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The Appropriations Committee met on February 25 to discuss the Texas Education Agency, Windham School District, and the Texas Retirement Systems. This report covers only the discussions for the Texas Education Agenda. The agenda for this meeting can be found here; the video archive can be found here; the agency presentations found here.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

Texas Education Agency

Aaron Hendrickson, LBB

  • Reviews handouts
  • FSP AF increase is $4.1 billion, Non-FSP decrease of $2.5 billion, TEA total increase of $1.6 billion
  • Decrease due to UB carried forward (on handout: Funding for Technology and Instructional Materials Allotment based on 24.4 percent of distribution from the PSF to the ASF. Recommendations exclude the IMA unexpended balance of $312.7 million in the agency’s base and maintain the agency’s five percent reduction to the program)
  • Rows D-F show expiration of one-time funding and COVID funds awarded from last Spring not the new funds amount
  • Foundation school program major budget driver assumption and property yields; district property values and enrollment estimated will be updated before the end of session
  • Pg 6 & 7 show difference in appropriation recommendations and actual distribution
    • $5.4 billion in GR, less than appropriated
    • Increase of $3.8 billion in ’20-21 biennium
  • Pg 8 has details on HB 3
  • Pg 9 shows state share of FSP will be 41.5% in 2023
  • Pg 10 FY 2021, share of total recapture paid by district totals $2.814 billion
  • Pg 11 shows number of districts and total amount districts are paying into recapture
  • Pg 13 shows school adopted M&O rate and TRE stats
  • Pg 14 shows charter school funding (percentage of total ADA has grown from 3% of ADA in 2012 to 7.6% of ADA in 2023)
  • Pg 21 New COVID funding, awarded last year, does not include funding from Dec. ‘20- forward
  • Pg 23 includes a status of the Assessment Program
  • Pg 25 TEA has made progress in implementing Special Education programs, though COVID has slowed some progress
  • Wu – Explain recapture slide
    • Although total recapture paid has increased substantially, as a percentage of total M&O has been somewhat stable
    • Points out decrease due to HB 3
  • Wu – exampling the term and how it functions? What did HB 3 due to equalize?
    • One goal is to provide equalized funding to school districts, provides more explanation and examples
    • HB 3 did two separate things: Increased entitlement & Property tax relief, local tax revenue went down
    • Therefore amount paid to recapture goes down
  • Zwiener – Explain process for district property value being determined
    • Determined at local level, reported to comptroller and then reported to TEA
    • Comptroller makes anticipated property value projections
  • Zwiener – Do the projections include/explore the strange market conditions we’ve seen this year?
    • Comptroller office predicting residential property values will increase, commercial will decrease
    • As a result, shows flat growth statewide, projecting 0.92% growth
    • We budget off of these estimates (TEA for enrollment and Comptroller for property value) but the reality changes when we actually go through the process so districts paid actual amounts not estimated amounts
    • Compression is district wide as a function of the overall property value of the districts
  • Zwiener – If we’re seeing increase in residential property value and decrease from commercial, residents are paying more burden of schools taxes?
    • At a high level compared to what would have happened otherwise, yes
    • Will be different though dependent on actual area
    • As a percentage of total property taxes collected by state, if trend continues the residential slice is larger
  • Zwiener – What can TX expect and who will be responsible for allocation of funding from December legislation?
    • Better question for TEA, but imagine it will be worked out through session
    • General article in Title 9 gives federal authority to agencies to use and implement funds during interim of lege
  • Zwiener –Explain teacher incentive allotment included in FSP?
    • Refer to agency for implementation and more details
    • An allotment included in HB3, provides additional funding for teachers that are recognized at top of their peers
  • Wilson – request to take another look at tax assessors responsibilities in rate adjustments

Mike Morath, Commissioner TEA

  • Walks through (LAR) Legislative Appropriations Request
  • First year of HB3, impact net infusion of $4.4 billion into M&O district budgets
  • Property taxes grew at a slower rate than they would have without the bill
  • All in spending on public education has increased by over $10 billion in last three years, “significant increase on spending on public education”
  • LAR is aligned to strategic plan over last 5 years:
    • Supporting teachers and principals through series of riders to drive improvements and recruitment
    • Support work in early years – investments in foundational math and reading curriculum in pre-k, 32,000 more kids enrolled in pre-k in first year of HB 3 versus the year before
    • Reinforce rigor and relevance – connecting high school students with career and college resources
  • Started producing annual report of public education 3 years ago to synthesize high level performance information, good and bad, for the state
  • Historically challenged in special education but have provided more supports; enrolled more students in special education programs in last few year than most states have total
  • Create culture of continuous improvement, employee engagements and satisfaction is higher than ever at TEA
  • Exceptional items discussion
    • As COVID hit, achievement gap between high and low income households, class and race increased dramatically
    • Have asked for a very small exceptional item to create proof points for best practices that, when implemented, could drive outcomes up and far more quickly for students with low-income backgrounds and students of color
    • Two key aspects: investments in Supporting a diverse array and well-trained teachers & Create holistic and evidence-based practices for minority populations
    • $20 million will create replicable management practices around the state
  • Wu –Will there be additional funds for those who have “gone” not going to school or unenrolled?
    • There are categories of disengagement such as pre-K and K; 130,000-150,000 students less than last year in that category
    • More than half of decline is pre-k and kindergarten specifically, high school has net increase in enrollment
    • But high school has seen a net increase in population
    • There may be students “gone” such as: 1) Gone from district but relocated, possibly out of state & 2) Not enrolled, also not gone; mostly older students either working or taking care of family
    • There are also a group of students not unenrolled but they are unengaged, a larger problem in high poverty areas
    • School districts have been aggressive with both unenrolled and unengaged, resources come from variety of places.
  • Wu – Consideration of policy for those unenrolled from pre-k, kindergarten? To encourage to send those kids to pre-k instead of first grade? Would you need policy for that?
    • School district is in charge of grade placement
    • It would be useful for statute to reinforce for this year encourage K retention
  • Johnson, A. – For $20 million, are you going to make this program statewide?
    • Start first with subset of schools that represent demographics of schools statewide
    • Open application for schools that would implement program; and they would create holistic supports
  • VanDeaver – $20 million to develop best practice, but there is no funding recommended to implement best practices. Would say maybe some ESSER funds or other funds be tagged to address those gaps? Supplement vs supplant.
    • Legislature will need to answer how they want to encourage or steer federal funding but also comply with federal funding requirements
    • There may need to be flexibility at local level, but legislature may also direct funds
    • No supplement vs supplant on past COVID funds but there is a MOE (maintenance of effort)
  • Morath went back to prepared slide deck
  • Investing in security, asking for $ 3 million for cybersecurity; it could have been a higher request of $6-7 million but they received philanthropic donations that decreased asked
  • Have not asked for restoration of 5% cut; notes FSP was exempted from reduction ask
  • Stucky – How can we insure 100% of $5.5 billion in federal funding is used to support education?
    • The $2.2 billion from CARES Act was distributed directly to schools for reimbursement but did not cover all expenditure types
    • Expecting $500 million-$1.6 billion spent by schools this year that were not covered by previous reimbursement; federal funds will be made available to districts
  • Stucky – Explain use of Hold Harmless funding
    • Reduction of enrollment reduces district funding to incentivize finding kids, but these are unprecedented circumstances; in disaster, Governor made fictional ADA in first semester
  • Stucky – What is TEA doing to support the schools in the wake of the weather disaster last week?
    • Working closely with TDEM, FEMA administrator, which will open up available FEMA funds
    • TEA will support repairs that insurance or FEMA does not cover under Ch. 48 of Texas Education Code, Foundation School Program if lege provides funding
  • Smattering of schools will be virtual for the rest of the school year due to damage from the storm
  • Stucky – How many charter schools do we have, how many do we predict to have in the future? Are we incentivizing charter schools to be in historically underperforming districts?
    • 179 charter systems representing 747 campuses, about 6% student population in TX
    • To start new charter system, go through rigorous gauntlet: only 14% of new applicants have been approved in last five years
    • The policy framework has no targeting protocols, charter expands where they can
  • Morrison – Enrolled but not attending, is that in schools mostly online?
    • 56% of students are attending in person, 44% online, but it varies between districts
    • We do not have real time data systems to track that answer, not until September/October
  • Zwiener – Unreimbursed expenses, substitute teacher cost. Are you looking for ways to reimburse?
    • Will distribute the money TEA is given, dependent upon this lege session
    • Last amount of federal funding was only open for end of ’19-20 school year and was used primarily for technology; no current funding source for ‘20-21 school year reimbursement
  • Zwiener – Have we accepted the $5.5 billion in ESSER funds?
    • decides this session
  • Zwiener – American Rescue Plan?
    • Only read about it in media, no good intel
  • Zwiener – What process will determine where the fund goes?
    • Depends on when it is passed
  • Zwiener – Teacher Incentive Allotment, salary adjustment from HB3
    • $40 million spent in year one on 4,000 teachers, implementation on year two will be slowed due to COVID
    • TIA is an entitlement, much like Bilingual Student Allotment
    • 500 school districts in pipeline to become teacher allotment districts
    • STARR test does not have large influence over TIA award, varies by district
  • Zwiener – Do we have data on how Texas compares nationally with teacher compensation?
    • The sheer volume of spending increase is more than anywhere in the country, but we have no data on rank
    • HB3 requires 30% of increase from basic allotment be invested in teacher pay raises
  • Johnson, J. – On page 18, in regards to the $20 million for five FTE’s, what would that money be used for? Grants provided to LEA’s?
    • Vary based on engagement from LEA, incentivizing local involvement to bolster diversity and representation; money used for operational changes at local level
    • Creating synthesized implementation models of proven practices and instructional design
  • Johnson, J. – Page 9, priority 3. Passed bill last session for TEA and TWF partnership to see what regional jobs are in demand, any progress?
    • 16 large industry clusters – we’ve identified availability, pay, mobility, and created course sequence for high school students to be prepared for transition
    • Lege called PTECH has done this holistically; students to graduate with Associates Degree specific to a certain trade and work experience before graduation, those are popping up over Texas
  • Johnson, J. – What incentive is necessary to get more access to PTECH to ensure students have direction for workforce and trade school?
    • Riders 48, 49 and 66 would be worthy of attention
    • One-time supports will be necessary to launch these programs
  • Johnson, J. – What are we doing to help Wheatly, a low preforming school in Houston, out of poor rating?
    • TEA has made financial and technical resources available to HISD
    • Could consider PTECH conversion for Wheatly, consider “Wrap Around” services highest preforming teachers in Houston, though hard to support with conservator
    • Variety of contexts specific to Houston ISD that makes this challenging
  • Gonzalez – Agency was able to maintain 10% of fed funding? What did you do with it? How?
    • Supplemental special education programs, bought remote learning technology for LEA’s, created trainings for restoration of schools
  • Gonzalez – 5% budget cuts but 10% federal funding; was there a thought to reimburse those 5% cuts?
    • Yes, but burned through very quickly
  • Gonzalez – Is $20 million is enough?
    • Does not solve problem of achievement gap but creates implementation process that can be used statewide
    • A lot to do to accelerate learning, most importantly and most expensive: time. Before and after school programs, longer school days, extending school years, “Wrap Around” programs, none of which TEA would spend directly. Districts would allocate funds for those changes with TEA appropriations
    • Potential to be locally expensive
  • VanDeaver – Regarding LBB presentation: $312 million unexpended in IMF, is that typical?
    • Somewhat typical; discourages the reduction of funding based on unspent balance
    • Money lasts at local/district level
  • VanDeaver – Item 7, page 12 of LBB presentation: ADA decline is not being funded?
    • Two parts of statue: Rapid Property Value Decline fund, which is irrelevant under HB3, and ADA Decline.
    • ADA has not been funded since 2010 biennium
  • VanDeaver – Lots of school districts seeing more than 2% ADA decline because of COVID, are we not funding ADA because of Hold Harmless?
    • ADA isn’t funded because it isn’t needed in disasters, needed more for localized economic condition responses
    • Disaster authority allows TEA to create fictional ADA, generates entitlement to districts which doesn’t need appropriation
  • VanDeaver – If we continue Hold Harmless, there will be no incentive for school districts to locate missing kids? Doesn’t make sense to temporarily decline investments.
    • Differences in approach in different localities
    • Hold Harmless removed ADA structural incentive to find students, but public educators are unrelenting about finding those kids
    • The earlier the policy is broadcast to districts, the more time they have to settle budgets and appropriate funds
  • VanDeaver – Slide 13, growth of employee engagement is encouraging. Growing frustration in school districts that TEA was working from home as school employees were working in person. Is TEA back in the office?
    • We’ve been full time in the building since Austin ISD returned to in person.
  • Stucky – Number of substitutes has risen drastically
    • Cost is within fed stimulus umbrella
    • Some schools have hired full-time substitutes; management decision models are highly impactful, as well as teaching patterns and co-teaching
  • VanDeaver – Talk about using retired teachers as resource for substitutes?
    • Useful resource moving forward, though will be driven by locals and subject to health management of possible elderly population.
    • Is there extra attention lege would give to Accelerated Instruction framework to go more aggressively into tutoring? Would provide necessary supply for demand of teachers
  • VanDeaver – Community in Schools subject to $3 million cuts, would like to see federal funds reimburse.
    • Anything not listed in FSP were subject to cuts, rider funds included. LBB recommended $58 million, which is a restoration of 5% cut.
  • Zwiener – Social and emotional learning and behavioral specialists in schools. Are there any line items that address the increased needs we anticipate?
    • Communities in Schools create focal point inside the school much like social work, proven to be very effective
    • Lege created funding inside school safety allotment that can be spent in these areas, as well as some appropriation in higher ed for local mental health support
  • Zwiener – Operation Connectivity mostly paid for devices?
    • Devices and internet, vast majority spent on device.
    • Operation Connectivity as 3 phase project: 1.) Triage, which we’ve already done, sending as many devices out ASAP, 2.) Create cheaper, sustainable access to high speed internet in residential areas. 3.) Negotiate $10 a month plan with commercial providers through the school system
    • Would like policy support to close digital divide
    • Want TEA to do those negotiations so it’s available to everyone
    • Still early in phase 2
  • Wu – Retired teachers who are being asked to come back, losing retirement check. Do school districts report when they use retired personnel?
    • TRS might have that info
  • Wilson – Forecasting that Tx will lose a quarter of teachers in the coming years.
    • TRS will be best source of information, would have quarterly updates.
  • Wilson – Should we reconsider truancy laws?
    • From what I’ve heard from districts, sitting this year out
  • VanDeaver – IMA/IMF: state board has made $3.4 billion allocation, IMF should’ve gotten $1.7 billion?
    • 50% cap in appropriations, more of a loose guideline
  • Johnson, A. – Hold Harmless, is there a deadline to make that certain?
    • Not yet, not during budget season, but working on it

Windham School District

Christina Hartman, Superintendent

  • Statewide district inside the Dept. of Criminal Justice, 60,000 students each year
  • Federal Title 1 Part D funding and Special Ed. funding
  • All teachers in facility are certified
  • 220 days of schooling per year as opposed to traditional 187 days because students are always accessible and want engagement
  • High school diploma programs available as well as 30+ technical certifications
  • Partnership with Licensing and Reg and Workforce Commission for certifications and jobs post-release
  • Family Literacy Program, parents can become active in childhood education even while incarcerated

Robert O’Banion, Chief Financial Officer

  • Base $108.5 million
  • Was required to enforce 5% cut, $5.7 million
  • Removed 53 FTE, 42 of those teachers
  • Asking to reinstate 5.7 million for FTE
  • Rep. Morrison – What education level when prisoners enter program?
    • Average 5th grade level, we work to increase over time
  • Rep. Morrison – How do you collaborate with public school system
    • Most recently, Family Literacy Program; parents will be able to go to parent teacher meetings, which helps reduce the generational incarceration rate
  • 85% pass rate of high school exam
  • Rep. Morrison – Windam is funded differently than other school districts
    • Our budget is a line item in TEA, must earn through meeting required contact hours
  • Rep. Wu – These are adults and the average is 5th grade? If you don’t get FTE’s back how many students would miss out? Long term?
    • 6,000 a year would be affected
    • Every $ spent on correctional education has $3-5 return
    • Would not be able to work living wage jobs after release without these programs
    • During incarceration, we are using their time and keeping them busy instead of onsite violence or outbursts
    • A 1% decline in recidivism saves $13 million
  • Rep. Wu – What percent of students are functionally illiterate?
    • Most function between 4th, 5th, 6th levels
  • Rep. Johnson, A. – Cognitive behavior and intervention program?
    • Cognitive behavior program, targeted to individuals in before release
    • The intervention program is programming while incarcerated
  • Rep. Johnson, A. – Health and wellness program?
    • New, Texas Dept of Criminal Justice reduction, we have a shell of that program now; positions were erased.
    • Training correctional officers to provide those services but not at the same capacity
  • Women have more access to programs than men do
  • Priority ranking lists, based on release date
  • Rep. Johnson, J. -What qualifies student?
    • Assessment upon intake to get grade level equivalent, employment history
    • Correctional officers can make referrals
    • Age average is 32, focus on individuals that will be of age to work in Texas once released
    • Volunteer programs: libraries for peer tutoring
  • Rep. Johnson, J – Required for parole?
    • Recommended but student has opportunity to opt
    • Less likely for parole if opted out
    • Most opt out because past academic failures, we have motivational interviewing to encourage entrance into the program
    • Engaging younger students in tech programs
  • Rep. Johnson, J. – Curriculum goes through 12th grade?
    • We have some college level training programs and can go out of order depending on student

Teacher Retirement System

Rachel Stegall, LBB

  • Recommendations all funds $6.2 billion, $333.7 million increase
  • Due to SB12, which increased senate contribution rate 3% payroll growth
  • $524 million in Economic Stabilization Fund in 2020, would pay for ongoing cost in ‘22-23
  • Up for Sunset review
  • Requesting $1.57 million in pension trust funds

Tamera Aronstein, Sunset

  • TRS is not subject to abolishment
  • TRS manages trust fund well but needs to focus on members sense of security in retirement
  • Recommendation can be done within TRS resources
  • Two recommendations might have fiscal impact:
    • Appoint ombudsman
    • Modify employment after retirement penalty: retirees may pay back the amount earned instead of losing whole monthly check – fiscal impact cannot be calculated at this time
  • Rep. Wu – Accurate count of how may retired teachers are being asked to work on monthly basis and how many end up in violation of the limit?
    • Do not have information

Brian Guthrie, Executive Director

  • TRS Care does not require supplemental funding
  • Asking for $3 million allocated to open a regional office in El Paso
  • Amend rider to hire post graduate interns as well as students in professional programs
  • TRS Active Care funded through state and district contribution for health insurance for active members; cost is greater than contributions and the extra is paid by employees
    • Complaints that it’s too expensive, some districts are using loopholes
    • Allows districts to add educational programs so they can compete with charter schools in offering competing coverage to TRS care
    • 140 districts have given competing coverage
    • Lower cost product with fewer benefits
    • TRS active plan could be used only, then, by people who really need it and therefore spike the cost
  • Rep. Wu – Was expecting mass exodus of teachers because of COVID
    • Haven’t seen a spike, trending as they were pre-pandemic
  • 1,205 violations of retirees working more than allowed and losing monthly retirement check, in reference to Rep. Wu’s question earlier in the meeting
  • Rep. Wu – do you have a breakdown by month of how many retired TRS pensioners are working for a school district?
    • Have that for you shortly
  • Rep. Zwiener – Breakdown of how many active educators are contributing this year as opposed to last year at this time?
    • Can get it

Optional Retirement System

Rachel Stegall, LBB

  • Offered as alternate retirement program that will require interstate mobility
  • Asking for $371.1 million, $10.1 million increase
  • 6.6% state contribution rate, same as 2021

Public Testimony

Susie K. Texas PTA

  • Child advocacy
  • Applauds systemic reform that passed last session: better access and support, teachers got pay raise Need equitable access to connectivity, asks to support Operation Connectivity
  • 2 million Texas students have no access to broadband

Alicia C., TX Criminal Justice Coalition

  • Seeing increased exclusionary discipline for black and brown children, special needs and lower income students
  • Punishments removing students from classroom does not allow for learning
  • Consider funding items that support teachers to create better opportunities and resources so as to not rely on exclusionary discipline
  • Asks for support of $20 million to TEA
  • Asks to leverage COVID relief funds for mental health support and trauma/ frustration that will manifest into misconduct, invest in positive school climate
  • School Safety Allotment, address new crisis in safety: allocate all funds to mental health and none to hardening measures such as policing
  • Rep. Wu – A lot of past measures schools take, punitive measures, increase arrests. Negative influence on student outcomes. Expelling, arrests, intentionally or not, are directed at students of color. Do you know if the TEA provides data on how often students are arrested or sent to ISS/expelled and sorted out by race?
    • Yes, except with arrests. Civil rights report.
  • Rep. Johnson, J. – Great suggestions. Is there something to help teachers better understand the population they’re serving on top of their responsibilities? Piles on and on. Additional training?
    • In 2015, of 40,000 referred to law enforcement, about 1/3 came from classrooms
    • Teachers are trying their best, need more of a culture shift rather than training
    • Evidence based practices in holistic environment.

Kristie R, TX School Coalition

  • Cumulative learning loss – schools need additional, designated resources
  • One time investment that will have long lasting impact
  • Put regulations but don’t allow TEA to buy bulky systems that do not help all Texas students

Jason S.

  • Chronic absenteeism specific to district
  • Significantly racial, majority black male students
  • Private childcare providers to offer pre-k.
  • Only 20% of care workers are “quality workers” as defined by TX lege, use funding to increase certification of teachers to provide quality education instead of building new facilities
  • Suicide – the signs are here with the absenteeism; we know students are being isolated. Keep on radar
  • Rep. Zwiener – What do you see as limiting factor to provide to students?
    • Money
  • Rep. Zwiener – We have the people?
    • Yes we’re a big state. The federal funds can be used in a more broad way for mental health
    • No good data. HB2287 introduced this session, would find data to inventory available resources, which are working, and how we can get those to districts that need them
    • Give the commissioner the power to make research based outcomes; listen to data instead of vendors
  • Rep. Johnson, A. – Pre-K and subsidized childcare: in San Antonio there are waitlists. Could the funding increase certifications and capacity?
    • They go hand in hand
    • Within interim, all of public money to expand access, make sure to reduce waiting list
    • Rising Star Program, enhanced payment rate for care providers for becoming one-star, two-star providers

Berry H., Texas Association of Community Schools

  • Advocates over 600 small and mid-sized school in TX
  • Need for affordable broadband
  • Unreliable internet, too expensive

Doug Williams, Sunnyville ISD

  • $5.5 billion for education: should be supplemental of school operating budget and additional to Hold Harmless
  • Learning loss in last year  – students who are not proficient in reading by 4th grade are four times as likely to drop out; cannot lose progress from HB3
  • Fall 2020, 40% fell below benchmark for reading proficiency
  • 46% met proficiency in math 2019, number is down to 33% in 2020
  • Need sense of urgency, personnel and resources, readdress curriculum
  • Redesign pacing and sequencing, specialized intervention to kids that are behind
  • Funds to provide targeted assistance for students

Timothy L., Texas Retired Teachers Representative

  • Pension system is actuarily sound
  • Provide retirees cost of living adjustments
  • Amortization for retirees for 25 years is $17 billion dollars; TRS will spend $36 billion dollars on investments alone.
  • SB12 alleviated contributions by employers, 95% school districts do not pay social security
  • Higher ed and k-12 pay into retirement contributions differently.
  • Rep. Johnson, J – Why have retirees left TRS Care?
    • For those over age 65, fled to individual market for Medicare supplements
    • Was too expensive for dependents: $430 a month for dependents, half of their retirement income
  • Rep. Zwiener – Any surveying of members who have left TRS Care and where they went?
    • Difficult to know if they bought another policy, but went to individual market and typically bought Medicare supplement policy and Medicare D plan
  • Rep. Zwiener – And they’re lower quality than TRS?
    • Accessibility mostly. Have been paying into TRS for decades before retirement
  • Rep. Morrison – How has the pandemic affected retirees?
    • Members fall into high risk
    • Cancelled all in person meetings and conventions
    • Closed-in physical and mental conditions, paying to bring groceries, a lot of deceased
  • Rep. Morrison – Retirees got supplement, how was it used?
    • Revolving debt, old bills. Did not get put in the bank.
  • T1T4, engage retirees as online tutors. Help kids with homework. Goal to raise million dollars and give quarter of a million hours of help