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School Finance Facts from the 82nd regular session

Foundation School Program (FSP) Funding (Operations and Facilities) – $35.4 billion for 2012-13 ($1.8 billion decrease compared to 2010-11 and $4 billion below what is required to fund Current Law Formulas)

FSP Funding (General Revenue) – $29.2 billion for 2012-13 ($1.6 billion increase compared to 2010-11)

State Fiscal Stabilization Fund Funding – $0 for 2012-13 (3.2 billion decrease compared to 2010-11)

Special Programs and Grants – reduced by over $1.3 billion for 2012-13 (Technology Allotment, New Instructional Facilities Allotment, Science Lab Grants, etc.)

Regional Service Centers – $25 million for 2012-13 ($15.7 million decrease compared to 2010-11)

Texas Education Agency – agency operations funding decreased by $22 million, or 17.2 percent

$3.2 billion in federal ARRA funds were used to support education during this current biennium – those funds were not replaced in the upcoming biennium budget. While the GR funding increased in the FSP, there was an overall net reduction in public education funding, based on current law.

The Texas Education Agency (TEA) was given an FTE cap of 795 for 2012-12 (the cap was 1,038 last biennium) for the 2012-13 budget. As a result, TEA initiated its second round of layoffs this week. The loss of experienced staff raises questions about the agency’s capacity to implement requirements of recently passed legislation as well as manage existing requirements.

Bills of Interest that Passed in the 82nd Regular Session

* Effective immediately

Testing/Accountability

  • HB 2135 by Hochberg – Eliminates potential double testing of students in grades 3-8*
  • SB 1484 by Shapiro – Extends eligibility for distinction designations under the new accountability systems to charters*
  • SB 1557 by Corona – Relating to the establishment of the Texas High Performance Schools Consortium*
  • SB 738 by Shapiro – “Parent trigger” for campuses rated Academically Unacceptable for 3 years after reconstitution*
  • SB 1620 by Duncan – Approval of CTE substitutions as 4th credits in math, science*

Dual Credit

  • SB 1619 by Duncan – Extends dual credit funding when tuition is charged*
  • SB 149 by West – Requires reporting number of students participating* (Section 2 effective September 2011 and Sections 3&4 effective September 2013)
  • SB 419 by West – Prohibits dual credit funding for physical education*

Special Education

  • HB 1335 by Allen – District policies must allow classroom teachers to request IEP review, timely response, parent notification*
  • HB 1481 by Truitt – Use of respectful language for individuals with disabilities (Effective September 1, 2011)
  • SB 778 by Williams – Requires special education staff on district and campus planning and decision-making committees (Effective September 1, 2011)
  • SB 1788 by Patrick – TEA developed model IEPs, Transition planning at age 14*
  • HB 1130 by Huberty – Repeals reporting self-contained to resource/mainstream ratio (Effective September 1, 2011)

Bullying

  • HB 1942 by Patrick – Defines bullying, requires the board to adopt a policy, allows for a student who is bullying to be transferred to a different class or campus*

Discipline

  • HB 359 by Allen – permits a district to administer corporal punishment unless a student’s parent/guardian has previously provided a written statement (Effective September 1, 2011)
  • HB968 by Strama – permits a student who is in a DAEP to be expelled or placed in a JJAEP if the student engages in serious misbehavior*
  • HB 1907 by Madden – requires a law enforcement agency to notify a superintendent and personnel of the arrest/conviction/deferred prosecution or adjudication within 24 hours of the event or by the next school day (Effective September 1, 2011)
  • SB 49 by Zaffirini – requires a school district to provide the parents of a student removed to a DAEP with written notice in regards to the district’s obligation to provide the student with the necessary course work required for graduation at no cost*

Principal Appraisal

  • SB 1383 by Shapiro – requires the commissioner to use private funds to establish and administer a comprehensive appraisal and professional development system for principals*

Other Topics

  • HB 600 by Solomons – SBOE redistricting (see below in Re-Districting section for more details).
  • HB 2038 by Price – educates parents/students about the dangers of concussions and establishes a return-to-play protocol that ensures the student is physically ready to participate*

Instructional Materials Funding

HB 1 by Pitts – $608 million for continuing contracts and Proclamation of 2011 materials except Pre-K

HB 4 by Pitts – $184 million for continuing contracts, supplemental science (secondary courses), and Pre-K from Proclamation of 2011

Note: Proclamation 2011 includes English Language Arts and Spanish Language Arts (grades 2-5), Spelling (grades 1-6), Handwriting (grades 1-3), English Language Arts (grades 6-8), English I-IV, ESL (grades K-8) and Pre-K.

No funding was appropriated for the Technology Allotment, which was eliminated; see Special Session SB 6 summary below for more details.

Special Session Bills of Interest

SB 6 by Shapiro – Relating to the foundation curriculum, the establishment of the instructional materials allotment (IMA), and the adoption, review, and purchase of instructional materials and technological equipment for public schools; providing penalties.

  • Utilizes 50% of the payout of the Permanent School Fund to establish the instructional materials allotment, subject to appropriation
  • Establishes a per-student annual allotment from the state instructional materials fund
  • IMA Funds may be used for:
    • Materials on the State Board of Education approved list
    • Materials on the Commissioner’s Electronic Textbook and Instructional Materials List
    • Instructional materials, regardless of whether or not they are on the SBOE adopted list
    • Consumable instructional materials
    • Bilingual, supplemental, and state-developed open-source instructional materials
    • Technological equipment necessary to support the use of instructional materials adopted
    • The training of educational personnel in the appropriate use of instructional materials
    • The salary and other expenses of an employee who provides technical support
  • The SBOE has authority to remove items from the commissioner’s list within 90 days of its issuance
  • Establishes Technology Lending Program Grants with a maximum of $10 million per biennium

Because of the uncertainty of this legislation at the end of the regular session as well as the appropriations status, the state’s instructional materials ordering system, EMAT, was not opened for order entry in May.  TEA will open the EMAT on August 8 and schools will use the normal process for orders. Although the IMA is implemented immediately, SB 6 contains transition language (found in section d-1: “Notwithstanding Subsection (d), for the state fiscal biennium beginning September 1, 2011, a school district shall use an allotment received under this section to purchase instructional materials that will assist the district in satisfying performance standards under Section 39.0241, as added by Chapter 895 (H.B. 3), Acts of the 81st Legislature, Regular Session, 2009, on assessment instruments adopted under Sections 39.023(a) and (c).). During the transition biennium (2012-13), districts shall use the allotment for instructional materials, although the materials don’t necessarily have to be state-adopted.  The focus is on student achievement and satisfying the referenced performance standards. 

SB 8 by Shapiro – Relating to the flexibility of the board of trustees of a school district in the management and operation of public schools in the district.

  • Voids an employee’s contract if the employee fails to maintain a valid certificate
  • Moves 45 day notice of non-renewal to the 10th day before the last day of instruction
  • Provides for an alternative hearing process for non-renewals or for the termination of probationary contracts before the end of the contract in the case of financial exigency reductions in personnel as well as terminations of continuing contracts in the case of necessary reductions in personnel
  • Changes the method for reductions in force for teachers employed under continuing contracts from reverse order of seniority to primarily based on teacher appraisals
  • Allows the board of trustees to modify a superintendent’s contract on the basis of financial exigency that requires a reduction in personnel
  • Provides for furloughs of up to 6 non-instructional days if funding falls below 2010-11 levels
  • Limits physical fitness examinations to students enrolled in a physical education course
  • Repeals the following:
    • Required salary increase for charter schools
    • Requirement for maintenance of salaries for teachers, counselors, nurses, librarians, and speech pathologists at 2010-11 levels
    • Requirement for consideration of childcare by districts with more than 5,000 students that do not currently offer it

Topics of Interest in 2013

School finance with a focus on formulas and funding related issues

State Accountability

Expansion of charter schools

School vouchers

Pre-Kindergarten policies, including funding structure and accountability

Virtual school policies