Below is the HillCo client report from the October 7 House Appropriations Subcommittee on Article III hearing.

This report focuses on the invited testimony related to the Speaker's Strategic Fiscal Review Charge of the Texas Education Agency. 
 
Ursula Parks, LBB, Overview of Speaker’s Strategic Fiscal Review
Strategic Fiscal Review: Update on LBB Activities 

  • Provide options on funding – maybe alternative methods
  • Increase transparency on Agency efforts
  • This process will carry over to the next interim on additional agencies
  • Opportunity for thorough review including all methods of finance – this process is an all funds process
  • Looking at statutes and directives given to the agency – will identify mission creep
    • Chair Otto points out if mission creep has happened perhaps statutes need to be updated
    • May also be opportunities to identify creep and bring the agency back into bounds of statute
  • Specific analysis at program level including funding
  • LBB details will be compiled and given to the legislature so they can use it during the 84th
  • Diverse agencies in size and across all articles for this initial review
  • These agencies represent 20% of all funds appropriated
  • Deadlines have now passed for agencies to report information
    • Some agencies have not yet completed submission
    • Target is to still have all information for members when they come into the 84th
  • Data will include many factors such as reporting by program, what items are outsourced, revenue, additional information to capture funds outside the treasury, etc
  • Rep. Howard asked about GRD funds that are appropriated vs those that are not appropriated
    • For this exercise it is focused on appropriated funds
    • Howard asked – wouldn’t it be helpful to see what dedicated funds are reserved for a purpose not being spent?
    • Will be answering that question but there will be a separate report on GRD funds
  • Rep. Giddings – will have a complete detailed list of funds?
    • Yes – funds outside the appropriations process available to them will be detailed as well

 
Lizzette Gonzales Reynolds, Chief Deputy Education Commissioner for Texas Education Agency (TEA)

  • TEA is one of the agencies that are struggling with the process
  • Enormity of data took a heavy toll
  • Apologizes they failed in directly communicating to LBB and have communicated with them today
  • Program creep is concern
  • Wants to focus on respect and focus of local control
  • Goal to have every student college/career/certificate ready
  • Among other items highlighted the TEA is dedicated to
    • Develop holistic teacher evaluation process is part of reaching this goal
    • Build office of investigations and enforcement that inspires confidence
    • Greater flexibility to schools with federal funds
  • Overview of certain exceptional items in the LAR was provided including but not limited to:
    • Accountability – $30 million placeholder to further develop indicators that better demonstrate value public school provides
  • Otto asked about handout stating programs outside of the Foundation School Program
    • 77
    • Otto asked if these address what the district needs in particular in relation to this money?
    • Otto further inquired if funding could depend on how good the grant writer is
    • Could be but some funding is given directly
  • Top exceptional item priority is different from priority of closing the achievement gap
  • High Performance School Consortium gave very detailed report on assessments and that they were going to tackle the above mentioned LAR Assessment request for free rather than $30 million Rep. Ratliff
    • $100 million is for the program as it currently exists
    • $30 million can best be described as a R&D
    • How to support teachers in classroom and figuring out when a child is ready to go to next level
    • Ratliff pointed out again the High Performance School Consortium was prepared to do it at their expense
    • They will be partners with us – want to see the partnership brought around HB 5
    • Item may not cost $30 million – it is a placeholder
    • Ratliff again said it sounds like a large cost that was going to be done for nothing so would be interested in hearing the details on it
  • Giddings asked about SSI (Student Success Initiative) and conversations about Pre-K
    • TEA is working on application for federal pre-k grant (it needs to stay with Texas core values and not incur ongoing cost) have until the 15th to turn it in – $30 million a year over the next four years
  • Giddings asked about Teach for America continuation
    • Rider in budget last session so decision of legislature
    • TEA kept budget as is with some specific exceptional items
  • Howard asked since Pre-K was cut from $200 million down to $30 million – given a TEA goal is to end racial and socioeconomic achievement gap – this funding should then be a focus
  • TEA staff will get back to committee on the financial needs to get a pilot program of school of children with special needs implemented
  • Otto – funds outside the foundation school program – does the court look at programs outside foundation school program when reaching a decision on school finance?
    • TEA general counsel said answer depends on claim
      • Equity – formula
      • Adequacy – all program including funding for remediation