Tag Archives: tax

From The Texas Tribune: A tight-fisted Texas Legislature with expensive ambitions

Analysis: A tight-fisted Texas Legislature with expensive ambitions” was first published by The Texas Tribune, a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

The Texas Legislature’s strong allergy to tax increases might be abating — just as long as you don’t call them tax increases.

They’re not saying so out loud — no point in riling up a price-sensitive electorate before the holidays, before the upcoming legislative session — or before lawmakers are ready to make their sales pitch.

But the talk of school finance as a top legislative priority guarantees a conversation about taxes. While there are many great policy reasons to mess with that persistent and gnarly issue, the political motivation here is simple: Texas property owners have made it clear to their representatives that they want lower property taxes.

When you do hear lawmakers talking about tax increases next year — whatever euphemisms they choose — they’ll be talking in terms of how that money will pay for property tax cuts. Cutting everyone’s current most-hated tax is the only way to explain so many conservative legislators making serious noises about increasing state revenue.

Given the way the state pays for public education — with a combination of local property taxes, and state and federal funding — the only ways to lower property taxes are to cut public education spending or to find money elsewhere to offset property tax cuts.

In the state’s 2019 fiscal year, the local share of school finance spending is estimated to be 55.5 percent of the total, while the state’s share is expected to be 35 percent, according to the Legislative Budget Board. The rest comes from the federal government.

The last time the Texas Legislature tackled school finance, the local and state shares matched. Years of rising property values – and rising local property tax revenue with them – have allowed the state to lower its share.

The price tag for a rebalancing would be enormous, though. And in spite of Democratic gains in last month’s elections, Texas still has a Republican-dominated state government, with GOP majorities in both the House and Senate, and Republicans in every statewide office. Many of them got where they are by opposing anything that sounded like higher taxes, which makes the road ahead pretty interesting.

If you do some quick arithmetic on those 2019 estimates, it would take a $5.7 billion increase in annual state spending to rebalance the state and local shares of public education spending. Doing that would put them both back where they were in 2008 — each covering about 45 percent of the load.

That’s easier to do on the back of an envelope than it is to do in the Legislature. The budget ahead is tight. House and Senate leaders have to pass what’s called a “supplemental appropriations bill” to take care of shortages in the current budget, Hurricane Harvey recovery costs, and so on. Early guesstimates are that they’ll start more than $5 billion short of what they need for the next budget — and that’s before they even bring up the expensive school finance project.

The governor already is circulating a document that dares to mention taxes in the title: “Improving Student Outcomes and Maintaining Affordability through Comprehensive Education and Tax Reforms.”

That gets right to the politics of the situation: State leaders are interested in easing property tax burdens, and school finance is the biggest lever in their toolkit. It’s also way out of balance and happens to need fixing. Lawmakers often blame the imbalance on school funding formulas. But they’re the authors of those dreaded formulas, and this is also a chance to put something better in place.

But it’s the tax problem — the price of owning property — that has made their price-sensitive voters potentially receptive to increases in other taxes. New money could come from eliminating exemptions, from property appraisal reforms, from raising existing tax rates or creating new taxes — any number of things. They’ll decide the details when they meet. They’ll figure out what to call it, too: It might be remarkable to see “tax” in the title of the governor’s presentation, but its neighboring word — “reform” — is the political touch.

They want to lower property taxes to make their voters happy, and to accomplish that expensive task without stirring up a new revolt from a different set of taxpayers.

At the end, someone in Texas has to pay for this stuff.

 

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2018/12/03/tight-fisted-texas-legislature-school-finance-property-tax/.

 

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The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

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.

 

School finance commission subcommittee approves expenditures plan

The Expenditures Subcommittee of the Texas Commission on Public School Finance met this week to lay out and vote on their recommendations back to the full commission. Based on both the recommendation and what the committee members had to say, it became clear that their primary goal is to drive dollars into increasing the basic allotment. They also have secondary goals of shifting funds out of programs not tied to educational programming and into programs designed to increase educational attainment for harder-to-teach students, particularly economically disadvantaged populations and English language learners.

The committee has not publicly released its report yet, but a summary breakdown of the recommendations can be found below. A video archive of the full subcommittee meeting, which lasted a little under an hour, is also available.

Group 1 – Reallocations of existing programs. This group represents approximately $5.3 billion to be spent on increasing existing initiatives and creating new initiatives.

  • Reallocate the Cost of Education Index (CEI) – $2.9 billion
  • Reallocate the 92-93 Hold Harmless – $30 million. This program only impacts 12 -20 school districts.
  • Reallocate the Ch. 41 Early Agreement Credit – $50 million. Eliminates a program that currently pays property wealthy districts to sign an annual contract by Sept. 1 agreeing to pay the state what they owe in recapture. The discount did not require districts to prepay or early pay.
  • Reallocate the Gifted and Talented (GT) allotment – $165 million. This recommendation eliminates the stand-alone allotment but does not eliminate other requirements to provide GT education from the Texas Education Code (TEC). Currently 99.9% of districts are at the 5% GT cap, meaning the same dollars can be more efficiently flowed out to schools through the basic allotment.
  • Reallocate the High School Allotment – $400 million.
  • Move from prior year to current year property values – $1.8 billion.

Group 2 – Increased spending on existing programs

  • Increase state compensatory education allotment from 0.2 to a spectrum that ranges from 0.225 and 0.275 as part of a tiered system that pays out higher amounts to campuses with more severely challenging populations. Currently, the recommendation is still based on free and reduced lunch but could use a more sensitive metric.
  • Change the transportation allotment to a millage-based approach at 0.83 cents per mile, to be set by appropriations.
  • Allow Ch. 41 districts to get compensated by the transportation allotment at a $60 million cost.
  • Fund the stand-alone small-size and mid-size district adjustment between $0 and $400 million outside the basic allotment, depending on where the basic allotment is set.
  • Increase the New Instructional Facilities Allotment (NIFA) to $100 million. This represents a $76 million increase over last session.
  • Expand Career and Technical Education (CTE) funding to include sixth through eighth grades – $20 million.

Group 3 – New programs

  • Create a dual language allotment of 0.15 at a cost of between $15 and $50 million. This new allotment would be in lieu of (not in addition to) the bilingual allotment; you can either get the bilingual allotment or the dual language allotment, but not both.
  • Create a dyslexia allotment of 0.1 – $100 million.
  • Create a Kindergarten through third grade ELL/economically disadvantaged allotment of 0.1 – $786 million. This money is not tied to outcomes and can be used to fund any program that seeks to improve reading and math on grade level by grade three, including paying for full day Pre-Kindergarten programs.
  • Create a grade three reading bonus of 0.4 – $400 million. This provides incentive money for students meeting grade level in reading on the 3rd grade standardized test.
  • Create a College, Career, and Military Readiness Bonus – no specific weight – $400 million. This is envisioned as a reallocation of the High School Allotment and is aimed to drive the state’s “60/30” goals.
  • Create a teacher compensation program – $100 million. This is the governor’s performance pay program. It is formula-based, not grant-based, and is not subject to appropriation. There will likely be no fiscal note for the program until year three, and it is envisioned to grow over time.
  • Fund an extended year summer pilot program – $50 million. This program is intended to reduce summer learning losses for disadvantaged students.

Additional changes recommended:

  • Change the guaranteed yield on the copper pennies from a set dollar amount to a percentage of the Basic Allotment. When the yield was set, the dollar amount used represented approximately 88% of the basic allotment. Now it is much less. Increasing the guaranteed yield increases state entitlement, which helps property poor districts and recapture districts.
  • Decouple the golden pennies from Austin ISD.

Stay tuned to Teach the Vote for reporting on future actions of the commission.

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:

Why March 6 Matters: School Finance

Early voting is underway NOW for the March 6 Texas primary elections, so we’re taking a look at some of the reasons why it’s so important that educators vote in this election! Today, we’re taking a closer look at school finance.


Perhaps no issue impacts every Texan more than school finance. For all of the lip service politicians pay to reducing property taxes, the only way Texans will ever see meaningful property tax relief is if the legislature puts more state money into public education.

Journalists such as Texas Monthly‘s R.G. Ratcliffe and the Texas Tribune‘s Ross Ramsey have exhaustively reported how state lawmakers have gradually reduced the share of state dollars spent on schools, shifting the burden instead onto the backs of local taxpayers. School funding has gone from a roughly fifty-fifty split between state and local funding sources a decade ago to a situation in which local taxes make up more than half of the burden, with the state ponying up just 38 percent. That’s an inconvenient reality for some incumbent lawmakers who want to place the blame elsewhere for the rising costs on Texas homeowners, even going so far as to characterize well-documented reports of the decline in state funding as “fake news.”

The current school finance structure that relies so heavily on locally generated property taxes is a great deal for legislators: First, they run campaigns promising to lower property taxes and rein in government spending. Then they get points for reducing state spending, and let local officials face the music when they’re forced to jack up property taxes to make up for the state’s miserliness. The budget signed by Gov. Greg Abbott in 2017 actually reduced the amount of state dollars spent on public schools by $1.1 billion, and let the balance fall once again into the laps of local taxpayers.

Yet some legislators have shown an interest in restoring the balance. Under the leadership of House Speaker Joe Straus, the Texas House passed legislation during the 85th Texas Legislature that would have put as much as $1.9 billion in new dollars into the public education system. The infusion of new money was intended to begin the long process of fixing the state’s “lawful but awful” system of public school finance. The Texas Senate slashed that amount to $530 million, then ultimately killed the legislation as payback for the House’s refusal to pass a voucher bill.

Those hoping for school finance reform in 2017 had to settle instead on a new state commission created to study school finance. Some fear this commission could devolve into yet another vehicle for those pushing school privatization, and educators are watching closely.

The next chance to fix the school finance system and lighten the load on local taxpayers will come when the legislature meets in 2019, but public education supporters will have their work cut out for them. The next two-year state budget is expected to be even tighter, and lawmakers will have to carefully prioritize spending in order to meet even their most basic funding obligations.

What this means is simple: Texans will only see lower property taxes and better-funded schools if they elect legislators and leaders who will prioritize public school funding as a core principle. Without additional public education supporters in the Texas Capitol, the current leadership can be expected to continue the trend of defunding public schools and dumping the load onto local taxpayers.

Our kids deserve better.


Go to the CANDIDATES section of our Teach the Vote website to find out where officeholders and candidates in your area stand on school finance and other public education issues. Because voting districts in Texas are politically gerrymandered, most elections are decided in the party primary instead of the November general election. That’s why it is so important to vote in the primary election. Registered voters can cast their ballot in either the Republican or Democratic primary, regardless of how you voted last time.

Remind your colleagues also about the importance of voting in the primary and making informed choices at the polls. Keep in mind that it is illegal to use school district resources to communicate information that supports or opposes specific candidates or ballot measures, but there is no prohibition on sharing nonpartisan resources and general “get out of the vote” reminders about the election.

Early voting in the 2018 primaries runs Tuesday, Feb. 20, through Friday, March 2. Election day is March 6, but there’s no reason to wait. Get out there and use your educator voice by casting your vote TODAY!

 

Answering your questions on 2018 Texas primary ballot propositions

Texas primary elections are slated for March 6, 2018. In addition to voting for candidates, primary voters will weigh in on a number of ballot propositions. As we shared with you recently on our Teach the Vote blog, these primary ballot propositions are not the same as constitutional referenda or local propositions. The primary ballot measures laid out by each party do not have any force of law, but are instead used by the Republican and Democratic parties to help develop each party’s state platform, or the list of things the party and its members generally believe in and are working toward making into law.

Each of these two parties has more than ten ballot propositions they are putting up for voters to consider in 2018, and some of the propositions have implications for public education. Several ATPE members have asked us to provide additional background on the propositions and guidance on where voters may find additional information about what they mean.

Education-related issues included in Republican party ballot propositions:

If you are voting in the Republican primary, your first non-binding proposition on the ballot asks whether “Texas should replace the property tax system with an appropriate consumption tax equivalent.” One blog reader asked ATPE for a layman’s explanation of the proposition. According to additional information on the Texas Republican Party’s website, Proposition #1 relates to an existing plank in the state party’s 2016 platform that called for replacing the property tax system with another form of taxation, but not an income tax. The party’s delegates in 2016 preferred a tax that would be based on how much an individual or business consumes. The most commonly known form of consumption tax is sales tax. Under current law, the bulk of funding for Texas public education is generated locally through property taxes. Accordingly, we believe this proposition from the Texas Republican Party contemplates funding Texas public schools with higher sales taxes or some other form of more variable consumption tax in lieu of property taxes.

What would be required to eliminate the property tax by increasing the sales tax? In 2016, sales taxes generated $36 billion in state and local revenue, while property taxes generated more than $56 billion. According to the non-profit Texas Taxpayers and Research Association, the state sales tax would have to be raised from 6.25 to 23 percent, using the current tax base, to make up for revenue lost from eliminating the property tax. If you expanded the sales tax base by taxing things like groceries, gas, water, medicine, and electric bills, as well as adding sales tax for services like those provided by doctors, lawyers, and architects, Texas would still have to raise the state sales tax to at least 15 percent in order for sales taxes to replace the current revenue from property taxes. When you add on the 2 percent local sales tax, you would end up with a total sales tax range of 17 to 25 percent.

Republican primary voters will also see a proposition on their ballot that pertains to paying for private or home schools. The Texas Republican Party’s Proposition #5 asks whether or not “Texas families should be empowered to choose from public, private, charter, or homeschool options for their children’s education, using tax credits or exemptions without government constraints or intrusion.” Some members have asked ATPE what this proposition means. Under current law, Texas families can already “choose from public, private, charter, or homeschool options for their children’s education.” Current laws at the state and federal level also enforce very little regulation on private schools, while homeschools exist with almost no government regulation. On the other hand, traditional public schools and public charter schools are considerably more regulated and are both subject to the state accountability system while being made available to students at no direct cost to their parents. Since Texas families already have school choice under the law, this ballot proposition seemingly seeks input on whether or not the state should create some new form of voucher system that would fund private and or homeschool settings without attaching any accountability (“government constraints or intrusion”) to those public funds.

Another GOP ballot measure that mentions public schools this year is Proposition #6, which reads, “Texas should protect the privacy and safety of women and children in spaces such as bathrooms, locker rooms, and showers in all Texas schools and government buildings.” As with the first ballot measure discussed above, you have to compare this language to current law in order to unpack what the measure is actually proposing.

Texas already has multiple laws that protect women and children (and men for that matter) from harassment, assault, rape, murder, child abuse, and other specific crimes, whether those crimes occur in a bathroom, locker room, shower, or anywhere else. According to the Texas Republican Party’s voter guide explaining its 2018 ballot, this particular proposition is aimed at protecting against “some schools” that the party’s leaders say have “tried to allow boys to have access to girls’ private areas, including school showers and restrooms.” This proposition revisits the subject matter of some controversial bills that were filed during the 2017 legislative sessions but did not pass regarding school district policies on bathroom usage by transgender children. Texas does not have a state law prohibiting transgender children from entering a restroom matching the gender with which they identify. Currently, school districts or individual campuses set policies locally to determine how to address individual student situations and requests from families. This ballot proposition appears to contemplate whether or not there should be a single state law that supersedes any local policies.

A final GOP ballot measure that would impact public schools and other local entities has to do with property tax revenue. Proposition #10 reads, “To slow the growth of property taxes, yearly revenue increases should be capped at 4%, with increases in excess of 4% requiring voter approval.” To address questions about what this proposition means, it’s helpful to consider how local school funding is currently generated and what types of tax increases require voter approval under existing law.

About two-thirds of the money used to pay for local schools is derived from local property tax collections. As a result, any significant change to the property tax system is likely to affect school funding. Unlike most other local entities, the vast majority of schools are already subject to rollback elections if school district trustees choose to raise their local tax rate above current levels. This 2018 Republican party ballot proposition, however, speaks to revenue, which is a combination of tax rates and property values. Currently, if a school district’s revenue increases due to a rise in property values, and not because of an increase in the property tax rate, the district does not have to conduct a rollback election. Under a four percent revenue cap that is being proposed by the Texas Republican Party leadership, school districts would have to conduct a rollback election every time their revenue from increased property values exceeds four percent. It’s worth noting that rollback elections are themselves expensive to conduct and are funded out of money that would otherwise be spent by the school district educating students. This proposition contemplates that if voters do not approve of the increase in revenue, the district would likely have to decrease its property tax rate in order to bring down its total revenue increase to four percent or less.

As a side note, the Texas legislature has used increases in local property values to offset its own decreases in per-pupil state funding for more than a decade. This is why the ratio of state to local public education spending has gone from roughly 50/50 about ten years ago to 38/62 (or less) by 2019.

Education-related issues included in Democratic party ballot propositions:

If you are voting in the Democratic primary this year, your ballot will include Proposition #1 asking, “Should everyone in Texas have the right to quality public education from pre-k to 12th grade, and affordable college and career training without the burden of crushing student loan debt?” According to the Texas Democratic Party, the ballot measure is one of a set of propositions dubbed by party leaders as “The Texas Bill of Rights; 12 Big, Bold Ideas to Save Texas.”

Focusing on the pre-K through 12th grade portion of the language in this first proposition, it is unclear by the ballot language itself exactly what specific policies the Democratic party is attaching to ensuring each Texan’s “right to a quality public education.” There are dozens, if not hundreds, of potential initiatives that could fall under ensuring a quality education for every Texan. However, a closer look at the party’s 2016 state platform reveals that the party believes, “Every child should have access to an educational program that values highly skilled teachers and encourages critical thinking and creativity, without the harmful impact of high stakes standardized testing.” The party’s 2016 platform also contains several specific recommendations for funding Texas public schools, reducing recapture, ensuring that all mandates are funded, opposing using public tax dollars for private schools, prioritizing resources for pre-Kindergarten, addressing teacher quality through higher pay and teacher certification standards, reducing high-stakes testing, and other initiatives.

 

Click here to view the complete set of nonbinding propositions for the Republican and Democratic primary ballots in the 2018 primary election. For additional information about individual propositions, ATPE encourages you to check out the websites of the Texas Democratic Party and Republican Party. Remember that it is against the law for educators to use school district resources to communicate support or opposition for a ballot measure or candidate, but you can share nonpartisan and general information about the elections and the importance of voting.

Be an informed voter and use your educator voice to share input on your party’s platform. Get out and vote in the 2018 Texas primaries!

Teach the Vote’s Week in Review: Dec. 22, 2017

Happy holidays! Here’s your week in review from ATPE Governmental Relations:


Earlier today, President Donald Trump signed into law a major tax overhaul bill approved by Congress this week. The president also signed off on a short-term funding bill to keep the federal governmental operational for a few more weeks until longer-term legislation can be passed. The final $1.5 trillion tax bill omits some provisions that were worrisome for educators employed in public schools, which ATPE urged our congressional delegation to remove from earlier versions of the legislation. For more on the tax law that was approved, check out this blog post from ATPE Lobbyist Kate Kuhlmann.


Texas Speaker of the House Joe Straus (R-San Antonio) has announced his appointments to two key state commissions. First, the speaker revealed his picks to serve on the new Texas Commission on Public School Finance, authorized by the legislature earlier this year. The House appointments include Reps. Dan Huberty (R-Kingwood), Diego Bernal (D-San Antonio), and Ken King (R-Canadian). Fittingly, all three of the representatives chosen by the speaker also hold leadership roles on the House Public Education Committee: Huberty as committee chair, Bernal as committee vice-chair, and King as chair of the Subcommittee on Educator Quality. Also appointed to serve on the commission is Nicole Conley Johnson, who is currently employed as Chief Financial Officer for Austin ISD. Additional members of the school finance commission were previously announced by Gov. Greg Abbott and Lt. Gov. Dan Patrick.

Yesterday, Straus also announced that Reps. Chris Paddie (R-Marshall), Stan Lambert (R-Abilene), and Poncho Nevarez (D-Eagle Pass) would serve on the Sunset Advisory Commission, along with public member and retired accountant Ron Steinhart of Dallas. The commission is charged with overseeing and making recommendations to the legislature on periodic reviews of various state agencies.


Twenty Texas school districts will have an opportunity to take part in a pilot program using locally designed accountability measures. Commissioner of Education Mike Morath named the districts selected earlier this week from a pool of 50 applicants. The pilot program falls under Rep. Dan Huberty’s House Bill 22 passed earlier this year. For more on the local accountability pilot study, view information on the Texas Education Agency’s website here.



 

Congress releases final tax bill

The U.S. House and Senate have finalized a conference tax bill that is expected to be voted on by each body over the course of next week. After the individual chambers passed their own bills pertaining to reforming provisions of the current tax code, a conference committee was appointed to work out the differences in the bills. The final bill must now receive the support of both chambers and the signature of the president before it becomes law.

ATPE wrote members of the Texas delegation last week to urge members of the conference committee and leaders in both chambers to stand with teachers on two issues: maintaining a credit for educators who spend personal money on classroom supplies and omitting a potential new tax on investments of public employee pensions like the Teacher Retirement System (TRS) of Texas. ATPE is pleased to report that the final bill reflects our requests on both issues.

The educator expense deduction was maintained at up to $250 a year, giving educators who use money from their own paychecks a nominal but meaningful credit for at least a portion of what is spent to give all students and classrooms access to needed supplies. The House bill originally scrapped the deduction altogether, while the Senate bill doubled the max deduction to as much as $500.

The Unrelated Business Income Tax (UBIT), as it related to public pensions, was ultimately scrapped under the final bill. The House bill would have applied the tax to public pension investments, including the TRS trust fund, which could have weakened its financial soundness by subjecting it to new additional tax liability. The Senate’s bill did not apply the new tax to public pension investments.

Another issue that garnered significant attention was a provision termed to be one aimed at “school choice” and was included in varying forms under both bills. The Senate’s provision on the topic was added in the final hours of debate by Senator Ted Cruz (R-TX). The final bill includes a negotiated version of the provision, which expands spending eligibility for 529 college savings accounts. If the bill becomes law, parents will be able to use the money they’ve saved in a 529 account to pay for up to $10,000 a year in K-12 education expenses, including at private schools.

ATPE appreciates the conference committee’s final decision on both the educator expense deduction and the UBIT. We also appreciate the help of legislators and leaders who advocated on behalf educators. High-profile provisions of the final plan include a reduction of the corporate tax rate from 35 to 21 percent, a smaller top tax rate for individuals (at 37 percent instead of just under 40), omission of the Obamacare-era tax fine for those who don’t buy health insurance, and a cap on the deduction of state and local taxes (SALT) at $10,000.

Teach the Vote’s Week in Review: Dec. 15, 2017

As you’re preparing for a holiday break, here’s a look at this week’s education news from ATPE:


As ATPE and other associations are working to encourage the education community to get out the vote in the 2018 elections, our GOTV efforts are rankling some officeholders and the special interests that have supported them financially. Seemingly frightened by the prospect of high voter turnout among educators, at least one lawmaker is complaining about school districts fostering a culture of voting among their staffs and students. As ATPE Lobbyist Mark Wiggins reported yesterday on our blog, Sen. Paul Bettencourt (R-Houston) is asking Texas Attorney General Ken Paxton to issue a legal opinion to try to stifle the nonpartisan voter education efforts being spearheaded by the Texas Educators Vote coalition, of which ATPE is a member.

ATPE and other groups involved in the movement were quick to defend the nonpartisan work of the coalition, which is comprised of several groups that do not endorse candidates at all. The League of Women Voters, for example, tweeted, “The League’s mission is Empowering Voters. Defending Democracy! We are proud to partner with Texas Educators Votes and support their mission to create a culture of voting in Texas.”

Some educators naturally questioned why a sitting state senator would want to dissuade educators from voting and teaching students about the importance of voting. “Why would a leader not want school boards to adopt a resolution that encourages students, faculty, and staff to #vote?” asked former ATPE State President Cory Colby (@EffectualEdu) on Twitter. Another educator (@drdrbrockman) tweeted, “Looks like @TeamBettencourt doesn’t want educators to turn out to vote. Nothing in the Texas Educators Vote resolution pushes particular candidates or electoral outcomes.” ATPE member Rita Long commented on our blog, “I will vote in every election and encourage every citizen to vote. It is my right and privilege to have a voice in our elections. Educators must use their votes to have a voice in what is happening in public education. Our students are our future. Education issues should be a top priority with every American.”

Responding to the growing criticism on social media, Sen. Bettencourt doubled down on his unfounded claim that the coalition was using public school resources to promote particular candidates or ballot measures. The senator has not yet identified any examples of particular candidates allegedly being promoted by way of the coalition’s GOTV efforts.

By law the Attorney General’s office has six months to respond to Bettencourt’s request for an opinion, but AG Paxton is likely to issue a ruling ahead of the 2018 primaries. Several education groups involved in the coalition efforts will be submitting briefs to the AG’s office in the coming weeks. Stay to tuned to Teach the Vote for updates.

Related content: As part of our ongoing effort to encourage educators to participate in the 2018 primary and general elections as informed voters, be sure to check out our candidate profiles right here on our nonpartisan Teach the Vote website. This election cycle, we’re featuring profiles of every candidate running for a Texas legislative seat, State Board of Education, governor, and lieutenant governor. Profiles includes incumbents’ voting records on education-related bills, responses to our candidate survey, contact information for the campaigns, and additional information compiled by ATPE’s lobby team. New information is being added daily as we learn more about the candidates. If candidates in your area have not yet answered our candidate survey, please encourage them to do so. Inquiries about Teach the Vote and our candidate survey may be sent to government@atpe.org.

 

 


The U.S. Congress conference committee established to hash out disagreements between the U.S. House and U.S. Senate Republican tax plans has come to an agreement on a final plan. The committee met Wednesday to review the plan in a public hearing. Much of the high-profile provisions of the final plan have been discussed in public and reported by the media. For example, the corporate tax rate would be reduced from 35 to 21 percent, the top tax rate for individuals would go from almost 40 to 37 percent, the Obamacare-era tax fine for those who don’t buy health insurance would be removed, and the state and local taxes (SALT) deduction would be kept but capped at $10,000. Still, many smaller details of the negotiated plan remain unknown. Those include two issues raised in an ATPE letter to members of the Texas delegation: (1) a deduction for educators who use personal money to buy classroom supplies, and (2) a potential new tax for public pension investments, such as those in the Teacher Retirement System (TRS) trust fund.

The details of the bill are expected to be released later today. Follow @TeachtheVote on Twitter and watch for more updates as information becomes available. The tax bill must still receive a final vote of support in both chambers and receive the signature of the president before it becomes law, which Republican leadership hopes to have completed by Christmas.

 


Students in some school districts affected by Hurricane Harvey will see relief from certain standardized testing requirements. The Texas Education Agency (TEA) announced Thursday that Commissioner Mike Morath would waive some STAAR requirements for certain students affected by the massive storm. The commissioner has remained reluctant to provide relief in the form of STAAR testing schedules or accountability requirements, but he changed his tune slightly after Gov. Greg Abbott joined the chorus of those in favor of loosening accountability and testing requirements for Harvey-affected students and schools. Morath sent a letter to impacted school districts on Thursday explaining that fifth and eighth grade students who fail to pass the required state standardized tests twice can advance to the next grade level if district educators agree they are ready. Learn more about Morath’s decision to waive some testing requirements in this article from the Texas Tribune.

 


The State Board for Educator Certification (SBEC) and State Board of Education (SBOE) will host a free conference on teacher preparation and retention in January. The one-day event will feature roundtable and panel discussions on how Texas can better prepare its future teachers, support those in the classroom, and retain teachers tempted to the leave the field. It will also feature keynote speeches from Doug Lemov, who authored Teach Like a Champion, and Peter Dewitt, the author of Collaborative Leadership: Six Influences that Matter Most.

The conference, titled Learning Roundtable: Recruiting, Preparing and Retaining Top Teachers, will be held at the Austin Convention Center from 8:30 am until 4:30 pm on Thursday, January 25, and will offer up to 5.5 hours of continuing professional education (CPE) to participating educators. To view the full-day agenda, learn more about the event, or register to attend, visit the Texas Education Agency’s conference web page.

Related content: SBEC met last week for its final meeting of the year to discuss a broad agenda that included rulemaking resulting from bills passed during the 85th legislative session. The board also rejected revisiting a controversial and unnecessary pathway for superintendent candidates to seek certification without prior experience in a classroom, school, or managerial role. Read a recap of the meeting from ATPE Lobbyist Kate Kuhlmann who attended the meeting and testified on behalf of ATPE.

 


The Teacher Retirement System (TRS) board met yesterday and today, and ATPE Lobbyist Monty Exter was in attendance. As reported in Exter’s blog post, the meeting included a discussion of the annual reports on the actuarial valuation of the TRS pension and healthcare funds.

 


 

Teach the Vote’s Week in Review: Dec. 8, 2017

It’s a snowy edition of today’s education news wrap-up from ATPE Governmental Relations:


The State Board for Educator Certification (SBEC) is meeting today in Austin. ATPE Lobbyist Kate Kuhlmann is attending and testifying at today’s meeting, which had a delayed start on account of the overnight snowfall and concerns about road conditions in central Texas. The board today gave final approval of educator disciplinary rule changes implementing Senate Bill 7 as passed by the Texas Legislature earlier this year to address teacher misconduct. Also approved were standards tied to a new early childhood teaching certificate and a preliminary rule revision to clarify the continuing professional education requirements for teachers renewing their certificates. SBEC declined to act today on one board member’s request to consider loosening requirements for individuals to become certified as superintendents. ATPE and other educator groups testified in opposition to diluting the superintendent certification standards. Stay tuned to Teach the Vote on Monday for a more detailed summary of today’s SBEC meeting from Kuhlmann.


Voters participating in the Texas Republican Party primary in March 2018 will be asked to share their views about private school vouchers. ATPE Lobbyist Mark Wiggins has a look at 11 non-binding propositions approved by state GOP party leaders for placement on the March ballot. They include questions about property taxes and revenue caps, along with a proposed statement of support for funding vouchers for private or home schooling “without government constraints or intrusion.” Read more in the blog post here.


In case you missed it, ATPE has provided input to Texas’s congressional delegation on tax reform proposals still pending in Washington, DC this week. Read more about the proposals put forth by the U.S. House and Senate respectively and how they could impact educators in this blog post from ATPE Lobbyist Kate Kuhlmann.


Monday, Dec. 11, is the deadline for candidates to file for inclusion on the ballot in one of the state’s primary elections on March 6. ATPE will be updating our TeachtheVote.org website to include any newly filed candidates once the filing period closes. All candidates running for Governor, Lieutenant Governor, State House, State Senate, or State Board of Education (SBOE) are invited to participate in ATPE’s candidate survey and have their responses and additional information featured in individual candidate profiles on the website. Candidates must provide ATPE with a campaign email address in order to participate in the survey. Several candidates have already taken our survey and shared their views on public education issues with voters. We look forward to receiving additional responses as the election nears and hope you’ll check out and share our election resources on TeachtheVote.org.