Tag Archives: retirement

Teach the Vote’s Week in Review: Sept. 20, 2019

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


Ellis and Bahorich

Dr. Keven Ellis (R) of Lufkin has been appointed as the new chair of the State Board of Education (SBOE). Dr. Ellis assumes the role after the previous chair, Donna Bahorich (R) of Houston, served the maximum of two terms over the last 4 years. Bahorich presided over last week’s SBOE meetings, which we covered here on our Teach the Vote blog, and she will remain a member of the board. Dr. Ellis has been an elected member of the board since 2016, and he recently represented the SBOE as vice chair of the Texas Commission on Public School Finance. Read more about Monday’s announcement of the SBOE change of leadership here on Teach the Vote.


ELECTION UPDATE: Tuesday, September 24, will mark the eighth annual National Voter Registration Day (NVRD), a non-partisan effort to increase civic participation. For more information on NVRD and other election news, including announcements about a key senator’s retirement and the race to succeed him, check out this week’s election update from ATPE Lobbyist Mark Wiggins.


This week’s edition of our “New School Year, New Laws” blog series on Teach the Vote covers the topic of special education. Following media reports and a federal investigation that found Texas had for years imposed an arbitrary, de facto cap on enrolling students into special education programs, this year’s legislative session was heavily focused on addressing special education, from increasing funding to enacting laws to raise awareness of students’  and parents’ rights. Read the latest blog post in our series by ATPE Lobbyist Andrea Chevalier for a breakdown of new legislation that affects special education.


The TRS board met in Austin this week discussing topics ranging from healthcare affordability to retirees’ recently issued 13th check and potential office moves for the agency. Read more about the discussions in this new post by ATPE Senior Lobbyist Monty Exter, who attended the TRS meetings this week.


A pair of hearings on the subject of school safety and preventing school violence took place this week in Texas and in Washington, DC, with more meetings scheduled in the near future.

First, in the nation’s capital this week, the U.S. House Committee on Education and Labor met Wednesday for a markup of H.R. 4301, the “School Shooting Safety and Preparedness Act” filed by Rep. Tulsi Gabbard (D – Hawaii). The measure calls for an annual report by the U.S. Department of Education on school violence data and would define in federal statute the terms “mass shooting” and “school shooting.” After a heated debate, the committee approved the bill by a party-line vote of 27-22, with some Republicans on the committee, including its ranking member, deriding it as a “publicity stunt.” For members of the Texas congressional delegation serving on the committee, Democrat Joaquin Castro voted for the measure, while Republicans Van Taylor and Ron Wright voted against it.

Here in Texas, the new House Select Committee on Mass Violence Prevention and Community Safety held its first meeting on Tuesday. During the organizational meeting, committee members heard invited testimony only from state law enforcement officials and mostly focused their conversation around the topic of threat reporting and investigations. A similar select committee established in the Texas Senate will hold its first meeting next week on Sept. 26.


Highlights of the September TRS Board Meeting

The Teacher Retirement System (TRS) Board of Trustees convened in Austin this week for their regular quarterly meeting. Among items discussed by the board were space planning for the agency, creating regional TRS-ActiveCare offerings, and delivery of the 13th check to retirees.

TRS has recently been in the news with regard to new lease space in downtown Austin. Approximately 10 years ago, TRS ran out of space to house all of its employees at the 11th and Red River location. As a result, the agency moved its investment staff to leased space a few blocks away. Since that time both the TRS benefits/customer service staff and the investment team have continued to grow. Both the Red River location and the leased space are at maximum capacity now. In order to accommodate the size and needs of the investment staff, TRS has taken three floors in a new building, in which TRS is a part owner, further into downtown Austin. The board must determine whether to substantially renovate or move out of TRS’s Red River office in order to accommodate non-investment staff (primarily those working in customer service). Because all TRS costs, including staffing and space, are paid for out of the pension trust fund, these moves naturally bring up questions about whether the agency’s additional staff and office space requirements will bring in more value for TRS members than it costs to accommodate. There is no definitive way to answer this question, but ATPE and other groups representing active and retired TRS members will continue to monitor and report on the value of TRS spending.

Another program in which TRS is trying to find ways to improve its value proposition is TRS-ActiveCare. The agency staff and board members have begun looking into the development of regional ActiveCare options that school districts could choose to offer their employees. The move was prompted by actions taken by El Paso ISD over several years to try to exit the TRS-ActiveCare program. When the district could not find a way to do so under existing state laws, El Paso found a novel way to migrate most of its staff out of the state’s program and onto a new local plan, which was deemed to be cheaper than the statewide plan due to regional differences in healthcare costs. In response to El Paso’s decision and with the expectation that other districts may pursue a similar course of action, TRS is now looking into the possibility of regional options for school district employees. This project is in its preliminary stages and is something ATPE will follow closely as it evolves.

Finally, the TRS board also received an update this week on the 13th check provided to retirees as a result of Senate Bill 12 that was passed by the legislature earlier this year. The additional payment equates to the lesser of the amount of a retiree’s standard monthly annuity check or $2,000. TRS annuitants who receive their TRS payments through direct deposit received the 13th payment on September 10. The remainder of TRS retirees should have received a check in the mail by September 15. ATPE encourages any retirees who did not receive a check and believe that they should have received one to contact TRS directly.

Click here to watch a video of this week’s TRS meetings or review the board materials.

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.

Congressman Kevin Brady files WEP replacement bill, version 2.0

U.S. Representative Kevin Brady (R-TX), the ranking member of the U.S. House Ways and Means Committee, has introduced H.R. 3934, the “Equal Treatment of Public Servants Act of 2019,” considered a new and improved version of the Windfall Elimination Provision (WEP) replacement bill he filed during the previous congressional session.

U.S. Rep. Kevin Brady

The new version of the bill keeps many of the same provisions in place as its predecessor. For example, the new Public Servants Fairness formula (PSF) proposed in the bill would increase the overall amount in Social Security checks received by most future retired Texas teachers who would otherwise be subject to the WEP under current law. H.R. 3934 also maintains the previous legislation’s provision granting a $100 per month rebate to current retirees whose Social Security benefits are reduced by the WEP.

The primary change between the new version of the bill and the last is a greatly expanded hold harmless period. Under the new legislation, anyone over the age of 20 but not yet eligible for Social Security before the year 2022 would get the higher of the benefit amount provided by either the old WEP formula or the new PSF formula. For the vast majority of affected retirees, the new formula would produce a higher benefit payment except for a few current or future educators over the age of 20 who could otherwise see a slight reduction under the new formula; for the educators who fall into that relatively small category, Brady’s bill would hold them harmless, ensuring that their benefit will be no less than they would otherwise receive under current law.

H.R. 6933 / H.R. 3934 Comparison Chart

With 18 months left for the current congress to pass the bill, ATPE is hopeful that the time for WEP reform may finally be at hand. Stay tuned to Teach the Vote for updates on this legislation.

Pension review board discusses recent legislation

The Texas Pension Review Board (PRB) met Thursday, June 27, 2019, in Austin with a focus on reviewing pension-related legislation passed by the 86th Texas Legislature.

Members began by recognizing outgoing Chair Josh McGee, who passes the gavel to new Chair Stephanie Leibe. The PRB governmental relations team then walked the board through a handful of items resulting from the most recent legislative session. The bills include:

  • Senate Bill (SB) 2224 by Sen. Joan Huffman (R-Houston) requires every public retirement system to adopt a written funding policy that details the system’s plan for achieving a funding ratio equal to or greater than 100 percent. Each plan must be submitted to the system’s sponsor and the PRB.
  • SB 322 by Sen. Huffman relates to the evaluation and reporting of investment practices and the performance of certain public retirement systems. Public retirement systems must now include in their annual financial report information about how much investment managers are being paid, as well as hire an independent firm to evaluate the system’s investment practices.
  • SB 12 by Sen. Huffman relates to contributions into and benefits under the Teacher
    Retirement System of Texas (TRS). This bill increases the annual base employer contribution, supplemental employer contribution, and member contribution rates over a five-year period. Certain retired members will also receive a 13th check this year capped at the lesser of the amount of their monthly TRS annuity check check or $2,000.
  • House Bill (HB) 2763 by Rep. Dan Flynn (R-Canton) relates to the police pension fund in certain municipalities.

The agenda book for the current PRB meeting included additional bills related to pensions, such as HB 3. While the school finance bill does not directly address TRS, PRB staff suggest that a significant increase in the salaries of some educators could affect the financial position of TRS over the short term. You can read the full agenda book for today’s meeting here.

PRB Executive Director Anumeha Kumar also explained the agency’s legislatively approved budget, as well as the revised rule review plan for the board. This plan will lay out the process by which the board will review rules for adoption, revision, or repeal.

Staff indicated that as a result of legislation passed this session, the TRS pension’s amortization period is projected to drop from 87 years to under 30 years. This would meet the minimum requirements for being considered actuarially sound and therefore eligible to provide members a cost of living adjustment (COLA). The plan’s amortization period jumped to 87 from 32 last year as a result of the TRS board’s decision to change actuarial assumptions to reflect more conservative economic forecasts.

TRS is by far the largest active plan under the purview of the PRB, with more than $154 billion in assets. The next largest plan, the Texas County & District Retirement System, is worth $30 billion. The PRB briefly mentioned a new resource that is available for members of the public to see a snapshot of the health of the state’s various public pension plans. The Texas Public Pension Data Center can be found here.

TEA rolls out resource website for HB 3, school finance changes

The Texas Education Agency (TEA) is rolling out a new website and video series to try and explain the various components of House Bill (HB) 3, the major school finance bill passed by the 86th Texas Legislature this year.

At more than 300 pages in length, HB 3 sets in motion a significant number of policy changes that will have marked effects on schools and classrooms. Among these changes is language in the bill that directs school districts that see a substantial increase in school funding as a result of HB 3 to dedicate some of that new funding to increasing compensation for school employees, with priority given to classroom teachers with more than five years of experience.

In the month that passed since HB 3 became law, some districts have awarded raises for school employees, although it’s unclear whether HB 3 was the catalyst. Many districts will await further guidance from TEA before implementing the compensation sections of HB 3 in order to know exactly how they are expected to distribute any new funding and what form the additional compensation may take — i.e. salary, healthcare and retirement contributions, or other benefits that carry a dollar value.

To answer questions like these for the general public, TEA has set up an HB 3 information website that can be found here. The website currently hosts an introductory video by Texas Commissioner of Education Mike Morath. The agency plans to release a series of 30-minute videos entitled “HB3 in 30,” each of which is intended to explain specific components of HB 3. According to a press release from the agency:

“Videos will be released every Thursday and will be accompanied by supporting documents available for download. A full schedule of weekly release dates, a summary of HB3, frequently asked questions, and implementation guidance for school districts can be found on the TEA House Bill 3 information site.

The first video in the series, an overview of Budget Planning for Teacher Compensation, is scheduled for release on Thursday, June 26.”

Districts will continue to receive formal guidance documents from TEA, the first round of which was released earlier this month. Links to these documents are also provided at the bottom of the HB 3 information site.

For more on the anticipated impact of HB 3, be sure to check out the ATPE Governmental Relations team’s comprehensive analysis of the bill here on Teach the Vote.

Teach the Vote’s Week in Review: June 21, 2019

From Austin to Washington, D.C., here’s a look at the latest advocacy news from your ATPE Governmental Relations team:


Last week, ATPE State President Byron Hildebrand, Vice President Tonja Gray, Executive Director Shannon Holmes, Senior Lobbyist Monty Exter, and ATPE’s Washington-based lobbyist David Pore met with members of the Texas congressional delegation at the U.S. Capitol.

Discussions focused on public education priorities at the federal level, including funding and the repeal of Social Security offsets like the Windfall Elimination Provision (WEP). The group also visited with officials at the U.S. Department of Education.

For a full recap of the Washington trip, check out this blog post by Exter.


All bills passed by the Texas legislature are subject to the governor’s veto pen, and Sunday, June 16, 2019, marked the end of the period in which the governor may exercise this power. ATPE Lobbyist Mark Wiggins reports that Gov. Greg Abbott vetoed three education bills that had been finally passed by the 86th Legislature when it adjourned sine die last month.

This year’s vetoed bills included House Bill (HB) 109 by Rep. Armando Martinez (D-Weslaco), which would have required charter schools to give students Memorial Day off as school districts are currently required to do, yet the bill exempted districts of innovation (DOI). Gov. Abbott explained in his veto message that the bill would have exempted up to 859 school districts, and suggested the legislature draft more targeted legislation in the future.

The governor also vetoed HB 455 by Rep. Alma Allen (D-Houston), which would have required the Texas Education Agency (TEA) to develop a model policy on recess that encourages age-appropriate outdoor physical activities. Despite praising the bill’s good intentions, the governor called HB 455 “bureaucracy for bureaucracy’s sake.”

Additionally, Gov. Abbott vetoed HB 3511 by Rep. Gary VanDeaver (R-New Boston), which would have created a “Commission on Texas Workforce of the Future.” The governor called the bill redundant and duplicative of work being done by the Tri-Agency Workforce Initiative, which involves the Texas Workforce Commission, TEA, and the Texas Higher Education Coordinating Board (THECB).

Incidentally, the Texas governor has “line-item” veto authority over the budget, and governors have often exercised this power to strike the funding from programs of which they disapprove. Gov. Abbott raised eyebrows this year by declining to veto any lines from the state budget, allowing all of the provisions of HB 1 to go into effect without opposition.

For a complete look at the education bills that passed this session, be sure to check out our 86th Legislative Session Highlights here on Teach the Vote penned by the ATPE staff lobbyists who worked on these and hundreds of other bills throughout the 140-day session.


 

ATPE goes to Washington

Most education policy happens at the state level, but there are a few issues that are important to educators and  students that are decided by officials in Washington. That is why ATPE maintains a federal lobby presence. While the main ATPE lobby team works year-round here in Texas, lobbyist David Pore also represents our organization in Washington, DC to ensure that ATPE members have the best representation at all levels of government.

ATPE’s Tonja Gray, Monty Exter, and Byron Hildebrand at the U.S. Capitol

In addition to David’s work year-round on behalf of ATPE members, the association also sends a delegation up to Washington at least once a year to promote our federal priorities. This year ATPE State President Byron Hildebrand, Vice President Tonja Gray, Executive Director Shannon Holmes, and Senior Lobbyist Monty Exter made the journey during the week of June 10, 2019.

While in DC, the ATPE group met with key members of the Texas congressional delegation, as well as committee staff and officials with the US Department of Education. We discussed a handful of topics important to ATPE members including our support for the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that reduce many educators’ Social Security benefits; the need for increased Title I and Title II funding; and our opposition to federal voucher programs.

ATPE meeting with Rep. Kevin Brady’s staff in Washington, DC

ATPE has been working with Rep. Kevin Brady (R-Texas), former chairman of the U.S. House Ways and Means Committee, on legislation to repeal and replace the WEP. Now the ranking member of the committee, Brady is working with the current committee chairman, Rep. Richard Neal (D-Mass.), to reintroduce the bipartisan bill during the current congress.

In addition to meeting with Rep. Brady and his staff, ATPE met with Chairman Neal’s committee staff and with Rep. Jodey Arrington (R–Texas) who represents the Lubbock area and sits on the Social Security Subcommittee of the Ways and Means Committee. ATPE State Vice President Tonja Gray is a constituent of Arrington, who has become a real champion for WEP reform in Congress. We rounded out our meetings with members of the Texas delegation on the Ways and Means Committee with Rep. Lloyd Doggett (D–Texas), who represents the greater Austin area.

Rep. Jodey Arrington with ATPE’s Tonja Gray in Washington, DC

Texas also has three new members of Congress now serving on the Education Subcommittee of the U.S. House Committee on Education and Labor. They are Reps. Joaquin Castro (D–Texas) from the San Antonio area, Ron Wright (R-Texas) from Arlington, and Van Taylor (R-Texas) out of Plano. We spoke to each of these members about the importance of maintaining educator preparation funding in Title II as a part of the pending reauthorization of the Higher Education Act, as well as increasing or at least maintaining formula funding for Title I. As a Title I funded interventionist, Tonja Gray was able to put a personal touch on ATPE’s message.

ATPE’s Byron Hildebrand and Tonja Gray with Rep. Henry Cuellar in Washington, DC

Along with expressing support for funding, we also spoke to each of these members of the Texas delegation about ATPE’s staunch opposition to federal voucher legislation. If the House were to take up any of the Senate’s voucher bills, such a measure would likely be heard in the Education Subcommittee.

ATPE meetings with U.S. Senators John Cornyn (R) and Ted Cruz were also productive. Sen. Cornyn’s staff ensured ATPE not only that Title I and II funding are likely to be maintained or increased, but also that there would be no attempts in the current budget cycle to block grant Title I funding. ATPE opposes block granting Title I funding because it would likely result in the dilution of Title I dollars currently delivered through a formula to the campuses with the highest concentrations of disadvantaged students (those eligible for free and reduced lunch).

Our conversation with Sen. Cruz focused largely on the WEP legislation. Sen. Cruz carried the Senate companion to the Brady bill during the last congress and is planning to pick up the Brady/Neal bill again as soon as it is refiled in the House. The senator is currently seeking a Democratic co-sponsor to ensure that the bill has bipartisan authorship in both chambers.

Altogether, ATPE’s 2019 trip to the nation’s capital was very productive and yielded excellent news. As developments continue on ATPE’s federal priorities, we will report those updates here on Teach the Vote.

86th Legislative Session Highlights from ATPE

As the 86th Texas Legislature began its regular session in January 2019, it was dubbed the “session of the teacher” and was marked by abounding promises to fix school finance and provide pay raises to the most important in-school factor contributing to student success: our teachers. Indeed, this session’s legislation included several pro-public education proposals such as a multi-billion dollar school finance and property tax reform bill, efforts to provide an across-the-board teacher pay raise, school safety enhancements, and measures to shore up the Teacher Retirement System (TRS), while mostly avoiding troublesome and divisive topics such as payroll deduction and tactics to privatize education.

However, bills rarely reach the finish line in the same form as they started, while most others don’t make it at all. In fact, there were more than 10,000 bills and resolutions filed this session, but only 1,429 House and Senate bills were finally passed. As a reminder, bills that do finally pass the legislature are still subject to review by the governor. Gov. Greg Abbott vetoed three bills that were on ATPE’s tracking list. The governor vetoed House Bill (HB) 109 by Rep. Armando Martinez (D-Weslaco), which would have required charter schools to give students Memorial Day off as school districts are currently required to do, yet the bill exempted districts of innovation (DOI). Gov. Abbott explained in his veto statement that the bill would have exempted up to 859 school districts, and suggested the legislature draft more targeted legislation in the future. The governor vetoed HB 455 by Rep. Alma Allen (D-Houston), which would have required the Texas Education Agency (TEA) to develop a model policy on recess that encourages age-appropriate outdoor physical activities. Despite praising the bill’s good intentions, the governor called HB 455 “bureaucracy for bureaucracy’s sake.” Gov. Abbott also vetoed HB 3511 by Rep. Gary VanDeaver (R-New Boston), which would have created a “Commission on Texas Workforce of the Future.” The governor called the bill redundant and duplicative of work being done by the Tri-Agency Workforce Initiative, which involves the Texas Workforce Commission, TEA, and the Texas Higher Education Coordinating Board (THECB). 

To learn how education issues fared during the 2019 session that ended on Memorial Day, ATPE offers this comprehensive summary prepared by our lobbyists: Jennifer Mitchell, Monty Exter, Mark Wiggins, and Andrea Chevalier. You’ll also find within this post an update on the actions taken by the 86th Texas Legislature on ATPE’s legislative priorities for 2019.

Here’s a list of the topics covered in this post:


School Finance:

ATPE’s top legislative priority this year was improving Texas’s school finance system, and more specifically, supporting legislation to dramatically improve that system in order to provide every child access to an exemplary public education.

Gov. Greg Abbott (R) declared school finance reform to be one of his top priorities and an emergency item for early consideration by the 86th Legislature. Newly elected House Speaker Rep. Dennis Bonnen (R-Angleton) did his part to keep school funding on the minds of state representatives by providing them with cups reading, “School Finance Reform – The Time is Now.” While a handful of school finance bills were filed this session, House Bill (HB) 3 by Rep. Dan Huberty (R-Kingwood) quickly became the session’s signature piece of legislation. HB 3 was a culmination of selected recommendations from last year’s Commission on Public School Finance that was created by the 85th legislature, as well as other input from education stakeholders such as ATPE.

ATPE supported the version of HB 3 that was approved by a vote of 148-1 in the House chamber. The House-approved bill called for providing billions of dollars to public schools; included important programmatic changes such as full-day pre-K and dyslexia and dual language funding; and it increased the basic allotment. Importantly, the bill as it left the House did not include merit pay provisions ranking teachers competitively or basing their compensation on their students’ performance; nor did the bill tie district funding to the results of student assessments like the STAAR. The Senate sponsor of HB 3, Sen. Larry Taylor (R-Friendswood), pushed forward a revised version of the bill in the upper chamber, which was approved by the Senate on a vote of 26-3 with two senators “present not voting.” As an updated version of the bill progressed through the Senate and ultimately reached a conference committee, ATPE continued to work to keep merit pay and other negative provisions out of the final bill.

State leaders announced on May 23, 2019, that a deal on HB 3 and other key legislation had been reached. Known as the Texas Plan, the final version of HB 3 as passed by the House and Senate now awaits the Governor’s signature as of our writing of this report. It is important to note that the final bill includes approximately $5.2 billion for property tax compression in addition to the $6.2 billion for school resources, and it reduces school districts’ vulnerability to recapture.

In its final form, HB 3 also makes a number of education policy changes that fall outside the scope of traditional school finance legislation, addressing such topics as the creation of a “do not hire” registry for educators who have been accused of misconduct and requiring teachers to demonstrate proficiency in the science of teaching reading. Fortunately, HB 3 as finally passed does not rank educators across or within districts and expressly prohibits compensation being tied to testing in local teacher designation systems. The bill also does not tie school funding to students’ third grade reading scores.

Read more about the major changes to school finance and education policy that are contained in HB 3 in this detailed ATPE blog post about the omnibus bill here on Teach the Vote.

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Educator Pay: 

Increasing educator compensation through plans that foster both retention and a robust workforce at every Texas public school was another ATPE legislative priority this session. We advocated for compensation plans that would allow for local flexibility, encourage educator input, involve factors more meaningful than students’ standardized test scores, and align with other efforts to promote and enhance the education profession.

Leading up to the November 2018 Texas elections and heading into this year’s legislative session, Lt Gov. Dan Patrick (R) made teacher pay a central tenet of his communications. During campaign messaging, he first promised educators a $10,000 pay raise before ultimately scaling back his plan to the $5,000 pay raise encapsulated in Senate Bill (SB) 3 by Sen. Jane Nelson (R-Flower Mound).

SB 3’s first high-profile hearing by the Senate Finance Committee coincided with the timing of ATPE at the Capitol, our lobby day event held every legislative session, and several ATPE members testified at the hearing. The Senate quickly passed the more than $4 billion bill out of the upper chamber within the first 60 days of session, after Gov. Abbott declared teacher pay to be another emergency item this year. SB 3 as passed by the Senate called for across-the-board pay raises for classroom teachers and librarians.

However, SB 3 stalled in the House as the lower chamber grappled with its larger school finance bill, HB 3. For its part, House members proposed smaller, state-funded, across-the-board pay raises at the district level that would cover all public school employees except administrators in their version of HB 3. Later in the session. SB 3-style pay raise language momentarily regained life in the Senate’s version of HB 3, but did not make it into the final version of the school finance bill. Ultimately, the combination of legislators opposed to across-the-board raises and the prioritization of property tax compression by state leaders, including Lt. Gov. Patrick, doomed the proposal for a $5,000 across-the-board teacher pay raise.

While it does not guarantee an across-the-board, state-mandated pay raise, the final compromise version of HB 3 does contain two significant provisions on educator compensation. The first requires districts to spend 30 percent of the new revenue they receive under HB 3 on compensation. Seventy-five percent of that portion must be spent on teachers, counselors, librarians, and nurses; with a prioritization of spending the money to increase compensation for classroom teachers with more than five years of experience. Districts are not required to give to every employee within this category an increase. The remaining 25 percent of the compensation carve-out may be spent on compensating other full-time staff who are not administrators. Additionally, districts likely can choose to spend these dollars on benefits such as insurance premiums in lieu of salary hikes.

HB 3 also allows districts to assign their teachers performance designations and draw down additional state funding for compensation based on the combination of a teacher’s designation and the student demographics of the campus in which they teach. The additional funding ranges from $3,000 to $32,000, depending on a teacher’s designation and other factors, but the total amount of money budgeted by the state for this program is only $140 million for the biennium, meaning that it may end up being limited to only a handful of districts. Based on the wording of HB 3, state funding under this program will flow to the districts rather than directly the individual teachers who may earn the designations, allowing districts substantial discretion in how they spend the additional money.

For more information on the compensation provisions found in HB 3 as finally passed, view our blog post about the bill’s details here on Teach the Vote.

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Teacher Retirement System (TRS):

ATPE had two legislative priorities for this session that were connected to the Teacher Retirement System (TRS). Our first priority was preserving educators’ pension benefits, which have remained largely stagnant for several years as a result of the legislature’s failure to inject more money into the system. This year, ATPE actively supported legislative efforts to preserve both the solvency and the defined-benefit structure of the TRS pension program. We also teamed up with Equable, a national nonprofit organization that advocates for pension plan sustainability, to jointly promote legislation that would address the TRS funding shortfall.

ATPE’s other TRS-related legislative priority was funding educators’ healthcare needs. We aimed to help the state and school districts provide active and retired public educators with more affordable and accessible healthcare benefits. With healthcare costs on the rise nationally, active and retired educators alike have seen their medical costs eat up an increasingly larger percentage of their take home pay or TRS annuities.

Retired teachers can rest a little easier knowing that the passage of Sen. Joan Huffman’s (R-Houston) SB 12 (pending the Governor’s signature, of course) will provide a much needed increase in contributions to TRS, making the fund actuarially sound and ensuring that the primary retirement income for many Texas educators will be viable for decades to come. Read more on the details of changes made to TRS, including the provision of a 13th check for current retirees, in this ATPE blog post for Teach the Vote.

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School Safety and Student Health: 

One of the most sweeping bills the legislature passed this session was SB 11 by Sen. Larry Taylor (R-Friendswood), which was aimed at improving school safety in the aftermath of the 2018 deadly school shooting in Santa Fe, Texas. School safety and mental health were among the issues that Gov. Abbott declared as emergency items for the 86th legislative session, following round-table discussions his office held with stakeholders, including ATPE state officers, during the interim.

Although SB 11 and a related mental health bill, SB 10, took a meandering path through the session, legislators ultimately placed a specific focus on improving students’ mental health and assigning specialized teams at each campus to identify individuals who may pose a threat to themselves or others. The bill’s largest component sends $100 million to school districts over the next two years through a school safety allotment for use on facilities and security programs. Read the rest of what SB 11 does in this ATPE blog post for Teach the Vote.

Other school safety-related bills that were passed this session include HB 1387 by Rep. Cole Hefner (R-Mt. Pleasant), which removes caps on the number of school marshals who can serve a public or private school, and HB 2195 by Rep. Morgan Meyer (R-Dallas), which requires that a school district’s multihazard emergency operations plan include a policy on responding to an active shooter situation. Freshman Sen. Beverly Powell (D-Ft. Worth) also passed a bill that pertains to the information law enforcement officials are required to share with school districts when a student is arrested. Her SB 2135 helps superintendents and school boards work together with law enforcement  agencies to exchange information that can be used to conduct a threat assessment or prepare a safety plan related to a student who may pose a threat.

Another noteworthy bill that passed this session and could be directly attributed as a reaction to recent school shootings was HB 496 by Rep. Barbara Gervin-Hawkins (D-San Antonio). It sets forth protocols for the provision and use of bleeding kits in public schools, as well as training of students and staff to respond to traumatic injuries.

A couple of education-related bills were passed this session that aim to prevent or respond to the growing problem of child sex trafficking. HB 111 by Rep. Mary Gonzalez (D-Clint), calls for school district employees’ training to include recognizing the signs of sexual abuse and sex trafficking of children with significant cognitive disabilities. HB 403 by Rep. Senfronia Thompson (D-Houston) similarly requires superintendents and school board trustees to undergo training in identifying and reporting sexual abuse, human trafficking, and other maltreatment of children.

Lawmakers also approved bills this session that address students’ mental health, HB 18 by Rep. Four Price (R-Amarillo) is a bill that grew out of interim recommendations and strives to help school employees be aware of and provide interventions for students with mental health challenges, substance abuse, or a history of trauma. HB 19, also by Rep. Price, requires mental health professionals in each Education Service Center (ESC) region to provide training and resources to help address public school students’ mental health. Additionally, Rep. Todd Hunter’s (R-Corpus Christi) HCR 137 designates the month of September as Suicide Prevention Month for the next 10 years. Also, SB 435 by Sen. Jane Nelson (R-Flower Mound) requires local school health advisory councils to recommend appropriate opioid addiction and abuse curriculum that can be used by the school district.

Finally, there are some student health-related bills that passed and are worth mentioning. This session Rep. Dan Huberty (R-Kingwood) finally passed HB 76, a bill he has carried for several sessions aimed at providing student athletes access to cardiac assessments before they participate in certain activities sponsored by the University Interscholastic League (UIL). Rep. Travis Clardy (R-Nacogdoches) also passed HB 684 enabling school nurses and other trained public school employees to provide assistance to students with seizure disorders. Likewise, HB 2243 filed by physician and Rep. Tom Oliverson (R-Houston) aims to help school nurses administer asthma medication to certain students. SB 869 by Sen. Judith Zaffirini (D-Laredo) calls for an ad hoc committee to consult with the commissioner of education on updating guidelines for the care of students with food allergies who are at risk for anaphylaxis.

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Student Testing:

A handful of bills pertaining to student testing are on their way to the governor’s desk as of our writing of this report. Sen. Kel Seliger’s (R-Amarillo) bill to continue Individual Graduation Committees (IGCs), SB 213, has already been signed into law by Gov. Abbott. The ATPE-supported bill originally aimed to make the IGC law permanent, but its final version simply extends the sunset date for the law to September 1, 2023, making it ripe for consideration again during the 2021 or 2023 legislative session.

The largest testing bill that passed this session is HB 3906 by Rep. Dan Huberty (R-Kingwood), which makes a variety of changes to how state assessments are administered and the content of the tests. Additionally, HB 1244 by Rep. Trent Ashby (R-Lufkin) changes the end-of-course exam for U.S. History to include 10 questions from the civics test used in the naturalization process; and HB 1891 by Rep. Lynn Stucky (R-Denton) will allow those who reach a required score on high school equivalency exams to be exempt from taking the Texas Success Initiative assessment.

Read more about these bills and others pertaining to testing in this ATPE blog post for Teach the Vote.

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Special Education:

During the interim, special education advocates worked diligently on the state’s Special Education Strategic Plan and Corrective Action Response, which was ordered by the U.S. Department of Education (ED) due to Texas’s artificial 8.5% cap on special education enrollment. Advocates also worked with the Texas Commission on Public School Finance last year, carrying legislators into the session with renewed energy for special education reforms.

To invigorate everyone even more, news broke just before session that our state faced penalties from ED due to the Texas Education Agency’s failure to maintain “state financial support” under the Individuals with Disabilities Education Act (IDEA). Essentially, the state spent $33.3 million less on special education in 2012 than in the year before, and thus, Texas was being assessed a $33.3 million financial penalty by ED. Unfortunately, the state has continued this trend, and it is now estimated that the federal penalty will reach $233 million.

Legislation passed this session hopes to address this issue going forward. The funding changes in the major school finance bill, HB 3, and under the state’s supplemental appropriations bill, SB 500 by Sen. Jane Nelson (R-Flower Mound), should help address Texas’s issue with maintenance of financial support. HB 3 raises the mainstream weight from 1.1 to 1.15; creates a new dyslexia weight of 0.1; and establishes a special education allotment advisory committee. SB 500, the supplemental budget, includes over $219 million to settle maintenance of financial support costs and prevent future penalties.

Other bills will impact special education beyond funding, such as HB 165 by Rep. Diego Bernal (D-San Antonio), which will allow students in special education programs to earn high school endorsements on their transcripts, and SB 139 by Sen. Jose Rodriguez (D-El Paso), which will provide parents with clearer notice on special education rights, including information related to evaluation and eligibility. Additionally, SB 522 by Sen. Judith Zaffirini (D-Laredo) improves the development of individualized education programs (IEPs) for students who are visually impaired, and SB 2075 by Sen. Angela Paxton (R-McKinney) aims to improve school districts’ compliance with dyslexia screening and parental notification.

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Payroll Deduction:

Protecting educators’ right to use payroll deduction for the voluntary payment of their professional association dues was another ATPE priority for 2019. In 2017, ATPE and other groups that represent public employees fought off vigorous, politically motivated efforts to repeal the payroll deduction statute, with the issue being named a top priority of Lt. Gov. Dan Patrick and even being added to Gov. Greg Abbott’s list of urgent issues that he felt necessitated a special session that summer. Those efforts failed last session, and ATPE was prepared to fight any similar legislative efforts this session.

Despite frequent pleas from far-right groups like Empower Texans and the Texas Public Policy Foundation to compel the 86th Texas Legislature to do something about the “union dues” issue, ATPE is pleased to report that not a single bill was filed this year aiming to eliminate payroll deduction for educators. There were some efforts in the final days of the session to try to amend language onto other bills that could prevent public employees from using payroll deduction, but those efforts failed.

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Class Sizes:

Early in the session, the House Public Education Committee heard HB 1133 by Rep. Jonathan Stickland (R-Bedford). This bill would have changed the current hard cap of 22 students in a single elementary grade classroom to a campus-wide, grade-level average, having the effect of allowing class sizes to dramatically expand. ATPE strongly opposed this bill, but it was unfortunately voted favorably out of the committee. After weeks of inaction on the bill, the language from HB 1133 was abruptly amended as a House floor amendment onto one of Rep. Huberty’s school accountability bills, HB 3904. The next day, this language was stripped from HB 3904 following a third-reading amendment by Rep. Chris Turner (D-Grand Prairie). What followed was quite extraordinary. Within hours, HB 1133 was added to a floor calendar and set to be voted on by the full House. Rep. Stickland postponed a vote on the bill three times, and when he finally allowed for a vote, the House defeated HB 1133 by a vote of 44 yeas and 97 nays. For more about the debate and to find out how your legislator voted on HB 1133, check out our coverage here on the Teach the Vote blog. ATPE thanks those who called their legislators and helped us oppose this bill in order to protect class-size limits, which are part of ATPE’s member-adopted legislative program.

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Private School Vouchers:

ATPE’s final legislative priority for the 86th legislative session was opposing the privatization of public schools through programs such as vouchers, scholarships, tax credits, education savings accounts, or allowing private entities to take over the authority and accountability vested in locally elected school boards. During the 2017 legislative sessions, private school vouchers were a top priority for Lt. Gov. Dan Patrick, and voucher legislation easily passed the Texas Senate only to be stalled in the House. The House members’ unambiguous opposition to vouchers last session, combined with the strong statement made in 2018 by educators showing up in higher numbers at the polls, dissuaded lawmakers and even state leaders from pushing a voucher priority this year. ATPE is happy to report that no major private school voucher bills like the ones filed last session were heard in committee this time around.

There were a handful of bills considered this session that ATPE and others deemed to be virtual voucher bills. The primary bill in this group was SB 1455 by Sen. Larry Taylor (R-Friendswood). SB 1455 would have eliminated statutory limitations on a student’s ability to demand access to more than three virtual school courses in a semester. The bill also called for expanding the number of full-time virtual school programs and access to those programs for students in grades K-2. Virtual school programs while accessed through a school district or charter school are operated almost exclusively by private, often for-profit, providers. Research has consistently shown that such full-time programs do a poor job of educating students compared to traditional brick-and-mortar schools, but they are a source of large profits for the providers at the expense of taxpayers. Other similar bills were filed this session by Sens. Donna Campbell (R-New Braunfels) and Bob Hall (R-Edgewood). Thankfully, all of these ATPE-opposed virtual school expansion bills failed to make it out of the House Public Education Committee this session.

Although not technically a “voucher” bill, ATPE believes it is worth mentioning this session’s version of the so-called “Tim Tebow” bill. Session after session, lawmakers have filed bills named in honor of the famous athlete who was home-schooled. The bills attempt to force public schools to allow home-schooled students to participate in their activities through the University Interscholastic League (UIL). The latest iteration was HB 1324 by Rep. James Frank (R-Wichita Falls), which ATPE opposed based on our member-adopted legislative program. During its hearing by the House Public Education Committee, ATPE submitted written testimony against HB 1324, expressing our concern that there was no assurance under the bill that home-schooled students would be required to meet the same prerequisites for UIL participation as public school students. The bill was expected to be brought up for a committee vote a couple weeks later, but was left off of the vote list, likely in response to growing opposition to HB 1324. ATPE appreciates the members, educators, parents, coaches, and other stakeholders who called their legislators to oppose this bill.

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Charter Schools:

In the previous regular legislative session of 2017, charter schools walked away with $60 million in first-time state facilities funding and the ability to operate school district campuses and receive financial benefits through “1882 partnerships,” a reference to the enabling legislation, SB 1882 (2017). While charter school legislation did not take center stage this session, several bills affecting charter schools are headed to the governor’s desk.

Some bills that passed this session have the effect of treating charters in the same manner as traditional public schools. HB 109 by Rep. Armando Martinez (D-Weslaco) prohibits charters from operating on Memorial Day; HB 2190 by Rep. Todd Hunter (R-Corpus Christi) allows children of charter school employees to attend their parents’ school; and SB 372 by Sen. Donna Campbell (R-New Braunfels) allows charter governing bodies to employ security personnel, commission peace officers, and enter into agreements with law enforcement to assign school resource officers. Additionally, SB 2293 by Sen. Pat Fallon (R-Prosper) subjects charter school employees to the same collective bargaining and anti-striking laws as all other public school employees. SB 2293 also creates a common application for charter school admission and a requirement that the Texas Education Agency (TEA) maintain and report on the nebulous “charter waiting list” often cited by charter school proponents as justification for their further expansion.

While the above-referenced bills do bring some parity between charters and traditional public schools, ATPE also supported several bills this session that would have had an even greater impact but did not pass. For instance, HB 43 by Rep. Gina Hinojosa (D-Austin) would have prohibited charters from using exclusionary admission policies based on students’ discipline history, and HB 1853 by Rep. Leo Pacheco (D-San Antonio) would have required charter schools to employ certified teachers.

Other bills that passed this session will impact charter school finance and expansion. The previously discussed omnibus school finance bill, HB 3, affects charter school funding, including requiring charters to pay their fair share into TRS and removing the charter benefit of the small and midsize adjustment. SB 668, a mandate relief bill by Sen. Bryan Hughes (R-Mineola), allows charters to submit an expansion approval request up to 18 months before expanding and requires that charters notify school superintendents affected by the expansion. Unfortunately, this is a pared-down version of stricter notification requirements that were included in the bill as it left the House. Other related bills that passed include HB 4258 by Rep. Jim Murphy (R-Houston), which provides the attorney general with the sole authority to approve the tax-exempt status of charter school bonds, nixing the authority of municipalities. Lawmakers also approved SB 2117 by Sen. Paul Bettencourt (R-Houston), which provides the financial benefits of 1882 partnerships to previously established partnerships in Spring Branch ISD and Aldine ISD that were formed prior to the final implementation of SB 1882. Lastly, SB 1454 by Sen. Larry Taylor (R-Friendswood) improves the transparency of the sale, lease, and disposition of closed charter schools and their assets.

A couple of other charter-related bills passed the legislature, including HB 4205 by Rep. Tom Craddick (R-Midland), which allows for large charter operators to repurpose a closed public school district campus with the requirement that the same students who were at the campus before it was closed be admitted. Finally, HB 1051 by Rep. Gary VanDeaver (R-New Boston) makes permanent the Goodwill Excel Center, an adult high school diploma and industry certification charter school pilot program, and codifies its best practices.

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Student Discipline:

Legislators also passed several bills related to student discipline this session. HB 3630 by Rep. Morgan Meyer (R-Dallas) and SB 712 by Sen. Eddie Lucio, Jr. (D-Brownsville) are identical bills prohibiting the use of “aversive techniques,” which are described as techniques or interventions intended to inflict pain or emotional discomfort. This includes sprays, electric shocks, using a device to restrain all four extremities, and denial of the ability to use the restroom. Teacher organizations worked with the bill authors to ensure that this legislation would not prevent an educator from using a technique outlined in a student’s behavioral intervention plan (BIP) or from removing a student from class when necessary.

Regarding the removal of students, SB 2432 by Sen. Larry Taylor (R-Friendswood) adds criminal harassment against a district employee to the list of conduct that will result in a student’s automatic removal from a classroom. This would mandate that a student who threatens a teacher or sends them harassing electronic communications is immediately removed from class. Another bill also by Sen. Taylor, SB 1451, states that negative action may not be taken against an educator solely on the basis that the teacher made disciplinary referrals or documented student misconduct. ATPE supported these bills.

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School Turnaround:

Lawmakers spent considerable time this session discussing ways to improve student performance at public schools that are struggling under the state’s accountability system. Finding a programmatic “fix” that will dramatically improve performance in a reasonably short period of time, and in particular, one that is capable of being replicated, has long been an elusive goal of state and local policymakers and many education reformers. The latest attempt is called the “Accelerated Campus Excellence” (ACE) approach. The program, which began in Dallas ISD and has spread to a handful of other districts mostly in the DFW metroplex, has shown some promise and caught the attention of lawmakers when it was discussed during interim hearings of the Texas Commission on Public School Finance last year.

In a nutshell, ACE consists of a robust set of wraparound services for students at a persistently struggling campus, along with salary incentives and additional training for the teachers at the campus. The program utilizes a campus reconstitution approach, where a principal, often new to the campus, assembles a team of educators, some of whom are already teaching at the campus but many of whom are new. Many aspects of ACE mirror initiatives that ATPE has long advocated, such as using financial incentives to entice high-quality, often more experienced, educators to work at hard-to-staff campuses; offering robust mentoring and professional development; and providing students with robust wraparound supports. Unfortunately, the high cost of both the educator stipends and the wraparound services has made the longer-term sustainability of an ACE program questionable.

Several bills this session included provisions that would add ACE program language to state law, including both the House and Senate versions of HB 3. Regrettably, most of the provisions included in such bills featured heavy reliance on students’ standardized test performance data, including the use of STAAR data, to select educators for ACE campuses; provisions that rank teachers competitively by district or statewide, again based largely on student performance; and giving the appointed commissioner of education extreme control over the programs and their approval.

Ultimately, the ACE provisions were removed from HB 3, the omnibus school finance bill. However, the legislature did also pass HB 4205 by Rep. Tom Craddick (R-Midland) which had been amended with language from another stand-alone ACE bill, SB 1412 by Sen. Charles Perry (R-Lubbock). HB 4205 as finally passed contains a watered down and unfunded provision that allows districts, subject to commissioner approval, to use a version of ACE as a turnaround plan for a multi-year IR campus under Section 39.105 of the Texas Education Code.

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Political Speech:

In addition to advancing pro-public education legislation, ATPE worked to stop proposals this session that would have hindered the ability of our schools, teachers, and students to receive the best education possible. Specifically, ATPE worked to block SB 1569 by Sen. Pat Fallon (R-Prosper) and SB 904 by Sen. Bryan Hughes (R-Mineola). These bills would have had the combined effect of subjecting educators to extensive restrictions on political speech that go far beyond those that apply to any other group of public employees. Under these bills, teachers would have faced criminal penalties for all kinds of innocuous activities, including break room conversations of a political nature and teaching students about civic engagement as required by the Texas curriculum standards. Neither bill made it all the way through the legislative process.

ATPE also opposed SB 9, another controversial bill by Sen. Hughes that would have significantly increased the criminal penalties for mistakes made by voters, decreased voter privacy, and made voter registration more difficult. The Senate passed SB 9 on a party line vote, but the measure stalled in the House late in the session where it could not make it onto a calendar for floor consideration.

Another pair of bills that were of concern to some education groups were SB 29 by Sen. Bob Hall (R-Edgewood) and HB 281 by Rep. Mayes Middleton (R-Wallisville), aimed at preventing public entities from hiring lobbyists or paying dues to associations that lobby the legislature. While it is difficult to speculate what impact those bills might have had on groups like ATPE that do not receive their dues dollars from public entities, there is no question that weakening the ability of local schools to communicate their needs to the legislature was one of the authors’ goals. Fortunately, a deluge of messages from public education supporters all over Texas helped convince legislators to reject the bill in a major late-session vote on the House floor on May 20.

It is widely believed that these bills were filed in response to pressure from certain anti-public education groups reacting to the overwhelming pro-public education sentiment expressed by many voters in the most recent elections. Some of these bills came perilously close to becoming law, and ongoing advocacy by educators during the legislative session was among the key determining factors in preventing them from making it to the governor’s desk.

Indeed, if there is a single takeaway for the education community following the 2019 legislative session, it is reinforcement of the fact that political participation by educators is essential for the defeat of anti-public education bills. Stated differently, the engagement of educators in every election cycle and through grassroots communications with their elected officials, especially during a legislative session, is what produces successful outcomes for public education. ATPE thanks all those who helped prioritize the needs of public schools, educators, and most importantly, students during this 86th legislative session.

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Here’s how TRS legislation ended up in the 86th legislative session

As the 86th legislative session came to a close yesterday, there were some significant changes made to the Teacher Retirement System (TRS) that warrant a closer look.

TRS Pension Reform

Senate Bill (SB) 12 by Sen. Joan Huffman (R – Houston), sponsored in the House by Rep. Greg Bonnen (R – League City), was passed 31:0 in the Senate and 145:1 in the House on the last day to pass bills. The bill will immediately reduce the funding window on the Teacher Retirement System (TRS) pension from over 90 years to pay off the unfunded liability to under 30 years. Reducing the time frame to less than 30 years also allowed the legislature to provide current retirees with an additional pension payment during the current fiscal year. The 13th check, as the supplemental payment is often called, will be the amount of the retiree’s regular monthly annuity payment up to a maximum amount of $2,000.

ATPE was strongly in support of shoring up the TRS pension fund as it will ensure that the primary retirement income for many Texas educators will be viable for decades to come. The passage of SB 12 also saves the state and taxpayers hundreds of billions of dollars in interest on the pension fund’s liabilities, and it puts the TRS fund in a position for policymakers to begin considering a permanent cost of living adjustment for retired educators as early as the next legislative session in 2021.

SB 12 calls for the state’s contribution to immediately increase from 6.8% to 7.5% in the 2020 fiscal year, which begins on Sept. 1, 2019. The state contribution rate will then continue to increase over time until the rate reaches 8.25% in 2024. School districts not paying into Social Security currently contribute 1.5% to the pension fund. Beginning in the 2019-20, all school districts will contribute toward TRS pensions with the district rate increasing by a tenth of a percent each year beginning in the 2021 fiscal year, until the district rate reaches 2% in 2025.  Active school employees’ contributions to TRS will remain at their existing rate of 7.7% for the next two years. Employee contributions will increase to 8% in the 2021-22 school year and 8.25% the following year.

Aside from injecting more money into the TRS pension fund, SB 12 contains a few additional provisions that are worth noting. For one, the bill maintains a provision that ensures that if the state’s contribution to TRS should decline in the future, then school district and active employee contributions to the fund would be reduced by the same percentage. It is worth noting, however, that any future legislature could vote to change this. SB 12 also includes a change for the handful of school districts that currently pay into Social Security on behalf of their employees. As noted above, those districts that opt to make Social Security contributions will no longer enjoy an exemption from paying into TRS, which Rep. Greg Bonnen said would add about $20 million per year to the fund. Only institutions of higher education will now be exempt from participating in contributing into the TRS pension fund for their covered employees.

Here is a summary of the details provided by TRS staff on how the final adopted version of SB 12 is funded over time:

 

TRS Healthcare

ATPE hoped that the conference committees for SB 12 and House Bill 3, the omnibus school finance bill that also passed, would find better ways to help active and retired teachers deal with the rising costs of their healthcare. There were internal discussions about increasing the state share of active employee health insurance costs. Currently, the state pays $75 per month toward premiums and requires school districts to pay a minimum of $150 per month on behalf of their staff. Employees cover the rest of the cost of their health insurance premiums. SB 12 significantly increases the state’s share of contributions going into the TRS pension system, and the final version of HB 3 does require districts to spend additional dollars on employee compensation (which could include increasing the district’s share of health insurance costs). Despite these improvements, neither bill addressed the inadequacies of the state’s share of active employee premiums in the end.

State lawmakers did make good on their pre-session promises not to raise TRS-Care rates for retiree health insurance. The state budget in House Bill 1 includes $230 million in supplemental funding to cover the projected shortfall in the TRS-Care trust fund. State leaders pushed TRS not to raise rates last fall when it became apparent that the amount of the shortfall for the upcoming biennium was going to be less than originally projected. The savings were largely due a combination of successful TRS contract negotiations and favorable provisions of the federal Affordable Healthcare Act taking effect. Unfortunately, barring a substantial change in the healthcare landscape, the projected shortfall for the 2022-2023 biennium is much larger than what lawmakers had to deal with this session to address the shortfall expected for the next two years.