Tag Archives: revenue

Food for thought: School nutrition and COVID-19

When the COVID-19 pandemic struck Texas in March, one of our first concerns was how students who normally relied on the school for meals would continue to have access to nutritious food. Public school districts went above and beyond to ensure students continued receiving meals, parking at motels for meal distribution, initiating drive-thrus, and packing different foods that worked better for grab-and-go. These efforts contributed to higher costs for public school nutrition services this spring, which put a financial strain on districts’ ability to continue providing meal service to those who need it the most.

But it isn’t just the higher costs associated with out-of-school meal service that is a concern; it is also the lower numbers of students accessing meals that is straining districts. According to recent reporting by Politico, the National School Lunch Program served 28 percent fewer meals in March 2020 compared to March 2019. North East ISD estimated a $2.6 million shortfall this spring due to increased costs from serving more expensive foods for grab-and-go consumption and decreased revenue from fewer meals served. While census data is used for meal service planning purposes, districts are actually reimbursed for nutrition services based on the number of meals served and whether students qualify for free or reduced-price meals. Students who purchase meals at school, or even a la carte food items, help provide extra revenue to districts that enable them to break even in their food operations.

Federal waivers provided in the spring allowed school districts to serve meals at any campus, without students present, and at no cost to all students, regardless of their eligibility for free and reduced-price meals.This flexibility has not been extended by the U.S. Department of Agriculture, which could inhibit districts’ ability to receive enough reimbursement to maintain operations without needing financial support from other district funds (which are also tight at the moment). Furthermore, the expectation for families to fill out and districts to process free or reduced-price meal eligibility paperwork could create an unnecessary burden for families and schools. It is expected that millions of children have become eligible for free and reduced-price meals due to the economic effects of the pandemic. Pending legislation in Congress could address meal service flexibility in schools, as well as general funding, but negotiations are currently stalled due to debates over unemployment benefits.

Schools are part of larger district systems, which are part of state systems and federal systems. These systems work together to ensure that students’ basic needs are met, such as having a nutritious meal to eat, which allows for learning to occur. When school nutrition services are strained, these basic needs can also become strained. Other benefits such as the Pandemic Electronic Benefit Transfer (P-EBT) have provided essential funds to families, but P-EBT does not guarantee the “square meal” nutrition of the school nutrition programs. In order for schools to continue acting in creative and courageous ways to get meals to students, more will have to be done to ensure financial stability for these programs.

Teach the Vote’s Week in Review: July 24, 2020

With the start of school just around the corner, it’s been another busy week for ATPE and the education community. Read about this week’s developments below from the ATPE Governmental Relations team:


CORONAVIRUS UPDATE: ATPE’s incoming State Vice President Karen Hames and Governmental Relations Director Jennifer Mitchell spoke on CNN’s Chris Cuomo Prime Time show Thursday night, July 23, to contribute their perspectives on school reopening. Hames and Mitchell stressed that teachers care about their kids and want to be in school with them, but that educators have concerns about being exposed to the coronavirus in a classroom setting. Hames shared reasons why school choice would not provide any real solutions to parents’ concerns about COVID-19, and Mitchell emphasized the need for additional federal funding and better guidance at the state level to help school districts prepare for reopening amid the pandemic. Watch video of the CNN segment here.

In other news related to COVID-19, the University Interscholastic League (UIL) released a long-awaited announcement this week that delays the schedules of 5A-6A conferences. Additionally, UIL shares that marching band practice in all conferences may not begin until September 7, 2020. Updates to TEA’s COVID-19 Support and Guidance Page this week included a new summary of the agency’s reopening guidance, several new “Strong Start” resources, and new CARES Act and attendance and enrollment information.

Visit the ATPE COVID-19 FAQ and Resources page for constantly updated resources and answers to common questions from educators. ATPE members can also use Advocacy Central to communicate with their elected officials regarding school reopening and other issues.


This week, ATPE submitted formal public comments on the U.S. Department of Education’s (ED) interim final rule directing how districts spend their CARES Act federal emergency dollars on equitable services for students in private schools. The interim final rule, effective July 1, 2020, is estimated to cause public school districts to spend over $44 million of their Title I-derived emergency funds on private school students regardless of poverty — more than $38 million more than they would normally spend under the longstanding interpretation of equitable services in federal law. ATPE’s comments urge the department to rescind its inequitable and distorted interpretation of the CARES Act, which goes against congressional intent. Over 5,200 comments have been submitted, but the department is not required to respond to them because of the emergency rulemaking process. Read more about the new federal rule in this recent Teach the Vote blog post. Read ATPE’s public comments here.


ELECTION UPDATE: Last week saw one of the most unusual elections in recent memory: A runoff postponed due to a global pandemic that proceeded to intensify in Texas as the new election date approached. Early voting was expanded from the usual one week to two weeks in order to reduce the load on polling locations. Some voters also took advantage of alternative methods of casting their ballots to avoid contracting COVID-19 at the polls, although Texas broke ranks with other parts of the country by refusing to expand the ability to vote by mail amid the pandemic. Despite the failure of lawsuits aimed at expanding mail-in ballot options, Texas saw a substantial increase in mail-in voting during this runoff election, which caused official results to be delayed by a few days but did not result in changes to any of the unofficial race outcomes revealed on election night. The July 14 election also exposed troubling voting issues that will have to be corrected before the November election.

With double the time to vote early, this month’s runoffs saw double the turnout over the primary runoff elections in 2018, 6.61% to 3.22%, respectively. After all of the debate over voting by mail, 30% of Democrats and 24% of Republicans who voted early cast their ballots by mail. That’s actually down from 36% of all early voters who cast mail-in ballots in the 2018 runoffs. Democrats had a huge turnout — nearly 956,000 voted in the primary runoffs, but comparable statewide numbers aren’t available for Republican turnout because there wasn’t a statewide GOP runoff like there was on the Democrats’ ballot. Party turnout in primary elections is not always an accurate predictor of turnout in the general election. But based on the turnout for a runoff election in July, in the Texas heat, in the middle of a deadly pandemic, it’s probably safe to assume that overall turnout for the November general election will be enormous. That makes researching candidates and making your voting plan for November more important than ever! See more election results in last week’s recap by ATPE Lobbyist Mark Wiggins.


CONGRESSIONAL UPDATE: The U.S. House Education and Labor Subcommittee on Early Childhood, Elementary and Secondary Education met Thursday, July 23, for a hearing on the safe reopening of schools. The discussion bounced back and forth between the health risks for children and health risks for teachers and staff, with implications across the board for future funding to get schools on the path to a safe reopening. Get the full rundown on the meeting in this blog post by ATPE Lobbyist Mark Wiggins.

While a proposal for additional federal emergency aid (dubbed the Health and Economic Recovery Omnibus Emergency Solutions or “HEROES” Act) was approved by the U.S. House several weeks ago, the U.S. Senate has now agreed on its own $105 billion aid package for education, which includes $70 billion for K-12 schools. The proposal would tie the K-12 funding to in-person instruction by sending $35 billion to schools that open for in-person instruction and splitting the remaining $35 billion among all schools, regardless of their method of instruction. The $30 billion for colleges will not be tied to in-person instruction, and governors will receive the last $5 billion to spend on either K-12 or higher education. The details of the proposal are expected to be made public on Monday.



After a week-long delay, the U.S. Centers for Disease Control (CDC) released updated guidance for the reopening of public schools during the COVID-19 pandemic. The brunt of the new guidance issued last night, July 23, consists of justifying the push to reopen schools for in-person instruction. New items include recommending that schools group students and teachers into isolated cohorts or “pods” meant to limit in-person contact. There is also a checklist intended to assist parents in deciding  whether to send their children to school. A new mask guidance document suggests masks can be worn by anyone older than two years old, though some groups of students may need special adaptations and alternatives. Even as the guidance encourages reopening, it urges caution to those considering to do so in areas of substantial, uncontrolled transmission. Furthermore, the guidance recommends tying operational decisions to local epidemiological conditions. The guidance states as follows:

“Schools should be prepared for COVID-19 cases and exposure to occur in their facilities. Collaborating with local health officials will continue to be important once students are back to school, as they can provide regular updates about the status of COVID-19 in the community and help support and maintain the health and wellbeing of students, teachers, and staff.”

All of the CDC guidance documents, including the latest guidance as well as recommendations dating back to May, can be found here.


The State Board for Educator Certification (SBEC) met today, July 24, to take action on several items implementing the Science of Teaching Reading exam requirements from last year’s House Bill (HB) 3 and to discuss COVID-19 considerations related to certification. Additionally, the board approved a proposal to transition Legacy Master Teacher certificate holders into lifetime certificates, as HB 3 barred the Master Teacher certificate from being issued or renewed. ATPE Lobbyist Andrea Chevalier testified before SBEC in support of this proposal, continuing our months-long advocacy for a fix for Master Teachers. Read more about today’s SBEC meeting in this blog post from Chevalier and read the written testimony here.


SCHOOL FINANCE UPDATE: Texas Comptroller Glenn Hegar created buzz this week with the release of his certification revenue estimate, which shows that the state faces a $4.6 billion deficit due to both COVID-19 and the largest drop in oil prices in decades. While some revenue sources have helped to soften the blow, including federal coronavirus aid and new revenue from online commerce, the uncertainties ahead will make the state budget lawmakers’ top concern in the upcoming 2021 legislative session. Read more about the revenue esimate and Hegar’s interview with the Texas Tribune this week in this blog post by ATPE Lobbyist Mark Wiggins.  

In other school finance news, Just Fund It, a non-partisan group of parents, students, and community members across Texas advocating for increased public school funding, has begun a petition aimed at urging Gov. Abbott to ensure stable and predictable school funding. Specifically, the petition asks the governor to extend the 12-week “hold harmless” period for calculating funding based on attendance as recently announced by the Texas Education Agency (TEA) for the coming school year. The group presents a compelling argument for extending the hold harmless to cover the entire 2020-21 school year.

Teach the Vote’s Week in Review: May 8, 2020

Happy Teacher Appreciation Week! Hardworking educators have been in the spotlight this week, but soon the attention will shift to graduating seniors. Who is ready for virtual graduation ceremonies from home and honking parades of whooping high school seniors down the street? We are excited for the good news this week that teachers and students can celebrate their accomplishments (safely). Here is more of this week’s education news from the ATPE lobby team:


CORONAVIRUS UPDATE: For a comprehensive look at the intersection of COVID-19 and education, from the first major event cancellation to the road ahead, ATPE’s lobbyists have compiled a new summary this week of the legislative and regulatory developments since the crisis began. Read the coronavirus recap in this May 8 blog post.

On Tuesday, Gov. Greg Abbott expanded the types of businesses that can reopen in his phased plan to reopen Texas. Today, salons, barbershops, and pools will join malls, movie theaters, retail stores, restaurants, museums, and libraries as those that can reopen their doors to limited numbers of customers. This development is a change from Abbott’s previous declaration that the state would wait two weeks before expanding which businesses can open. It is still expected that gyms, office buildings, and non-essential manufacturing facilities will open (with occupancy limitations) on May 18. Abbott also modified his previous order by allowing weddings with social distancing guidelines.

Commissioner Morath speaks at Gov. Abbott’s press conference, May 5, 2020.

Education Commissioner Mike Morath joined Abbott at his press conference Tuesday to talk about graduation ceremonies. Under Abbott’s orders, graduation ceremonies and grade promotion ceremonies must be approved by the Texas Education Agency (TEA) and adhere to certain stipulations. Outdoor ceremonies are allowed in rural counties between May 15 and May 31, and only with social distancing protocols in place. On or after June 1, outdoor ceremonies will be allowed in any Texas county. TEA has also suggested other options such as hybrid ceremonies (where students are video-recorded receiving their diplomas one-by-one and these videos are stitched together for a virtual ceremony), all-virtual ceremonies, and vehicle-based parades and drive-in ceremonies. Perhaps you’ve heard (literally) of some districts already honoring their seniors through “honk lines” or seen yard signs popping up to celebrate graduating seniors. TEA has provided guidance on graduation ceremonies here.

Also this week, TEA updated its main coronavirus resource page on nearly every topic and added new superintendent debriefs. Among many other things, TEA has provided updates to the protocol for employees who are accessing school buildings, the FAQ on optional end-of-year assessments (which will NOT be used for accountability), and the educator certification and preparation FAQ (including answers to questions about probationary certificates, rescheduling cancelled tests, and continuing professional education requirements for educators), plus new guidance on school calendars and start dates for this fall. (Read more on this topic below.)

Yesterday, Commissioner Morath sent a response to ATPE’s April 2 letter asking for a statewide suspension of educator appraisals for the 2019-20 school year due to challenges associated with COVID-19. In his reply, Morath declined to issue a statewide order and stated that, ”The decision to pursue waivers of appraisal requirements is strictly a local decision.” ATPE has yet to receive a response to our joint letter with 17 other organizations regarding a moratorium on costly charter school expansion during the pandemic.

For more resources related to the pandemic, visit ATPE’s frequently updated Coronavirus FAQ and Resources page, and follow the ATPE lobby team via @TeachtheVote on Twitter.


Last week, we reported that U.S. Secretary of Education Betsy DeVos has allocated $180 million of the funding approved by Congress through the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act for private school vouchers. In response, ATPE sent a letter in opposition of this development to every member of the Texas congressional delegation, including U.S. Senators John Cornyn (R) and Ted Cruz (R). In particular, ATPE asked for strong congressional oversight of this use of funds and for continued diligence regarding federal funding for vouchers in any future legislation passed by Congress.

At the state level, the Coalition for Public Schools, of which ATPE is a member, sent a letter this week to Texas Commissioner of Education Mike Morath to address recent suggestions made by Republican members of the Texas Senate Education Committee that the state should try to expand virtual school options in Texas, despite the data showing that virtual schools do not perform as well as their brick-and-mortar counterparts.


ELECTION UPDATE: With all the coronavirus news, it’s easy to forget that another election is slowly creeping up on us. On July 14, Texans in various parts of the state will be able to vote in primary runoff elections to choose which candidates will be on the general election ballot this November.

The runoff elections were originally scheduled for May 26, but were postponed by Gov. Abbott over concerns about the safety of voters during the COVID-19 pandemic. Because the election has been postponed, many of the deadlines leading up to it have also been shifted. For example, the deadline for registering to vote in time to participate in the runoff elections is now June 15, 2020. Check out this post by ATPE Lobbyist Mark Wiggins for a list of important deadlines as we get closer to voting time.


One of the biggest questions on educators’ minds right now is what the return to school in the fall will look like. The variety in plans being contemplated by school districts for the 2020-21 school year was the topic of a recent article from the Texas Tribune, which ATPE republished here on our our Teach the Vote blog this week. Also this week, the Texas Education Agency (TEA) provided updated guidance on start date and calendar changes to account for student learning loss and a potential resurgence in virus cases this fall.

In particular, the agency has suggested that districts can become Districts of Innovation (DOI) or add an amendment to their existing DOI plans to allow for an exemption from the law preventing schools from starting earlier than the fourth Monday in August. This exemption is already the most popular one among DOIs, as many districts prefer to start their school year earlier, insert more breaks throughout the year, and end the year later. TEA suggests that this format of an “intersessional” calendar could help to build in breaks that may be used for remediation of students who have fallen into a steep loss of learning on the “COVID slide.”

Other districts may choose to implement a year-round school calendar, which in many ways is easier than obtaining DOI approval. Under this route, districts need only obtain board approval for a new academic calendar and designation as a year-round system, and they must notify their Education Service Center PEIMS coordinator of their intent to operate through a year-round system.

TEA has also suggested using the flexibility in additional school days for elementary students as provided by House Bill (HB) 3 passed in 2019. HB 3 adds half-day formula funding for school systems that want to add up to 30 instructional days beyond the minimum of 180 days, but only for grades PK-5 and only after September 1, 2020.

Related: The COVID-19 pandemic has already dealt an enormous economic blow to our state, resulting in declining state revenue from oil and gas as well as sales taxes. This has many educators worrying about budget cuts next year. ATPE Senior Lobbyist Monty Exter discussed the financial uncertainty with KXAN this week in this news story about how school districts in Central Texas are preparing for the future.


When SXSW EDU was abruptly cancelled back in March 2020, many in the education community were disappointed to miss the week-long learning event in Austin, Texas. Since then, SXSW EDU has gone virtual. ATPE Lobbyist Andrea Chevalier attended this week’s virtual keynote address on growth mindset in education  The presentation, entitled “A Science of Human Motivation for the Next Decade,” is viewable here. Read Chevalier’s blog post about the session here.


ATPE member Morgan Castillo received an H-E-B Excellence in Education Teaching Leadership Award.

This week, ATPE member Morgan Castillo of Woodgate Intermediate School in Midway ISD received an H-E-B Excellence in Education Teaching Leadership Award. This award honors teachers with 10 to 20 years in the classroom. Castillo received a $10,000 award for herself and a $10,000 grant for her school. She was one of eight educator winners announced this week and chosen from a group of 40 finalists who received smaller cash awards earlier this year. Castillo and the other award recipients were recognized Tuesday during a virtual “Toast to Texas Teachers” organized by the #TeachersCan initiative as part of several Teacher Appreciation Week festivities.

ATPE has been featuring our “Work from Home Classroom Makeover Contest” during Teacher Appreciation Week. Visit ATPE’s Facebook page to view the entries and cast a vote for your favorite between now and May 13. Winners will be announced on May 15.

State comptroller says Texas is in a recession

In an interview Tuesday morning, April 7, 2020, with Texas Tribune Executive Editor Ross Ramsey, Texas Comptroller Glenn Hegar repeated a statement he had already made to legislators in private last month regarding the combined economic impact of the COVID-19 pandemic and plummeting oil prices.

“I know that we are unfortunately in a recession,” said Hegar, whose office oversees the state’s finances. “I just don’t know how deep or how wide it’s going to be.”

The comptroller’s certification revenue estimate in October 2019 projected that the state would end the current budget cycle with a balance of $2.9 billion in general revenue and $9.3 billion in the state’s economic stabilization fund (ESF), which is often referred to as the “rainy day fund.” Hegar said he plans to release a revised revenue estimate in July, which he predicts will be several billions dollars less. Many are questioning just how much of a toll the double-whammy of a pandemic and an oil price war will take on the state’s budget — especially after legislators significantly increased public education funding under House Bill (HB) 3 in 2019.

Hegar said Tuesday the state is expected to have enough cash flow to meet its obligations through the end of the current budget, which runs through August 31, 2021. While contributions to the ESF are expected to decrease as a result of declining oil and gas revenues, the comptroller’s office is still projecting a balance of $8.5 billion in the fund by the end of the current budget cycle.

Altogether, Hegar said he does not believe legislators will need to be called into a special session this year to shore up the current budget, but he added that the start of the next legislative session in January 2021 will be quickly upon us. Next session, legislators anticipate facing the daunting task of funding state priorities over the next budget cycle with significantly less money available.

The reason less money will be available has to do with how Texas government is funded. Since Texas does not have an income tax, sales and use taxes account for 57% of state revenue. Local governments are funded by a combination of sales and property taxes. When places like bars, restaurants, and stores make less money, they send in less sales tax revenue. Surging unemployment has the same effect on sales taxes by depressing consumer spending, as well as inhibiting people’s ability to keep up with their property taxes.

All this is happening at the same time the demand for government services such as unemployment, healthcare, and food assistance is increasing. The result is an unprecedented strain on government at every level, yet Hegar noted that state agencies should look for ways to cut spending.

The comptroller’s office is currently working off of sales tax revenue reports released in March detailing economic activity that happened in February, which was before social distancing was enforced. April sales tax numbers will provide a better look at the economic impact of business closures and downsizing, but that report won’t be available until the end of May. Hegar is waiting on those numbers to give a better estimate of the impact on the state budget in the planned revised revenue estimate this summer.

So what does this all mean for public education? It’s still unclear. Hegar noted Tuesday that  education and health and human services make up the two largest components of the state budget. Hegar noted that state leaders will likely begin discussing ways to cut agency spending during the current budget cycle, but he suggested that areas like the Foundation School Program (FSP) and Medicaid should be exempted from cuts this year. The FSP is the finance formula that flows funding for public education to local schools.

The state is also awaiting federal coronavirus aid recently passed by Congress, which will send billions of dollars to schools across the nation. Future federal aid packages are likely to have an additional impact on the state budget going into next session. There are already talks coming out of Washington about a fourth coronavirus stimulus bill that could provide as much as one trillion dollars in additional aid.

The one phrase Hegar repeated multiple times throughout this morning’s 45-minute interview was “managing expectations.” The comptroller was clear that the state is in the midst of a recession driven largely by the COVID-19 outbreak and aggravated by the oil price war. We still don’t know how many billions of dollars this will drain from the state’s budget going forward, but it will be significant. We’ll have a better look when the comptroller releases his revised estimate in July.

You can watch the full Texas Tribune interview with Texas Comptroller Glenn Hegar here.

Teach the Vote’s Week in Review: Jan. 11, 2019

Happy New Year! Here’s your first weekly wrap-up of education news from the ATPE Governmental Relations team:


Tuesday, January 8, kicked off the 86th Texas Legislative Session amid great fanfare at the State Capitol.

Representative Dennis Bonnen (R-Angleton) was unanimously elected and sworn in as the new Speaker of the House on Tuesday afternoon. For the past 10 years, the House has been under the leadership of Rep. Joe Straus (R-San Antonio) who retired from the position and the legislature at the end of his term this month. Bonnen announced in November 2018 that he had amassed the requisite number of pledged votes to render the speaker’s race not much of a race at all. After that there was only the vote and ceremonial swearing in, which took place on Tuesday. Read more about Bonnen’s ascent to speaker in this post shared from The Texas Tribune.

On the Senate side, Lt. Gov. Dan Patrick (R) was missing from Tuesday’s proceedings while visiting with President Donald Trump in Washington, DC, that day on the subject of border security. Sen. Jane Nelson (R-Flower Mound) presided over the upper chamber’s opening ceremonies in his place. The Senate swore in its new members and also elected Sen. Kirk Watson (D-Austin) to serve as President Pro Tempore this session.

Gov. Greg Abbott spoke briefly to welcome the members of each chamber, signaling his intent for the legislature to tackle school finance reform and property tax relief this session. Bonnen and Watson also highlighted the prominence of the school funding issue this session, with new House Speaker going as far as announcing that he had stocked the members’ lounge with special styrofoam cups to remind them of their top priority: school finance reform. Improving the state’s school finance system is also a top legislative priority for ATPE this year.

ATPE Lobbyists Mark Wiggins and Monty Exter snapped a selfie with Humble ATPE’s Gayle Sampley and her husband at the Capitol on opening day.

ATPE’s lobbyists were at the Capitol on opening day and will be there for all of the action this legislative session. Be sure to follow @TeachtheVote and our individual lobbyists on Twitter for the latest updates from the Capitol.

ATPE members are also encouraged to sign up for free to attend our upcoming lobby day and political involvement training event known as ATPE at the Capitol on Feb. 24-25, 2019. Find complete details here.

 


While the legislative session officially began on Tuesday, Texas Comptroller Glenn Hegar made news the day before with his release of the state’s Biennial Revenue Estimate (BRE). The BRE details how much money the state plans to receive and how much of it can be spent in any given legislative session.

Monday’s BRE announcement predicted revenue of $119.12 billion for the 2020-21 biennium. This biennium’s BRE comes with tempered expectations, which Hegar attributed to a drop in oil prices, market volatility, and rising interest rates. “Looking ahead to the 2020-21 biennium, we remain cautiously optimistic but recognize we are unlikely to see continued revenue growth at the unusually strong rates we have seen in recent months.” Hegar said in the report.

Once the comptroller has released the BRE for each legislature, the Legislative Budget Board (LBB) meets to set the session’s constitutionally-required spending limit. ATPE Senior Lobbyist Monty Exter reports that the LBB met today and set a limit of $100.2 billion for spending this session. The constitutional spending limit is set by applying the percentage of growth, which is determined by many factors, to the previous biennium’s spending limit. The constitutional limit applies only to expenditures of general revenue that is not constitutionally-dedicated. By comparison, the non-dedicated-revenue spending limit for the 85th session in 2017 was roughly $91 billion, whereas the total general revenue appropriated by the legislature that year was $106.6 Billion. As Exter explains, neither withdrawals from the Economic Stabilization Fund (the state’s so-called “Rainy Day Fund”) nor supplemental appropriations for the current biennium will count toward the constitutional limit that was announced today.

The Legislature must now decide what to do with its available revenue. Rest assured, they haven’t been given a blank check to do as they please. According to reporting by the Center For Public Policy Priorities the legislature must immediately spend $563 million as back pay for Medicaid funding that was deferred until this session. The legislature will also have to determine where $2.7 billion for Hurricane Harvey recovery costs will come from.

For more detailed reporting on the BRE as well as link to the full report, check out this blog post by ATPE Lobbyist Mark Wiggins.

 


Late last week, the House Committee on Public Education released its interim report covering the committee’s work over the past year on interim charges assigned to it by the House Speaker. The report, which spans 88 pages, includes recommendations on how to approach a variety of education-related issues this session, such as Hurricane Harvey relief, teacher compensation, and school safety.

Rep. Dan Huberty (R-Kingwood) chairs the committee that produced its interim report. Among the suggestions were recommendations to consider possible legislation to help schools quickly replace instructional materials due to Harvey; creating paths to career growth for educators that would allow them to stay in the classroom, such as a “Master Teacher” certification; and making Individual Graduation Committees (IGCs) permanently available for students who have difficulty with STAAR testing.

You can read more about the committee’s interim charge recommendations in this blog post by ATPE Lobbyist Mark Wiggins. Read the interim report here.

 


In a statement released to the press on Monday, Governor Greg Abbott announced his appointment of Edward Hill, Jr., Ed.D., John P. Kelly, Ph.D., Courtney Boswell MacDonald, and Jose M. Rodriguez to the State Board for Educator Certification (SBEC). The new appointees are replacing retiring SBEC members Suzanne McCall of Lubbock; Dr. Susan Hull of Grand Prairie; and Leon Leal of Grapevine.

ATPE thanks the members rolling off the SBEC board for their years of service and welcomes the new members. We look forward to working together with them to continue to improve the education profession for the betterment of Texas students.

 


Comptroller announces $119.12B available for legislators to spend

Texas Comptroller Glenn Hegar announced Monday that the 86th Texas Legislature is forecast to have $119.12 billion available for general-purpose spending when the regular session begins tomorrow, Jan. 8, 2019.

Click the image to view a larger version. Credit: Office of Texas Comptroller Glenn Hegar

The announcement came today as part of the comptroller’s biennial revenue estimate, which is delivered to legislators before each session begins and consists of a forecast of how much revenue the state expects to receive and how much of it can be spent.

The state is projected to take in $107.32 billion in general revenue-related tax collections in the 2020-2021 fiscal biennium, which is up from $99.27 billion collected in 2018-2019. The next biennium begins with a balance of $4.18 billion carried over from 2018-2019, along with $14.16 billion in additional general revenue-related collections. A total of $6.34 billion of available revenue is reserved for transfers to the economic stabilization fund (ESF), also known more commonly as the state’s “rainy day fund,” as well as highway funds.

Legislators began 2017 with a $104.9 billion BRE, and the 85th Texas Legislature ultimately passed a $107.2 billion budget. The 2018-2019 revenue estimate was revised upward several times as economic conditions improved. In the 2020-2021 revenue estimate, Hegar noted increased economic growth in 2018 fueled by oil production in the Permian Basin, but urged caution looking beyond the 2019 horizon.

“Looking ahead to the 2020-21 biennium, we remain cautiously optimistic but recognize we are unlikely to see continued revenue growth at the unusually strong rates we have seen in recent months,” Hegar wrote in the official report. “Oil prices have dropped sharply since October, financial markets have demonstrated increased volatility, interest rates have been rising and U.S. trade policy remains uncertain. As the nation’s leading export state, the Texas economy in particular is exposed to potential reductions in international trade.”

“Because of this heightened uncertainty, this revenue estimate is based on a projection of continued but slowing expansion of the Texas economy,” Hegar concluded.

Much of the $119.12 billion legislators will be have for budgeting the next two years is already spoken for. The Center for Public Policy Priorities (CPPP) correctly points out in its BRE analysis that legislators will have to immediately make a $563 million back payment to Medicaid, funding that was deferred last session in order to fund public education.

CPPP predicts it will cost roughly $112 million for the state to maintain the current level of services, based upon factors including inflation and school enrollment growth. Legislators will also have to decide where to find $2.7 billion of supplemental funding for Hurricane Harvey recovery costs. That could come out of general revenue or the rainy day fund.

You can read the comptroller’s full report here.

School finance commission discusses initial recommendations

School finance commission meeting Dec. 11, 2018.

The Texas Commission on Public School Finance met Tuesday in Austin to discuss recommendations for the commission’s report, which is due to the legislature by the end of the month. The initial draft recommendations can be viewed here, and additional resources can be found here.

The draft report includes a recommendation that the 86th Texas Legislature “inject significant additional annual state revenue” through new strategic allotments and weights outlined in the commission’s report, including about $1.7 billion in specific areas. The report adds that for the purposes of new funding, members should note that an increase of $500 million in state funding is equal to a roughly 0.9 percent increase over the last budget biennium. This would be formula funding, targeted at the neediest studies, and tied to specific outcomes.

Commission Chair Scott Brister voiced reservations, suggesting that asking the legislature for significant additional funding is not the commission’s job. He later clarified that his chief opposition was to placing a dollar figure on additional funding. Several members pushed back, including House Public Education Committee Chair Dan Huberty (R-Houston), who said he would not sign a report that does not call for additional school funding.

The report also calls for reallocating $5.34 billion in existing funds to more impactful spending and greater system-wide equity. The commission recommends significant investment to substantially increase third grade reading levels. Outcomes-based funding would be targeted toward early literacy and post-secondary access of career, military, or higher education without remediation.

The commission is recommending a high-quality teacher allotment, initially funded at $200 million, for districts wishing to offer differentiated compensation to pay their most effective educators higher salaries sooner in their career. This would be contingent on districts creating locally-developed, multi-measure evaluation and compensation systems based on an outline created by the legislature. This includes the state setting a goal that top teachers have a path to a $100,000 salary and incentivizing districts to assign top teachers to the most challenging campuses.

Finally, the draft report calls for statutorily increasing the basic allotment, though it does not specify a specific amount. It calls for increasing the yield on “copper pennies” and compressing the rate in order to provide tax relief, as well as reducing the role of recapture in the school finance system. The report makes no recommendations regarding special education, instead suggesting that the current corrective action plan approved by the U.S. Department of Education should be completed before any additional reforms are discussed.

Discussing the commission’s major findings, Brister acknowledged that schools are being asked to do more than ever before. This includes higher security standards and providing for the physical and mental well-being of students in addition to educating them. He then asked to strike language from the report that says the state has failed to adequately fund public education.

After breaking for lunch, the commission returned for more in-depth discussion on individual recommendations. Commission member Todd Williams of the Commit Partnership in Dallas pointed out that the teacher compensation portion of the plan (Section D) does not include specific funding for strategic staffing such as that implemented by the Dallas ISD ACE program, which is intended to incentivize top teachers to teach at the highest-need campuses. Williams argued the evaluation system and strategic staffing system should be treated as separate and funded accordingly.

State Sen. Paul Bettencourt (R-Houston) then laid out the recommendations from the working group he chaired on revenues. The group’s primary recommendation is to adopt Gov. Greg Abbott’s plan to cap local property tax revenue growth. The plan suggests capping growth at 2.5 percent annually, and replacing revenue lost by school districts with state funding. The governor’s office does not specify how much this would cost or from where the replacement funding would come.

Texas Education Agency (TEA) Chief School Finance Officer Leo Lopez presented a chart addressing the three plans endorsed by Bettencourt’s group, which suggests that the governor’s plan would reduce local maintenance and operations (M&O) tax collections by nearly $1 billion and increase school district revenue by $300 million in 2020 at a cost of roughly $1.3 billion. By 2023, the governor’s plan is projected to reduce M&O tax collection by $3.7 billion while increasing school district revenues by $74 million. Lopez pointed out that this is primarily a tax relief plan, as opposed to a school finance plan, which explains why future funding is projected to flatten out.

The commission discussed the level of emphasis that should be placed upon the governor’s revenue cap plan. Members pointed out the interrelation of property taxes and school finance, as well as the need to focus on the commission’s statutory charge, which is to fix the school finance system. The governor’s plan alone would not change the fundamental mechanics of the school finance system.

Sen. Bettencourt has argued that the state’s coffers will be flush heading into the next budget cycle based on tax revenue from booming oil and gas production, but the state comptroller has yet to release a formal biennial revenue estimate (BRE) with hard numbers upon which to base a budget. State Rep. Ken King (R-Canadian), who represents oil and gas-dependent west Texas, cautioned against relying on oil and gas as a reliable, long-term funding source. A combination of the governor’s plan and the commission’s recommendations for additional public education spending could add up to a price tag north of $5 billion for the upcoming budget biennium.

The commission is scheduled to meet next Wednesday, Dec. 19, 2018, to vote on final recommendations. The commission is required by law to submit its report to the legislature by December 31.

Finance commission group finalizes recommendations

The Texas Commission on Public School Finance working group on revenue met Tuesday at the Texas Capitol to discuss recommendations to deliver to the full commission. State Sen. Paul Bettencourt (R-Houston), who leads the working group, indicated he is open to using the economic stabilization fund (ESF), which is commonly referred to as the “Rainy Day Fund,” to help fund public education.

School finance commission working group meeting November 27, 2018.

Bettencourt opened the meeting suggesting that state revenues are looking bullish heading into the next budget biennium. Again, Sen. Bettencourt emphasized his priority is phasing out the “Robin Hood” system of wealth equalization through recapture. According to Bettencourt, freezing recapture would cost approximately $2.3 billion.

Before Bettencourt began his presentation, commission member and Austin ISD Chief Financial Officer Nicole Conley Johnson told the group she had identified $14 billion in new programs to propose to the commission.

According to figures Bettencourt provided to the group, the state comptroller increased the revenue estimate for the next biennium to $110.2 billion in July 2018 from $104.9 billion in 2017, a $5.3 billion increase. During the first two months of fiscal year (FY) 2019, sales tax revenues, which represent 58 percent of all state tax collections, are expected to be up ten percent compared to FY 2018.

Bettencourt asserted two point upon which most agree: Without school finance reform, the state’s share of public education funding will continue to shrink, and the amount of funding districts pay into recapture for wealth equalization will continue to increase. Bettencourt emphasized his prediction that increased revenue in FY 2019 will provide additional general revenue (GR) which will be available to help fund schools.

State Rep. Diego Bernal (D-San Antonio), who is vice-chair of the House Public Education Committee, raised a question over how equity would be preserved if legislators make changes to or eliminate the recapture system. State Rep. Ken King (R-Canadian), who is also a member of the House Public Education Committee, also raised a concern that any increase in school funding will need to be sustainable.

Bettencourt presented the governor’s tax cap plan as the solution. The plan would increase funding for districts that increase teacher pay and improve student outcomes, however Rep. Bernal noted that outcomes-based funding threatens to reward districts that already have the resources necessary to improve while neglecting districts that have failed to improve precisely because they lack the necessary resources. The plan would also limit property tax revenue growth to 2.5 percent per year, which the plan promises to make up for with state funding.

Another proposal discussed by Bettencourt is one presented by the Texas Public Policy Foundation (TPPF), a far-right pro-voucher organization, which would aim to eliminate all school district maintenance and operations (M&O) property taxes. This would cost roughly $51.3 billion for the 2018-19 biennium. The TPPF proposal claims to be able to pay for itself by dedicating future increases in state revenues to public education, but Bettencourt conceded that this is an optimistic view.

Bettencourt also briefly discussed the idea of “sharing” recapture. In this plan, property value growth would be divided by thirds, and the benefits from the growth in property values would ostensibly be shared. Additionally, Bettencourt suggested using the increase in production severance taxes – largely due to oil and gas activity in the Permian Basin – to help fund public education. This funding stream currently already flows to public education and general revenue, with an overflow stream that is bifurcated between highway funding and the ESF. Despite the Senate’s opposition to spending ESF dollars in previous legislative sessions, Bettencourt indicated he’s now open to spending ESF money to help fund public education. Johnson argued that this represents a redirection of existing revenues and does not represent the new revenue necessary to improve school performance.

The working group voted to advance each of the proposals except the plan offered by TPPF to be considered by the full commission. Rep. King made the motion to table the TPPF plan, which he declared nonsensical. Several members expressed similar concerns. Closing the meeting, commission chair Scott Brister suggested that legislators should feel less constrained by court rulings enforcing equity. As a justice, Brister was a dissenting voice in the West Orange-Cove school finance ruling.

The full commission will meet Friday, again on December 5, and at least once more during the third week of December. The commission will get a chance to react to Tuesday’s recommendations and will arrive at a decision by the December 5 meeting on what the final report should look like. The following meeting will focus on what the report should say. The commission is required to submit its report to the legislature by December 31.

Brister asked commission members to do their best to reach a unanimous consensus on recommendations, and said that in lieu of a minority report, individual members will be allowed to place letters in an appendix to the final report.

 

Finance commission group meets to discuss revenues

The Texas Commission on Public School Finance working group on revenues, led by state Sen. Paul Bettencourt (R-Houston), met Tuesday at the Texas Capitol to hear testimony. Sen. Bettencourt began the meeting by stating the state must “wean” itself off of the “Robin Hood” system of wealth equalization through recapture.

School finance commission working group on revenues meeting November 13, 2018.

Bettencourt set a target date of November 27 for a vote on recommendations and anticipated sharing those recommendations with the full commission in December. The commission’s report is due to the legislature by the end of December.

Austin ISD Chief Financial Officer Nicole Conley Johnson followed up Bettencourt’s remarks by stating a separate goal of identifying $6 billion in additional funding for public schools. Johnson and Bettencourt have stood on opposite sides of most school funding discussions.

Dale Craymer, president of the Texas Taxpayers and Research Association (TTARA), was the first witness invited to testify. Craymer testified that the recapture system is likely required based upon school finance court rulings, and noted that reducing recapture and reducing property taxes are not one in the same. Craymer suggested property taxpayers could be provided relief by using value growth to reduce the compression percentage downward, yet offered no direction with regard to relief for schools. Craymer suggested legislators must first determine what outcomes are desired before determine how much funding is needed.

Chandra Villanueva with the Center for Public Policy Priorities testified that recapture is necessary to level the playing field between school districts with vastly unequal property wealth. Instead, Villanueva testified that the overall system has failed and suffers from underfunding. Villanueva suggested instead updating the costs of education, adjusting for inflation, and slowing the growth of charter schools, which are pushing some districts into recapture.

Scott Brister, who chairs the commission, challenged the notion of inadequate funding. Villanueva responded that adequacy targets are an appropriate goal, and waiting to invest more resources only deepens the deficit lawmakers must eventually address. Johnson launched into an impassioned explanation of the fiscal challenges facing schools, which have seen funding decline while being asked to do more.

Vance Ginn with the Texas Public Policy Foundation (TPPF), a think tank funded by supporters of school privatization, offered a number of discredited claims regarding school funding, and argued for eliminating school district property taxes in favor of reduced state funding.

David Thompson testified that the shift from the state toward local property taxpayers is being driven by value growth, and urged legislators should commit at least a portion of value growth to increasing the basic allotment every session. Thompson also recommended closing a number of tax loopholes, such as for online retailers, and increasing the gas tax.

Speaking on behalf of Gov. Greg Abbott, former state Sen. Tommy Williams testified that the state should pay teachers more and reduce the burden of property taxes, which will require additional state funding. Notwithstanding this, Williams said funding should not be increased without accompaniment by school finance reform. The governor’s plan contains three essential elements: Rebalancing the state share of funding, paired with compression of local school property taxes rates; slowing the growth of local property tax bills; and treating all students equally, based on individual student needs as opposed to school district property values, which will require reducing the growth of recapture.

Williams then proceeded to outline the governor’s plan, which can be found here. In it, the governor’s office suggests capping school district Tier 1 maintenance and operations (M&O) tax revenue growth at 2.5 percent and replacing the lost funding with state dollars. The plan does not specify a funding mechanism or source. The plan also proposes outcome-based bonuses, awarding charter school attendance credits, and paying stipends to teachers who teach in more difficult classrooms, along the lines of Dallas ISD’s ACE program. This marked the first time the plan has been presented in public.

Asked by Sen. Bettencourt what the governor’s idea of additional state aid looks like, Williams suggested he would rather lawmakers not “back into that number” from available revenue, but rather to try and put a price tag on the recommendations from the commission’s working group on expenditures. Johnson followed up with a question regarding how much it would cost to buy down the tax rates as suggested by the governor. Williams did not offer an estimate.

In last-minute meeting, revenue working group gets orders

The Texas Commission on Public School Finance working group on revenues met briefly Tuesday evening after the commission’s formal meeting adjourned. Unlike the other two working groups, the revenues group led by state Sen. Paul Bettencourt (R-Houston) did not post a public notice following Texas open meetings guidelines.

Texas’s open meetings law was passed to limit secret government meetings and ensure the public has access to deliberations of public interest. The law explicitly applies to the school finance commission as a whole, however its application to working groups of the commission is less clear. The only notice was posted the day of the meeting in an obscure portion of the Texas Education Agency (TEA) website. Because notice was not provided according to guidelines laid out by the open meetings law, few people attended the revenues meeting and no audio or video of the meeting is available.

According to those inside the meeting, Sen. Bettencourt stated the working group will aim to score various spending and revenue proposals, including raising the state sales tax or gas tax, enacting the performance pay program proposed by TEA Commissioner Mike Morath, limiting recapture, extending the Universal Service Fund (USF) tax on land telephone lines to cell phones, and the 2.5 percent tax cap proposed by Gov. Greg Abbott during the special session. Bettencourt requested members submit their ideas for study topics before the full commission meets again July 10.

A snapshot of the proceedings was posted on social media: