Legislative Update

Fall 2012

State faced projected $25 billion shortfall and proposed $10 billion cut to education.

Cut $5.4 billion from public education ($4 billion from formula, $1.4 billion in programs). 5.6% across-the-board reduction during 2011-12 Reduction to ASATR in 2012-13 school year, which

affected certain districts far more than others

First time public education funding was reduced in 60 years.

Re-cap: The 82nd Texas Legislature

Statewide leadership unchanged – short term stability

Education leadership very different New Commissioner New Senate Education Chair New House Public Education Chair New Senate Finance Chair

Who has changed?

With the exception of one race, all but decided (Wendy Davis vs. Mark Shelton)

At least five new senators Ogden → Schwertner Shapiro → Paxton Harris → Hancock Jackson → Taylor Wentworth → Campbell

Plus new leadership of Senate Education (Senator Patrick) and Senate Finance (Senator Williams)

Who has changed? Texas Senate

At least 40 House members not returning

At least 50% of members will be freshmen or sophomores

House Committee Changes 13 of 36 Committee Chairs not returning 5 of 11 members of House Public Education Committee

(including Chair and Vice Chair) are not returning Will most likely mean new Chair of House

Appropriations Article III Workgroup

Who has changed? Texas House

State sales tax collections are higher than they have been in five years (12.6% actual growth rate compared to 5.4% estimated growth rate).

Other tax collections show similar growth, especially oil and gas.

Permanent School Fund posted record returns.

Now you hear “surplus” instead of “shortfall.”

Rainy Day Fund could reach flood stage

What has changed?

Foundation School Program payment was delayed ($2 billion)

Medicaid was underfunded by $4.6 billion.

Legislators will most likely refuse to spend RDF.

State leaders expect budgets to begin with cuts (10% cut to items outside Foundation School Program).

State spending limit applies to any amount spent above last biennium that exceeds growth.

Student enrollment continues to increase by 70,000-80,000 students per year, primarily students who are disadvantaged.

What has NOT changed?

Many cuts made last session were done statutorily, not just by appropriation.

Expiration of Additional State Aid for Tax Reduction (ASATR) still set to expire in 2017.

Unclear if cuts will be restored and if so, how.

What has NOT changed?

What ASATR means to _____ ISD

Insert graph here showing the effect of the loss of ASATR on your particular district. For example, a bar graph with three bars can be included to show the amount of funding your district received per WADA prior to the 82nd Legislative Session, then during the 2012-13 school year, and then what your per WADA funding would be if ASATR were completely eliminated in 2017 or before.

Robin Hood in _______ ISD Insert graph here to show the effect of Robin

Hood on your district over time, including the amount your district will be expected to pay this school year.

Robin Hood 1993-1994

Robin Hood 2012-2013

Why are more districts subject to Robin Hood?

Amount Unknown After $2 billion is applied

to offset the cost of the delayed FSP payment (which isn’t even a restoration), how much is left?

Will the Legislature provide funds to cover the cost of growth?

Distribution unknown Cuts were across-the-

board in the first year and applied to ASATR in second.

Will cuts be restored in the same manner they were made?

Could ASATR be lost forever and a per-capita restoration applied?

Possible Restoration of Cuts

“Our base has wanted us to pass photo voter ID for years, and we did it. They've been wanting us to pass school choice for years. This is the year to do it, in my view. That issue will do more to impact the future of Texas and the quality of education than anything else we could do.”

– Senator Dan Patrick Chairman, Senate Committee on Education

School Choice

Even more so that over cuts to funding, voters are angry over testing and accountability.

Similar to funding, there are lots of moving parts: 15% requirement Graduation requirements Number of tests How tests are used to hold schools accountable

Accountability Reform

From the Courthouse to the Capitol

Court Decision Legislative ResponseEdgewood I (1989) Senate Bill 1 (1990)Edgewood II (1991) Senate Bill 351 (1991)Edgewood III (1992) Prop. 1 (failed), SB 7

(1993)Edgewood IV (1995) System found

constitutionalWest Orange-Cove (2005)

House Bill 1 (2006)

Estimated Timeline October 22, 2012 – School Finance trial begins November 6, 2012 - Election Day November 12, 2012 - Pre-filing of bills begins January 8, 2013 – 1st day of Legislative Session Spring 2013 – Possible trial court ruling May 27, 2013 - Last day of Session Fall 2013 – Appeal to Texas Supreme Court Spring 2014 – Possible ruling from Supreme Crt 2015-2016 – Response to court ruling??

www.txsc.org

www.crcstx.org – grassroots network