House Public Education met on April 26 to discuss the following interim charges: any impact of the children crossing the Texas-Mexico border on the Texas and the impact of investments of the Permanent School Fund by the State Board of Education in businesses and funds owned or controlled by the Russian government. Texas Education Agency Commissioner Mike Morath also provided an update on the TEA and public education issues. A video archive of this hearing can be found here.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions 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.

 

Opening Comments

  • Chair Dutton – Thought about putting these interim charges in subcommittees, but decided to tackle them as a whole committee
  • Chair Dutton – Will have three or four committee meetings during the interim
  • Chair Dutton – Next hearing will look at interim charges 1, 6, 7, 8 and 10
    • Interim charge 1 includes: HB 1525, HB 3, HB 4545, SB 1365, SB 1716, and HB 3906
  • Chair Dutton – For the third hearing will discuss interim charges 3, 4, 9, and 5

 

Commissioner Mike Morath, TEA

  • Have a couple documents to walk through today; have an annual report first and then a public education update slideshow
  • Are employing more teachers than ever; about 380,000 teachers statewide
  • 19-20 SY budget allocated to public schools was 34% higher than 2011 pre-cuts
    • This was before the major influx in resources after COVID-19
  • Huberty – Percentage state share versus local share in terms of M&O?
    • 43% state share post HB 3; without HB 3 would be in high 30s%
  • Overviews pre-COVID-19 grade level proficiency rates
    • First year college enrollment was around 59%
    • Six years after graduation is only a 29%
  • After COVID-19 enrollment has sufficiently declined; last SY were 130,000 fewer kids
    • Current SY, enrollment has begun to grow again and has not caught up with pre-COVID levels
    • Special education services has continued to rise; overall rate is not as high as pre-COVID
  • Chair Dutton – Any grade level where enrollment that is specifically declined?
    • Yes; elementary schools are mostly down, but high schools are mostly returning
    • Does vary by school, district, and parent choice; statewide declines are more significant in lower grades
    • Growth in homeschool and private schools; do not have data on this
  • M. González – Preparing for balancing rapid shifts in needs for us to be more flexible?
    • Deal with this issue historically in public education; have to be flexible because the future is unpredictable
  • Grade level proficiency in reading and math; 7% decline in reading declines in math for third grade
  • Overall, COVID-19 has wiped out 10 years of academic progress
  • Have looked at historic data on other years where there were significant disruptions; need to have interventions
  • Statewide tests are helpful in terms of future proficiency
  • If proficiency is not met, can calculate how much in lost wages the kids will eventually miss out on; calculated if things continue the way they are, would be $2 trillion in lost income
  • Chair Dutton – 90% high school completion rate does not relate to current third grade reading levels?
    • Grade level proficiency does not directly measure college readiness
    • Are setting public policy standards by grade level
  • Chair Dutton – Does graduation rate tell us what we need to know?
    • Does not tell you the whole picture; need to also know CCMR data
  • VanDeaver – Done any work to see if we have reliably predictability standards?
    • Equating studies in STAAR; some are ongoing
  • VanDeaver – How long are we collecting data on these students?
    • Depends on the group; some are followed
  • VanDeaver – Indicators are highly reliable?
    • Yes
  • K. Bell – When did we change from TAKS to STAAR? Are we looking at relevant data?
    • 2011 or 2012; yes
  • K. Bell – 58% go off to college?
    • Are going to some postsecondary
  • K. Bell – Need to focus on CTE a little more; question the reliance on predictive testing on postsecondary success rather than them entering the workforce?
    • Indicator most important is income at 25 or 30
  • Chair Dutton – Difference between CCMR and college ready?
    • Goal is to not see large discrepancies between those numbers
  • Huberty – Correlation to third grade lexile scores?
    • Are testing where we think third graders should be proficient at
    • Determine where students should be tested at with beginning at teacher committees in the SBOE
    • Overviews the design process to build the test; rely largely on the professional opinions of educators
  • Chair Dutton – Some states develop a list of words a third grader should know; we do not have a list?
    • Believe we should have a list right now
    • Is in conversation at the SBOE; heard board members consider adopting a formal word list within the next calendar year
    • Chair Dutton – Would be good for the SBOE to take that task on; find schools do not focus on spelling as much anymore
  • Chair Dutton – Should we develop a list or the SBOE develop a list?
    • May be good to “divide and conquer”
  • K. Bell – Are talking about readability; talked a lot during the 86th session?
    • Conducted a third-party test on the test; found there no issues with readability
    • Test is designed to be what the state agrees students should be able to do
  • K. Bell – A-F accountability today is based on CCMR?
    • 40%, 20% is graduation rate, and remaining is the EOC scores
  • Chair Dutton – When get this years’ numbers?
    • Grade level numbers in June; other data will lag a little
  • Huberty – Had pushback on if the test is where it needs to be; would like that report you spoke about
    • The test is not flawed, issues are the lack of support for students
    • COVID-19 is the major disruption that has caused this learning loss
    • Will bring more data on the test when you talk about HB 3906
  • M. González – Next year we may be talking about accountability and assessment; are the tests where they need to be?
    • Yes; HB 3906 continues to ensure we have an accurate assessment and make a more positive impact on instruction
  • M. González – Do not believe if this is true; do you believe this is true for diverse student populations?
    • Yes; do extensive work to prevent bias and ensure this is an accurate assessment
    • Provides an example of a situation where it was a question of it is bias and if students needed to be better prepared
  • M. González notes a Meadows Foundation report was inconclusive if the test was where it needs to be
  • Critical in student outcomes: rigorous curriculum design, level of support for teachers, and time
  • Legislature has passed HB 1525 and HB 4545 which initial data has shown to be positive
  • Have about 40,000 new teachers a year
  • Legislature has made significant investments in schools; number of districts are playing with the addition of time to their school day/year
  • State has gone “all in” on tutoring; has been a positive change for students
  • On top of $70b spent on public education a year, has been an infusion of $20b in one-time funding
  • Bernal – Have heard from a number of districts how valuable flexibility is to extend their school year; opinion on year-round school to deal with learning loss?
    • Will pull some data on that; many districts in El Paso have aligned for year-long school
    • Have used funds from HB 1525 for planning grant supports
  • Buckley – What can the agency do to streamline the pipeline to get teachers into the classroom?
    • How schools structure time and job duties is the most critical piece for the system to work
    • Could be barriers with tutoring documentation; legislature could consider a follow up to HB 4545
    • Are certain things that are out of TEA’s control
  • VanDeaver – Have heard about the burden reading academies have put on teachers?
    • Is a variety of causes to the teacher shortage; would like to discuss this more during the workforce charge
    • Master reading teachers can test out of reading academies; schools could not be structuring adequate time for this; will discuss this more during the monitoring change
  • VanDeaver – Had a teacher was told by the agency they went to fast on the reading academies
    • Were likely not told that by the agency, but the individual provider
    • Most of this was up to local implementation
  • Chair Dutton – Utilization of retired teachers for the shortage?
    • Have more information under the teacher workforce charge; some law changes may have unanticipated negative consequences
  • Strategic plan has not changed that much since COVID-19; evidence based used now needs to be executed better
  • Overviews the strategic plan in terms of teacher retention/recruitment and certification requirements
  • Chair Dutton – Minimum salary is set by the legislature, maximum salary is set by the school district
  • Talarico – How many of the 15,000 in the TIA cohort are in the six-figure salary range?
    • Have some data we can share; has been more substantial growth around $80k
  • Has been significant growth in specialty schools; especially P-TECH schools
  • In the annual report, have a diagram describing the framework to support career preparation
    • Has been a lot of improvement in this area over the last 5 years
  • Have been working on improving low performing schools; seen a reduction in D-F campuses
    • Have not had data for three years in a row on accountability
    • The accountability system works; have long-term studies on this in terms of salary
  • Are one of the only few states that provide annually all items that are on the summative tests
  • Worthy areas of focus for the legislature:
    • Need to look at structured support
    • Improvement in instructional materials; especially Tier 1 materials
    • Need to look at accelerated learning supports
    • Special Education Funding Commission is meeting during the interim; the funding structure of special education is worthy of looking at
    • The future of virtual learning instruction
    • School finance discussions concerning state and local share
  • Allen – Future teachers have said reading academies have been a heavy burden; has been a deterrent
  • Allen – Students concerned about why they need to take an international history class at the end of high school
  • Allen – Are not attracting the brightest and best because teacher salaries are low
  • Bernal – At the end of last session a bill was an amendment added to a bill that would be like Dallas’ ACE Program to the education code; would like more discussion on this
  • M. González – Can break out CCMR Bonus on how much was by college and how much was career? Can be broken down by background/identity
    • Could break out that data for you
  • Talarico – Next session, need to focus policy making energy on the tremendous amount of learning loss
    • Are ranked 42nd and 46th respectively in reading; has been a historical challenge
    • Are certain issues statewide and certain based on local control

 

Interim Charge #2: Examine the impact, including any financial impact, to the Texas public school system of an increase in the number of children crossing the Texas-Mexico border. Review the history, any applicable precedents, and the legal landscape regarding the education of migrant children in Texas’s public schools.

 

Invited Testimony

Von Byers, General Council TEA – Resource Witness

  • Highlights key aspects of the court case Plyler v. Doe
  • Cannot question legal status for enrollment; higher education may have different standards
  • Denial of enrollment based on citizenship status would break federal law
  • Financial impact; do not know how many are here because we do not check their legal status
  • Would draw down foundation funds if they are enrolled and any additional funds for compensatory equitation and/or special education

 

Dr. Veronica Vijil, Superintendent Fabens ISD

  • School district is approximately 25 miles from downtown El Paso
  • School districts in Texas must address the specialized needs of immigrant students
  • Are a small school in an unincorporated area; school system is the hub of the community
  • Provides an overview for the district’s COVID-19 response
  • 99% of students are Hispanic, 91% are economically disadvantaged, 46% are emergent bilingual
  • Recommends funding universal pre-k and increased funding for CCMR
  • Recommends lessening the certification requirements for future teachers
  • Recommends increasing the funding formula for increased stipends for bilingual certified teachers

 

Dr. Ricardo LĂłpez, Superintendent Garland ISD

  • Students in Garland ISD have a 72% economic disadvantage rate
  • A third of the population in Garland are bilingual; need to increase the funding weight for these students
  • CCMR bonuses are the best way to prepare students
  • During the pandemic, saw the CCMR rate increase to 69% and graduation rate went up to 94%
  • Recommends a full-day pre-k program
  • Need create formulas to recruit/retain/incentivize bilingual teachers
  • Need investment to ensure students across the state have access to CCMR programs and dual language programs
  • Need to improve the lives of, and champion for, immigrant students
  • Huberty – Have any sense on the cost/impact of students whose first language is not English?
    • Trend has gone down on students from other countries since the beginning of the pandemic; anticipate it to rise again
    • Huberty – Would be important to know about the economic impact of immigrant children in the school system
  • M. González – Financial impact of immigrant students is not necessarily negative; know $119b in the economy is annual and personal income from immigrants
    • Agrees; are about creating a skilled workforce and is about creating a learning system for all children
    • M. González – Would be a negative financial impact if these students were not educated

 

Dr. J.A Gonzalez, Superintendent McAllen ISD

  • District is 74% economically disadvantaged and 93% of students are Hispanic
  • Are an A-rated school district and have postsecondary readiness distinction
  • We educate all students; colleges have already made many of my points
  • Cannot say we have increased in enrollment due to immigrant children
  • Recommends schools get funded based on enrollment, not ADA; would keep the weights based on special populations
    • Only states that fund by ADA are California, Idaho, Missouri, Kentucky, Mississippi and Texas
  • Huberty – Committee would not push back on funding based on enrollment; opinion on funding by enrollment, but tied to accountability system?
    • Would be all for it
  • Huberty – Done a TRE before 2019?
    • Were at 115 before the TRE
  • Huberty – Do have theoretical capacity? How many pennies until you meet the maximum cap?
    • Yes; are at 12.86
  • Talarico – Not sure why this is one of the top interim charges; you have not seen a major impact from immigrant students?
    • Correct; enrollment is declining

 

Public Testimony

Jaime Puente, Every Texan

  • Agrees with previous testimony that it is our responsibility to educate all students
  • Undocumented immigrants in our school system overwhelmingly benefit the state

 

Marsha Strickler, Self

  • Reside in Williamson County and pay taxes in Round Rock ISD
  • Immigrant students in our education system cause overall negative impacts
  • Public school students should provide proof of residency
  • Notes that 1/10 students are opting out of school districts because of indoctrination in schools

 

Ana Cortez, President for the Mexican American School Boards Association

  • Currently 39% of Texans identify as Hispanic; the under 18 population is the size of Connecticut
  • Political rhetoric regarding Latinos, their families, and the Texas-Mexico border results in negative mental health impacts
  • Notes that political rhetoric is a facet of why teachers are leaving the profession

 

Interim Charge #11: Review the impact of investments of the Permanent School Fund by the State Board of Education in businesses and funds owned or controlled by the Russian government or Russian nationals and determine the need for investment restrictions. Consider the impact of any proposed investment restrictions on fund performance.

 

Invited Testimony

Holland Timmons, CIO Permanent School Fund Corporation

  • There is PSF exposure to Russian assets in equity and debt programs; assets cannot be sold at this time and have been devalued since around March
  • MSCI and JP Morgan Index have both removed Russia from their indexes
  • Huberty – Could provide to us the returns on this investment over the last 10 years?
    • Returns on the broad index is 7.1% over the last five years
    • Emerging market equity is around 5.8% annualized
    • Tom Maynard, SBOE – We have some Russian debt as well
  • Chair Dutton and Timmons discuss the value of the emerging markets class in the fund; $1.1b and debt asset class is $2.6b
  • Huberty and Timmons discuss the managers of these funds and the illiquidity of the funds tied to the Russian government; they are in a fund along with 24 other countries
  • Huberty – Do you know where those assets are? Are we going to get lean rights?
    • Are held by the custodian; equities are public with a variety of public owners
    • Bonds are issued by the Russian government
    • The protections are not what they would be in the U.S.
  • Huberty – Concerned if they would be able to buy assets in the U.S. with the access we have given them
  • Buckley and Timmons discuss in the long-term, the strategy is to wait it out rather than sell the funds as soon as they are liquid

 

Rusty Martin, CIO General Land Office

  • Have a small retail sector in Russia which was valued at $3.7m last year; now is valued at $0
    • Its impact to the overall portfolio, $5.6b, is immaterial
  • Divestment is a possibility in the long run, but there is no way to do that at this point
  • Chair Dutton and Martin discuss that there are no buyers for these funds right now
  • Huberty and Martin discuss policies of portfolio managers; are not and have not looked to make investments in Russia specifically
  • Huberty – Overall return for the portfolio?
    • Net return for September is 16%; a lot due to energy exposure
  • Chair Dutton – What should we be doing as a committee or legislature to weather this storm?
    • Do not know; legislature could limit investment in certain areas of the world
    • But it is hard to foresee what will happen in what part of the world
  • Huberty – Exposure was minimal on both sides; you are planning on taking a strategic policy to prevent Russian investment in the future
    • Tom Maynard, SBOE – Is a gut reaction to sell these funds immediately as soon as the market is opened up
  • Huberty and Chair Dutton note they would like to prevent investment in Russia in the future; would like the GLO and the PSF corporation to make their own policy to prevent this
    • Timmons – Russia has been taken out of the indexes; currently they are not viable
    • Timmons – Historically, need to wait things out before making short-term decisions
  • Chair Dutton – If we have more conversations about this topic, we will look to this group for guidance