Tag Archives: retirement

Teach the Vote’s Week in Review: March 22, 2019

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


Now that the bill filing deadline has passed and the 86th legislative session is beyond its halfway point, it’s time for the legislature to do the one thing that it is mandated to do in every session: pass a budget. “Budget Day,” though it doesn’t have an official date in each legislative session, is when the House or Senate passes its version of a budget bill. Things get heated, legislators stay on the floor until the wee hours of the morning, staving off delirium to fight for every penny possible for their constituents’ legislative priorities. At stake this session is the future of public education funding, deemed an emergency issue this session by Gov. Greg Abbott and a top priority of the leadership in both the House and Senate.

For its part on the school finance front, the House Public Education Committee unanimously approved Chairman Dan Huberty’s (R-Kingwood) comprehensive school funding bill, House Bill (HB) 3, on Tuesday of this week after making a number of changes requested by ATPE and other education stakeholders. Those changes included removing a controversial merit pay proposal from the bill. Read more about the revisions made to HB 3 in this blog post by ATPE Governmental Relations Director Jennifer Mitchell. The new and improved school finance and tax reform bill is expected to be brought up by the full House for a floor debate within a couple of weeks.

With the momentum behind major public education bills like HB 3, it is now up to lawmakers to put aside enough money for the next biennium to make those school funding proposals a reality. On the House side, those budget decisions will be made via HB 1, which is the House’s version of the budget bill that is scheduled for a floor debate next week. State representatives will be spending the weekend drafting and pre-filing their amendments to the massive budget bill before its lengthy budget debate happens on Wednesday, March 27. Stay tuned to Teach the Vote and be sure to follow us and our lobbyists on Twitter for updates on the budget debate next week.

 


House Public Education Committee hearing, March 19, 2019

In addition to approving HB 3 earlier this week, the House Public Education committee also heard 21 other bills when it met on Tuesday, March 19. The subjects of the bills ranged from the compensatory allotment to  a proposal to make personal financial literacy courses mandatory for graduation. The committee also voted to send 14 previously heard bills to the House floor, including the high-profile school finance and tax relief bill, HB 3. For more information on the bills heard during Tuesday’s committee meeting, read this blog post by ATPE Lobbyist Andrea Chevalier. Next Tuesday, the committee will meet again to hear a long agenda full of school safety bills.

Senate Education Committee hearing, March 19, 2019

The Senate Education committee also met Tuesday, March 19, to hear a number of bills, including several relating to educator misconduct. Most of the bills heard on that subject were filed by Sen. Paul Bettencourt as follow-ups to his Senate Bill 7 enacted by the legislature in 2017. The Senate Education Committee voted to advance three bills to the Senate floor. Read more in this blog post from ATPE Lobbyist Mark Wiggins. On the agenda for next week’s Senate Education Committee hearing are several bills relating to student discipline.

 


Two high-profile bills positively affecting Teacher Retirement System (TRS) pension benefits are slated for legislative action next week.

First, Senate Bill (SB) 12, by Sen. Joan Huffman (R-Houston) is on the calendar for debate by the full Senate next week. As we reported in last week’s wrap-up, SB 12 was previously heard and approved by the Senate State Affairs Committee. SB 12 would shore up the educator pension fund by gradually increasing what the state, school districts, and educators contribute to TRS over a period of six years.

The second bill is House Bill (HB) 9 by Rep. Greg Bonnen (R-Friendswood), which is scheduled for a public hearing by the House Pensions/Investments/Financial Services Committee on Tuesday morning, March 26, 2019. ATPE will be testifying in support of the bill. HB 9 would increase contributions to the TRS pension fund placing the entirety of the responsibility of paying for the contribution increase on the state. It also provides for TRS retirees to receive a 13th check equal to up to $2400 of their annuity payment.

Despite their different methods, both of these ATPE-supported bills are aimed at making the pension fund actuarially sound, which would make it possible for the state to provide a much-needed cost of living adjustment to those retired educators who are receiving TRS benefits.

 


Teach the Vote’s Week in Review: March 15, 2019

Here’s your wrap-up of education highlights from another busy week for the ATPE Governmental Relations team:


ATPE Senior Lobbyist Monty Exter testifying before the House Public Education Committee on March 12, 2019

Members of the House Public Education committee heard more than 12 hours of testimony this Tuesday on House Bill 3 (HB 3), the House’s comprehensive school finance reform bill. Stakeholders from parents to teachers and even children on spring break testified about the $9 billion bill. Many witnesses at Tuesday’s hearing expressed support for the bill, but a number of them shared reservations about its move to roll funding for gifted and talented programs into the basic allotment and a proposed merit pay plan that the commissioner of education would oversee under HB 3 by Rep. Dan Huberty (R-Kingwood).

ATPE testified neutrally on HB 3 stating that while the bill as filed has many positive qualities and would inject much-needed funding into the public education system, it also includes some troubling changes regarding the state’s minimum salary schedule and using teacher evaluations and student performance data for merit pay. Many witnesses, including ATPE, who expressed concerns about the merit pay plan noted that it would be difficult if not impossible for the commissioner to determine which teachers might receive merit pay under HB 3 without using data from student test scores, even though the bill itself does not specifically call for the use of the STAAR for this purpose. ATPE opposes the use of student performance data, including test scores, as the primary measure of a teacher’s effectiveness for purposes of compensation, which ATPE shared with the committee during our testimony that was delivered by Senior Lobbyist Monty Exter on Tuesday.

Currently, HB 3 is still pending in committee with a substitute version of the bill expected to be discussed next Tuesday, March 19. Read more about Tuesday’s school finance hearing in this blog post by ATPE Lobbyist Andrea Chevalier.

On Wednesday, the House Public Education Committee reconvened to hear a host of other bills related to topics such as Districts of Innovation (DOI) and school start dates. ATPE Senior Lobbyist Monty Exter testified in support of HB 1051, a bill that would make permanent the Goodwill Excel center permanent, a charter school offering a successful dropout recovery program for adult students. ATPE also supported HB 340 relating to full-day pre-k and HB 1276 relating to educator certification. More details on bills heard during Wednesday’s hearing can be found here.

 


Earlier this week, the White House released the president’s 2020 budget proposal, which is little more than a statement of the president’s priorities given that Congress actually passes the federal budget. The proposal would cut billions from the Department of Education’s budget compared to what Congress previously enacted, while funding controversial programs such as school privatization and performance-based compensation. Read a more detailed analysis of the President’s budget proposal on our Teach the Vote blog here.

 


The Senate State Affairs Committee met Thursday morning to hear a number of bills. Among them was Senate Bill 12 by Sen. Joan Huffman (R-Houston). SB 12 would increase the TRS contribution rate and get the fund back to a point of actuarial soundness by the end of the biennium. In addition to the increased contribution rate, the bill would also fund a small 13th check of $500 for current TRS retirees. ATPE Senior Lobbyist Monty Exter testified in support of the bill. For more background on why TRS contribution increases are now needed, check out this previous blog post about actions taken by the TRS board of trustees in the summer of 2018.


Residents of the San Antonio area’s House District 125 elected Democrat Ray Lopez to represent them in the House in a special election held this Tuesday. Lopez, a former city council member will be serving in the seat vacated by current Bexar County Commissioner and former HD 125 state representative Justin Rodriguez. ATPE congratulates Representative-Elect Lopez and looks forward to working with him. This election was the last in a series of special elections meant to fill seats that were vacated after last fall’s elections. As we reported last week, Houston area residents of House District 145 last week elected Democrat Christina Morales to fill the seat vacated by former representative and now Senator Carol Alvarado.

 


ThinkstockPhotos-465016790_moneyLast Friday evening the Senate released its version of a school finance reform proposal, Senate Bill 4 by Sen. Larry Taylor (R-Friendswood). While the Senate has worked diligently to pass an across-the-board teacher pay raise bill this session (SB 3), its version of a more comprehensive school finance reform plan is a little less robust than its counterpart in the House. SB 4 includes provisions for outcomes-based funding and merit pay for classroom teachers. Read more information about the Senate bill in this blog post by ATPE Lobbyist Mark Wiggins.

 


Teach the Vote’s Week in Review: Feb. 15, 2019

It’s been another busy week in the Texas capital. Here’s a wrap-up of this week’s education news highlights from ATPE Governmental Relations:


School finance reform continues to dominate the conversations taking place within multiple committees during this 86th session of the Texas Legislature.

On Monday, Feb. 11, the Senate Finance Committee met to continue its review of state budget proposals. The committee heard from the leaders of the Texas Education Agency (TEA) and Teacher Retirement System (TRS) before inviting stakeholders to weigh in on the topic of education funding. ATPE Senior Lobbyist Monty Exter testified about the need to prioritize funding for teacher compensation, healthcare, and the TRS pension fund. Read more about Monday’s hearing in this blog post.

On Tuesday and Wednesday, Feb. 12-13, the House Public Education Committee heard two days’ worth of invited testimony from stakeholders about school finance. Witnesses included former chairs of the committee, school superintendents, and representatives of education groups, who shared input on the recommendations of the Texas Commission on Public School Finance that lawmakers are considering whether or not to adopt this session. Again, ATPE’s Monty Exter provided invited testimony, focusing his remarks on proposed changes to the state’s funding formulas, teacher quality considerations, the need for across-the-board salary increases, and concerns about outcomes-based funding. For a detailed summary of the hearings, check out this blog post from ATPE Lobbyist Andrea Chevalier.

 


ATPE has joined with 14 other groups in releasing a joint policy agenda for charter schools. The coalition that has spent several months looking at current laws and regulations on charter schools includes associations representing educators, school board members, school districts, and community partners. The groups agreed on seven major findings and recommendations for ways to increase the transparency and efficiency of charter schools. Read more about the effort and download a copy of the joint policy agenda in this blog post.

 


SPECIAL ELECTION UPDATE: Voters in San Antonio’s Texas House District 125 went to the polls this week for a special election on Tuesday to fill the unexpired term of former Rep. Justin Rodriguez. Because none of the five candidates vying for the seat received a majority of the votes needed for an outright win, a runoff will be necessary to fill the seat. Those advancing to the runoff will be Republican businessman Fred Rangel, who garnered 38% of the vote, and Democratic former city council member Ray Lopez, who earned 19% of the vote. A third-place finisher trailed by only 22 votes in the close race.

The San Antonio district is one of two whose voters are currently unrepresented in the Texas House of Representatives due to vacancies. Another special election is pending in Houston’s House District 145, where two Democratic candidates, Melissa Noriega and Christina Morales, are awaiting a runoff election on March 5, 2019. Early voting for that runoff election will begin Feb. 25.

 


 

Teach the Vote’s Week in Review: Feb. 8, 2019

Here’s your chilly edition of this week’s education news highlights from the ATPE Governmental Relations staff:


Andrea Chevalier

ATPE is excited to welcome Andrea Chevalier, the newest lobbyist to join our Governmental Relations team.

Andrea joins us most recently from the office of state Rep. Mary Gonzalez (D-Clint), where she served as Legislative Director and oversaw a host of issues, including public education. She is also a former classroom teacher with experience working in both the traditional public school and charter school environments. Andrea attended the University of Texas at Austin, where she studied chemistry; earned her Masters of Education in Secondary Education at the University of North Texas; and is currently working on completing her doctoral degree in Educational Leadership and Policy from UT.

Andrea will be lobbying and reporting on a variety of issues being debated by the legislature this session, working closely with the House Public Education Committee, and covering educator quality regulations considered by the State Board for Educator Certification (SBEC). Watch for her blog posts here on Teach the Vote and follow her on Twitter at @ATPE_AndreaC.

 


On Tuesday, Gov. Gregg Abbott addressed a joint session of the 86th Legislature, delivering his traditional “State of the State” address. He outlined his legislative priorities for the session, punctuated by the declaration of six issues as emergency items that would warrant expedited action by lawmakers. All six of the issues bear close ties to public education, including most notably school finance, school safety, and teacher pay. Abbott’s declaration of these school-related emergency issues is a testament to the impact of the 2018 election cycle in which the Texas public education community was much more noticeably vocal and active. Tuesday was also the day for President Donald Trump to deliver his State of the Union address. That speech, which had been postponed due to the recent federal government shutdown, contained far less education-related content. Read more about both the State of the State and State of the Union speeches in this blog post by ATPE Lobbyist Andrea Chevalier.

 


The two legislative committees that oversee public education policy issues in Texas have begun holding regular meetings and hearing testimony. The Senate Education Committee held its first meeting of the legislative session this week, receiving an overview presentation by Texas Education Commissioner Mike Morath. The committee also learned about the status of special education programs in Texas. ATPE Lobbyist Mark Wiggins attended the meeting and provided this detailed summary for Teach the Vote.

The House Public Education Committee, which began its work a little earlier this session, held two meetings this week, both heavily focused on the topic of school finance. The committee similarly heard from Commissioner Morath, along with members of the Texas Commission on Public School Finance. Read more about those hearings in this blog post from ATPE Lobbyist Andrea Chevalier. The committee is slated for two more meetings next Tuesday and Wednesday, and the agenda will include testimony by stakeholders about school finance and the recommendations of the commission that studied the issue last year. ATPE has been invited to testify on Wednesday, and we’ll provide details next week here on our blog and on @TeachtheVote on Twitter.

 


On Monday of this week, the House Appropriations Committee announced its subcommittees that will work on various sections of the state budget. Committee members were also briefed by staff of the Texas Education Agency (TEA) and Teacher Retirement System (TRS). ATPE Lobbyist Mark Wiggins attended the meeting and provided an in-depth report here for our blog. On the other side of the Capitol, the Senate Finance Committee has also been holding several meetings to review the draft budget. Next week, Senate Finance committee members turn their attention to Article III, which contains the education budget. ATPE Senior Lobbyist Monty Exter will be there for those meetings starting Monday and will provide updates next week for Teach the Vote.

 


SPECIAL ELECTION UPDATE: Voters in San Antonio’s House District 125 will head to the polls Tuesday to elect a new state representative. Early voting has taken place this week for the special election to fill the vacant seat of former Rep. Justin Rodriguez, after he resigned to serve as Bexar County Commissioner. The five candidates vying for the HD 125 seat are Steve Huerta (D)Ray Lopez (D)Fred Rangel (R)Coda Rayo-Garza (D), and Art Reyna (D).

There also remains a vacancy in Houston’s HD 145, where Democrats Melissa Noriega and Christina Morales have advanced to a runoff in that special election. The date of the runoff election for HD 145 has not yet been announced, but is likely to be held in March. Read more about the two runoff candidates in this article from the Houston Chronicle.

 


 

House Appropriations hears from TEA and TRS

The House Committee on Appropriations met Monday to hear from the Texas Education Agency (TEA) and Teacher Retirement System (TRS) on the issues of school safety, school finance, the teacher pension system, and active and retiree educator health insurance. Before delving into the meat of the hearing, Cmomittee Chairman John Zerwas (R-Fulsher) also announced membership of the subcommittees that will be overseeing separate subject areas of the budget.

The subcommittee on Article III that oversees public education funding will be chaired by Rep. Greg Bonnen, and include Vice-chair Armando Walle and Reps. Mary Gonzalez, Donna Howard, Matt Schaefer, Carl Sherman, Lynn Stucky, and Gary VanDeaver.

House Appropriations Committee meeting Feb. 4, 2019

Other subcommittees include: the subcommittee on Articles I, IV, V; the subcommittee on Article II; the subcommittee on Articles VI, VII, VIII; and a new subcommittee on  Infrastructure, Resiliency, and Investment.

The committee heard first from Texas Education  Commissioner Mike Morath on the topic of school safety, including physical precautions such as metal detectors and alarms. Morath noted there is no single investment in school safety that will address all current weaknesses and that the agency isn’t and hasn’t traditionally been tasked or resourced to help districts with regard to mental health components of school safety.

TEA’s Chief School Finance Officer Leo Lopez followed with a high-level overview of how public schools are funded. Lopez explained how the basics of tax rates, weights, allotments, and adjustments work to together to create a districts M&O entitlement; facilities funding; charter funding; and recapture. Also mentioned during the discussion were statutory quirks and system complexities like the fact that the basic allotment is set in statute, but legislators each session have the option of funding at higher levels through the appropriations bill. The committee also discussed how in 2011 the legislature created a mechanism called the Regular Program Adjustment Factor that allows lawmakers to decrease the entire Foundation School Program (FSP) entitlement for every district with a single adjustment.

TR) Executive Director Brian Guthrie walked committee members through pension fund operations. Guthrie explained the TRS board’s decision to lower the assumed rate of return last summer to 7.25 percent down from 8 percent, which came as a result of market forecasts and input from the fund’s actuary. This caused the funding period for pension fund liabilities to extend from 32 years up to 87 years. Under state law, the TRS fund cannot offer a cost of living adjustment (COLA) to retirees unless the amortization period noted above is within 31 years.

Guthrie noted that the agency is requesting a 1.8 percent increase in the contribution rate in order to achieve a 30-year amortization period, which would allow for the possibility of a future increase in benefits, such as a COLA. This would cost $1.6 billion for the biennium from all funds.

Responding to a question from Rep. Giovanni Capriglione, Guthrie estimated the average pension payment for a TRS annuitant to be about $2,000 per month. This average figure covers all classes of public education employees, including auxiliary staff, such as bus drivers and custodial staff. For classroom teachers who have worked in Texas schools for 30 years, that amount is closer to $4,000 per month.

Guthrie then explained the healthcare programs under the agency’s umbrella: TRS-Care for retired educators and TRS-ActiveCare for active educators. Healthcare costs have skyrocketed in Texas, despite rising at a level slightly below the national average. This resulted in a $1 billion shortfall for TRS-Care heading into the previous legislative session, which was addressed by a temporary infusion of additional state funding, coupled with a significant increase in fees and reduction in benefits. The fund continues to run at a deficit.

Rep. Schaefer asked what impact a pay increase would have on the pension fund. Guthrie indicated that if all teachers saw a raise, there would be a negative short-term impact for TRS as a result of higher salary calculations for retiring members without the benefit of higher contributions. Guthrie suggested this could be mitigated by phasing in the salary increases’ impact on the calculation of a member’s highest five years of earnings. Guthrie suggested the short-term impact on TRS-Care would be positive.

Asked by Rep. Stucky how much it would cost to make TRS-Care sustainable, Guthrie suggested it would take more than $12-15 billion to create a corpus sufficient to produce funding as a result of investment returns. Even then, that process would take some time to get up and running. The deteriorating value of TRS-Care has led many retirees to leave the program, which exacerbates the financial stresses facing it. Guthrie added that the population was beginning to stabilize.

TRS-ActiveCare, which allows smaller and mid-size school districts to enjoy the benefits of group coverage through a combined risk pool, also faces affordability challenges due to statutory restrictions on how that program is funded. Five percent of districts – primarily the state’s largest districts, such as Austin and Houston – have opted out of TRS-ActiveCare. Last session, legislation was considered to allow districts a one-time opportunity to opt in or opt out, but such a bill was not passed ultimately.

Teach the Vote’s Week in Review: Feb. 1, 2019

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


Legislators and SBOE members gathered for the board’s swearing-in ceremony, Jan. 28, 2019.

The State Board of Education (SBOE) held its first meetings of the new year this week in Austin. ATPE Lobbyist Mark Wiggins attended the meetings and provided updates for our blog.

Things kicked off on Monday when all members of the board, both newly elected and re-elected, were sworn in by Senate Education Committee Chair Larry Taylor (R-Friendswood). Members of the board adopted operating rules for the body, discussed the board’s authority in relation to charter schools, and also approved committee assignments and officer elections,  including naming Marty Rowley (R) of Amarillo as Vice Chair and Georgina Perez (D) of El Paso as Secretary of the board. Additional committee assignments and chair appointments can be viewed in this blog post from Wiggins.

On Tuesday, the board was briefed by Texas Commissioner of Education Mike Morath on the “State of the State of Public Education” annual report. Morath also discussed the creation of curriculum guides by the Texas Education Agency (TEA), educator compensation, and other topics as noted in this blog post. Wednesday, the board participated in a learning roundtable at the Austin Convention Center where it discussed its Long-Range Plan for Public Education, a list of goals and recommendations to improve public schools by 2030.

Lastly, the SBOE ended its meetings by unveiling today the new logo for the Permanent School Fund, which was designed by Melissa Richardson of Dripping Springs High School as part of a contest. The board will meet again on April 2-5, 2019.

 


SPECIAL ELECTION UPDATE: El Paso residents turned out on Tuesday to elect a new state representative for Texas House District 79. El Paso Community College Chairman, Art Fierro, won the House seat with 53% of the votes in the special election. Fierro will be completing the term of former Rep. Joe Pickett who resigned recently due to health complications. Fierro’s term will expire in 2021. ATPE congratulates Representative-Elect Fierro and looks forward to working with him.

Meanwhile, some Houstonians will still have to wait in order to find out who will be replacing former Rep. Carol Alvarado, who vacated her House seat in District 145 order to run successfully for the Texas State Senate in another special election for Senate District 6. As for the new representative for House District 145, the race has been narrowed down to two Democratic candidates, Christina Morales and Melissa Noriega. The date of the runoff election for HD 145 has not yet been announced.

Lastly, one more seat in the Texas House remains vacant, that of San Antonio Democrat Justin Rodriguez who vacated his seat to run for (and get elected) Bexar County commissioner. Early voting for the House District 125 special election begins Monday with the election being held on Feb. 12. View profiles of the special election candidates on Teach the Vote, and read more about each race in this article by The Texas Tribune.

 


Earlier today, the Texas Education Agency (TEA) released its accreditation statuses for Texas public schools for the 2018-19 school year. The statuses based on academic accountability ratings and the Financial Integrity Rating System of Texas (also known as School FIRST) recognize schools and districts that meet certain academic and financial benchmarks. According to TEA, 99% of Texas schools were designated as accredited for the 2018-19 year. More information can be found in this press release from the agency.

 


House Committee on Public Education

The House Public Education Committee convened its first meeting of the regular session this week. Led by Chairman Dan Huberty (R-Kingwood) who is serving his third term as chair, the committee heard from Texas Education Agency (TEA) staff about issues such as STAAR testing, educator certification, and TEA’s Special Education Strategic Plan. The committee will reconvene several times over the next two weeks to hear invited testimony from members of the Texas Commission on Public School Finance and other stakeholders regarding the commission’s recommendations for school finance reform. Learn more in this blog post from ATPE Senior Lobbyist Monty Exter, who attended this week’s first hearing.

 


The House Appropriations Committee also began meeting this week. ATPE Senior Lobbyist Monty Exter attended the first few meetings and provided this update. After opening remarks from Chairman John Zerwas (R-Fulshear), including some gentle ribbing about punctuality that will likely turn into a session long running joke, the committee heard from what is likely the last stop on the Comptroller’s biennial revenue estimate tour. The committee also received from the Legislative Budget Board (LBB) some high-level budget numbers, including  on public education and the Teacher Retirement System (TRS). The committee is scheduled to hear more in-depth testimony on TRS, school safety, and school finance on Monday, Feb. 4. Most of the truly in-depth work on the initial House budget bill is done by subcommittees, including an Article III subcommittee that reviews the education portion of the budget. The members of those subcommittees are determined by the chairman of the Appropriations Committee and will likely be named next week.

The Senate Finance Committee also continued to meet this week but on areas other than public education. The Senate committee will turn its attention to education funding later this month, and ATPE’s lobby team will provide updates here on our Teach the Vote blog.

 


 

Teach the Vote’s Week in Review: Nov. 2, 2018

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


Carl Garner

In the weeks prior to the upcoming midterm elections, many people across the state have been bombarded with a slew of campaign ads featuring members of both parties vying for the votes of the general public. One such ad features Lieutenant Governor Dan Patrick discussing a $10,000 raise that he alleges he championed for educators. But there’s a problem: no such thing ever happened. ATPE Past State President Carl Garner quashes  that claim and explains why such rhetoric is offensive in this guest post.

 

 

 

 

 


Over the past two weeks of early voting we’ve been highlighting what’s at stake for educators in the 2018 midterm elections. This past week we’ve examined a myriad of issues like why it’s important to elect pro-public education candidates to the State Board of Education and why vouchers are a threat to public schools. Over the years, teachers have had to deal with a barrage of attacks: attempts to limit their ability to join professional associations, school funding cuts, and exorbitant increases in health care costs, to name a few. That has made an already demanding job that much more difficult. With Nov. 6 a few days away, it’s time for educators to asses the hand they’ve been dealt and whether the legislature is holding up its end of the bargain; then vote accordingly.

Read more from the 12 Days of Voting series:

 


Governor Abbott showcased his plan to patch up the state’s school finance system to business leaders and educators earlier this week. Without having received the recommendations of the Commission on Public School Finance, which has not yet concluded its work (although it is expected to report its findings by the end of this year), Abbott has proposed a plan that would limit the amount of property tax revenue school districts can raise and would give school districts financial rewards for improving student performance. The proposal gave pause to Rep. Diego Bernal (D-San Antonio), vice chair of the House Public Education Committee. Bernal had this to say with regards to the proposal:

“It would be a shame if school finance was merely a Trojan horse for his property tax agenda,” he said. “What that means is that it’s not about the students at all.”

Read more about the proposal and see the text of the document in this article by the Texas Tribune. 

 

 


12 Days of Voting: Retirement

Early voting is underway NOW for the November 6 elections, so we’re taking a look at some of the reasons why it’s so important that educators vote TODAY! In this post, we’re taking a closer look at retirement.


Everyone who decides to become an educator enters into a special agreement with the State of Texas. It goes something like this: If you devote your life to preparing our children for the future, Texas promises to be there for you when you retire at the end of a long career of service.

Only that promise is constantly under attack.

Let’s start with some basics. Your retirement is administered by the Teacher Retirement System of Texas (TRS), which oversees the pension trust fund. The state and individual educators each contribute to the fund, and a team of professional staff supervise a diverse investment portfolio that makes up the body of the fund. These full-time agency employees ensure the fund’s health and safety. After paying for the cost of administration and benefits, the money from those investments is plowed right back into the fund.

TRS is structured as a “defined benefit” retirement plan, which means that an individual who pays into the plan is guaranteed a set amount of money each month in retirement that will last for the rest of his or her life. The more common type of retirement plan is a “defined contribution” plan, such as a 401(k). Unlike the promise of a stable monthly pension check upon retirement offered by a defined benefit plan, a defined contribution plan promises merely a set contribution into an employee’s retirement account while the individual is actively working. Investment returns on that account are subject to the whims of the market. The level of retirement security that can be provided by those funds at the end of an educator’s career is not guaranteed. Under a defined contribution scenario, there is a real threat that a retired educator may outlive the retirement funds accumulated during his or her career, and end up with nowhere to turn for help — not even Social Security.

You may have noticed that most businesses in the private sector have gone the defined contribution route. The reason is largely because 401(k) plans are cheaper and don’t require dedicated staff to administer. Most are run for a profit by large Wall Street corporations, and advisers often have a financial stake in the investments they recommend. This leaves plenty of opportunities for others to make money, but little guarantee of stable retirement income for the retiree. The defined benefit plan administered by TRS is, by contrast, of great value to retirees, who can rest easier knowing that they will receive a guaranteed income for as long as they are alive.

As with most big pots of public money, the TRS pension fund has unfortunately become the focus of those looking to brag about shrinking government while making a few bucks for their friends.

In 2017, the Texas Senate confirmed Josh McGee as chairman of the Texas Pension Review Board (PRB), which oversees state pension systems including TRS. Prior to being appointed to that position by Gov. Greg Abbott, McGee worked as a professional advocate for converting public pensions to defined contribution plans that would reduce the money guaranteed to retirees, and his position at the helm of PRB naturally raised alarm bells.

Adding to the concern, lawmakers have filed a number of bills in 2017 and in prior legislative sessions that would likewise weaken TRS. State Sen. Paul Bettencourt (R-Houston) – who made headlines recently with his objections to efforts to improve voter turnout among educators – filed a pair of bills last year aimed at converting TRS from a defined benefit plan to a defined contribution plan or a hybrid of the two. Both bills died without a hearing, fortunately, but Lt. Gov. Dan Patrick is keeping the idea alive as part of his interim charges for the Texas Senate to study before the legislature reconvenes in 2019.

Most troubling is the decision by the TRS Board of Trustees to lower the assumed rate of return for the $147 billion pension fund from 8.0 percent down to 7.25 percent. The decision was based on observations of current market forces, and while fiscally prudent, it radically changes the plan’s outlook on paper. Like all pension plans, the TRS fund must be considered solvent before the legislature or board can consider any potential increases in benefits. With the lower assumed rate of return, TRS will head into the 2019 legislative session needing an additional $1.5 billion for future solvency, and they’ll be asking for that money from lawmakers who frequently are looking to cut spending, not increase it.

Politicians like Sen. Bettencourt frame their attacks on educators’ pensions by claiming the defined benefit structure is too expensive for the state to maintain into the future. In fact, the state’s share of an educator’s pension (at 6.8 percent) is less than half the teacher retirement contribution rate set by the next lowest state that is not paying into Social Security. The truth is that a more conservative assumed rate of return, coupled with a proper contribution rate, will guarantee TRS stays healthy well into the future.

The bottom line: Like public education as a whole, Texas gets a phenomenal bargain for what it spends, but more funding is necessary to fully realize the implicit promise made to educators.

Lawmakers will face tremendous pressure in 2019 from investors and politicians who want to gamble with teachers’ retirement. Unless Texans elect more pro-public education lawmakers and statewide elected officials, the legislature may very well look to your pension as an area to further cut corners. Texas will only keep its promise to educators if lawmakers respect educators’ voices at the polls in this pivotal election year.


Go to the CANDIDATES section of our Teach the Vote website to find out where officeholders and candidates in your area stand on this and other public education issues.

Remind your colleagues also about the importance of voting and making informed choices at the polls. While it is illegal to use school district resources (like your work e-mail) to communicate information that supports or opposes specific candidates or ballot measures, there is NO prohibition on sharing nonpartisan resources and general “get out of the vote” reminders about the election.

Early voting in the 2018 general election runs Monday, October 22, through Friday, November 2. Election Day is November 6, but there’s no reason to wait. Get out there and use your educator voice by casting your vote TODAY!

Congressman Kevin Brady files WEP replacement bill

U.S. Representative Kevin Brady (R-TX) who chairs the U.S. House Ways and Means Committee, along with Ranking Member Richard Neal (D-MA), has introduced H.R. 6933 to amend Title II of the Social Security Act. The bill would replace the windfall elimination provision (WEP) with a formula equalizing benefits for certain individuals with non-covered employment.

Chairman Kevin Brady (R-TX)

ATPE has worked closely with Chairman Brady to bring forward a bill that addresses the inequities in the current law, which stem from the arbitrary formula known as the windfall elimination provision. The goal for both ATPE and Chairman Brady is to put in place a formula that can both pass Congress and get more money on average into the pockets of retirees by treating them more fairly than they are treated under current law.

Stay tuned to TTV for a deeper dive on the bill as well as updates as it moves through the legislative process.

Teach the Vote’s Week in Review: Sept. 21, 2018

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


The Board of Trustees of the Teacher Retirement System (TRS) met this week to discuss such topics as premiums for the state’s healthcare plan for retired educators. After receiving a more favorable update on the estimated shortfall for TRS-Care and hearing lawmakers indicate that the legislature will provide needed funding, the board intends to try to keep premiums and benefits stable. Read more about the board’s discussions this week in this blog post by ATPE Lobbyist Monty Exter.

 


Senator-elect Pete Flores (R-San Antonio)

Voters in Senate District 19 turned out for a special election runoff on Tuesday to decide who will represent them in the Texas Senate until the 2020 elections. Gathering 53% of the vote, Republican Pete Flores was the race’s clear winner and will be filling the seat left vacant by former Sen. Carlos Uresti who resigned this year.

Flores’s win flips the seat long held by Democrats into the Republican column heading into the 2019 legislative session. The change makes it that much easier for the upper chamber’s Republican super-majority to pass Lt. Gov. Dan Patrick’s agenda, especially with another Democratic vacancy generated by the anticipated race to replace Senate District 6’s Sen. Sylvia Garcia, who is running for Congress. Garcia’s seat would not be filled until a special election occurs well after next year’s legislative session begins.

ATPE Lobbyist Mark Wiggins breaks down how this impacts the upcoming legislative session and what it means for contests in the November election in this blog post.

 


Are you already registered to vote? If so, don’t stop there…  take the next step!

Tuesday, September 25 is National Voter Registration Day, and thousands of volunteers across the U.S. will be mobilized to help others register to vote and get informed about elections. Perhaps if you’re already to vote you can go the extra mile by asking friends and family if they’ve registered and reminding them of these important dates:

  • The deadline to register to vote in November is Oct. 9, 2018.
  • Early voting runs Oct. 22-Nov. 2, 2018.
  • Election Day is Nov. 6, 2018. 

You can also encourage your friends and family to check out the Candidates section of TeachtheVote.org for more information on the candidates vying for seats in the Texas House, Texas Senate, State Board of Education, Governor, or Lieutenant Governor.

The first Friday of early voting, Oct. 26, is Student Voting Day in Texas. Encourage the students you know to get registered and participate in the upcoming election. Voting is more than just a civic duty; it’s how we work together to create positive change in our communities and its important that we get everyone involved.