Tag Archives: Permanent School Fund

SBOE in Austin for September meeting

Texas SBOE meeting September 11, 2019.

The Texas State Board of Education (SBOE) met Wednesday in Austin for its three-day September meeting. Although her term as board chair concluded with the board’s June meeting, Member Donna Bahorich (R-Houston) presided over the board Wednesday as Gov. Greg Abbott has yet to announce her successor.

The board began with a discussion of a new process for Instructional Materials Quality Evaluation (IMQE), including recommendations for a commissioner rule from an ad hoc committee on the subject. The process is now called Texas Resource Review (TRR). Member Georgina Perez (D-El Paso) suggested that the process is still subjective, and Texas Education Agency (TEA) staff indicated that the process was the result of feedback from 30 pilot districts. Member Marty Rowley (R-Amarillo) posed a number of questions to TEA staff clarifying the potential legal ramifications of changes to the current process. Member Barbara Cargill (R-The Woodlands) expressed a desire to prevent the TRR from competing with or interfering with the Texas Essential Knowledge and Skills (TEKS) review process. After lengthy discussion, the board adopted a new board operating procedure barring an individual board member from nominating instructional materials to the TRR without a majority vote of the board endorsing the nomination.

The board also discussed the procedure for nominating members to serve on the School Land Board (SLB), which oversees a portion of the Permanent School Fund (PSF) overseen by the General Land Office (GLO). Legislation passed by the 86th Texas Legislature expanded the SLB to five members from three and allowed the SBOE to nominate candidates to serve in two of the five places. The governor will select the two members from among six candidates the SBOE nominates. The board’s Committee on School Finance/Permanent School Fund will recommend the six nominees from a list of 30, comprised of two nominees provided by each of the board’s 15 members. The full board will vote to approve the final six.

The SBOE and SLB must also meet jointly once per year as a result of legislation passed in 2019. Members voted to hold the first joint meeting during the SBOE’s scheduled meeting in April 2020. All following meetings will be held during the SBOE’s scheduled November meeting.

 

 

Teach the Vote’s Week in Review: July 26, 2019

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


This week Congressman Kevin Brady (R-TX) filed H.R. 3934, the “Equal Treatment of Public Servants Act of 2019.” The ETPSA aims to address unfair reductions to the Social Security benefits for many educators and other public employees under what is known as the Windfall Elimination Provision (WEP).

While there are many similarities between this WEP replacement bill and a previous version of the ETPSA filed by Brady in the last congress, H.R. 3934 would produce a higher benefit payment for the majority of retirees, including those future retirees who are over the age of 20. For more details on the newly filed bill, check out this blog post by ATPE Senior Lobbyist Monty Exter.


Today, the State Board for Educator Certification (SBEC) is meeting to discuss several important items, including the adoption of changes to allow for the implementation of the EdTPA portfolio assessment pilot for teacher certification. The board is also discussing pending rule changes resulting from bills passed by the 86th Legislature, such as the repeal of the Master Teacher certificates within HB 3. Check the Teach the Vote blog later this weekend for a more detailed summary of the meeting by ATPE Lobbyist Andrea Chevalier.


ELECTION UPDATE: November is right around the corner. Are you registered and ready to vote? This week the Secretary of State revealed the ballot order for constitutional amendments that voters will consider in November 2019, including one that pertains to education funding. Learn more about the proposed amendment, along with updates on campaign announcements for the 2020 primary elections in this new election update post by ATPE Lobbyist Mark Wiggins.


In Washington, DC, the U.S. Senate Committee on Homeland Security and Government Affairs held a hearing on school safety on Thursday, July 25, 2019. The specific focus of yesterday’s hearing was on examining state and federal recommendations for enhancing school safety against targeted violence. The committee heard from four invited witnesses: Max Schachter and Tom Hoyer, who are both parents of children killed in the Parkland School shooting; Bob Gualtieri, Sheriff of Pinellas County, Florida; and Deborah Temkin, PH.D., Senior Program Area Director, Education Child Trends. Mr. Hoyer identified three areas where policymakers can impact school safety, particularly with regard to school shootings: securing the school campus, improving mental health screening and support programs, and supporting responsible firearms ownership. Committee members focused their questions and attention on the first two issues. Archived video of the hearing and the testimony of the individual witnesses can be found at the links above.

November 2019 ballot propositions and other election news

This week saw a steady trickle of election-related news. Some of it had to do with the upcoming constitutional election this November, and some of it had to do with races on the primary election ballot next March 2020.

First up, the Texas Secretary of State announced the ballot order for 10 proposed constitutional amendments that will go before Texas voters this November 5, 2019. Proposition 7 is the measure with the greatest direct impact on public education. House Joint Resolution (HJR) 151 passed by the 86th Texas Legislature describes the measure as “The constitutional amendment allowing increased distributions to the available school fund.”

Proposition 7 would increase the maximum annual distribution of revenue derived from public land by the General Land Office (GLO) or other agency to the available school fund (ASF) for public schools. If approved by voters, that maximum amount would increase from $300 million to $600 million per year. According to the bill’s fiscal note, the Legislative Budget Board was unable to predict whether this would provide enough additional permanent school fund (PSF) revenue to significantly offset state spending from general revenue.

Next up, a couple of familiar names in Texas politics surfaced in relation to federal races on the November 2020 ballot. State Sen. Royce West (D-Dallas) announced Monday he plans to enter the Democratic primary to challenge U.S. Sen. John Cornyn (R-Texas). West joins a crowded Democratic primary field that includes M.J. Hegar, who narrowly lost a general election race against Republican U.S. Rep. John Carter in Congressional District (CD) 31. Also on Monday, former state Sen. Wendy Davis (D-Fort Worth) announced plans to challenge Republican U.S. Rep. Chip Roy in CD 21. Republican U.S. Rep. Pete Olson announced late Thursday he will not run for reelection in CD 22, which is expected to be a hotly contested race next November. Expect campaign announcements to continue throughout the summer and fall.

As our friends at Texas Educators Vote (TEV) point out, now is a good time to review your voter registration status. Have you moved since the last election? Click here to find out if you’re registered to vote. If you need to update your registration, click here. The deadline to register to vote in this November’s constitutional election is October 7.

Teach the Vote’s Week in Review: April 12, 2019

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


On Tuesday, April 9, the Texas Senate passed its version of the state budget for the next two years. The Senate’s substitute version of House Bill (HB) 1 received unanimous approval from the upper chamber.

Like the House, the Senate set aside $2.7 billion in the budget bill for “tax relief,” although it is yet to be determined exactly how the money will be spent to achieve that goal. The Senate also dedicated $6.3 billion to public schools, $4 billion of which is reserved for a $5,000 across-the-board pay raise for all full-time teachers and librarians through Senate Bill (SB) 3. That leaves only $2.3 billion in the Senate’s bill to try to make changes to the larger school finance system.

The Senate’s budget proposal differs from the House’s plan, which delivers more than $6 billion to school districts with instructions to spend the first 25 percent of any increase in the basic allotment, or approximately $2.4 billion, on salary increases for all non-administrative staff. While amounts of such a pay raise, if passed, would vary from district to district, the House’s plan would average out roughly to about $1,300 per full-time employee.

Next, each chamber will appoint members to a conference committee that will work out the differences between the version of HB 1 that the Senate passed this week and the version of the bill that the House passed last month. For its part, the House has already appointed its five members of the critical budget conference committee: House Appropriations Chairman Rep. John Zerwas will chair the committee, joined by Reps. Greg Bonnen, Sarah Davis, Oscar Longoria, and Armando Walle. Once the Senate appoints its conferees, negotiators will have until the session ends in late May to reach an agreement. The budget is the only bill the Texas Legislature is constitutionally required to pass, so any failure to come to an agreement within the 140-day regular session would result in legislators being called back for a 30-day special session to finish the budget.

 


The state’s ongoing difficulty in providing resources for students with disabilities continues to make headlines. On Thursday, April 11, Representative Mary González (D – Clint) and Representative Morgan Meyer (R – Highland Park) held a press conference to address Texas’s consistent underfunding for students with disabilities and lack of compliance with federal spending requirements under the Individuals with Disabilities Education Act (IDEA). ATPE and other stakeholder groups representing educators, students, and advocates for people with disabilities participated in the bipartisan press conference.

The state’s inadequate spending on students with special needs could cost Texas as much as $223 million in lost federal funding. Under the IDEA’s maintenance of financial support requirement, each state must spend at least as much on special education as it did in the previous year or face a financial penalty. Read more about the millions in penalties Texas faces here.

 


The Senate Education Committee convened twice this week to take action on bills pertaining to virtual schools and other miscellaneous items. The first meeting of the committee on Tuesday featured testimony about which entity should manage the Permanent School Fund and a discussion of school turnaround options. The committee also heard an ATPE-supported bill by the committee’s chairman, SB 1895 by Sen. Larry Taylor (R-Friendswood), that would help educators receive professional development on blended learning.

Among the legislation voted out favorably by the committee on Tuesday were two bills pertaining to virtual schools, which ATPE opposed when they were heard by the committee the previous week. The committee advanced SB 2244 by Sen. Angela Paxton (R-McKinney), which prevents school districts from charging fees for virtual classes and makes it easier to enroll in virtual schools, and SB 1455 by Sen. Larry Taylor (R-Friendswood), which also expands virtual schools. ATPE previously submitted written testimony opposing both bills and citing research that calls into question the quality and performance of existing virtual schools. The committee also voted out a number of other bills, including SB 1256 by Sen. Paul Bettencourt (R-Houston) that cleans up portions of his educator misconduct bill passed last session.

For a full recap of Tuesday’s committee meeting, check out this blog post by ATPE Lobbyist Mark Wiggins.

During the Senate committee’s second hearing on Thursday, the bills discussed were mostly unrelated to each other. ATPE supported bills including SB 426 by Sen. Eddie Lucio,. Jr. (D-Brownsville), which would ensure that counselors spend the majority of their time counselling students as opposed to being assigned other duties such as test monitoring. The committee also took action on some pending bills, including a major school safety bill. Chairman Taylor’s SB 11, which ATPE had also supported, received a favorable vote by the committee on Thursday. SB 11 follows up on recommendations of the Senate Select Committee on Violence in Schools and School Security that met during the interim last year.

More information on the bills heard and acted upon during Thursday’s hearing of the Senate Education Committee can be found in this additional blog post from ATPE’s Mark Wiggins.

On Tuesday, April 16, the Senate Education Committee is slated to meet again and is expected to hear the House’s major school finance bill, HB 3. ATPE urges educators to contact their senators about this widely support bill and keep up the momentum for passing meaningful school finance reform and an educator pay raise this session.

 


The House Public Education committee held a marathon meeting on Tuesday, hearing 38 bills that mostly pertained to charter schools. Several of the bills were aimed at regulating the expansion of charter schools and how charter schools handle student discipline, eliciting hours of public testimony. Other bills heard on Tuesday included the ATPE-supported HB 228 by Rep. Matt Krause (R-Fort Worth) that would create new eligibility standards for Districts of Innovation (DOI), and HB 1853 by Rep. Leo Pacheco (D-San Antonio), which would require charter schools to hire certified educators and protect the rights of educators. ATPE also provided neutral testimony on HB 3904 by Chairman Dan Huberty (R-Kingwood), which is considered a clean-up bill for Huberty’s HB 22 that was passed last session.

Find more information on the bills considered and passed by the House Public Education committee in this blog post by ATPE Lobbyist Andrea Chevalier. The committee will meet again on Tuesday, April 16, where it will consider a diverse agenda, including some virtual schooling bills similar to those acted upon by the Senate committee this week. Stay tuned to Teach the Vote and follow us on Twitter for updates.

 


ATPE is encouraging educators to contact their senators asking them to oppose two bills that would infringe on educators’ free speech rights and limit the ability to teach studentsSB 1569 by Sen. Pat Fallon (R-Prosper) and SB 904 by Sen. Bryan Hughes (R-Mineola) both deal with “political advertising” laws and are aimed at limiting the ability of school district employees and school board members to talk about political content while they’re at school.

SB 1569 has been placed on the Senate Intent Calendar for next week, meaning that it could come up for a floor vote as early as Tuesday. SB 904 has not yet been placed on the Senate Intent calendar but may also appear there at any time. While the authors did make some changes to these two bills compared to their versions as filed, ATPE remains concerned about likely negative consequences of SB 1569 and SB 904 and the chilling effect they would have on educators. For additional information, check out this blog post about the bills. ATPE members are urged to visit Advocacy Central for talking points and quick communication tools for reaching out to their senators.

 


SBOE unveils student-designed PSF logo

The State Board of Education (SBOE) quietly concluded its first meeting of 2019 on a light note. Chair Donna Bahorich (R-Houston) and Member Marty Rowley (R-Amarillo) unveiled the new logo for the Permanent School Fund (PSF).

Chair Donna Bahorich and Member Marty Rowley unveil the new logo for the Permanent School Fund.

Dripping Springs High School student Melissa Richardson designed the winning logo. Member Tom Maynard (R-Florence) led the effort to brand the PSF, and the design was chosen as a result of a statewide competition open to students.

Friday concluded the first full meeting for the board’s three newly-elected members, Matt Robinson (R-Friendswood), Aicha Davis (D-Dallas), and Pam Little (R-Fairview).

The highlight of the week’s meeting was a learning roundtable hosted at the Austin Convention Center, which focused on the board’s Long-Range Plan for Public Education, which can be viewed here. The board’s next scheduled meeting is April 2-5.

Commissioner: School fund management needs structural change

The Texas State Board of Education (SBOE) heard from Texas Education Agency (TEA) Commissioner Mike Morath Wednesday morning to begin the second day of its November meeting.

TEA Commissioner Mike Morath addresses SBOE, November 14, 2018.

Commissioner Morath began by congratulating Member Keven Ellis (R-Lufkin) for his work as the board’s sole representative on the Texas Commission on Public School Finance, and called the recommendations put forward thus far by commission working groups “powerful.”

The commissioner praised the board for its handling of a funding dispute with the General Land Office (GLO) over the Permanent School Fund (PSF), formal oversight of which is split between the SBOE and the GLO’s School Land Board (SLB). Morath suggested legislators should address oversight of the PSF in its entirety. The commissioner pointed out that the PSF portion under the SLB’s stewardship has accumulated a $4 billion cash balance, which is creating a “significant drag” in terms of fund performance. Morath suggested legislators should consider structural changes, which could be worth an additional $150 million per year.

Commissioner Morath recapped the agency’s budget and priority initiatives, and disputed reports that the agency’s legislative appropriations request (LAR) calls for a reduction in state aid. The LAR is a formal budget request each agency prepares for legislators before each legislative session, and TEA’s LAR for the upcoming session seeks less state aid from general revenue (GR). The commissioner explained that this is required by the funding formulas, which have led to the burden shifting from state GR to local property tax revenues.

Member Ruben Cortez (R-San Antonio) pressed the commissioner as to whether that trend will continue. The commissioner repeated that the agency is complying with statute, and suggested this is the central question being addressed by the school finance commission.

Member Marisa Perez-Diaz (D-Converse) asked the commissioner to provide agency guidance for districts participating in or considering merging with charters under Senate Bill (SB) 1882, which was passed by the 85th Texas Legislature. Perez-Diaz noted that there are questions regarding who is formally in charge of schools at the local level after a contract with a charter is executed, and pointed out it seems districts are “building the plane while it’s in the air.” The commissioner said SB 1882 contracts now include 13 districts and 609 campuses.

In response to a question by Member Ellis regarding a ruling by the 5th Circuit Court of Appeals to uphold a $33 million penalty for failing to properly fund special education, Commissioner Morath indicated that the agency is actively trying to figure out its response moving forward.

The commissioner also fielded a question from Member Georgina Perez (D-El Paso) regarding the instructional materials portal, which legislators in 2017 ordered the commissioner to create as an online resource for educators. Perez noted there is concern how the portal will interact with the SBOE’s statutory authority to review instructional materials and the potential for creating duplicative processes. Commissioner Morath suggested the portal will evaluate a different set of factors than the SBOE.

Member Barbara Cargill (R-Conroe) also raised concern about transparency with regard to how portal material is evaluated, and clarifying that the board’s process will continue forward unchanged. The commissioner replied the agency is engaged in stakeholder outreach. Member Cargill suggested creating a frequently asked questions (FAQ) document.

Teach the Vote’s Week in Review: Oct. 19, 2018

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


The State Board of Education (SBOE) is seeking submissions from public school students aged 9-12 for its “Brand the Fund” art contest. The contest, which will pay a $3,000 cash prize to the winner and a $1000 cash prize to the runner up, is part of the SBOE’s plan to create a distinct brand identity for the Permanent School Fund. The fund was created in 1854 is now valued at $34 billion. The deadline to submit an entry to the “Brand the Fund” contest is Nov. 1. The contest rules and entry form can be found here.


ELECTION UPDATE: Monday, Oct. 22 kicks off the first week of early voting in Texas. It is also Educator Voting Day. Educators are encouraged to research candidates, have a plan to vote, and even bring friends, family, or other registered voters with them to the polls on Monday.

Educator Voting Day is an excellent way for educators to lead by example and model civic engagement for their students ahead of the upcoming Student Voting Day, which occurs on the first Friday of early voting, Oct. 26 this year.

You can learn more about the candidates in your district and their views on education by visiting the “Candidates” section on TeachtheVote.org. You can also generate a sample ballot using your address at Vote411.org. The battle at the ballot box is only just the beginning and educators are encouraged to turn up and out to advocate for their profession during this election.

 


The Pastors for Texas Children, a organization comprised of pastors who advocate for and support public education, will be holding several “Celebration of Education” events throughout the state. Each event is free to attend and will host speakers and community members involved in public education. The dates and cities for the events are as follows, and you can find more information about each event at the links below:

School finance commission touches on early childhood, funding

The Texas Commission on Public School Finance met Thursday morning in Austin to discuss a lengthy agenda covering early childhood education, weights and allotments, and the permanent school fund.

The hearing began with testimony by early childhood education advocates regarding the well-documented benefits of pre-K, including increased kindergarten readiness, improved third grade reading levels, better long-term student performance and fewer behavioral issues. Alexandra Hale with Good Reason Houston suggested assigning more veteran teachers to early childhood education and allowing districts to count the cost of providing full-day pre-K against recapture.

Texas Commission on Public School Finance meeting May 3, 2018.

Commission Chair Scott Brister suggested any investment in early childhood education would have to come at the expense of any potential increase to teacher salaries, and attempted to goad witnesses into arguing against teacher pay raises. Expanding pre-K and paying educators a professional salary are not mutually exclusive goals, and witnesses correctly pointed out that additional funding is needed across the board.

Former U.S. Undersecretary of Education Linus Wright suggested eliminating Grade 12 in order to spend more money on pre-K for three- and four-year olds. Wright contended that the senior year serves no purpose, and 11th graders are equally capable of going to college. It’s important to note many colleges already complain that Texas high school students arrive at the post-secondary level ill-prepared and in need of remediation. Wright also suggested holding elementary teachers to more rigid certification requirements and treating educators as professionals.

Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez next walked the commission through the list of categories that receive weighted funding under the current school finance formula. These include special education, compensatory education, bilingual education, career and technical, gifted and talented, public education grants (PEG) and the high school allotment. In fiscal year 2018, Texas will spend over $10.2 billion, or 28 percent, of total Tier I funds of $37.1 billion on weighted student funding allotments. Compensatory education receives the greatest share of weighted funding, followed by special education and career and technical.

In fiscal year 2018, the total state special education allotment is estimated at over $3 billion. This allotment is distributed according to subordinate weighted funding calculations for different instructional settings. The compensatory education allotment for fiscal year 2018 is estimated at over $4 billion. This primarily consists of funding for economically disadvantaged students weighted at .20, but also includes pregnancy services weighted at 2.41. Compensatory education spending is primarily calculated based on the number of students eligible for the federal free and reduced lunch program. The bilingual allotment for fiscal year 2018 totaled just over $505 million, and covers instructional materials and stipends for teachers.

After a lunch break, the commission returned to hear testimony regarding the Permanent School Fund (PSF) from outgoing State Board of Education (SBOE) Member David Bradley (R-Beaumont), who chairs the SBOE Committee on School Finance/Permanent School Fund, and TEA Chief Investment Officer Holland Timmins.

The commission is scheduled to meet again June 5, when it hopes to hear from superintendents and principals regarding costly or unfunded mandates. The working group on expenditures is scheduled to meet Friday morning.

Teach the Vote’s Week in Review: Dec. 1, 2017

The weekend is here, and it’s time for your wrap-up of education news from ATPE:


The U.S. House of Representatives Committee on Ways and Means Chairman Kevin Brady (R-TX) provided a guest post this week on the Windfall Elimination Provision (WEP). He calls the WEP “unfair to public servants in Texas and across the nation” and says it is time for a fix.

ATPE has worked for decades to repeal the WEP, an arbitrary formula that affects the retirement earnings of some public employees who are eligible for both Social Security and government pensions (such as TRS). More information from ATPE on the WEP as it currently exists can be found here. In recent years, ATPE has joined with a coalition of active and retired public employee groups from Texas and across the country to bolster our work specific to this issue, working closely with Chairman Brady and his staff in order to repeal the WEP and replace it with a fairer formula for affected active and retired public employees.

Chairman Brady’s guest post addresses his thoughts on the current WEP and his vision for a new approach.

 


The Permanent School Fund (PSF), an endowment used to help fund public education in Texas in a variety of ways, has hit a record value: $41.44 billion as of August 31. The Texas Education Agency and the State Board of Education (SBOE), which manages the majority of the fund, announced the milestone this week, adding that a projected $2.5 billion from the PSF is expected to be distributed to Texas schools during the 2018-2019 biennium. For more on the announcement, the fund’s purpose, and the a brief history of the fund, check out this post from ATPE Lobbyist Mark Wiggins.

 


Texas school endowment hits record value

The Texas Education Agency (TEA) announced Tuesday that the endowment used to help fund public education in Texas hit a milestone achievement. The Permanent School Fund (PSF) reached its highest-ever value of $41.44 billion as of August 31, up $4.16 over the previous year.

The nation’s largest educational endowment today, the PSF was created in 1854 with a $2 million appropriation by the Texas Legislature. The Constitution of 1876 added certain public lands and all proceeds from the sales of those lands to the fund, and the Submerged Lands Act passed by the U.S. Congress in 1953 gave the fund control of mineral rights extending off the Texas coast into the Gulf of Mexico.

The majority of the fund, worth $32.73 billion, is managed by the State Board of Education (SBOE). The remaining $8.7 billion is managed by the General Land Office (GLO) through the School Land Board. The fund is invested in a diverse portfolio of assets and undergoes regular audits and performance reviews. Investment decisions often come before the board’s Committee on School Finance and the Permanent School Fund.

“The Permanent School Fund is the gift that keeps on giving to Texas schools,” State Board of Education Chair Donna Bahorich said in a statement provided by the TEA. “With the board’s careful oversight and the continued strong day-to-day administration of the Fund by the Permanent School Fund staff, the Fund will continue to support Texas schools for generations to come.”

“During the 2018-2019 biennium, the Permanent School Fund is projected to distribute $2.5 billion to Texas schools,” SBOE member David Bradley, who chairs the PSF committee, told the TEA. “This is the largest distribution in the Fund’s 163-year history and is $400 million higher than the distribution made in the 2016-2017 biennium.”

The PSF is also used to guarantee bonds by leveraging the fund’s AAA credit rating. Since 1983, the Bond Guarantee Program (BGP) has guaranteed more than $166 billion in bonds without default. In 2011, the Texas Legislature allowed charters to access the BGP. Despite the danger posed by risking taxpayer funds to guarantee loans to charters, which have shown a greater likelihood of financial trouble or default than school districts, the Texas Legislature passed legislation in 2017 to expand the amount of capacity available to charters.