With the approval of SB 22 on Tuesday, the Senate Finance Committee took a significant step towards matching its appropriation plan for education in the next biennium with distribution requirements in state law. SB 22 author Sen. Florence Shapiro succinctly described the Senate circumstances as she laid out the committee substitute stating, “This bill is about meeting a financial crisis.”
The state’s financial shortfall requires the Texas Legislature to take a two pronged approach to school finance. Because the Legislature will appropriate less money for public education than current law call for, the lawmakers must change the school finance formulas to address the distribution of the reduced appropriations.
CSSB 22 would reduce the Foundation School Program (FSP) funding by a total of $4 billion this biennium by reducing target revenue, which Finance Committee Chairman Steven Ogden calls one big hold harmless that needs to be addressed. School districts will see a $1.5 billion annual reduction in target revenue. Districts will be reduced in 2012 by 6.5% and by 7.65% in 2013 and each year thereafter. Sen. Shapiro explained the goal is to phase out target revenue by the end of 2017.
Sen. Royce West inquired if there were any additional monies the state can put into the public school finance system after hearing Shapiro lay out CSSB 22. Ogden called the bill a “heroic effort” given the current situation. Upon further questions from West, Ogden acknowledged that a significant amount of the $6 billion the Senate is putting back into education will come from the rainy day fund.
Further discussions on SB 1 and the rainy day fund will take place tomorrow when Senate Finance brings those bills forward.
“If there is more money, my hope is that we would place it in public schools,” said Shapiro.
Members voiced their concerns against approving this bill noting the bill cuts education funding and does not even allow for growth in schools. Four amendments were adopted including an amendment by Senator Robert Duncan which specifies an end of Target Revenue in 2016/17 with a basic allotment of $5000.Other amendments made to the bill modified pre-kindergarten language to establish greater oversight within the Texas Education Agency.
After the Senate adjourned for the day, the Finance Committee reconvened on Tuesday afternoon to pass out SB 22, as amended, with a vote of 11 ayes and 4 nays. Three nay votes were cast by Democratic senators – Sens: ‘Eddie’ Lucio, John Whitmire, and Judith Zaffirini – and one nay note was cast by Republican Robert Deuell.
SB 22 will now head to the Senate Floor.
