Tag Archives: Glenn Hegar

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.