Tag Archives: TRS-Care

A bill to eliminate TRS healthcare plans: Crazy genius or just plain crazy?

On Tuesday, November 10, Representative Ken King (R – Hemphill) pre-filed House Bill (HB) 430, a bill that aims to eliminate the healthcare plans currently administered by the Teacher Retirement System (TRS) for active and retired educators in Texas. Three days later, King released a letter addressed to “all school personnel both active and retired” that seeks to explain his vision related to HB 430.

Rep. Ken King

“As a legislator I cannot in good faith continue to put a cash band aid on a broken system,” writes King in his letter. The representative describes the TRS healthcare programs as losing members who are opting for better coverage, which results in a smaller risk pool. King contends that this fairly small change in the size of the TRS risk pool results in higher premiums for the remaining participants. However, past information provided by TRS  suggests that such fluctuations in the very large TRS risk pool are unlikely to have a dramatic impact on cost.

In his letter to the education community, Rep. King lays out the following four goals, or “broad strokes” as he puts it, that make up his plan to address active and retired teachers’ health insurance needs in the future as TRS-Care and TRS-ActiveCare are phased out:

  1. The Legislature would provide a cost-of-living adjustment (COLA) that is “large enough” to allow retired educators who are age 65 or older to afford Medicare Part A and Part B.
  2. The Legislature would “create a runway for our 55-65 year-old participants to get to Medicare age.”
  3. The Legislature would allow active teachers to join the Employee Retirement System (ERS), which King says would increase the risk pool and lower premiums “dramatically.”
  4. The resulting lowered premiums would be considered “a teacher pay raise that is truly sustainable,” according to King.

Also in his letter, Rep. King asks stakeholders to “understand that HB 430 cannot, on its own, accomplish the plan above.” Taking a closer look at HB 430 as filed, that is certainly true. In fact, as it presently stands, HB 430 addresses none of the author’s stated goals.

First, HB 430 would close TRS-Care and TRS-ActiveCare to new participants. The bill would move Care participants off the plan as they reach age 65, which would result in most retirees being off the plan within five to seven years. Next, HB 430 would close Care and ActiveCare to any remaining participants after 10 years, and it would disperse the excess funds. In short, HB 430 would shut down both the active and retiree healthcare plans that currently exist through TRS, and at least for now, that is all the bill would do. In other words, the bill repeals, but does not replace anything.

What about Rep King’s four goals? He writes in his letter that he intends to file additional legislation that would work in concert with HB 430 to achieve those goals and his vision for reforming educator healthcare. As of our writing this post, these additional bills have not yet been filed.

As the 2021 legislative session approaches, ATPE will be monitoring and engaging in discussions about this bill and any other related legislation that is filed. We will be watching, in particular, to see if such legislation attempts to address the following challenges related to healthcare for Texas educators:

  • First, the Legislature needs to create a mechanism for providing automatic and ongoing COLAs as opposed to merely a one-time increase in retirees’ benefits.
  • A comprehensive plan must recognize that the need to provide healthcare for retirees who have not yet reached age 65 will persist indefinitely into the future — not merely over the course of the next decade.
  • Any plan to allow active educators to access the ERS health insurance plan would need to provide many more details, for example on its cost and viability.
  • Perhaps most importantly, an overhaul of the state’s system for providing healthcare to educators must include a plan for sustainable, long-term, formula-based funding. The funding plan should be written into statute, at a minimum, and preferably would trigger a constitutional amendment. Simply funding such a program through a budget rider would make it too susceptible to cuts from session to session.

Until his follow-up legislation is filed, the jury will remain out on whether Rep. King’s proposal to reform the state’s system of providing health insurance for over one million active and retired educators is crazy genius or just plain crazy. Stay tuned to Teach the Vote for additional information on this and other bills that may be considered in the upcoming legislative session.

Wrapping up the July TRS board meeting

The Teacher Retirement System (TRS) of Texas Board of Trustees met virtually last week on Wednesday through Friday, July 15-17, for its regular board meeting. In addition to other items, the board discussed the current financial market, TRS-Care and ActiveCare, the fiscal year 2021 budget and highlights of the preliminary legislative appropriations request, and updated considerations on TRS office space.

The official numbers for the trust fund through March 31 were presented to the board, but it was noted that those numbers are at this point significantly out of date. Staff went on to report that the market (as gauged by the S&P 500) has rebounded to approximately January 2020 levels, and they indicated that the TRS fund has tracked the market similarly. The benefit of the quick recovery of fund assets is that only a relatively small amount of assets had to be sold while prices were down to cover the cost of pension benefits paid out over that time frame. Longer recovery periods are by comparison much more detrimental to the fund because the period in which assets have to be sold at a reduced price, effectively locking in losses, is much longer.

TRS Board Presentation: S&P 500 chart

While the stock market and the TRS pension fund are relatively unscathed by the coronavirus pandemic for the moment, the state budget that relies largely on sales tax receipts and oil and gas severance taxes is in much worse shape. Due to this reality, state leaders called on all state agencies to cut their fiscal year 2021 budgets. Although the retirement system’s operational expenses are paid out of the pension fund itself and not out of the state’s general revenue, TRS still undertook the budget trimming exercise.

TRS staff presented the board with a proposed operational budget of $211 million for fiscal year (FY) 2021. This represents a 9% decrease from the FY21 target budget and a 6% decrease from the FY20 operational budget, which was $225 million. As part of the cost saving measures, TRS has instituted a hiring freeze through 2020 and a salary freeze through FY21. The agency has also cut the majority of outsourced funding going to vendors previously working on the data systems project dubbed TEAMS. The project will continue with the current number of in-house employees. TRS is also abandoning the effort to set completion dates on TEAMS benchmarks, as those dates have proven to be unrealistic and problematic.

In addition to next year’s budget, TRS staff also updated the board on the draft legislative appropriations request (LAR) the agency will present to lawmakers during the next legislative session. The agency’s request will cover fiscal years 2022 and 2023. The request will ask for specific funding to cover the state’s share of healthcare and pension costs, in addition to approval of the agency’s projected operational budget. TRS plans to ask for funding in the agency’s LAR based on the increased state contributions to pensions and retiree healthcare that legislators ordered during the last session and considering standard payroll growth assumptions for teacher salaries.

The agency’s LAR will also include a request for funding for 25 additional employees, or what are referred to as “Full-Time Equivalents” (FTEs). TRS staff had internally requested an additional 167 FTEs: 57 for the Investment Management Division (IMD) and 110 for the Benefits division. The 25 new FTEs in the agency’s LAR will go to IMD as a part of a “growing the fleet” initiative. This initiative aims to save the pension fund money by reducing outsourced costs in a greater amount than the cost of the new salaries. The Benefits division will have no new FTEs included in the upcoming LAR.

Over the last 18 months, space planning has become a constant conversation at the TRS board level as issues over the short term plans to lease space for housing the IMD staff have transitioned into a broader conversation on longer-term space needs for all staff. TRS continues to move forward with the goal of having a solution for its long-term office space needs in place by 2025. A major priority of that push is to house all TRS employees in the same location and discontinue the practice of housing the IMD staff in separate leased space.

As with everything, the current coronavirus has impacted the discussion around TRS space planning. With declining real estate prices and new potential spaces opening up in downtown Austin, the agency has paused its negotiations to renew its lease at 816 Congress so as to assess if there are better options available. Unfortunately, while the current market may present an opportunity for savings as a tenant, it is creating a more challenging environment in which to sublet the TRS space in Austin’s new Indeed Tower. The COVID-19 pandemic also has forced the agency to utilize remote working for a significant number of its staff for an extended time frame. Due to this change, TRS has revised its assumptions going forward on the percentage of staff who can work from home on a daily basis from 5% up to 25%. This change decreases TRS’s overall space requirements but also highlights a need for more collaborative space for staff who may usually work outside the office to come in and use. This also opens up the possibility that, with significant renovations, the agency’s current Red River location could house all TRS employees on a longer-term basis. Such renovations might not be any less expensive than simply relocating the agency to a new location outside of downtown Austin.

Finally, nominations for an active member seat on the TRS board of trustees are currently underway. The nomination period began June 15 and will continue through January 25, 2021. Assuming there are more than three successful nominees, an election will be held from March 15 to May 5, 2021. The top three vote-earners from that election will be reported to the governor, who will appoint the new board member from among those three candidates. ATPE members interested in running for this TRS board position can contact the ATPE Government Relations team for more information.

Access board documents and archived video of the July meeting here on the TRS website. The next TRS board meeting will be held in September.

Healthcare and office space discussions dominate February 2020 TRS meeting

The Teacher Retirement System of Texas (TRS) Board of Trustees held its first meeting of 2020 in Austin this week. In addition to receiving typical reports on market trends and internal processes, such as the agency’s new diversity program, the board took action on two major issues regarding TRS space planning and healthcare for both the active and retired educator population.

TRS office space plans

The first day of the board’s two-day meeting was dominated by a discussion of TRS’s space planning needs, including issues surrounding the immediate future location of the TRS Investment Division, which has been in the news as of late. After a lengthy discussion of the history of the agency’s housing over the last two-plus decades, TRS staff recommended the Investment Management Division renew its current lease at 816 Congress Avenue in Austin (an option that was not previously available due to insufficiency of available space in the building). This would be a seven-year lease with a one-time right to terminate the lease if a new headquarters is found to house all of TRS. The recommendation also calls for TRS to sublet space it recently contracted to lease at the new Indeed Tower in downtown Austin. After the board’s vote to accept the recommendation, TRS Board Chairman Jarvis Hollingsworth released the following statement:

“Today, the board considered additional options that recently became available and approved a solution that meets the space needs of our growing investment division, while also demonstrating sensitivity to member concerns.”

The agency will also move forward with consideration of building a new main campus outside of downtown Austin to house at least the staff currently located at the current main campus on Red River Street, potentially bringing all TRS staff back under the same roof.

Healthcare

During Friday’s meeting, TRS staff presented a recommendation, which the board approved, on the network providers for all of the major heath insurance funds managed by the board. TRS released the following press release about the changes, which they say could save the combined health insurance programs of TRS as much as $754 million  over the next three to five years.

Staff also updated the board on the TRS-ActiveCare listening tour that is designed to get feedback from the field on the healthcare program for active educators. TRS will use the information it receives to focus their efforts on what are determined to be priority improvements to the system. These discussions include consideration of creating more regional options in addition to the statewide plan.

ATPE will continue to monitor TRS developments and actively engage with the TRS staff and board on the policies impacting active and retired teachers in Texas.

 

More detail on the last TRS meeting of 2019

As we mentioned here on Teach the Vote last week, the Teacher Retirement System of Texas (TRS) board of trustees met last Thursday and Friday, Dec. 12-13, 2019. The board opened its final day of meetings for 2019 with public comments before taking up an agenda that included adoption of a new funding policy and considering where the TRS agency should be housed in the future. The TRS board heard testimony last week from ATPE and the Texas Retired Teachers Association (TRTA) as well as some individual retirees. ATPE Senior Lobbyist Monty Exter addressed the association’s concerns with language in the proposed funding policy to be considered for adoption later in the meeting.

Senate Bill (SB) 2224, as passed during the last regular session of the legislature, requires the TRS board to adopt a written funding policy detailing its plan for achieving a funded ratio equal to or greater than 100 percent for the pension trust fund. The original language proposed to the board could have been interpreted as creating a policy that was more prescriptive than current law with respect to cost of living adjustments (COLAs), potentially putting the board at odds with mandates from future legislatures. The legislature, not the TRS board, determines whether or not TRS should grant a COLA to retirees.

After considering the concerns voiced, the board struck the objectionable language before adopting the remainder of the proposed policy. The new funding policy as adopted will require TRS staff to include additional requests for funding in the agency’s legislative funding requests anytime they determine that current funding is not sufficient to keep the pension fund on track toward paying off the balance of its unfunded liability in less than 30 years.

Currently, the $160 billion TRS trust fund is on track to pay off its unfunded liabilities in 29 years. This is largely due to this year’s passage of SB 12, which phases in higher contribution rates for school districts, educators, and the state over the next five years. Prior to SB 12, the fund’s payoff date was more than 87 years into the future, cutting off the possibility of benefit enhancements for retirees for nearly six decades.

With the state of the TRS pension fund significantly shored up after the 2019 legislative session, it is likely that lawmakers will return their focus to improving TRS health insurance. In fact, the Texas House of Representatives recently appointed a new special committee to study statewide healthcare to be chaired by Rep. Greg Bonnen, a neurosurgeon from League City and the co-sponsor of SB 12. Chairman Bonnen was present at the TRS board meeting last Thursday  for a discussion by its Benefits Committee regarding primary care directed models and how to improve outcomes and costs associated with TRS-Care and TRS-Activecare. As the largest single insurer and one that covers members both during their working years and into retirement, TRS is in a unique position to influence a new round of early discussions on improving healthcare in Texas.

TRS has come a long way over the last 30 years. The fund has grown from less than $20 billion to just over $160 billion. Over that same time TRS staff has grown from around 300 employees to more than 700, at the same time that the number of TRS members has increased from around 500 thousand to more than 1.6 million. TRS has moved six times since 1937 before locating the agency in its current home in 1973. Growth in the number of members and exponential growth in the size of the trust fund has pushed TRS’s staffing needs beyond what its current physical location can accommodate.

As the TRS board and staff seek a new home for the agency, they are keeping certain priorities in mind. The space should be centrally located and user-friendly for the members; the new space should provide a long-term solution; and the move away from the current space to a new one should result in a net positive for the fund. These priorities translate into building a new space in central Texas, but outside the downtown Austin business district. Additionally, it means leasing the current TRS space in order to maximize profits for trust fund.

For more on last week’s TRS meeting, click here to view the board materials or watch archived footage.

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

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

TRS Pension Reform

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

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

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

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

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

 

TRS Healthcare

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

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

TRS board meeting in Austin this week

The Teacher Retirement System (TRS) board was in Austin for their regularly scheduled board meeting on Thursday and Friday of this week. The board kicked off its hearing with a resolution celebrating the life and service of Mike Lehr, former executive director of the Texas Retired Teachers Association with more than 50 years working as a public school educator or on behalf of active or retired public school educators.

Also of note, TRS executive director Brian Guthrie updated the board on interactions TRS has had with legislators as a part of the ongoing legislative session. TRS recently presented on its general outlook and budgetary requests before both House and Senate budget committees as well as the House Pensions Committee. The agency will still have one more general presentation to the Senate State Affairs Committee, and then the agency role will shift to assisting lawmakers more behind the scenes.

The remainder of the first day’s morning session covered topics such as internal staffing policy, customer service, and how the agency communicates with TRS members. Thursday afternoon the board underwent ethics training and had an in-depth discussion of healthcare and healthcare design related to the TRS-Care and TRS-ActiveCare insurance programs.

The board’s Friday agenda focused on the TRS investment program, including the agency’s emerging manger program, a view of national and global financial trends, and TRS’s own strategic asset allocation.

Those who are interested can watch an archive of the board’s Thursday meeting and Friday meeting.

 

House Appropriations hears from TEA and TRS

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

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

House Appropriations Committee meeting Feb. 4, 2019

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

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

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

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

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

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

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

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

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

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

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

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


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

 


Senator-elect Pete Flores (R-San Antonio)

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

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

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

 


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

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

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

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

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

 


Teach the Vote’s Week in Review: Sept. 7, 2018

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


Testifying at the House Appropriations Subcommittee on Article III this week, ATPE Lobbyist Monty Exter advocated for an expansion of the list of free and near-free drugs covered by TRS-Care. The subcommittee, which met Wednesday, oversees the state’s education budget, including the Teacher Retirement System’s pension fund and health insurance. A persistent lack of funding over the years has lead to an increased burden on both active and retired educators who have seen healthcare premiums rise with no increase in the percentage contributed to their pensions. The urgent need for more funding and resources for the TRS system will be a hot button issue during next year’s 86th Legislative Session, one that ATPE lobbyists will be tackling head on. Find out more about Wednesday’s subcommittee hearing in this article by ATPE Lobbyist Mark Wiggins.

 


The 2018 general election is right around the corner, but even closer than that is a special election runoff in Texas Senate District 19 (SD 19). The special election was called when former Sen. Carlos Uresti stepped down following his felony conviction. While all Texans are not be able to participate in this one special election, all Texans will feel the effects of its outcome as San Antonio residents decide who will take one of the Texas Senate’s 31 seats.

Next Monday through Friday, Sept. 10-14, voters in the district that runs from the greater San Antonio metroplex to the tiny town of Orla, Texas, will have a say in whether Democrat Pete Gallego or Republican Pete Flores represents them in the state’s upper chamber when the legislature convenes in January. For those who miss early voting, the special election runoff for SD 19 will take place Tuesday, Sept. 18, 2018.

 


The Texas Education Agency (TEA) posted its Legislative Appropriations Request (LAR) this week ahead of formally presenting it to the Legislative Budget Board next Wednesday. LARs lay out all of an agency’s intended expenditures for the upcoming biennium and are, as a group, the basis for what will eventually become the state budget. TEA’s LAR includes not only agency-level spending but also all of the funding that flows through the Foundation School Program and out to school districts. As has been the case in the past, the TEA document includes a statement about reductions in the anticipated level of state spending based on the reliance on an assumed increase in local property tax collections. For the upcoming biennium, the agency is assuming the state will supplant $1.5 billion in state revenue by relying on these local dollars. ATPE released the following press statement in response.


The House Public Education Committee released its preliminary report on school safety this week. The report follows the release of similar interim documents by a Senate committee and Gov. Greg Abbott, but the House report is unique in its focus on directing state funding to accomplish a number of goals aimed at preventing future tragedies like the school shooting in Santa Fe, Texas.

The report is the result of several interim hearings held over the summer at the direction of Texas House Speaker Joe Straus and committee chairman  Rep. Dan Huberty (R-Kingwood). Read a summary of the report’s findings and take a look at the full report itself in this post by ATPE Lobbyist Mark Wiggins.


The Texas State Board of Education (SBOE) is scheduled to meet Tuesday through Friday of next week, and the agenda includes a formal look at its Long-Range Plan for Public Education.

The plan is the result of more than a year of meetings and stakeholder input, which includes in-person conferences and an online survey seeking guidance from educators and community members all over the state. The final product includes recommendations related to attracting and retaining educators and lifting up the education profession. Follow ATPE Lobbyist Mark Wiggins on Twitter (@MarkWigginsTX) for updates on the plan, which will be discussed on Tuesday.

 

ATPE testifies on educator healthcare

The House Appropriations Subcommittee on Article III, which oversees the public education budget, met Wednesday at the Texas Capitol to discuss interim charges related to TRS-Care. Chairman Trent Ashby (R-Lufkin) began by noting the roughly $1 billion shortfall facing the system heading into the 2017 legislative session, which lawmakers only partially filled. Without those funds, the system would have been insolvent. The program faces another shortfall heading into the 2019 session, which begins in January.

ATPE Lobbyist Monty Exter testifies before House Appropriations Article III Subcommittee September 5, 2018.

Teacher Retirement System (TRS) of Texas Executive Director Brian Guthrie estimated that the fiscal year ending in 2021 will face a roughly $410 million shortfall, which is down from previous projections. Guthrie explained that TRS-Care is funded as a percentage of payroll, which is not growing at the same rate as health care costs. This is the fundamental reason why TRS-Care has begun to face repeated shortfalls. Retirees have born additional costs as a result of the underfunding, and roughly 30,000 have chosen to leave the program because they can no longer afford to participate.

Guthrie suggested that the best case scenario for TRS-Care would be for the legislature to appropriate an amount more than is needed to simply keep the fund solvent, the excess of which could become the corpus of an investment fund that would be able to provide long-term funding stability, similar to the TRS pension trust fund.

ATPE Lobbyist Monty Exter credited the House and Chairman Ashby in particular for preventing the collapse of TRS-Care last session. Exter suggested allocating additional dollars to the base funding formulas for TRS-Care, as opposed to providing supplemental funding each biennium. Exter shared a story from a retiree whose incontinence medication shot up to $500 after the most recent TRS-Care changes. To that end, Exter suggested expanding the list of free and near-free medications, particularly in maintenance drug categories. In addition, allowing retirees access to café plans or health savings accounts (HSA) would allow retirees to allocate tax-deferred dollars on the front to help with budgeting towards their annual deductible. Finally, Exter noted that preventing retirees from leaving TRS-Care or banning them from returning after testing other private plans violates free market principles and harms consumers.

Beyond TRS-Care, Exter warned of problems associated with TRS-ActiveCare and the pain experienced by active educators who are seeing health care costs rise more quickly than their paychecks. The 86th Texas Legislature will also be faced with issues relating to the TRS pension fund. Both will vie with TRS-Care for attention and resources.

Chairman Ashby indicated that the changes to TRS-Care have generated enormous attention, and voiced optimism that this will lead to positive outcomes for both active and retired educators’ health care next session.