Legislative Update & Overview

June 12, 2014

November 4, 2014 - Election Day

November 10, 2014 - Bill filing begins

January 13, 2015 – 84th Session begins

June 1, 2015 – Sine Die

84th Legislature - Dates to Remember

All new state leaders Governor Lieutenant Governor Comptroller Attorney General

New Committee Chairs Senate Education Senate Finance House Appropriations

84th Legislative Session

Speaker Straus expected to be re-elected

Currently, 63% of members are certain to return (51 Republicans and 43 Democrats)

22 are not returning to their seats (due to retirements or primary losses)

34 face general election opponents

Texas House of Representatives

New Lieutenant Governor (which also means new committee chairmanship assignments)

17 of 31 senators are certain to return to their seats (with Hegar and Van de Putte maintaining their seats and returning if their bids for others offices fail)

Could be as many as 8 new senators (meaning that one-third of the Texas Senate will not have served a full four-year term in the Senate in 2015)

Texas Senate

Analysis from Mark P. Jones, chairman of Rice University's political science department

Percent with Majority Ch. 41 Legislative District

Texas House Texas Senate

62%

38%

<50% Ch. 41>50% Ch. 41

61%

39%

<50% Ch. 41>50% Ch. 41

Budget surplus (projected $2.5 - $5 billion)

But a Legislature unwilling to spend

$1 billion shortfall from Medicare needs

Transportation and water needs

Calls for tax relief

Property tax appraisals

Issues at play

Step in the process Possible timeline

Judge Dietz files final judgment & findings of fact July/August 2014

Appeal filed (30 days, up to 90)September – November

2014

Supreme Court takes case October – December 2014

Briefings scheduled Spring 2015

Arguments before Supreme Court May 2015

Supreme Court issues final ruling September/October 2015

Legislative responseSpring 2016

(maybe 2017)

Timing of the School Finance Case

Pre-Kindergarten Debt Limitations & TransparencyTRS contributionVirtual SchoolsTeacher QualityLocal Control (freedom from mandates)AccountabilityAchievement School DistrictsPrivate School Vouchers

Education Issues at Play in 2015

School Finance - 2014-2015 FSP

1.8% Increase to Basic Allotment (to $5,040), resulting in increase to EWL

Golden Penny Yield increased to $61.86 Adjustments made through General Appropriations

Act, not statutorily

12

Revenue per Student in 2004 Dollars

Ex. 6618

District ADA shown by Quintiles

$8000+ $7,999-$7,000 $6,999-$6,000 $5,999-$5,000 $4,999-$4,000 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Breakdown of State’s ADA by Target Revenue Quintiles

2010-2011 ADA

2012-2013 ADA

District’s Target Revenue Per WADA

Sta

tew

ide A

DA

Counts

As school and state leaders try to measure school district equity by comparing two districts’ total revenue per WADA, the basic assumption is that such numbers are comparable.

But often they are not.

Such comparisons within the Foundation School Program assume that school district formulas distribute funds in a manner that properly accounts for the differences in district needs.

Chasing “false equity”

Common Comparison used for Equity

Highland Park ISD

Irving ISD Difference

M&O/WADA(Adopted Rate)

$6,411 $5,453 $958

M&O/WADA (Compressed Rate)

$5,571 $5,218 $353

Total WADA 7,435 44,901 (37,466)

Administrative Costs per WADA

$627 $402 ($265)

Teacher Base Pay per WADA

$2,670 $2,247 ($423)

Comparisons should examine full picture

No comparisons should be taken at face value

Help others understand the story behind your numberso Sizeo Cost of Education Indexo English Language Learnerso Comp Ed studentso Facility/Insurance costso Hold harmless/historic funding levelso And many other factors

So what?

Big changes in all state leaders and Senate + more conservative and Tea Party affiliated legislators

With a surplus they don’t want to spend

In a holding pattern for school finance changes in 2015 awaiting the court ruling

However, 2015 is the time to lay the groundwork for special sessions to come

In summary