Tag Archives: outcomes-based funding

State leaders announce deal on school finance, property tax relief, and TRS legislation

At a press conference held this afternoon, Gov. Greg Abbott, Lt. Gov. Dan Patrick, and Speaker of the House Rep. Dennis Bonnen announced that a deal has been reached on legislation to address school finance, property tax relief, and the Teacher Retirement System (TRS). Flanked by members of the conference committees that worked on the bills, the “big three” shared highlights of the final negotiated versions of House Bill 3 and Senate Bill 12 and thanked those who worked on the compromise.

A flyer was shared with reporters touting major components of the agreement, including increasing the basic allotment for schools; providing $5 billion in property tax relief; funding full-day pre-K for low-income students and increasing the funding to serve other students with special needs; calling for outcomes-based funding tied to college, career, and military readiness; reducing recapture by 47% in the next two years; and offering $2 billion in various forms to assist with “dynamic teacher compensation.”

Specific details on the educator compensation piece are unknown at this point, but the new version of HB 3 has been characterized as including both a merit pay program and funding to increase salaries for veteran teachers (those with at least five years of experience), librarians, counselors, and school nurses. Immediately following the press conference, HB 3 author and House Public Education Committee Chairman Dan Huberty told reporters that the merit pay program would not be test-focused but would use T-TESS to help determine which teachers are eligible to become recognized, exemplary, or master teachers. Chairman Huberty added that Texas Tech University would be tapped to act as a “referee” for the program.

The deal announced today also provides for increased funding into the TRS pension program in order to make it actuarially sound. Also, it is believed that the state would substantially raise its contributions for active educators’ healthcare premiums under this agreement.

Actual bill language has not yet been released, but ATPE will update our Teach the Vote blog with additional details as soon as our lobbyists have a chance to see and analyze the new bills.

From The Texas Tribune: Texas Senate approves school finance reform bill, but opts not to fund it with a sales tax hike

Lt. Gov. Dan Patrick speaks from the dais in the Senate chamber last month. Photo by Juan Figueroa/The Texas Tribune

Texas Senate approves school finance reform bill, but opts not to fund it with a sales tax hike” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

The Texas Senate on Monday approved a bill to massively overhaul public school finance, but did so while backing away from a proposal to use an increased sales tax to lower school district property taxes.

After an hours-long debate on dozens of proposed changes, the Senate voted 26-2 on House Bill 3, which under the version passed by the upper chamber would increase student funding, give teachers and librarians a $5,000 pay raise, fund full-day pre-K for low-income students, and lower tax bills.

The House and Senate will have to negotiate their significant differences over the bill — including how to offer teacher pay raises and property tax relief — in a conference committee before it can be signed into law.

“When you’re doing something as complex as this, there’s going to be something you don’t like,” said state Sen. Larry Taylor, R-Friendswood, the bill’s author, anticipating tension throughout the day’s debate.

Since school districts levy the majority of property taxes in Texas, many lawmakers have been seeking ways to help reduce those portions of Texans’ tax bills. But since the state is required to ensure school districts have enough money to educate students, any tax relief effort would have a significant cost — requiring the state to reimburse schools, if they’re unable to collect enough from local property taxes.

Taylor had originally included several provisions that would provide ongoing tax relief, paid for by an increase in the sales tax by one percentage point.

Republican leaders, including Gov. Greg Abbott, had thrown their support behind that sales tax swap, arguing it would help Texans who are currently being taxed out of their homes. But the proposal has serious detractors in lawmakers from both parties in both chambers who are opposed to a higher sales tax.

So Taylor stripped the increase from HB 3 and offloaded some of the more expensive property tax relief provisions in the bill. The bill no longer includes an expansion in the homestead exemption from school district taxes. It lowers property tax rates by 10 cents per $100 valuation, instead of 15 cents, saving the owner of a $250,000 home $250 instead of $375.

The legislation would still limit the growth in school districts’ revenue due to rising property values, a proposal pitched before session began by the governor. School districts that see their property values significantly increase would have their tax rates automatically reduced to keep tax revenue growth in line. That would now start next year, instead of in 2023.

“The bill before us today has no linkage to the sales tax and is not contingent upon a sales tax,” Taylor said.

Instead, the bill creates a separate “Tax Reduction and Excellence in Education Fund” to fund school district tax relief. State Sen. Kirk Watson, D-Austin, said a working group came up with a plan to get $3 billion from several sources, including the severance tax on oil and gas extraction and an online sales tax.

“This does not increase any taxes of any kind,” he said.

A few senators didn’t vote yes on HB 3 because they didn’t know the cost of the bill or how their school districts would be affected by it.

“The lack of a fiscal note delineating the total cost of the bill was unacceptable,” said state Sen. Charles Schwertner, R-Georgetown, who voted against the bill along with state Sen. Brandon Creighton, R-Conroe.

Creighton echoed those concerns about not knowing the legislation’s price tag, though he said he agreed with its policy.

“Before the session ends, I will have another chance to vote on the final bill, and I look forward to supporting it once I have a clear understanding of the impacts on school districts in Senate District 4, and the true cost of the legislation, which will have implications for all Texas taxpayers,” he said in a statement after the vote.

State Sens. Angela Paxton, R-McKinney, Paul Bettencourt, R-Houston, and Bob Hall, R-Edgewood, marked themselves “present, not voting.”

The House and Senate have passed versions of HB 3 that are similar in some ways: Both would raise the base funding per student — a number that hasn’t budged in four years — and would provide about $780 million for free, full-day pre-K for eligible students.

Among the disagreements: how to make sure school employees get much-needed raises. The Senate has prioritized $5,000 pay raises for all full-time teachers and librarians. The House has directed districts to give all school employees about $1,388 in raises on average statewide and designated extra money for raises to be given at districts’ discretion.

Senate Democrats’ efforts to extend those $5,000 raises to full-time counselors and other employees failed along party lines Monday.

Also controversially for some, the Senate includes money providing bonuses to schools based on third-grade test scores and funding districts that want to provide merit pay for their top-rated teachers. Many teacher groups have opposed both, arguing it would put more emphasis on a flawed state standardized test.

State Sen. Beverly Powell, D-Burleson, failed to get an amendment to the bill approved that would strike tying any funding to third-grade test scores.

Teachers, parents and advocates following on social media had paid attention to Powell’s amendment, mobilizing in support through a Twitter hashtag “#NoSTAARonHB3.”

Taylor pointed out that the bill also allows school districts to use assessments other than the state’s STAAR standardized test, which has lately come under renewed scrutiny, with researchers and advocates arguing it doesn’t adequately measure students’ reading abilities. He approved an amendment requiring the state to pay for school districts to use those alternative tests, which he estimated would cost about $4 million.

Emma Platoff contributed to this story.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2019/05/06/texas-senate-school-finance-sales-tax/.

 

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The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

Senate Education Committee postpones merit pay and school finance discussion for one week

The Senate Education Committee, meeting today, has postponed its consideration of a major school finance bill, House Bill (HB) 3, until next week. Originally on the agenda for today’s meeting, the hearing of the bill by Rep. Dan Huberty (R-Kingwood) was pushed back a week to allow the Senate more time to complete its drafting of a Senate committee substitute for the bill.

HB 3 is now expected to be heard by the Senate Education Committee on Tuesday, April 23.

As we have reported here on Teach the Vote, the engrossed version of HB 3 passed the Texas House with a near unanimous vote of 148-1. The House bill language reflected changes made in the House Public Education Committee, which Rep. Huberty chairs, to address concerns of ATPE and numerous other stakeholders. Significant changes made to the original bill as filed included removal of a controversial merit pay plan that would have tied teacher pay to student performance (likely measured by standardized test scores), which the overwhelming majority of the education community including all of the state’s major teacher organizations opposed. Language that would have enabled school districts to opt out of the state’s minimum salary schedule was also removed from HB 3 as filed by the House Public Education Committee. During floor debate of HB 3, the House also added a provision requiring an across-the-board pay raise for all school district employees except administrators. For these reasons and its addition of $9 billion into funding Texas public schools and property tax relief, ATPE was proud to support the House’s engrossed version of HB 3.

ATPE is urging educators to contact their senators now about HB 3 to share feedback on this important bill that is expected to be heard next week. Of particular concern is the language in the bill pertaining to educator pay. Although the Senate has already passed its own bill calling for a $5,000 pay raise for teachers and librarians, leaders in the Senate have also expressed interest in adding merit pay to any school finance bill that passes this session. For instance, Senate Education Committee Chairman Larry Taylor (R-Friendswood), who is sponsoring HB 3 in the Senate, also filed his own school finance reform bill that includes both merit pay for select teachers and controversial outcomes-based funding tied to students’ test performance (Senate Bill (SB) 4).

Now that HB 3 has made its way to the upper chamber, ATPE is urging the Senate to keep merit pay out of HB 3 and avoid changing the bill in such a manner that would erode its widespread support and momentum this session.

For additional information and direct communication links to lawmakers, ATPE members are urged to visit Advocacy Central.

 

ATPE and others testify on school finance commission recommendations

This week, the House Public Education Committee received feedback from various stakeholders regarding recommendations of the Texas Commission on Public School Finance. Tuesday and Wednesday, committee members heard testimony from panels including three former House Public Education Committee chairs, superintendents, trustees, teachers, and representatives of education associations. Rural, suburban, and urban districts were represented, as well as charter and traditional public schools.

The overwhelming majority of testifiers expressed support for the commission’s recommended increase in the spectrum weight and the dual language weight. These would help create equity by funding certain student populations at higher levels. Most witnesses also commended the commission’s recommendation to fund early childhood education, but were concerned with its sustainability and with tying it to third-grade reading scores.

Among the concerns commonly expressed by stakeholders was outcomes-based funding. District leaders said they would like  local flexibility in implementing merit-based, outcomes-based, or performance-based funding mechanisms for their teachers. Apprehension with outcomes-based funding derived from mistrust or lack of confidence in the current assessment system’s ability to accurately capture student learning. In fact, an equal proportion of Tuesday’s discussions seemed to focus on assessment as on school finance. Some leaders expressed that tying funding to tests would reinforce teaching-to-the-test, and some stakeholders suggested that base teacher pay be addressed before additional incentive mechanisms.

Stakeholders representing small and midsize districts (up to 5,000 students) also expressed concern with the commission’s recommendation to move the small and midsize funding adjustment out of formula, which could alter funding to these special student populations, affecting the districts’ ability to meet federal obligations for financial maintenance of effort under the Individuals with Disabilities Education Act (IDEA).

Overall, stakeholders also expressed concerns with any funding changes that were not part of the base formula, given that similar funding approaches in the past have been less reliable. An example cited was Pre-Kindergarten (Pre-K) funding under House Bill (HB) 4 of 2015, which created an optional grant program should districts decide to offer high-quality Pre-K. Another potential funding change discussed this week was the Cost of Education Index (CEI). While some testified that they were uncomfortable with the idea of the CEI being eliminated, Chairman Dan Huberty (R-Kingwood) reiterated his intent for definite removal of the CEI in any school finance overhaul this session.

While this week’s testimony nearly always touched on teacher compensation, an important aspect of teaching beyond pay arose in the conversations: mentoring. A few witnesses expressed that the best first-year investment is a mentor teacher and that having mentor teachers is another way to provide extra compensation. Special education is another topic that came up during the hours of testimony, even though it was not widely broached by the commission last year other than through a discussion of funding for dyslexia. In testimony, several special education advocates suggested revamping the way special education is funded, which is currently done by placement rather than services. Chairman Huberty was favorable to the ideas presented.

Monty Exter

ATPE Senior Lobbyist Monty Exter, was last to testify Wednesday evening. He shared that ATPE supports the commission’s recommended changes to the weights, local flexibility in spending weighted dollars, and increases to the basic allotment. He expressed concerns with outcomes-based funding and suggested an adequate base increase for teachers and others on the education team first. Exter also offered that inputs should be incentivized as well, in a similar way to how high-quality Pre-K was incentivized through the HB 4 grant program. Lastly, Exter testified that teacher quality is related to educator preparation, another topic that cannot be forgotten when discussing increasing teacher effectiveness.