2. And now…. 84 th Legislature Public Education Video 2 Presented by Doug Karr Dkarr @suddenlink.net 1 hour, 10 minutes

3. Texas Education Budget OVERVIEW 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

4. Texas Schools Five million students 60% economically disadvantaged Public 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 %

5. 2011 Cuts Cut 4 Billion from formula funding (FSP) Cut 1.3 Billion from educational programs outside the FSP – (primarily programs targeted disadvantaged and At-risk populations)

6. What did the cuts do? 21,000 fewer teachers Three times as many over-crowded classrooms Six lawsuits against state by parents, schools, and public education advocates

7. 2014-15 Budget did not fully restore cuts Added 3.2 billion back to public ed. funding 2008 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

8. Student Enrollment Growth Texas 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

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

10. What 2014-15 budget accomplished Partially restored state funding cuts from 2011 Those hit hardest by education cuts Economically disadvantaged students At-risk populations

11. 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

12. What Didn’t Happen? What Didn’t 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 changes

13. 2016-17 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 Fund

14. 2016-17 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

15. 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 biennium

16. Other budget items outside FSP 25 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)

17. Other budget items outside FSP 1.04 billion for IMA, up from 838 million 40.6 million for math and reading academies 31.7 million for SSI, down from 60.5 million 30 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)

18. Business and Property tax relief Included in Article III is funding for tax relief 2.6 billion for 25% reduction to franchise tax 1.2 billion to hold districts harmless for $10,000 increase in homestead exemption

19. Cost Considerations Health Insurance Premium Continued Increases Contributions to TRS - 1.5% of the payroll cost (no more state support) - 0.55% of the active employees’ salaries Know your district’s percentage breakdown of payroll, fixed, & discretionary costs

20. What’s 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???

21. What’s Next? Fall Tax Notices Include the additional $10K exemption November 2015 Election to approve the Additional $10K Homestead Exemption Comptroller to do a preliminary adjustment to the PTD value before then finalizing it after the election Hold-harmless protection for M&O and I&S revenue Revenue Budget Amendments May Be Necessary

22. What’s 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 2017-18 Will 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 14-15 – Comptroller set price of oil for state budget at $61 in 15-16 – Current prices of oil significantly less than $61, which could impact state budget planning for 17-18

23. Region 18 Education Service Center Level One School Board Training is developed and provided as a collaborative effort of the 20 Education Service Centers