Tag Archives: senate finance

Teach the Vote’s Week in Review: March 23, 2018

Here’s a look at this week’s education news highlights from the ATPE lobby team:


Congress advanced the omnibus spending bill to President Trump overnight and it received his signature this afternoon. The $1.3 trillion spending plan played out in a dramatic fashion, emerging Wednesday with support from both Republican and Democratic leadership, but with some waffling from President Trump.

After a bipartisan U.S. House vote of support (256-167) on Thursday and a similar vote in the Senate (65-32) that followed early Friday morning, President Trump again expressed consternation over the deal. He tweeted that he was considering a veto based on two missing pieces: full funding for his border wall and a plan for individuals that fall under the federal Deferred Action for Childhood Arrivals (DACA) program.

Ultimately, President Trump signed the legislation, but not without additional expressions of concern. Before the press this afternoon, he called the bill a “ridiculous situation” and told Congress he would never vote for a bill like this again, referring to its high price tag and lack of transparency. Trump said he was only signing it because it was a matter of national security and included increased spending for the military, the largest in history. He also highlighted several things he considers wins, like some initial funding to begin work on his border wall and dollars to address the opioid epidemic.

President Trump’s signature prevents a government shutdown that loomed at midnight tonight. Learn more about the spending plan, particularly as it relates to a funding boost for education, in this post from ATPE Lobbyist Kate Kuhlmann.

 


ATPE Lobbyist Monty Exter testified before the Texas Commission on Public School Finance on March 19, 2018.

The Texas Commission on Public School Finance met in Austin this week on Monday, March 19. The commission spent the day taking both invited and non-invited testimony from the public as the members consider their recommendations to the 86th Legislature for modifying the state’s school finance system. ATPE Lobbyist Monty Exter offered public testimony on behalf of ATPE, highlighting ways the school finance system could be overhauled to provide property tax relief. (The commission previously heard invited testimony from ATPE Executive Director Gary Godsey during an earlier meeting last month.) Read a full recap of Monday’s hearing and the extensive public testimony in this week’s blog post.

Ahead of Monday’s meeting, a consortium of education groups briefed the media on a new poll showing that most Texans support increasing the amount spent on public education. For more on the poll results, check out this blog post from ATPE Lobbyist Mark Wiggins.

A subcommittee or working group of the school finance commission tasked with studying school expenditures also held a meeting the following morning to take additional testimony relative to their charge. The working group is chaired by Rep. Dan Huberty, who also chairs the House Public Education Committee. Read more about Tuesday’s working group session here.

The chair of the full commission sparked controversy this week after he made comments questioning whether the state should spend money on students he referred to as “slow learners.” Special education advocacy groups were quick to complain about Chairman Scott Brister’s remarks, as reported by the Austin American-Statesman in this article that also features a quote from ATPE’s Exter.

The next meeting for the Commission will be on April 5, 2018 at 9 a.m. in the William B. Travis Building, Room 1-104, located at 1701 N. Congress Ave., Austin, TX. The meeting will be webcast at: http://www.adminmonitor.com/tx/tea/.

 


The Texas Education Agency (TEA) released its Draft Special Education Improvement Plan and Corrective Action Response this week to fix critical failures in the state’s special education system. The draft plan varies little from an initial draft the agency circulated in January, and the agency is seeking public comment on the latest version. You can e-mail feedback to TexasSPED@tea.texas.gov.

The plan carries a $211 million price tag, which does not include a substantial cost anticipated to be incurred by local school districts. The districts will be expected to perform the bulk of the work meeting the needs of children who were wrongfully denied special education services in the past due to districts’ following a TEA directive to limit special education enrollment. Because of this funding challenge, many school administrators are warning they will need additional financial support from the state in order to properly serve qualifying children. The Texas Council of Administrators of Special Education (TCASE) noted this in a press release this week, saying the TEA plan “is rich with school district monitoring and compliance measures, but fails to offer adequate financial and other support to districts.” Read the full TCASE press statement here.

 


Interim legislative hearings are in full swing now, and multiple committees are discussing how to address the state’s funding challenges that have a direct impact on public education.

Earlier this week, the Senate Finance Committee met to consider “options to increase investment earnings of the Economic Stabilization Fund,” often referred to as the state’s rainy day fund. Texas State Comptroller Glenn Hegar warned this week that the state could face a downgrade of its credit rating if it does not look at changing the way the $11 billion fund is invested. Decisions about the fund could have future implications for how the state funds teacher pensions and other education-related endeavors. ATPE Lobbyist Monty Exter has written more about the hearing in his blog post this week.

Another tough issue being debated by numerous committees this interim is teacher compensation. Several high-profile elected officials running for re-election have made teacher pay raises a key talking point in their campaign messaging, but few concrete plans or identified sources of funding have been proposed. On Monday, March 26, the Senate Education Committee will take its turn at debating the issue. ATPE Lobbyist Kate Kuhlmann has been invited to testify on the issue. Stay tuned to our blog next week for updates on this and other hearings.

 


 

Making better use of the state’s rainy day fund when it’s not raining

The Senate Finance Committee met today to take up a number of Senate interim charges. Among them, the committee took up the charge to examine options to increase investment earnings of the Economic Stabilization Fund in a manner that minimizes overall risk to the fund balance and to evaluate how the Economic Stabilization Fund constitutional limit is calculated; considering alternative methods to calculate the limit, and alternative uses for funds above the limit.

the Texas Economic Stabilization Fund, often referred to as the state’s rainy day fund, is a mechanism that diverts a part of the severance taxes the state collects on oil and gas production and sets those monies aside to fill budget shortfalls resulting from temporary economic downturns. The fund, which has been used many times since its inception, has in recent years grown to approximately $11 billion, larger than at anytime in its history.

During the last session lawmakers facing stiff budget constraints began to discuss how they could better utilize the rainy day fund, other than continuing to stuff cash into the state’s proverbial mattress. One idea floated by Texas Comptroller Glenn Hegar was to take a portion of the fund and invest it as an endowment such that the investment returns could be used to help pay for state priorities, like shoring up the state’s pension funds. Legislators were not comfortable acting on that idea without more time to vet it.

In today’s hearing Hegar reintroduced the idea of investing the whole of the rainy day fund in very liquid assets that would allow for a return that roughly matches the inflation rate and investing a portion of the fund, in excess of what legislators think they might need quick access to, in less liquid assets that would generate a higher return. The Comptroller’s office predicts that an investment of $3 billion, with additional biennial investments over a certain threshold, would within 10 years accumulate to a fund that generates $1 billion a year in usable revenue. In 20 years, that projection jumps to more than $2 billion a year. The idea was received fairly favorably.

One of the things the state has used the rainy day fund for in recent years is to justify credit rating firms’ assignment of a AAA (the highest) credit rating to the state. Having a AAA rating allows the state and school districts through the Permanent School Fund (PSF) bond guarantee program to pay the lowest possible rate on bond debt. It was pointed out in the hearing however, that the rainy day fund is only one factor those firms look at when assigning a score. Another, more heavily weighed factor is the health/unfunded liabilities of a state’s pension funds. Both TRS and ERS need improvement to ensure the state is able to keep its current rating. A downgraded rating could cost the state billions in additional interest over the life of the state’s and school dostricts’ many bonds.