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  Reduction to ASATR in school year, which affected certain districts far more than others  First time public education funding was reduced in 60 years. Re-cap: The 82 nd 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  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 82 nd Legislative Session, then during the 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

Robin Hood

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 DecisionLegislative Response Edgewood 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 constitutional West Orange-Cove (2005)House Bill 1 (2006)

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

– grassroots network