L E G I S L A T I V E U P D A T E February 2 0 1 9 B o e r n e I S D L E G I S L A T I V E U P D A T E February 2 0 1 9

Baseline Budget for 2020-21 Fiscal Years B o e r n e I S D Baseline Budget for 2020-21 Fiscal Years Both Senate & House Baseline Budgets Include: Enrollment Growth - $2.4 billion Increase in Golden Pennies Yield - $2.2 billion No increase to Basic Allotment of $5140/student

Baseline Budget for 2020-21 Fiscal Years B o e r n e I S D Baseline Budget for 2020-21 Fiscal Years Senate - $6 billion in increased funding $3.7 billion for teacher pay raises – SB Bill 3 $2.3 billion for property tax relief House - $9 billion in increased funding No specific allocation of extra funds

Texas Commission on School Finance B o e r n e I S D Texas Commission on School Finance Key Areas of Focus Students reading at grade level by end of 3rd grade Provides resources and outcomes based bonuses Teacher Pay Districts can customize pay incentives Outcomes Based Funding For both 3rd grade reading and HS Graduates – CCM ready

Texas Commission on School Finance B o e r n e I S D Texas Commission on School Finance New & Expanded Programs Recommended $ 3rd grade Reading Allotment $ 780,000,000 3rd grade Reading Outcomes Funding $ 400,000,000 College, Career, & Military Readiness Outcomes Funding Educator Effectiveness Allotment $ 100,000,000 New Dual Language Allotment $ 50,000,000 New Dyslexia Allotment Extended Year Inventive Program Establish Fast Growth Allotment for the top quartile growth ISDs $ 280,000,000 Increase Comp Ed funding and allocate on spectrum $ 1,100,000,000 Provide Transportation Allotment for Chapter 41 Districts $ 60,000,000 Increase New Instructional Facilities Allotment Expand Career & Technical Allotment to 6-8 grades $ 20,000,000 Link Copper Penny Yield to % of Basic Allotment & Compress tax rates $ 286,000,000 Funding to pay for one in school SAT, ACT, or TSIA for every Texas HS student Full-day Pre-K attendance credit $ 27,000,000 Allow children of educators to be eligible for Pre-K Total Additional Expenditures $ 3,823,000,000

Texas Commission on School Finance B o e r n e I S D Texas Commission on School Finance Statutorily increase the Basic Allotment with funds made available through "streamlining of outdated formulas" Elimination of Cost of Education Index (CEI) $ 2,900,000,000 Reallocate Chapter 41 hold harmless recapture $ 30,000,000 Reallocate Chapter 41 early agreement credit funds $ 50,000,000 Elimination of Gifted & Talented Allotment $ 165,000,000 Elimination of High School Allotment $ 400,000,000 Total Savings from removing outdated formulas $ 3,545,000,000

B o e r n e I S D Property Tax Reform Governor Abbott, Lt. Governor Patrick, & Speaker Bonnen agree on need for property tax reform HB 2 & SB 2 propose to set new Rollback Rate to 2.5% Applies to all cities, counties, school districts 2.5% rate excludes new property If appraisal growth exceeds 2.5%, either the entity reduces the tax rate or holds a November election to gain voter approval Expected to reduce M&O tax rate by 12 cents by 2029 Some legislators want immediate property tax relief

Cost of all Proposals Classroom Teacher 5k Pay Raise - $3.7 billion B o e r n e I S D Cost of all Proposals Classroom Teacher 5k Pay Raise - $3.7 billion 2.5% Property Tax Rollback rate - $3 billion Commission Recommendations - $7.6 billion Total comes to $14.3 billion for biennial budget State has max of $9 billion, so something needs to give……….. Education bill to be filed by end of February or early March

Keys to Boerne ISD & Chapter 41 Districts Basic Allotment Increase – would reduce Recapture Teacher Pay Increase – credit against Recapture Fast Growth Allotment – top quarter of Texas districts in growth Earned Entitlement - Bring Chapter 41 districts up to level (91 of 217) Outcomes Based Funding Transportation Funding - Include Chapter 41 districts