019 legislative session, making the 2018 election cycle extremely critical. Most of the legislators who will make up the ranks of the 86th legislature next January were decided on March 6 when Texas held its primary elections, and the bulk of the rest are looking toward competitive races in November. For the residents of a few key districts, however, the decision on who will represent them next session will be made on May 22, 2018, which is the date of the primary runoff election.

ATPE is taking a closer look at some of the runoffs that will be decided in May, where the candidates squaring off against each other have identified public education as a key campaign issue. Today, we’re analyzing the Republican primary runoff for House District (HD) 4. To learn more about the candidates vying for this seat, click on the candidate’s name and you will be taken to that candidate’s full profile on Teach the Vote.

The Candidates: Keith Bell (R) vs Stuart Spitzer (R)

HD 4 covers all of Kaufman and most of Henderson counties. The incumbent Rep. Lance Gooden (R) is running for a U.S. congressional seat, creating an open seat.

Candidate Keith Bell is a business owner and rancher who has served on the Forney ISD school board for 20 years. Responding to the ATPE Candidate Survey, Bell has said enhancing school funding is his biggest priority, should he get elected. He has been endorsed by the pro-public education groups Texas Parent PAC and Texans for Public Education.

Candidate Stuart Spitzer represented HD 4 during the 84th legislative session before losing his seat to Gooden. While he did not respond to this year’s ATPE Candidate Survey, Dr. Spitzer stated in response to the 2014 ATPE candidate survey that he believes TRS is a part of the “nanny” state and called 401(k) style investment of teacher retirement dollars a “liberty issue,” adopting language  commonly used by  those who support dismantling the TRS defined benefit pension system. Spitzer has been endorsed by the Texas Home School Coalition, a pro-voucher organization, and by Empower Texans/Texans For Fiscal Responsibility, which supports limiting state spending on public education; eliminating educators’ right to use dues deduction; private school vouchers; and privatizing the management of existing public schools.

For additional information on this race or the primary runoff elections in general, contact ATPE Government Relations at government@atpe.org.

Teach the Vote’s Week in Review: April 27, 2018

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


This May, many Texans will be making not one, but two trips to the ballot box. ATPE wants to ensure that all educators are aware of the two important elections taking place next month.

Saturday, May 5th is the uniform election date when municipal propositions, elections, and issues will be decided. Meanwhile, Tuesday, May 22nd is when state level primary runoff elections will be held. While any registered voter can participate in the May 5th municipal election, participation in the primary runoffs depends on whether you previously voted in the March primaries and in which primary election you voted.

For more information about the candidates and your eligibility to vote in the upcoming primary runoffs, check out this new blog post by ATPE Lobbyist Monty Exter.

 


Texas has a new “Grow Your Own” grant program designed by the Texas Rural Schools Taskforce to address  challenges faced by rural school districts and foster a more robust and diverse teaching force. This week, TEA released the names of the 25 school districts that received the 2018-19 “Grow Your Own” grant. Read more about them in this blog post from ATPE Governmental Relations Specialist Bria Moore.

 


The Texas Education Agency has finalized its plan to address special education. Professional development for special education teachers; resources and outreach for parents of special needs children; funding at the district level for students previously denied access to special education services; and additional staffing and resources were the four final measures proposed by TEA in its efforts to redress issues plaguing special education in the state. While the proposed measures would cost the state $212 million over the next five years, TEA is unable to commit additional funds to support the plan leaving the burden to fund these measures on the shoulders of the 86th Legislature which is set to reconvene in 2019. ATPE Lobbyist Kate Kuhlmann explains more about the plan in this blog post.

 


Houston ISD has notified district teachers of its plan to begin staff layoffs. As reported by the Houston Chronicle this afternoon, district employees received correspondence informing then that an unspecified number of layoffs would begin shortly due to budget constraints in the district. The financial strain of Hurricane Harvey coupled with new recapture woes have resulted in a projected deficit of $115 million for the district. The HISD administration has said that the number of layoffs will depend on how many teachers leave the district through attrition at the end of this school year.

Today’s announcement comes on the heels of a highly contentious HISD board meeting earlier this week that was shut down when protests broke out over a planned vote to turn over management of some of the district’s struggling campuses to a charter school operator. That move is part of a plan authorized by new legislation that ATPE opposed in 2017. Schools otherwise facing closure have an option to partner with charter holders for a temporary pause in their progressive sanctions, and HISD has proposed this course of action for 10 of its campuses despite heavy opposition from the community. Waco ISD also took similar action this week, opting to partner with a charter operator to avoid the closure of five struggling campuses in that district.

Stay tuned to Teach the Vote for updates on this developing story.

 


TEA announces “Grow Your Own” grant recipients for 2018-19

On Wednesday, Texas Commissioner of Education Mike Morath announced the recipients of the  2018-19 “Grow Your Own” grant. A brainchild of the Texas Rural Schools Task Force that was commissioned in 2016 to address challenges faced by rural school districts, the Grow Your Own award is designed to help districts cultivate interest in the teaching profession.

According to information provided by recipients, this year’s awards will be used to help districts prepare for the 2020-21 school year by assisting educators currently pursuing their Masters in Education, allowing districts to expand their dual credit courses, and facilitating current paraprofessionals in pursing their teacher certification, adding 59 full-time teachers and 136 full time teachers to the workforce in the 2019-20 and 2020-21 school-years respectively. The Grow Your Own grant funds will also be used to assist student teachers during their clinical teaching assignments and high schools to expand education training programs.

The 25 recipients of the 2018-19 award are as follows:

  • Amarillo ISD
  • Angleton ISD
  • Burkeville ISD
  • Chapel Hill ISD (Smith County)
  • Cumby ISD
  • Everman ISD
  • Fort Stockton ISD
  • Grand Prairie ISD
  • Lamar CISD
  • Lometa ISD
  • Midland ISD
  • Moody ISD
  • O’Donnell ISD
  • Pearsall ISD
  • Region 2 ESC
  • Region 5 ESC
  • Region 6 ESC
  • Snook ISD
  • Socorro ISD
  • Springtown ISD
  • Stafford ISD
  • Stephen F. Austin University
  • Texas Tech University
  • Texas Woman’s University
  • Timpson ISD

ATPE congratulates all the recipients of the Grow Your Own grants.

TEA finalizes plan to improve special education

The Texas Education Agency (TEA) has released its final action plan to address special education in Texas, which has been under scrutiny since 2017. That’s when reporting unveiled what the agency is now acknowledging was an arbitrary and illegal benchmark for the amount of students receiving special education services. After intervention from the federal government and significant stakeholder feedback, TEA’s final plan seeks to repair systematic issues that, in part, denied special education services to a disturbingly large number of Texas schoolchildren.

In a press release issued yesterday, TEA identified four major actions under the plan: a special education professional development system for educators; resources for parents of students who may need special education services and an accompanied outreach effort; funding for school districts providing services to students previously denied; and additional staffing and resources at TEA to support special education services and increase oversight.

TEA has identified some funding for administration of the plan, but highlights that “TEA cannot legally commit additional funds outside of those that are appropriated by the Texas Legislature and the US Congress.” The agency said the plan is designed to work within existing appropriations and identifies a proposed budget of $212 million over the next five years. Stakeholders have argued funding is insufficient to produce effective delivery of the plan, but it will be up to the legislature to allocate additional money for the purpose of increasing adequate services under the plan. The plan does include a commitment from TEA to request additional funding from the 86th Legislature during the 2019 regular session for local special education needs.

The state’s final strategic special education plan and more related information can be viewed at TEA’s Improving Special Education in Texas webpage. The full press release announcing the final plan can be found here.

Teach the Vote’s Week in Review: April 20, 2018

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

 


The Teacher Retirement System (TRS) of Texas board of trustees held multiple meetings this week in Austin.

Highlights of the quarterly meetings included discussions of new rates and policy designs for TRS-ActiveCare for the 2019/2020 school year; the need for increased authorization to hire additional full time employees (FTEs) at the agency; the introduction of the new TRS Communications Director; and a discussion of and failed vote on lowering the TRS pension fund’s expected rate of return.

ATPE Lobbyist Monty Exter attended both the committee and board meetings and penned this wrap-up for our Teach the Vote blog earlier today.

 


The House Public Education Committee held an interim hearing on Wednesday. Topics discussed included the continuing impact of Hurricane Harvey on the state’s public schools, plus implementation of recent education-related bills dealing with school finance, the accountability, system, and student bullying.

Commissioner of Education Mike Morath updated the committee on the state and federal governments’ response to Hurricane Harvey and the 1.5 million students in its affected school districts. Morath indicated that he will propose a new commissioner’s rule in June to provide a plan for accountability waivers for school districts that were forced to close facilities and suffered the displacement of students and staff.

The committee also heard testimony about the controversial “A through F” accountability system that is being implemented in Texas. School districts will be assigned A-F ratings in August, while campus A-F ratings will be released the following year. A number of witnesses during Wednesday’s hearing expressed concerns about the new rating system and its heavy emphasis on student test scores.

For more on the hearing, check out this blog post from ATPE Lobbyist Mark Wiggins.

 


With interim committee hearings in full swing this month, paying for Texas public schools and teachers remains a hot topic.

On Wednesday, the House Appropriations Committee heard from Texas Comptroller Glenn Hegar and others about the status of the state’s Economic Stabilization Fund, often referred to as the “Rainy Day Fund.” Read more about recommendations being made for use of the fund to support the state’s funding needs in this blog post from ATPE Lobbyist Monty Exter.

Also this week, our friends at the Texas Tribune shared insights on how Texas teacher pay stacks up against other states. ATPE Lobbyist Monty Exter is quoted in the article republished here on Teach the Vote.

 


The Texas Commission on Public School Finance also convened again this week, with a Thursday meeting focused on tax policy issues and sources of funding for the state’s school finance system. ATPE Lobbyist Kate Kuhlmann has a rundown of that meeting here. She also shared the below update from today’s Expenditures Working Group meeting which covered the cost of education index, compensatory education, and the transportation allotment.

One unsurprising word could be used to summarize testimony from invited panelists at this morning’s Expenditures Working Group meeting: update. On all three topics discussed, expert witnesses pointed to updating both the methodology behind the funding tied to each topic and what each topic intends to address. For the cost of education index, Texas A&M University Bush School Professor Lori Taylor noted that the index is based on teacher salaries and employment patterns from 1990. Taylor is the same expert behind a recent Kansas study on school finance, which determined that state should invest an additional $2 billion in school funding. During this morning’s meeting in Austin, Taylor and the other panelist agreed the cost of living index has value, but needs significant updating; it was suggested that to better account for evolving costs of education, the commissioners should consider recommending a requirement that the state update the index (or even the entire finance system) every 10 years.

Similarly, school districts and other school finance stakeholders pointed to the need for better targeted funding for students supported by a broader category of compensatory education services, and the legislative budget board shared different way to approach funding transportation costs. Watch an archived live stream of the full meeting here for more on the discussions.

 


 

From The Texas Tribune: Texas teachers’ pay is average. But their pensions are among the lowest in the country.

By Alex Samuels, The Texas Tribune

Photo by Jacob Villanueva/iStock

Today’s Texplainer question was inspired by reader Tiffany Adair.

Hey, Texplainer: How do employment benefits for Texas educators compare to those in other states?

This question has been a point of contention between lawmakers and educators for many years. Texas teachers say they’re frustrated due to a lack of state funding for public education. But lawmakers say the uncertainty surrounding the budget makes it hard to allocate better benefits for educators.

If you look at the raw numbers, Texas ranked 27th in the nation for teacher pay in 2016, according to the National Education Association. On average, Texas teachers earned $51,890 — roughly $6,500 below the national average.

However, teachers have long argued that inadequate funding for public schools cuts into their salaries. During the 2008 fiscal year, the state covered roughly 48.5 percent of the cost of public education, according to the Legislative Budget Board. By the 2019 fiscal year, that figure will be closer to 38 percent. Over the same period, teacher salaries remained about the same [Texas teachers, on average, earned roughly $47,000 in 2008].

“One of the biggest costs to education are the teachers and other employees at a school district. That’s the biggest cost to the state,” said Clay Robison, a spokesman for the Texas State Teachers Association. “When you start cutting education in Texas, you’re shortchanging teachers. We’re already behind the national average when it comes to teacher pay, and we’re getting further behind.”

But salaries aren’t the only component to consider when looking at how Texas teachers fare compared to their peers in other states, said Ed Allen with the American Federation of Teachers.

“When looking at a nationwide comparison, most people factor in the salaries. But when teachers get older, what’s being paid into retirement and the health insurance becomes a really big deal,” Allen said.

When it comes to health care benefits, advocates say Texas teachers are stuck in 2002. That’s when state lawmakers created the plan known as TRS-ActiveCare. The teacher health insurance program, which is run by the Teacher Retirement System of Texas, requires the state to contribute $75 per employee toward monthly health care premiums.

Nearly 430,000 public school teachers and retirees are covered under the plan, which is used by many of the state’s 1,200-plus school districts. Since the program went into effect, employees’ share of premiums have more than doubled, while the state’s contribution to teacher’s health care has remained the same.

“When your salary is barely going up year after year, health care costs are going up considerably and you’re not getting any additional money put toward those healthcare cost by your employer — which is the state in this case — then effectively you’re taking a year over year cut to your salary,” said Monty Exter, a lobbyist at the Association of Texas Professional Educators.

Under the TRS-ActiveCare program, districts are also required to put a minimum of $150 per employee per month toward health insurance premiums, with the option of contributing more. But Exter said that can be difficult for districts as education budgets are squeezed.

Joel Solomon, a senior policy analyst with the National Education Association, said it’s hard to compare Texas teacher health insurance programs to other states since the structure of such programs varies nationwide. But, he said, “when we look at educators’ health benefits around the country and how important … ensuring quality health benefits to educators are, what we see in Texas is deeply troubling.”

When it comes to retirement funding, a majority of states pay into both a pension plan and Social Security. Texas is in the minority of states that only pay into a pension fund and does not pay into Social Security for the majority of its teachers — which means most Texas teachers won’t have access to Social Security benefits when they retire. Fewer than 50 of the state’s districts participate in Social Security on their own.

Among states that only offer a pension plan for teachers, Texas is dead last when it comes to funding its pension programs — by a lot.

For years, Texas only paid 6 percent — the constitutional minimum — into the Teacher Retirement System. It now pays 6.8 percent, according to the National Association of State Retirement Administrators. And the Texas Constitution says the state’s contributions to pension funds can’t eclipse 10 percent without a constitutional amendment approved by voters.

“The next closest non-Social Security state had a retirement contribution rate at least double ours,” said Ann Fickel, the associate executive director of the Texas Classroom Teachers Association. The median contribution for the other 14 other states that don’t pay into Social Security for their teachers is around 18 percent, she added.

“As retirees’ costs rise, especially for medical care, there will be pressure on lawmakers to find a way to increase benefits for retired teachers,” Fickel said.

The bottom line: When it comes to teacher pay, Texas ranked 27th in the nation — right around the middle. But Texas is dead last in teacher retirement funding and puts a little more than the minimum into the Teacher Retirement System.

Disclosure: The Texas State Teachers, the Association Association of Texas Professional Educators and the Texas Classroom Teachers Association have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/04/20/texas-teachers-employee-benefits-dead-last-retirement-funding/.

 

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.

School finance commission focuses on tax policy

The Texas Commission on Public School Finance met today in Austin to cover an agenda focused on tax policy. The day included invited testimony from a series of witness representing both out-of-state entities and Texas-based stakeholders.

National representatives offered individual assessments of the Texas taxing structure as well as perspectives on various reforms. The representatives hailed from the Tax Foundation, Tulane University’s Murphy Institute, the Lincoln Institute of Land Policy, and the Institute on Taxation and Economic Policy. Their individual presentations centered around a variety of policy reforms, including revisions to the property tax, an expansion of the sales tax base, changes to corporate taxing, better tax transparency policies, an update to the gas (or vehicle usage) tax, and a focus on more targeted relief over broad based relief. The broad look at tax policies seemed to drive an overall message that some combination of reforms is the best approach.

The commission also heard from the Texas Education Agency and the Comptroller’s Office regarding Texas’s current sources of funding for public education. The high-level presentation focused on the coordinating chart, which identified the Foundation School Program appropriations and their 2018-2019 biennium levels.

Texas-based entities invited to testify included a range of stakeholders. While many of the same broad tax policy reforms mentioned by the national panelists were addressed, the group offered perspectives more narrowly focused on the Texas taxing and school finance systems. For example, one testifier highlighted a lack of taxpayer transparency with regard to how certain tax revenues are directed. While some education funding is diverted to other budget areas, other revenue is used to supplant the state’s share of education funding when those dollars are intended to be supplemental funding.

Links to the witnesses presentation materials can be found here and a recording of the meeting can be viewed here. The commission’s Working Group on Expenditures will meet tomorrow morning and will hear invited testimony on the cost of education index, compensatory education, and the transportation allotment.

The Rainy Day Fund roadshow makes a stop in the House Appropriations Committee

The House Appropriations Committee, similar to its counterpart in the Senate, heard a number of interim charges Wednesday. Of note for public education, and for educators in particular, was an interim charge to continue to study strategies to use the Economic Stabilization Fund (ESF), also known as the “rainy day fund,” to generate additional revenue for state obligations without compromising the fund’s intended purpose. The charge instructed lawmakers to evaluate the current methodology used to set the ESF cap.

The committee heard testimony on ESF investment history, utilization, and investment practices from the Legislative Budget Board, the state comptroller, and the Texas Taxpayers and Research Association, whose executive director helped draft the legislation that brought the ESF into existence.

Read more about Comptroller Glenn Hegar’s plan to invest ESF dollars to create new revenue stream to fund state priorities and why that revenue is needed, in this previous Teach the Vote blog post.

Teach the Vote’s Week in Review: April 6, 2018

Here’s a wrap-up of your education news from ATPE:


The Texas Education Agency (TEA) made several announcements this week regarding the draft plan to address special education in Texas. In addition to accepting public comments on the latest version of the draft plan, TEA has scheduled two hearings where members of the public are invited to express their input. Information on the two meetings is as follows:

  • Thursday, April 12, at ESC Region 1 – 1900 West Schunior, Edinburg, Tx.
  • Monday, April 16, at ESC Region 10 – 400 East Spring Valley Road, Richardson, TX.

Both meetings will begin at 1 pm, and those wishing to share feedback are asked to register onsite beginning at 12:30 pm (registration will end when the meeting begins). Registered participants will be called in the order they are registered and will be limited to three minutes. The hearing will end when all have testified or at 3 pm, whichever comes first. Those unable to attend either hearing can submit their written comments by email at TexasSPED@TEA.texas.gov by April 18 at noon.

To learn more about the two public hearings and the chance to submit written testimony, view TEA’s full press release, visit TEA’s special education webpage, and read ATPE Lobbyist Mark Wiggins’s post from earlier this week.

 


Texas Commissioner of Education Mike Morath sent a letter to school administrators today regarding three recent changes to how the spring 2018 State of Texas Assessments of Academic Readiness (STAAR) exams will be administered. The three changes involve offering medical exemptions for qualifying students, allowing for the transcribing of student responses that are recorded in the test booklet onto a blank answer document, and relaxing the rules around classroom displays. His letter indicates these moves are being made in response to district feedback and in an effort to “do all I can to help make this a positive experience and reduce stress for students and school district and charter school personnel.” Read Commissioner Morath’s full letter to learn more.

 


It was a busy Wednesday at the Capitol this week, and your ATPE Governmental Relations team was there to cover all the action. ATPE Lobbyist Monty Exter covered the Senate State Affairs Committee meeting, where pension and healthcare issues were the topic of discussion. That meeting included conversations about the factors affecting the Teacher Retirement System (TRS) of Texas pension fund and the TRS-Care retiree health insurance program. For more information on how the hearing unfolded, read Exter’s recap of the meeting or watch an archived webcast. You can find ATPE’s testimony, and other public testimony, at the end of the recording.

 


The Texas Commission on Public School Finance met this week in Austin for a discussion on property taxes and their role in the school finance system. A smaller working group of commission members met Wednesday to discuss outcomes. The highlight of Wednesday’s meeting was former Assistant U.S. Secretary of Education Tom Luce, who suggested it’s time to do “more with more, not more with less” when it comes to funding public schools in Texas. This was particularly compelling advice from Luce, considering he was a key player in the state’s last major school finance reform – all the way back in 1984.

All 13 members of the commission met Thursday to hear several panels discuss property taxes. While there was general agreement on the burden imposed by property taxes, the debate between some members over how to calculate the state’s share of public education spending continued anew. Importantly, state Rep. Diego Bernal (D-San Antonio) requested the state prepare a list of school revenue sources that have been cut over the last 10 years. You can read a full recap of Wednesday’s working group meeting by ATPE Lobbyist Mark Wiggins here, and a rundown of Thursday’s full commission meeting here.

 


The Senate Education Committee rounded out a busy Wednesday in Austin with a hearing to discuss interim charges related to virtual schools, “high quality education opportunities,” and the federal E-rate program. ATPE offered written testimony to the committee concerning the virtual education charge, cautioning against moves to further expand the Texas Virtual School Network without carefully considering the status of virtual schools’ performance. Recent research highlights concerns regarding these schools nationwide and a look at Texas accountability measures fail to paint a drastically different picture in Texas. ATPE Lobbyist Kate Kuhlmann was at the hearing and offers more on the discussion here.

 


 

Senate State Affairs Committee discusses future of TRS pension fund

The Senate State Affairs Committee met in Austin this week to discuss interim charges about the health of various state and municipal pension systems, including the Teacher Retirement System (TRS) of Texas. The committee heard invited testimony from the staff and members of the Texas Pension Review Board (PRB), as well as the heads of several pension systems, including TRS Executive Director Brian Guthrie.

Some of the more general discussion included senators, including Sen. Charles Schwertner in particular, making the case that defined benefit pension systems are somehow inherently flawed and should be scrapped and replaced with 401(k)-style defined contribution systems. This now tired pitch, whose real aim is to line the pockets of private money managers, has been soundly refuted on many fronts, particularly as it applies to TRS. First 401(k)s have proven to be not so wonderful retirement vehicles. For the average American population which relies on them for the bulk of their retirement planning, these investment vehicles have proven to be a tool that generally leads to a woefully underfunded retirement account that is highly sensitive to market volatility and has left many in bad positions with regard to their retirement security. Second, 401(k)s were never meant to stand alone. They were really meant to be a supplement to a more traditional pension system, but even as that has gone by the wayside for many, they are still intended to be on top of Social Security benefits. However, most Texas educators will not receive full Social Security benefits because neither the educator nor the state is paying into Social Security on their behalf. This leads to the final falsehood promulgated by retirement privatizers, that defined benefit pension plans simply cost too much. The truth is Texas has been getting by on the cheap for decades.

Retirement experts will tell you that you should be putting away around 25 percent of your pre-retirement income for use in retirement. Half of that amount, 12.5 percent, is normally covered by contributions to Social Security. Any reasonably good private employer will put up a match of 4 percent, or better, toward an employee’s individual retirement account, in addition to paying the required 6.25 percent employer’s share of Social Security. This means that these private employers are on the hook for a little more than a 10 percent toward their employee’s retirement. Likewise, their employees must also put the required 6.25 percent into Social Security and typically an additional 4 percent or more into their own retirement accounts to access the employer’s match. For years the state of Texas only contributed 6 percent, the constitutional minimum, into the TRS pension system. Thanks in large part to the work of ATPE the state bumped that contribution up to 6.8 percent a few sessions ago. However, at only 0.55 percent above what the state would otherwise have to pay into Social Security, Texas still contributes less than half of what the next lowest state not paying into Social Security pays towards it educators’ retirements. Most Texas teachers are themselves contributing 7.7 percent, or just 1.45 percent above what they would otherwise be paying toward Social Security, into their pension system. When you add in the 1.5 percent districts are contributing into the TRS pension plan, the total contribution comes to 16 percent. At 16 percent, contributions into TRS are substantially less than what even average employers and employees are contributing toward retirement, and despite being many educators only source of retirement income, that is only 64 percent of what experts recommend putting away. So far from being “too expensive” as some lawmakers insist, the TRS pension system has been an exceedingly good deal for the state of Texas.

This discussion is of particular importance at this moment because while TRS has been reasonably healthy for a long time and has been on track to be actuarially sound (very healthy) within the next five years, those statistics have been based on TRS’s current assumed rate of return of 8 percent. Based on the advice of the external actuarial firm with which TRS contracts, the TRS board is considering lowering that assumed rate of return. In order to maintain the positive trajectory of the fund, legislators will need to increase the contribution rate going into the fund. Per the discussion above, these increased contributions are long overdue, and had lawmakers increased them previously, the fund would be in a much better place today. Additionally, many retirees wouldn’t have gone more than a decade without a cost of living adjustment. If TRS lowers its assumed rate of return, however, the decision to increase contributions will no longer be a luxury; it will be an imperative. ATPE is advocating for this process to take place gradually over a number of years so that the increased contributions, corresponding to a gradually decreased assumed rate of return on investments, won’t be a shock the system for either the state or educators who will both share the burden of increased contributions.

Whether a gradual approach is taken or a more “one and done” approach is used, as is being advocated by TRS, the important thing is that educators stay fully engaged with their legislators, and in choosing their legislators this election year, so that the health of the pension fund is secured.