Legislative Initiatives
Key Communicators Meeting
February 13, 2013
Legislature Leadership
• House
– Rep. Joe Straus from San Antonio, Speaker of the House
– Rep. Jim Pitts from Waxahachie, Appropriations
– Rep. Jimmie Don Aycock from Killeen, Public Education
• Senate
– Lt. Governor David Dewhurst, president of Texas Senate
– Sen. Dan Patrick from Houston, Education
– Sen. Tommy Williams from The Woodlands, Finance
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Legislature Leadership
• Rep. Jodi Laubenberg
– Investments & Financial Services
– Public Health
• Rep. Jeff Leach
– Criminal Jurisprudence
– Rules & Regulations
– Urban Affairs
• Rep. Van Taylor
– Government Efficiency
– Insurance
Legislature Leadership
• Sen. Ken Paxton
–
–
–
–
–
–
Committee of the whole Senate
Education
Government Organization
Intergovernmental Relations
Jurisprudence
Transportation (Vice Chair)
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2013 Legislative Board Priorities
• School Start Date
• Finance
• End of Course Exams
• Paths to Graduation
• Vouchers
School Start Date
Legislation has been proposed by Representative Bennett Ratliff that districts may not begin instruction before the week in which August 21 falls. (HB 669)
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Finance
Restore funding in the manner in which it was reduced.
A LOOK BACK AT THE 2011‐13 BIENNIUM
General fund only ($ In Millions)
2011‐12 Actual
Revenues (Net of Recapture)
$ 409.1
Expenditures
(396.7)
Other Sources/Uses
1.0
Excess/Deficiency
13.4
Beginning Fund 152.2
Balance
Ending Fund Balance
$ 165.6
2012‐13 Budget
Biennium Total
$ 393.6 $ 802.7
(415.9)
(812.6)
1.1
2.1
(21.2)
(7.8)
165.6
152.2
$ 144.4
$ 144.4
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SUMMARY OF BUDGETARY ACCOMPLISHMENTS FOR 2011‐13 BIENNIUM
• Averaged over 250 more students than 2009‐2011
• Lost $59.0M in State formula funding
• Gave 3% employee pay raise in 2012‐13
• Minimized Fund Balance drawdown ($7.8 million)
Operating Expenditures Per Student 2010‐11
Plano ISD
State
$5,768
$6,000
$5,364
$5,000
$4,000
$3,000
$2,000
$1,000
$1,367
$1,123
$496 $621
$1,093
$903
$170 $272
$0
Instruction & Instructional &
Support
Support
General
Instructional
School
Services ‐
Services ‐ Non‐ Administration
Related
Leadership
Student Based Student Based
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STATE FUNDING DISCUSSION
Comptroller’s Revenue Estimate Impact
• Based on Comptroller’s revenue estimate in 2011 Legislative
Session, State cut PK‐12 funding by $5.4 billion.
• Comptroller now projects $9.4 billion more general revenue‐
related revenue in 2011‐13 than projected in December 2011.*
• Previous projection was $2.5 billion more than the Legislature
had stated, when it was in session.*
• 2013 growth rate for all taxes is 22.0%.*
• Significant share of additional revenue will automatically go the
Rainy Day Fund.*
• State will likely need to use a portion to fully fund Medicaid and
reinstate the August Education Payment.
• State still has enough remaining to discuss reducing taxes.
*Source: Moak & Casey presentation at TASA Midwinter Conference, January 2013
STATE FUNDING LAWSUIT UPDATE
•
•
•
•
Lawsuit filed late 2011.
Trial began in October 2012.
Forty‐Four days of Testimony.
Judge Dietz issued oral ruling on February 4, 2013. System violates constitution based on:
– Inadequacy
– Inequity
– De facto State Property Tax
• Judge further ruled that Charter School and TREEE arguments do not violate constitution.
• State will undoubtedly appeal initial ruling. • Final outcome likely in late 2013, if not 2014.
• Legislative leadership recommends waiting on final outcome, before reinstating any funding.
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2013‐15 PROFORMA BUDGET‐
WITH 1.5% VARIANCE ($ In Millions)
2013‐14
Revenues
Expenditures (With
1.5% Variance)
Fund Balance Drawdown
Beginning Fund Balance
$ 390.8
2014‐15
$ 391.3
Total
$ 782.1
(408.5)
(412.6)
(821.1)
(17.7)
(21.3)
(39.0)
146.2
128.5
146.2
Ending Fund Balance $ 128.5 $ 107.2
Fund Balance as a % of Following Years Appropriations 27.6%
22.3%
$ 107.2
22.3%
Myth Busters
Myth –
Funding for public education in Texas has
seen phenomenal growth during the past
decade.
Reality –
Although the State has provided nominal
increases for foundation funding over the
past decade, the increases have been more
than offset by inflation, enrollment growth,
and mandated property tax relief.
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STATE FUNDING CHANGES 2003 TO PRESENT
Biennium
• 2003‐05: $110 per WADA
• 2005‐07: $2,500 teacher pay raise (PISD‐$154 per WADA)
Implemented target revenue system
Mandated 33.33% property tax rate reduction
• 2007‐09: $23.63 per WADA pay raises
• 2009‐11: $120 per WADA (Funded with Federal Stimulus Funds) required 50% be spent on pay raises
• 2011‐13 : Reduced foundation funding, cost to PISD ‐ $400 per WADA in 2011‐12, additional $155 per WADA in 2012‐13. Total reduction $555 per WADA. TOTAL PREK‐12 FUNDING IN TEXAS
2003 vs. 2012
($ in Billions)
$50.0
Unadjusted
$44.2
$45.0
Adjusted
$44.2
Enrollment
Growth $6.6
$40.0
$35.0
$30.0
Inflation $10.3
$29.6
$29.6
$25.0
$20.0
Adjusted Balance $27.4
$15.0
$10.0
7.5%
decrease
$5.0
$0.0
2002‐03
2011‐12
2002‐03
2011‐12
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STATE SHARE OF PREK‐12 FUNDING IN TEXAS
Increase
$ %
2002‐03
2011‐12*
$ 11.0 B
$ 18.9 B
$ 7.9 B
72.5%
N/A
($ 7.1 B)
($ 7.1 B)
N/A Balance for Education
$ 11.0 B
$ 11.8 B
$ 0.8 B
7.7%
Adjusted for Enrollment
$ 11.0 B
$ 10.1 B
($ 0.9 B)
(8.3%)
Adjusted for Enrollment and Inflation $ 11.0 B
$ 7.3 B
($ 3.7B)
(33.3%)
Inflation Adjusted Amount Per Pupil
$ 2,577
$ 1,719
($ 858) (33.3%)
Total State Aid
Tax Swap
Sources: Legislative Budget Board (LBB), Texas Education Agency
* 2011‐12 revenue and inflation projected by LBB
STATE SHARE OF PREK‐12 FUNDING IN TEXAS
2003 vs. 2012
$20.0
Unadjusted
($ in Billions)
Adjusted
$18.9
$18.9
$18.0
$16.0
Tax Swap $7.1
$14.0
$12.0
$11.0
$11.0
$10.0
Enrollment
Growth $1.8
$8.0
Inflation $2.7
$6.0
Adjusted Balance
$7.3
$4.0
$2.0
33.3%
decrease
$0.0
2002‐03
2011‐12
2002‐03
2011‐12
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NET GENERAL FUND REVENUE PER PUPIL
Plano ISD
9,000
8,000
7,000
7,143 7,335
6,467 6,678
7,703 7,593 7,673
7,947 8,079
$934/Student
6,847
$51.5 Million
7,145
7,345
7,693
7,589
7,409
7,361
7,393
6,743
4,000
6,680
5,000
6,497
6,000
Actual $
3,000
2,000
Inflation
Adjusted
1,000
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(B)
Path to Graduation
• Graduation‐
96%
• Post‐Secondary‐
94%
ACT
SAT
Plano
Texas
US
25.6
1665
20.8
1422
21.1
1477
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Path to Graduation
• Distinguished
• Recommended • Minimum
Path to Graduation
Current SBOE Recommended Graduation Requirement (4x4)
•
•
•
•
•
•
•
•
•
•
English 4 credits
Math 4 credits
Science 4 credits
Social Studies 4 credits
Fine Arts 1 credit
Foreign Language 2 credits
Health .5 credit (or 1 credit of Principals of Health Science)
Physical Education 1 credit
Speech .5 credit
Electives 5 credits
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Path to Graduation
Proposed Foundation Graduation Plan
• English 4 credits
• Math 3 credits
• Science 2 credits
• Social Studies 3 credits
Endorsements
• STEM
• Arts/Humanities
• Business and Industry
• Human Services
• General Studies
Path to Graduation
Current Legislation Concerns:
• We prefer 3 sciences instead of 2
• We prefer 4 social studies instead of 3
• A ‐ F accountability rating provision
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End of Course Exams
Current Law
• 15 exams
• 15% of final grade and cumulative and minimum
scores
End of Course Exams
Algebra
Geometry
Biology
Reading
Writing
World Geography
97%
98.8%
98%
94%
89%
97%
*65% 8th Graders
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End of Course Exams
Proposed Legislation
• Eliminate 15% requirement
• Seliger‐ reduces EOC exams to four:
Algebra I
English III
Biology
US History
Vouchers/School Choice
Tax credit scholarship program
• Businesses donate monies to nonprofit scholarship organizations and receive a franchise or insurance tax credit
• Scholarships would be given to eligible students
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