Tag Archives: Glenn Hegar

Teach the Vote’s Week in Review: July 24, 2020

With the start of school just around the corner, it’s been another busy week for ATPE and the education community. Read about this week’s developments below from the ATPE Governmental Relations team:


CORONAVIRUS UPDATE: ATPE’s incoming State Vice President Karen Hames and Governmental Relations Director Jennifer Mitchell spoke on CNN’s Chris Cuomo Prime Time show Thursday night, July 23, to contribute their perspectives on school reopening. Hames and Mitchell stressed that teachers care about their kids and want to be in school with them, but that educators have concerns about being exposed to the coronavirus in a classroom setting. Hames shared reasons why school choice would not provide any real solutions to parents’ concerns about COVID-19, and Mitchell emphasized the need for additional federal funding and better guidance at the state level to help school districts prepare for reopening amid the pandemic. Watch video of the CNN segment here.

In other news related to COVID-19, the University Interscholastic League (UIL) released a long-awaited announcement this week that delays the schedules of 5A-6A conferences. Additionally, UIL shares that marching band practice in all conferences may not begin until September 7, 2020. Updates to TEA’s COVID-19 Support and Guidance Page this week included a new summary of the agency’s reopening guidance, several new “Strong Start” resources, and new CARES Act and attendance and enrollment information.

Visit the ATPE COVID-19 FAQ and Resources page for constantly updated resources and answers to common questions from educators. ATPE members can also use Advocacy Central to communicate with their elected officials regarding school reopening and other issues.


This week, ATPE submitted formal public comments on the U.S. Department of Education’s (ED) interim final rule directing how districts spend their CARES Act federal emergency dollars on equitable services for students in private schools. The interim final rule, effective July 1, 2020, is estimated to cause public school districts to spend over $44 million of their Title I-derived emergency funds on private school students regardless of poverty — more than $38 million more than they would normally spend under the longstanding interpretation of equitable services in federal law. ATPE’s comments urge the department to rescind its inequitable and distorted interpretation of the CARES Act, which goes against congressional intent. Over 5,200 comments have been submitted, but the department is not required to respond to them because of the emergency rulemaking process. Read more about the new federal rule in this recent Teach the Vote blog post. Read ATPE’s public comments here.


ELECTION UPDATE: Last week saw one of the most unusual elections in recent memory: A runoff postponed due to a global pandemic that proceeded to intensify in Texas as the new election date approached. Early voting was expanded from the usual one week to two weeks in order to reduce the load on polling locations. Some voters also took advantage of alternative methods of casting their ballots to avoid contracting COVID-19 at the polls, although Texas broke ranks with other parts of the country by refusing to expand the ability to vote by mail amid the pandemic. Despite the failure of lawsuits aimed at expanding mail-in ballot options, Texas saw a substantial increase in mail-in voting during this runoff election, which caused official results to be delayed by a few days but did not result in changes to any of the unofficial race outcomes revealed on election night. The July 14 election also exposed troubling voting issues that will have to be corrected before the November election.

With double the time to vote early, this month’s runoffs saw double the turnout over the primary runoff elections in 2018, 6.61% to 3.22%, respectively. After all of the debate over voting by mail, 30% of Democrats and 24% of Republicans who voted early cast their ballots by mail. That’s actually down from 36% of all early voters who cast mail-in ballots in the 2018 runoffs. Democrats had a huge turnout — nearly 956,000 voted in the primary runoffs, but comparable statewide numbers aren’t available for Republican turnout because there wasn’t a statewide GOP runoff like there was on the Democrats’ ballot. Party turnout in primary elections is not always an accurate predictor of turnout in the general election. But based on the turnout for a runoff election in July, in the Texas heat, in the middle of a deadly pandemic, it’s probably safe to assume that overall turnout for the November general election will be enormous. That makes researching candidates and making your voting plan for November more important than ever! See more election results in last week’s recap by ATPE Lobbyist Mark Wiggins.


CONGRESSIONAL UPDATE: The U.S. House Education and Labor Subcommittee on Early Childhood, Elementary and Secondary Education met Thursday, July 23, for a hearing on the safe reopening of schools. The discussion bounced back and forth between the health risks for children and health risks for teachers and staff, with implications across the board for future funding to get schools on the path to a safe reopening. Get the full rundown on the meeting in this blog post by ATPE Lobbyist Mark Wiggins.

While a proposal for additional federal emergency aid (dubbed the Health and Economic Recovery Omnibus Emergency Solutions or “HEROES” Act) was approved by the U.S. House several weeks ago, the U.S. Senate has now agreed on its own $105 billion aid package for education, which includes $70 billion for K-12 schools. The proposal would tie the K-12 funding to in-person instruction by sending $35 billion to schools that open for in-person instruction and splitting the remaining $35 billion among all schools, regardless of their method of instruction. The $30 billion for colleges will not be tied to in-person instruction, and governors will receive the last $5 billion to spend on either K-12 or higher education. The details of the proposal are expected to be made public on Monday.



After a week-long delay, the U.S. Centers for Disease Control (CDC) released updated guidance for the reopening of public schools during the COVID-19 pandemic. The brunt of the new guidance issued last night, July 23, consists of justifying the push to reopen schools for in-person instruction. New items include recommending that schools group students and teachers into isolated cohorts or “pods” meant to limit in-person contact. There is also a checklist intended to assist parents in deciding  whether to send their children to school. A new mask guidance document suggests masks can be worn by anyone older than two years old, though some groups of students may need special adaptations and alternatives. Even as the guidance encourages reopening, it urges caution to those considering to do so in areas of substantial, uncontrolled transmission. Furthermore, the guidance recommends tying operational decisions to local epidemiological conditions. The guidance states as follows:

“Schools should be prepared for COVID-19 cases and exposure to occur in their facilities. Collaborating with local health officials will continue to be important once students are back to school, as they can provide regular updates about the status of COVID-19 in the community and help support and maintain the health and wellbeing of students, teachers, and staff.”

All of the CDC guidance documents, including the latest guidance as well as recommendations dating back to May, can be found here.


The State Board for Educator Certification (SBEC) met today, July 24, to take action on several items implementing the Science of Teaching Reading exam requirements from last year’s House Bill (HB) 3 and to discuss COVID-19 considerations related to certification. Additionally, the board approved a proposal to transition Legacy Master Teacher certificate holders into lifetime certificates, as HB 3 barred the Master Teacher certificate from being issued or renewed. ATPE Lobbyist Andrea Chevalier testified before SBEC in support of this proposal, continuing our months-long advocacy for a fix for Master Teachers. Read more about today’s SBEC meeting in this blog post from Chevalier and read the written testimony here.


SCHOOL FINANCE UPDATE: Texas Comptroller Glenn Hegar created buzz this week with the release of his certification revenue estimate, which shows that the state faces a $4.6 billion deficit due to both COVID-19 and the largest drop in oil prices in decades. While some revenue sources have helped to soften the blow, including federal coronavirus aid and new revenue from online commerce, the uncertainties ahead will make the state budget lawmakers’ top concern in the upcoming 2021 legislative session. Read more about the revenue esimate and Hegar’s interview with the Texas Tribune this week in this blog post by ATPE Lobbyist Mark Wiggins.  

In other school finance news, Just Fund It, a non-partisan group of parents, students, and community members across Texas advocating for increased public school funding, has begun a petition aimed at urging Gov. Abbott to ensure stable and predictable school funding. Specifically, the petition asks the governor to extend the 12-week “hold harmless” period for calculating funding based on attendance as recently announced by the Texas Education Agency (TEA) for the coming school year. The group presents a compelling argument for extending the hold harmless to cover the entire 2020-21 school year.

Texas projected to face $4.6 billion deficit by the end of the current biennium

Texas Comptroller Glenn Hegar, the elected official charged with overseeing the state’s finances, now expects Texas will face a $4.6 billion deficit by the end of the current two-year budget cycle. The state had as recently as February been looking at a multi-billion dollar surplus heading into next session.

One of the comptroller’s primary jobs is releasing state revenue estimates, which project how much tax revenue the state is expected to collect in relation to how much it is budgeted to spend. These estimates are revised periodically, particularly in the event of a drastic change in economic circumstances. The economic downturn caused by the simultaneous events of the COVID-19 pandemic and the oil price war certainly marked a drastic change.

Certification Revenue Estimate 2020-21 Info-graphic from the Texas Comptroller

The comptroller told legislators back in April that the economic double-whammy had sent Texas officially into a recession. On Monday, Hegar testified before the Legislative Budget Board (LBB) and shared a revised revenue estimate that offered sobering numbers. The state is projected to end fiscal year (FY) 2021 with a budget shortfall of $4.6 billion — a $7.5 billion reversal from the $2.9 billion surplus his office projected in the certified revenue estimate (CRE) released in October 2019. The state is now expected to have $110.2 billion in available general revenue for the 2020-2021 budget biennium, representing an $11.6 billion decline from $121.8 projected in the 2019 CRE.

A mathematically-minded observer may note that the numbers do not exactly match up. Hegar explained that while revenue collections dropped by $11.6 billion, the budget fell by only $7.5 billion as a result of a handful of factors that reduced the amount of money the state was expecting to spend. Among them, Texas received $1.2 billion of federal CARES Act funding for public education that it used to offset state spending. Changes in the assumptions regarding the state share and the local share of public education funding resulted in $1.7 billion in unanticipated local funding. The state also received an additional $700 million in recapture (or “Robin Hood”) payments that it had not anticipated.

Source: Texas Comptroller

Sen. Finance Committee Chair state Sen. Jane Nelson (R-Flower Mound) asked Hegar in Monday’s LBB hearing whether legislators should expect to tighten their belts during the next legislative session. Hegar was reticent to prognosticate beyond the current budget cycle. However, he was quick to point out that he had pushed early on for agencies to reduce their spending ahead of next session. State leaders have since instructed state agencies to reduce spending by 5% across the board. Hegar noted that instruction is not factored into this projection. Any savings will however reduce the need for supplemental spending in the next legislative session, reducing the overall pressure on the next biennium’s budget.

In response to a question posed by Senate Education Committee Chair Larry Taylor (R-Friendswood), Hegar indicated that the state will be able to ensure schools receive the additional funding promised this budget cycle as a result of the school finance bill House Bill (HB) 3. Yet Hegar suggested there is tremendous uncertainty as to what the state will be able to provide in the upcoming 2022-23 budget cycle.

Lt. Gov. Dan Patrick (R-Texas) said Monday that school districts across the state have roughly $14 billion in fund balances, which represents each district’s cash reserves. Patrick suggested that the state could tap those fund balances to offset the budget deficit. Patrick separately acknowledged that teachers are now included in the list of “frontline” workers in the COVID-19 pandemic.

Texas Tribune Executive Editor Ross Ramsey (left) interviews Texas Comptroller Glenn Hegar (R-Texas).

The revised estimate released this week does not take into account agency budget cuts, whether schools reopen for in-person versus remote instruction, or any future federal relief money. Hegar explained Wednesday in an interview with Texas Tribune Executive Editor Ross Ramsey that the estimate does not factor in any additional federal relief money until a bill is passed by Congress and signed by the president. Hegar also told Ramsey that the estimate was based upon the assumptions that the economic recovery is already underway, that there will not be an additional spike in COVID-19 cases in the fall that would spark another shutdown, and that GDP may return to normal by the end of 2021.

Hegar said that the state saw a less drastic decline in sales tax revenue than he had previously feared. The state also took in $950 million more in taxes from online purchases as a result of legislation passed during the last legislative session that expanded the sales tax.

Source: Texas Comptroller.

The economic stabilization fund (ESF), commonly referred to as the “rainy day fund,” is projected to end FY 2021 with a balance of $8.8 billion. This fund is fed by taxes collected from oil and gas operations, which have been hit hard by the combination of lower oil prices and a reduction in production following the precipitous drop in demand caused by the economic impacts of the pandemic. The ESF was designed as a safety feature to enable legislators to dip into the fund to during lean years, smoothing out the fluctuations in available tax revenue caused by volatility in the oil and gas market and enabling the state to maintain critical government services.

In both testimony and interviews this week, Hegar has emphasized the need for the community to come to terms with the reality of a protracted battle against COVID-19. Hegar highlighted citizens’ responsibility to wear masks and engage in safe practices designed to slow the disease’s spread and prevent another shutdown. On a positive note, Hegar noted the healthy ESF and potential savings from agency budget cuts are among the measures at the state’s disposal to help manage the budget shortfall.

“There’s plenty of tools in the toolbox to be able deal with it as this current revenue estimate projects,” said Hegar, while adding the caveat, “Every revenue estimate has clouds of uncertainty, yet this one has greater clouds of uncertainty than ever before.”

The comptroller discussed other potential sources of revenue and savings in Wednesday’s interview. Hegar contended that an income tax is unlikely to pass in Texas, where such a proposal would require a supermajority of the Texas legislature and a statewide vote. The comptroller was also skeptical of the idea of legalizing and taxing marijuana, which polling shows is supported by most Texans. Hegar instead pointed to budget measures taken during the 2011 legislative session, which saw large budget cuts (including $5.4 billion from public education) as a result of a projected budget shortfall. The comptroller also mentioned deferring public education payments and looking at funding for Medicaid.

When the 87th Texas Legislature convenes in January 2021, shoring up the current budget will be the first task legislators face. Their next task will be to set the budget for the 2022-2023 biennium, which Hegar warned is likely to be a much bigger issue — although it’s too early to forecast the scope of the challenge. That will be the focus of the comptroller’s biennial revenue estimate (BRE), which is usually released right before the new legislative session begins.

Teach the Vote’s Week in Review: April 10, 2020

For many Texas educators, this week marked the beginning of an uncharted journey into distance learning. Our ATPE Governmental Relations team applauds all the educators who are rising to the unprecedented challenge. As always, we are here to provide the latest in education news. The ATPE state office is closed today, April 10, but our staff will be back in action next week and ready to help you find your way through these uncertain times. We hope you get to enjoy the weekend and this edition of Teach the Vote’s Week in Review.


CORONAVIRUS UPDATE: The worlds of the novel coronavirus and education were a bit quieter this week, but many questions remain on the long-term impact of the pandemic. Texas educators are facilitating distance learning and conducting other essential work even though Gov. Greg Abbott ordered the closure of Texas school buildings until at least May 4th, and some localities and districts have extended their closures beyond that date or even for the rest of the school year. Abbott held two press conferences this week, but neither provided further updates regarding education.

The Texas Education Agency (TEA) has been issuing and updating its guidance for public schools on a daily basis, but numerous questions remain, especially for educators and those working to become educators who are concerned about job security. This week, ATPE Lobbyist Andrea Chevalier summarized what we know so far about changes to educator preparation and certification procedures in this blog post for Teach the Vote. We also await a response to ATPE’s call for accommodations regarding educator evaluations, on which so many compensation and job-related decisions are based. As we reported last week, ATPE Executive Director Shannon Holmes sent a letter to Texas Education Commissioner Mike Morath to request statewide action regarding educator appraisals, which are unlikely to yield fair and valid results under current conditions. Read more in this ATPE press release.

For a quick recap of where we stand, here are other notable state-level developments pertaining to the pandemic:

  • After Gov. Abbott cancelled this year’s STAAR tests, Texas sought and was approved by the U.S. Department of Education (ED) to waive statewide testing and accountability. All districts will be “Not Rated: Declared State of Disaster” for 2019-20.
  • If you’ve seen a graphic circulating on social media with what looks like “Woody” from Toy Story, it is probably TEA’s “Stay Well, Texas” public health campaign, which school districts are helping to roll-out.
  • Parents can use TEA’s “meal finder” tool and pick up meals without their children being present, thanks to an waiver granted to Texas by the U.S. Department of Agriculture.
  • The TEA coronavirus resource page is chock-full of resources (mainly geared towards district leaders) relating to instructional continuity, special education, testing, graduation, and more. New guidance added to the TEA site this week includes FAQs on FERPA, the SAT, ACT, TSIA, and AP/IB tests, FEMA assistance, and Information Technology, plus child care support sample documents, a list of available waivers, and TELPAS and LPAC Guidance.
  • TEA has launched a partially-complete website that includes home learning resources for families, districts, and teachers.

At the federal level, Congress has approved substantial federal aid packages, including the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act or CARES Act, which provide billions in funding for individuals and businesses, along with waivers from various federal laws to facilitate relief. Attempts to advance another piece of coronavirus relief legislation stalled this week in Congress after partisan disagreements. Meanwhile, U.S. Secretary of Education Betsy DeVos announced this week new spending flexibility waivers under the CARES Act that would purportedly allow school officials to dedicate funds to distance learning and virtual classrooms. As we reported last week, DeVos has also floated the idea of “microgrants” for students and teachers, which are essentially vouchers and have not yet been approved by Congress.

  • ATPE has helpful information about the CARES Act here, including more on the direct cash payments to individuals that are expected to be distributed soon by the U.S. Treasurer.
  • Read ATPE’s information about the FFCRA’s expanded paid leave benefits here.

For guidance on dealing with COVID-19, we encourage educators to visit ATPE’s frequently updated Coronavirus FAQ and Resources page.  Also, follow the ATPE lobbyists here on Teach the Vote and on Twitter for related legislative and regulatory news.


ELECTION UPDATE: The Texas Democratic Party filed a second lawsuit against the state this week over mail-in ballots, this time in federal court. According to a report in the Texas Tribune, Texas Democrats were concerned by Monday’s party-line decision of the U.S. Supreme Court that resulted in Wisconsin voters being forced to vote in person this week in contradiction to the U.S. Centers for Disease Control (CDC) recommendations for preventing the spread of COVID-19. Texas Democrats are asking the state to expand eligibility for mail-in ballots so that voters are not forced to expose themselves to COVID-19 in order to cast a ballot. Current Republican Party of Texas Chairman James Dickey has voiced opposition to expanding mail-in ballots, suggesting that mail handlers could also risk COVID-19 infection. Gov. Greg Abbott stated in March that “everything’s on the table,” but has been relatively quiet on the subject since then.


We reported last week that the Texas Sunset Advisory Commission has released its sunset staff recommendations for the Teacher Retirement System of Texas (TRS). While TRS can’t be abolished through the sunset review process unlike other agencies, the commission staff have identified several issues that the legislature will likely address during the next legislative session in 2021. Check out this new blog post from ATPE Senior Lobbyist Monty Exter, which takes a deeper look at one of the major issues raised by the sunset report: a recommendation that TRS should “repair its relationship with its members by focusing on their needs.”


ATPE joined 17 other organizations calling on Texas Education Commissioner Mike Morath to place a moratorium on charter expansion during the novel coronavirus pandemic. Because charters cannot levy taxes, the state picks up the tab in order to fully fund every charter school student. ATPE believes the expansion of charter enrollment during a pandemic with extremely uncertain financial outcomes would be fiscally irresponsible. In fact, the 94 charter expansion amendments currently on file with the Texas Education Agency (TEA) could cost the state an additional $90 million per year if approved, money that may be sorely needed to shore up budgets of existing public schools across the state. Read more in this blog post by ATPE Lobbyist Mark Wiggins


This week, Texas Comptroller Glenn Hegar sat down for a virtual conversation with the Texas Tribune to discuss what the novel coronavirus means for our state’s economy. Hegar said that Texas is in a recession but will be able to meet current budget obligations through August 31, 2021. In the summer, Hegar will release an updated revenue estimate that will likely be several billion dollars less. Since the state pumped billions into education during the last legislative session, educators worry that continued funding commitment might be hard to maintain. Read a full rundown in this blog post by ATPE Lobbyist Mark Wiggins.


Census 2020 self-response rates as of March 8, 2020. (Source)

The 2020 U.S. Census is still underway, and everyone’s response is critical for many important streams of funding, including for public education. Texas’ response rate has increased from 36% last week to over 41% this week, but we are still behind the current national rate of 46%. Due to the coronavirus pandemic, some census work has been delayed, making it more important to push online/phone/mail census completion options that can reduce the need for interpersonal interaction. Learn more about the 2020 Census in this blog post by ATPE Lobbyist Andrea Chevalier and find census FAQs here.


ATPE member Michelle Bish of Pasadena was featured this week in a news story by KHOU 11 news in Houston. While taking care of her own three children, Bish is also implementing distance learning for her third graders and staying in contact with her students’ parents. Bish says it is overwhelming but that we will all get through this together. In the article, she says:

“I cannot wait for this to be over,” she said. “This is not why I signed up to be a teacher. I wanted to be a teacher because I wanted to be present. Like, physically be in the presence of my students. You know, at school and being a part of them and teaching.”

We can’t wait for this to end either! In the meantime, we can help each other stay positive. ATPE wants to hear how you are adapting to a new educational environment during the coronavirus pandemic. Click here to email us your stories, best practices for distance learning, or strategies you’re using to stay upbeat during the crisis.


State comptroller says Texas is in a recession

In an interview Tuesday morning, April 7, 2020, with Texas Tribune Executive Editor Ross Ramsey, Texas Comptroller Glenn Hegar repeated a statement he had already made to legislators in private last month regarding the combined economic impact of the COVID-19 pandemic and plummeting oil prices.

“I know that we are unfortunately in a recession,” said Hegar, whose office oversees the state’s finances. “I just don’t know how deep or how wide it’s going to be.”

The comptroller’s certification revenue estimate in October 2019 projected that the state would end the current budget cycle with a balance of $2.9 billion in general revenue and $9.3 billion in the state’s economic stabilization fund (ESF), which is often referred to as the “rainy day fund.” Hegar said he plans to release a revised revenue estimate in July, which he predicts will be several billions dollars less. Many are questioning just how much of a toll the double-whammy of a pandemic and an oil price war will take on the state’s budget — especially after legislators significantly increased public education funding under House Bill (HB) 3 in 2019.

Hegar said Tuesday the state is expected to have enough cash flow to meet its obligations through the end of the current budget, which runs through August 31, 2021. While contributions to the ESF are expected to decrease as a result of declining oil and gas revenues, the comptroller’s office is still projecting a balance of $8.5 billion in the fund by the end of the current budget cycle.

Altogether, Hegar said he does not believe legislators will need to be called into a special session this year to shore up the current budget, but he added that the start of the next legislative session in January 2021 will be quickly upon us. Next session, legislators anticipate facing the daunting task of funding state priorities over the next budget cycle with significantly less money available.

The reason less money will be available has to do with how Texas government is funded. Since Texas does not have an income tax, sales and use taxes account for 57% of state revenue. Local governments are funded by a combination of sales and property taxes. When places like bars, restaurants, and stores make less money, they send in less sales tax revenue. Surging unemployment has the same effect on sales taxes by depressing consumer spending, as well as inhibiting people’s ability to keep up with their property taxes.

All this is happening at the same time the demand for government services such as unemployment, healthcare, and food assistance is increasing. The result is an unprecedented strain on government at every level, yet Hegar noted that state agencies should look for ways to cut spending.

The comptroller’s office is currently working off of sales tax revenue reports released in March detailing economic activity that happened in February, which was before social distancing was enforced. April sales tax numbers will provide a better look at the economic impact of business closures and downsizing, but that report won’t be available until the end of May. Hegar is waiting on those numbers to give a better estimate of the impact on the state budget in the planned revised revenue estimate this summer.

So what does this all mean for public education? It’s still unclear. Hegar noted Tuesday that  education and health and human services make up the two largest components of the state budget. Hegar noted that state leaders will likely begin discussing ways to cut agency spending during the current budget cycle, but he suggested that areas like the Foundation School Program (FSP) and Medicaid should be exempted from cuts this year. The FSP is the finance formula that flows funding for public education to local schools.

The state is also awaiting federal coronavirus aid recently passed by Congress, which will send billions of dollars to schools across the nation. Future federal aid packages are likely to have an additional impact on the state budget going into next session. There are already talks coming out of Washington about a fourth coronavirus stimulus bill that could provide as much as one trillion dollars in additional aid.

The one phrase Hegar repeated multiple times throughout this morning’s 45-minute interview was “managing expectations.” The comptroller was clear that the state is in the midst of a recession driven largely by the COVID-19 outbreak and aggravated by the oil price war. We still don’t know how many billions of dollars this will drain from the state’s budget going forward, but it will be significant. We’ll have a better look when the comptroller releases his revised estimate in July.

You can watch the full Texas Tribune interview with Texas Comptroller Glenn Hegar here.

Governor Abbott declares emergency items, includes teacher pay

Texas Governor Greg Abbott announced a total of six emergency items in Tuesday’s State of the State address to a joint session of the 86th Texas Legislature. The State of the State is traditionally delivered by the governor at the beginning of each legislative session, and is the state equivalent to the national State of the Union address delivered by the president.

The governor often uses the State of the State as an opportunity to announce emergency items for the current legislature. The first 60 days of the legislative session are meant for organization and bill filing, and legislators cannot vote on bills until after 60 days have passed. Emergency items declared by the governor are the only exception.

Standing ovation for teacher pay announcement during State of the State address, Feb. 5, 2019.

Governor Abbott listed six emergency items on Tuesday: School finance reform, teacher pay, school safety, mental health, property tax relief, and disaster response.

What does this mean functionally? The legislature may vote on bills under these emergency headings immediately instead of waiting for the March 8 deadline, theoretically granting them a one-month head start ahead of other bills. Yet few of these bills have been filed, and none have begun the committee process that marks the first major step in a bill’s journey to becoming a law. For this reason, the practical impact of designation as emergency items has more to do with sending a signal to legislators and the public that these are the governor’s top priorities.

In addition, each of these items is expected to require a significant amount of state funding. The budget offered by the Texas House would provide $7.1 billion in new revenue for public education, contingent upon spending a significant portion of that money on providing property tax relief, ostensibly by rebalancing the state and local share of education funding. Increasing the state’s share will ease the burden on local property taxpayers, but will not increase overall public school funding. To increase overall school funding will require spending additional money on top of what is required to ease local tax pressure.

Increasing teacher pay will require another tranche of state funds. The Texas Senate has proposed Senate Bill (SB) 3, which would grant teachers a $5,000 annual raise. The bill’s cost is tagged at $3.7 billion for the first biennium. Gov. Abbott’s comments today on teacher pay implied that he prefers a plan under development by House leaders to provide a differentiated pay program that could create a path for select teachers to earn as much as $100,000. This would apply to far fewer teachers than the Senate’s plan and consequently carry a much smaller price tag.

School safety, mental health, and disaster response will each require further funding. Fortunately, the biennial revenue estimate delivered by Texas Comptroller Glenn Hegar in January projects legislators will have roughly $12 billion more than they budgeted the previous two years. It’s important to note that some of that money will be taken up by inflation and population growth. Some of the emergency items, such as disaster response, are prime targets for one-time spending from the Economic Stabilization Fund. The state’s “rainy day fund,” as it is often called, is projected to total $15.4 billion by the end of 2021.

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.

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.

 


 

85th Texas Legislature will face tight budget

Get ready to tighten your belts.

Before each session, legislative budget writers wait with bated breath to hear the state comptroller hand down from on high the magic number that will guide their spending for the next 140 days. That number comprises the core of the biennial revenue estimate (BRE).

ThinkstockPhotos-185034697_gavelcashThe comptroller is basically the state’s top accountant, and crafting the BRE is the office’s biggest responsibility. Divined from tax receipts and economic trends, the BRE is a best guess as to how much tax money will be available for lawmakers to spend over the next two years. The legislature is legally bound to keep spending within that number, which makes an austere forecast about as welcome as a skunk at a garden party.

At a formal press conference this morning at the Texas Capitol, Comptroller Glenn Hegar’s BRE presentation for the 2018-19 biennium was marked by a subtle, yet unmistakably skunky fragrance.

Hegar announced the 85th Texas Legislature will have $104.9 billion available for general revenue spending, roughly $8 billion less than lawmakers got the green light to spend in 2015. Factors contributing to the pinch include sluggish growth in tax revenues – due in no small part to stubbornly low oil prices – and lawmakers’ decision last session to dedicate $5 billion in sales tax revenue to the highway fund.

According to the Texas Tribune, state Rep. Drew Darby (R-San Angelo), who appears poised to chair the House Appropriations Committee, suggested the number is $5 billion to $6 billion less than it would take to fund state services at current levels. Combine that with the governor’s directive that each agency cut its budget by four percent, and a picture of a penny-pinching budget battle takes shape.

Girl showing bank notes

When money is tight, we find out what our priorities are. We at ATPE believe investing in future generations should be at the top of the list.

Public education still hasn’t fully covered the $5.4 billion cut by the legislature in 2011. With enrollment growth outpacing teacher hiring, class sizes continue to increase, to the detriment of students. Per-student funding still lags 2011 levels in some districts. To top it off, the state has steadily decreased its share of school spending, forcing school districts to rely more and more on local property taxes to make up the difference.

But there is still room for optimism.

Even without a court mandate, House leadership under Speaker Joe Straus (R-San Antonio) has expressed a strong desire to fix the school finance system this session. There’s been growing talk of increasing the basic per-student allotment. If a friendly Republican administration in Washington, D.C. provides relief in previously disputed areas of the budget, such as health care and border security, the result could be more state money freed up for other priorities.

It’s a matter of deciding what’s important.

Our children deserve a world-class education that doesn’t cost parents their home. If lawmakers truly want to cut property taxes, there’s a simple fix: Shift the burden of education funding back to the state. It will require taking a hard look at the budget and making tough choices about public spending, but it can be done. We’re optimistic that Texans will keep their eye on the ball this session and not be distracted by repackaged voucher schemes, teacher bashing bills, and smoke and mirrors tax cuts.

If we can maintain that focus, then we’ll end up with a budget that reflects our values as Texans.