83rd Texas Legislative Session

84rd Texas Legislative SessionSchool Board Update Video 22015And now.84th LegislaturePublic Education

Video 2Presented by Doug KarrDkarr @suddenlink.net

1 hour, 10 minutes

Texas Education BudgetOVERVIEW

Making sure all Texas Children receive a high-quality education is key to the future economic prosperity of the state. An adequate and equitable system of school finance is critical for school improvement to succeed

Texas SchoolsFive million students60% economically disadvantagedPublic school enrollment increased 20%Economically disadvantaged increased 43.7%Hispanic pop +46.5%--White -10.2%Bilingual pop +49.2% --Limited English proficiency +39.4 %

2011 CutsCut 4 Billion from formula funding (FSP)Cut 1.3 Billion from educational programs outside the FSP(primarily programs targeted disadvantaged andAt-risk populations)What did the cuts do?21,000 fewer teachersThree times as many over-crowded classroomsSix lawsuits against state by parents, schools, and public education advocates

2014-15 Budget did not fully restore cutsAdded 3.2 billion back to public ed. funding2008 Local/state/federal per student $10,220 2015 Local/state/federal per student $9609

To bring school funding back to just 2008 levels 5.9 Billion would be needed

Student Enrollment GrowthTexas adds 85,000 students per year

2014-15 budget did take into account growth, however when funding is cut, or when funding does not take into account inflation, every student is funded at a lower level

Pre-KindergartenIn 2011 the legislature eliminated $208.6 million for Pre-K expansion grants.2014-15 budget adds $30 million for Pre-KIf all eligible students qualify for funding, it will be at less than $300 per student

What 2014-15 budget accomplishedPartially restored state funding cuts from 2011Those hit hardest by education cutsEconomically disadvantaged studentsAt-risk populations

What Did not Happen? HB 1759- Funding Weight Changes- Taxpayer Scholarships or Vouchers- Indexed Homestead Exemption- Sales Tax Reduction- 50 cent test fix- Enhanced facilities assistance What Didnt Happen? HB 1759 (cont.)- Basic Allotment of $5,888- Eliminate the COEI, Transportation Allotment, High School Allotment, Staff Allotment, 1992-93 Chapter 41 hold-harmless-Reduce & phase out the mid-sixe adjustment- Hold-harmless for 2 years- Other changes2016-17 budget highlights for the FSP Public Education Budget- Just over $54B (all funds) +5.6% increase- Just over $37B (GR funds) +10.7% increase$6.2B left on the table unspent$11.1B left in the Rainy Day Fund2016-17 budget highlights for the FSP $1.2 billion for the basic allotment per ADA ($5,140 both years)$200 million for fractional funding (districts with compressed tax rates below $1.00)Guaranteed Yield increases to $74.28 (2016) and $77.53 (2017)$55.5 million for IFA (FY 2017)$47.5 million for NIFA

2016-17 budget highlights for the FSP Equalized Wealth Levels (EWLs) for Chapter 41- $319,500 (no change)- $514,000 (up from $504,000)State share of FSP- 2016 = 43.4%- 2017 = 40.9% $4.5B in FSP savings from local value growth+ $1.1B increase in recapture offsetting state costs= $5.6B in total state savings for the bienniumOther budget items outside FSP25 million for Education Service Centers*31 million for Communities in Schools*12 million for Teach for America*8 million for Virtual Schools*16.3 million for Advanced Placement Initiative*6 million for Early College High School*3 million for T_STEM, down from 6 million(*indicates the amount unchanged from 2014-15 budget)Other budget items outside FSP1.04 billion for IMA, up from 838 million40.6 million for math and reading academies31.7 million for SSI, down from 60.5 million30 million for supplemental funding for Pre-K*118 million for Pre-K programs that meet certain requirements(*indicates the amount unchanged from 2014-15 budget)

Business and Property tax reliefIncluded in Article III is funding for tax relief2.6 billion for 25% reduction to franchise tax1.2 billion to hold districts harmless for $10,000 increase in homestead exemptionCost ConsiderationsHealth Insurance Premium Continued IncreasesContributions to TRS- 1.5% of the payroll cost (no more state support)- 0.55% of the active employees salariesKnow your districts percentage breakdown of payroll, fixed, & discretionary costsWhats Next?The School Finance Lawsuit- Supreme Court on September 1, 2015- Ruling expected in the Spring of 2016- Legislative Response in a Summer 2016 special session or in the January 2017 regular session???Whats Next?Fall Tax Notices Include the additional $10K exemptionNovember 2015 Election to approve the Additional $10K Homestead ExemptionComptroller to do a preliminary adjustment to the PTD value before then finalizing it after the electionHold-harmless protection for M&O and I&S revenueRevenue Budget Amendments May Be Necessary

Whats Next?Target Revenue Funding Scheduled to Expire at the end of school year 2016-17- No more ASATR (Additional State Aid for Tax Reduction) - Districts currently receiving ASATR will be facing significant revenue reduction in 2017-18Will there be future cuts to public education like those in 2011 if the price of oil does not increase???Comptroller set price of oil for state budget at $91 in 14-15Comptroller set price of oil for state budget at $61 in 15-16Current prices of oil significantly less than $61, which could impact state budget planning for 17-18

Region 18 Education Service Center

Level One School Board Training is developed and provided as a collaborative effort of the 20 Education Service Centers