Tag Archives: Permanent School Fund

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.

Teach the Vote’s Week in Review: June 23, 2017

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


ThinkstockPhotos-462761867We’re less than a month away from a 30-day special session ordered by Gov. Greg Abbott. Passing sunset legislation to keep a handful of agencies from going out of business during the interim will be the first order a business, after attempts to pass such a bill during the regular session fell victim to a battle of wills over ideological issues. Gov. Abbott has laid out 19 additional issues for lawmakers to consider during the special session, with signs that even more topics could be added to the agenda as we move closer to the start date. The governor’s wish list, featuring a number of Lt. Gov. Dan Patrick’s questionable “priorities” from the regular session, includes regulating local school bathroom policies, funding private school vouchers, mandating that school districts come up with their own funds for a teacher pay raise, tinkering with teachers’ employment and due process rights, and prohibiting educators from using payroll deduction for their voluntary membership dues to professional associations like ATPE.

Aside from the need to deal with the agency sunset matters that were allowed to falter during the regular session, the governor’s declaring this particular score of issues as being “extraordinary” and urgent enough to warrant spending a million dollars of the taxpayers’ money to debate is a decision that has left many scratching their heads. Arguably the most important priority that did not get addressed during the regular session was school finance reform, but that issue has barely registered as a blip on the governor’s special session radar. Abbott made it clear during his recent press conference that he intends merely for the legislature to appoint a commission to study the issue over the next two years. Many lawmakers, especially in the House, have indicated that they do not share the governor’s views on the urgency of spending another month arguing about such petty concerns as how local bathroom policies are written and how educators spend their own hard-earned money.

Gary Godsey

Gary Godsey

ATPE weighed in on the merits of the special session plans this week in an opinion piece written by Executive Director Gary Godsey and published by The Texas Tribune on its TribTalk website. Godsey explained that the founders of our state government gave governors the ability to call special sessions “under ‘extraordinary occasions.’ Examples noted in the Texas Constitution are the presence of a public enemy or a need to appoint presidential electors. Nowhere does it mention attacking teachers, schools, or political enemies merely to score points heading into the next election cycle.” Read the full piece republished on our blog here.

17_web_Spotlight_AdvocacyCentral_1With the renewed attacks on public schools and hardworking educators that are anticipated in the new few weeks, it is important for educators to stay engaged and share their input with legislators. ATPE members are encouraged to visit Advocacy Central to send messages to their own lawmakers about protecting educators’ rights, properly funding the needs of our public (not private) education system, and preserving local control. The special session will convene on July 18.

 


The State Board of Education hears from education commissioner Mike Morath at the board's June 2017 meeting.

The SBOE hears from Commissioner Mike Morath at the board’s June 2017 meeting.

The State Board of Education (SBOE) has been meeting this week in Austin, and ATPE Lobbyist Mark Wiggins has been in attendance to report on all the action.

As Mark reported for our blog on Tuesday, the board began its meeting hearing from Commissioner of Education Mike Morath and learning about legislative revisions to the state’s “A through F” accountability system and the recent roll-out of new STAAR report cards by the Texas Education Agency (TEA). Much of the SBOE’s work this week has been centered around revisions to the curriculum standards for English and Spanish language arts and reading. The board also looked at its process for TEKS revisions, as Mark described on Wednesday. Appointing board members to serve on a new Long-Range Plan Steering Committee was also on the agenda this week. On Thursday, Mark reported that SBOE committees took a closer look at education bills passed by the 85th Texas Legislature this year and considered impacts on the Permanent School Fund. It was also reported this week that the fund surpassed its investment benchmarks and hit the $32 billion mark for the first time.

For a wrap-up of this week’s SBOE action, check out Mark’s latest blog post here.

 


ATPE State President Julleen Bottoms and Vice President Carl Garner in Washington, DC

ATPE State President Julleen Bottoms and Vice President Carl Garner in Washington, DC

This week, a group of ATPE leaders and staff traveled to Washington, DC to discuss federal education concerns. ATPE State President Julleen Bottoms and Vice President Carl Garner were joined by Executive Director Gary Godsey and ATPE lobbyists Kate Kuhlmann and Monty Exter. David Pore, ATPE’s Washington-based lobbyist, arranged meetings for the team with several key officials in the nation’s capital.

The team had a jam-packed schedule of more than 20 meetings this week, visiting with both the U.S. House and Senate committees that cover K-12 education issues, staff of the U.S. Department of Education, and a sizable chunk of the Texas congressional delegation. ATPE’s representatives primarily focused the discussions on three issue areas: the repeal and replacement of the Windfall Elimination Provision (WEP) that limits many educators’ access to Social Security benefits; implementation of the Every Student Succeeds Act (ESSA); and troubling signs that the country’s new Education Secretary Betsy DeVos is pushing for privatization of the public education system.

ATPE's Monty Exter, Carl Garner, and Gary Godsey meet with U.S. Rep. Kevin Brady in June 2017.

ATPE’s Monty Exter, Carl Garner, and Gary Godsey meet with U.S. Rep. Kevin Brady in June 2017.

One of the first meetings our team conducted this week was with Congressman Kevin Brady (R-Texas), the chair of the powerful U.S. House Ways and Means Committee. Rep. Brady has been working with ATPE and other stakeholder groups on a bill that will repeal the current WEP and replace it with a much fairer system. During the meeting, he told ATPE Vice Present Carl Garner that he is looking forward to reintroducing his legislation and that when he does so, he expects it to move through Congress quickly.

Overall the visiting ATPE team reported that they received a very positive reception to our message during their many visits with lawmakers and staff. Executive Director Gary Godsey called it the most productive trip to Washington he’s taken since joining the organization. For more highlights of the Washington trip, check out ATPE’s Facebook page.

ATPE's Monty Exter, Kate Kuhlmann, Julleen Bottoms, Gary Godsey, and Carl Garner in Washington, DC, in June 2017

ATPE’s Monty Exter, Kate Kuhlmann, Julleen Bottoms, Gary Godsey, and Carl Garner in Washington, DC, in June 2017

 


 

 

State Board of Education takes up science, language arts TEKS

The State Board of Education is meeting this week while the Texas Legislature is session. Across the street from the Capitol inside the Texas Education Agency (TEA) building, the board began its week-long meeting Tuesday morning with public testimony on proposed changes to the science TEKS.

State Board of Education April 2017 meeting.

State Board of Education April 2017 meeting.

Some creationism supporters took issue with the changes proposed after first reading earlier this year. Biology teachers on the curriculum writing committee have proposed changes they explained would streamline the TEKS and focus on grade-level appropriate discussion. Creationism supporters argued Tuesday that the changes watered down criticism of evolution, and asked the board to retain proposed language to require students to “evaluate” various subjects related to evolution. Physics and chemistry teachers also recommended more mundane tweaks to their respective TEKS.

Wednesday began with an update from TEA Commissioner Mike Morath. The commissioner informed the board of upcoming changes to the STAAR confidential student report card (CSR), aimed to make the report more parent-friendly and easy to understand. The report will now contain student lexile levels for the current year and over a student’s academic history. The report will include information for parents regarding how to help improve a child’s reading level, as well as guidance regarding how to maximize the impact of parent-teacher conferences. The agency has also changed terminology to replace the terms for Level I through Level III standards with “does not meet grade level,” “approaching grade level,” “meets grade level,” and “masters grade level.” These changes have already been adopted in rule and will be reflected in report cards due out in June.

Commissioner Morath also announced TEA is readying a new website that will allow parents to see every STAAR question their student was asked, along with what they answered and what other students answered, compared to the correct answer. This website is expected to roll out in mid- to late June. The agency is also working on a separate site for teachers and administrators. The separate website would help teachers and administrators unpack and understand the streamlined English Language Arts and Reading (ELAR) TEKS. The site will feature sample assessment questions and is intended to help teachers understand vertical and horizontal alignment of curriculum standards, as well as distinguish the meaning of verbs used in the TEKS insofar as how they affect instruction. The agency plans to activate the site in advance of the school year in which the TEKS are scheduled to go into effect.

The commissioner responded to questions from the board regarding the rollout of the “A through F” accountability standards passed by the Texas Legislature last session. House Bill 22, which would pare down the five domains to three and eliminate the overall grade, has passed out of the House Public Education Committee this session and is expected to be up for debate on the House floor within the next two to three weeks. At this point, Morath indicated he has participated in at least 70 stakeholder meetings regarding rulemaking for the version of A through F currently undergoing implementation. Some changes have been suggested to specific components, such as the calculation of chronic absenteeism at the elementary level and adjustments for children of military families and those who are absent due to illness.

As far as legislative priorities, both the House and Senate budget proposals include $25 million requested by the agency to access matching funds for rural broadband internet. Other priorities for which TEA is seeking funding in either one or both chambers include math innovation zones, high-quality pre-K, additional staff to investigate inappropriate student-teacher relationships, IT support for the Texas Student Data System (TSDS) to facilitate additional automation, cybersecurity enhancements to safeguard student data and funding to allow the STAAR test to be released annually as opposed to every three years.

On Wednesday, the board resumed discussion on second reading of the science TEKS. After hearing testimony the day before, the board unanimously adopted an amendment adding compromise language to a key section of the biology TEKS dealing with evolution. The amendment changed “evaluate” to “examine” scientific explanations for the origin of DNA. The board also adopted an amendment that would delay implementation of the streamlined science TEKS to the beginning of the 2018-19 school year. The board completed discussion of English and Spanish Language Arts and Reading TEKS for elementary and middle school Wednesday evening, approving amendments on second reading before adjourning.

Breaking up into committees Thursday morning, the board’s committee on School Finance and the Permanent School Fund (PSF) heard an update to the bond guarantee program (BGP). As of February 28, roughly $70 billion of the program’s $100 billion capacity had been allocated. After setting aside $5 billion as required, roughly $24 billion remained available to back school bonds with the PSF. Last year, the board voted to increase the multiplier used to calculate the amount available to charter schools, which resulted in increasing that amount from $165 million to $510 million.

Committee chair David Bradley (R-Beaumont) questioned staff regarding HB 3438 by state Rep. Linda Koop (R-Dallas), which would use the PSF to guarantee school lease-purchase agreements through the Texas Public Finance Authority (TPFA). Staff advised that current law likely allows for the PSF to be encumbered to guarantee short-term commercial debt, and debt under this program would likely be cumbersome on the TPFA. The bill was voted out of the House Public Education Committee during a formal hearing Thursday afternoon at the Texas Capitol.

After Thursday’s committee meetings, SBOE’s committee of the full board gathered to take up discussion of the English and Spanish Language Arts and English as a Second Language TEKS for high school on first reading.

SBOE Wrap-Up: November 2016

SBOE logoFriday, Nov. 18, wrapped up a busy November meeting of the State Board of Education (SBOE), which returned to Austin to tackle a wide range of subjects before the holiday break. Here’s a brief rundown of the week’s action.

Mexican-American Studies

The board said “no thanks” to a controversial Mexican-American studies textbook that sparked protests over factual errors and complaints regarding the way Mexican-Americans are characterized in the text. After a morning dominated by demonstrations and a press conference held by opponents of the textbook, the board denied approval and asked for more submissions of ethnic studies materials. The Texas Tribune‘s Aliyya Swaby has a blow-by-blow of the drama that unfolded on Tuesday. Read more about the board’s decision and what it means for both textbook publishers and school districts teaching the elective course in this press release from the Texas Education Agency (TEA).

TEKS in the Crosshairs

Wednesday’s agenda focused primarily on updates to the Texas Essential Knowledge and Skills (curriculum standards) for mathematics, science, English language arts, and reading. On the subject of math, board members heard exhaustive testimony regarding process standards, and whether less emphasis should be given to word problems and process questions both in the curriculum and on standardized tests. Members seemed to generally agree in a reduction in emphasis, but were concerned what the mathematics TEKS would be left with if process standards were done away with altogether.

The committee also heard reports from educator committees assigned to review the science TEKS in several areas, but most of the attention focused on biology. Reviewers recommended edits to the biology TEKS that included sections seen by some on the board as challenging the theory of evolution. In testimony, one biology teacher who sat on the review committee countered that the changes were made for streamlining purposes and preserved encouragement for instructors to engage in healthy debate of scientific theories. The Texas Tribune posted a summary of the arguments.

Bond Guarantees

On Thursday, the Committee on School Finance/Permanent School Fund delved into a question regarding the use of the fund to guarantee loans for new school buildings. When growing school districts want to build, for example, a new campus, they may not necessarily have the cash on hand to pay for it right away. To get things going, they can issue a bond – basically, a loan – which they can pay off, with interest, over time. Just like you, if a school district has better credit, it can get better financing and pay less interest, which can add up to millions of dollars for a big construction project. In order to get the best financing possible, public school districts with less-than-perfect credit can get the bond “guaranteed” by the $30 billion Texas Permanent School Fund (PSF). It’s a bit like your parents co-signing a loan: You get a better interest rate because they promise to pay the bank if you can’t keep up with your payments.

Dollar fanCharter schools can also take advantage of the Bond Guarantee Program, but on a limited basis. For qualifying charter holders, the amount available under the program is set by a capacity multiplier currently set at 3.25 percent. Charter holders complain the regime creates an annual rush to snap up limited resources. At Thursday’s hearing, they asked the committee to expand the multiplier to 3.5 percent, which would create several hundred million dollars in additional bond guarantees available to charters. Some on the board expressed concern over expanding the debt for which the PSF is liable to charters over which the state has less control. The board gave preliminary approval to raising the multiplier, while halting a related proposal by TEA staff to create additional academic criteria for charter holders to qualify for the program. The Austin American-Statesman‘s Julie Chang has a thorough write-up on the bond program discussion, complete with the following quote from ATPE Lobbyist Monty Exter:

“The board’s first priority should always be to protect the fund so that it continues to be available to guarantee new bonding for facilities for all Texas students,” Exter said. “We agree with the commissioner on enhancing academic requirements to access the bond guarantee program. Some board members have expressed concerns about expansion by charter holders who have not utilized their current capacity. ATPE encourages those members to continue to ask those sorts of questions.”

SBEC Rules

Friday wrapped with the board taking up several rule proposals sent to them from the State Board for Educator Certification (SBEC). All SBEC rules must undergo final review by the SBOE board, which can vote to reject and send back proposals or take no action — which has the effect of approving the proposals. All the SBEC proposals received final approval. Learn more about those educator preparation and discipline proposals in this recent blog post by ATPE Lobbyist Kate Kuhlmann.

Legislative Recommendations

The board also approved its 2017 legislative recommendations, which include a prohibition on vouchers, increased appropriations for TEA staff to adequately oversee and support the TEKS process, support for federal E-Rate support funding, an elimination of TEA’s arbitrary limit on students receiving special education services, and improved student data privacy, among others.

Farewells

This week’s SBOE meeting was the final one for two outgoing board members, Martha Dominguez (D) from SBOE District 1 and Thomas Ratliff (R) from SBOE District 9. Dominguez is an educator and current ATPE member; many of the board members referred to her as the heart or conscience of the board.

Thomas Ratliff

Thomas Ratliff

Ratliff, son of former Lt. Gov. Bill Ratliff, came onto the board eight years ago, after winning a primary election to replace the former board chair and a divisive figure in curriculum battles, Don McLeroy (R). During his tenure, Ratliff helped usher in one of the most productive and cooperative periods in the history of the SBOE.

Both of these members will be greatly missed, and ATPE thanks them for their service. After Dominguez and Ratliff decided not to run for re-election this year, their respective replacements were determined through this year’s elections to be Georgina Perez (D) and Keven Ellis (R). Perez and Ellis will begin their four-year terms in January

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From TEA: Permanent School Fund becomes nation’s largest educational endowment

The Texas Education Agency (TEA) issued the following press release on Sept. 30, 2014:

AUSTIN – Commissioner of Education Michael Williams and Texas Land Commissioner Jerry Patterson announced today that the Permanent School Fund has reached a record high value in 2014, making it the largest educational endowment in the country.

Created by the state in 1854 with an initial $2 million investment, the endowment has now grown to approximately $37.7 billion in market value as of June 30, 2014. Of that total, approximately $30.6 billion is managed by the State Board of Education and $7.1 billion by the School Land Board. Day-to-day oversight of the Fund is handled by staff at the Texas Education Agency (TEA) and the General Land Office.

“Through effective management by the State Board of Education, General Land Office and TEA, the Permanent School Fund continues to grow,” said Commissioner Williams. “The true beneficiaries of these sound investments are the schoolchildren across our state.”

Advancements in hydraulic fracturing technology, Patterson said, are also earning the school children of Texas hundreds of million dollars a year.

“The Texas oil and gas boom isn’t just fueling the nation toward energy independence, it is earning hundreds of millions of dollars a year for public education,” Patterson said. “For the first time ever, Permanent School Fund lands and investments managed by the School Land Board resulted in deposits of more than $1.2 billion into the PSF during 2014.”

A distribution from the Permanent School Fund is made every year to help purchase instructional materials and pay a portion of education costs in each school district. Since 1960, the PSF has distributed more than $23 billion to the schools. During the 2014-15 biennium, the PSF is distributing about $1.7 billion to the schools and anticipates distributing more than $2 billion during the next biennium.

“The State Board of Education exercises its constitutional authority as fiduciaries of the Permanent School Fund with careful deliberation and planning,” said SBOE Chair Barbara Cargill. “It is extremely gratifying to see such excellent results of our hard work as we strive to ensure that current and future generations of Texas schoolchildren will benefit from the fund.”

“Compliments to the outstanding work of both the Permanent School Fund staff and the GLO for maintaining sound and prudent strategies designed to protect and grow the Fund throughout market cycles, and resulting in such a healthy increase of the endowment that benefits all Texans,” said Patricia “Pat” Hardy, chair of the State Board of Education’s School Finance/Permanent School Fund Committee.

Along with providing direct support to Texas schools, the PSF provides a guarantee for bonds issued by local school districts and charter schools. The Permanent School Fund guarantee gives districts the equivalent of a AAA credit rating, the highest available. As a result, qualified districts are able to pay lower interest rates when issuing bonds, saving taxpayers billions of dollars. At the end of 2013, the PSF’s assets guaranteed $55.2 billion in school district bonds, providing a cost savings to 810 public school districts.

The Permanent School Fund’s $37.7 billion value as of June 30, 2014, surpasses that of the Harvard University endowment which stood at $36.4 billion at the same time.

To learn more about the Permanent School Fund, visit the TEA website at http://www.tea.state.tx.us/index4.aspx?id=2147485578&menu_id=2147483695.

To learn more about the Texas General Land Office’s management of its portion of the Permanent School Fund, visit the GLO website at http://www.glo.texas.gov/what-we-do/state-lands/permanent-school-fund/index.html.

SBOE and TEA finish up two weeks of marathon meetings

The State Board of Education met from Tuesday, July 15, through Friday, July 18, for its regular July meeting. Here are the highlights:

On Tuesday, the board had a lengthy conversation with a curriculum and standards development specialist. This was the first of several planned interactions intended to help the board do a better job of overseeing the TEKS writing process with the goal of developing more streamlined, teacher-friendly TEKS.

On Wednesday, Commissioner Michael Williams addressed the board. He and the board had a longer than usual discussion primarily due to his recent actions regarding Great Hearts charter school in the Dallas area. During its last meeting the board chose to veto the commissioner’s recommendation to give Great Hearts a new charter to open a school in the Dallas area. Board members based their decision primarily on concerns that were brought to the board about that specific charter operator. In the interim between that meeting and this one, the commissioner chose to use his authority to grant the Great Hearts operating in San Antonio an expansion into the Dallas market. In doing so, the commissioner waived his own rules against granting expansions to a charter operator that had not been operating under a Texas charter for at least four consecutive years and essentially did an end run around the board’s veto.

The board also received a report on the health of the permanent school fund (PSF), which has topped $30 billion, the largest the fund has ever been. The board set the range within which it will pull funds from the PSF over the next biennium. It is the board’s duty to set the rate at which funds are taken from the PSF and sent to the Legislature to be appropriated. A portion of the money taken from the PSF is used to fund the instructional materials allotment and a portion is spent to offset the cost of education generally, decreasing the amount the Legislature has to spend out of general revenue.

On Thursday, the board met as committees. The Committee on Instruction, which is chaired by ATPE Past State President Sue Melton Malone, met an hour earlier than the other committees to host a dyslexia demonstration for the entire board. The Committee on School Initiatives discussed the possibility of the board updating the long-range plan for public education and long range technology plan, neither of which has been updated in more than a decade.

The full board heard public testimony on Friday from members of the public who are concerned about the influence of Common Core on AP History classes. Currently there are no Common Core standards for history.

Watch recorded footage of the board meeting.

This week, July 21–23, the TEA’s charter division has been conducting interviews of charter applicants. Several SBOE members have been present for those interviews.Watch recorded footage of the interviews.

On Friday, TEA will hold a public hearing to take testimony on the new commissioner’s rules regarding charter schools. Senate Bill 2 from last session transferred most of the SBOE’s authority over charter schools to the Commissioner of Education. Watch the hearing live.