The Lack of Legislation

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Public Education information and articles can be found at: www.texasisd.com

More articles and information can be found at: www.texastribune.org

The Lack of Legislation

Seriously, after 141 days of work in the House and Senate, the best our legislators could do is call a Special Session.  While the Eissler/Shapiro Hybrid proposal to distribute funds to Public Education was not perfect, it did provide an answer to every school district’s question “How much revenue will be available for next year?”

School Districts can’t build a budget without state revenue!  School Districts can’t hire or remove staff without knowing the amount of state revenue they will receive.  School Districts can’t build schedules for students unless they know state revenue.  School Districts can’t finalize expenses without state revenue.  School Districts can’t prioritize their educational needs if they do not know state revenue.

This Legislative Session has equated to “Can’t”!

The Legislature can’t agree on the amount of reduction.  The Legislature can’t agree on a plan to distribute funds to Public Education.  The Legislature can’t determine equality.  The Legislature can’t understand efficiency.  The Legislature can’t believe that schools need money for additional students.

The Legislature can’t believe that schools need “so much money” for the education of the future generation.  The Legislature can’t believe that so many school districts have already reached $1.04 on the Maintenance and Operation Tax Rate.  The Legislature can’t believe that education will be effected by a reduction of 10% or more in revenue.  The Legislature can’t believe that the economy of this great State will get better.

What makes those in the House and Senate so upset with school districts?  Why does it seem as though Public Educators are naïve, whiney, spoiled, and lack understanding of a balanced budget?  School Districts have to balance their budget every year!  School personnel are passionate about their profession.  School personnel believe a first class education is an investment.  Unfortunately, a majority of the House and Senate only see education as an expense to the state budget!  Some of these Legislators see public education revenue as a “run away” train headed to disaster if the “reins” are not pulled in.  “It is time for education to feel the pain like the rest of us”, some Legislators have said.  So, a state that boasts the lowest tax rates in the U.S. will continue to boasts the 43^rd worst investment on public education.  A state that boasts its ability to recruit high paying jobs will soon learn that the uneducated will not have the skills to be employed.  A state that boasts its recruitment of business and industry will find companies leaving as fast as they came because of the limited number of highly educated, highly trained workers.

A Special Session brings a chance and an opportunity to improve on legislation that was lacking.  It brings a chance and an opportunity to further educate the Legislature.  It brings a chance and an opportunity for parents, educators, and citizens to call upon Austin to fix a failed system and invest in education.  It brings an opportunity for Legislators to withdraw their denials and invest in the one item that profoundly affects the future of Texas. 

Or a Special Session could produce worse Legislation than the Eissler/Shapiro model.  It could bring out the worst in our elected officials who will use their political weight to further reduce revenue.  It could create the highest reduction to Public Education Funding ever!

The effects of a lack of legislation in the Regular Session will soon be seen.

Legislature, Hochberg, Bond Programs, Politics

This site is supported by Lockwood, Andrews & Newnam, Inc.  While providing highly trained and proven professionals to manage your construction program, LAN, Inc. focuses on a Communication System that keeps the client informed and builds trust.  For 75 years, LAN, Inc. has met client needs and exceeded client expectations.   www.lan-inc.com

Public Education information and articles can be found at: www.texasisd.com

More articles and information can be found at: www.texastribune.org

The Legislature – Best and/or Worst

Currently the House and Senate have displayed a complete lack of unity to address and move Public Education funding to a full vote.  With the current tax structure needing a complete overhaul so that a sustainable system can fund the most important component of the State Budget, a standstill in the Legislature, during the Regular Session, is great for those who want change.  This stalemate provides time to educate, inform, and possibly develop better legislation to fund public schools.  A stall could mean that public education will be funded under the current system and school districts would have money until February 2013. A “no decision” on school funding could mean that everyone could focus their energy, time and resources on a failed funding system during a Special Session.

But, a lack of action, in the Regular Session, is the worst for school districts trying desperately to equip classrooms, keep teachers, and develop budgets.   Board Members and School Superintendents cannot plan with uncertainty in revenue.  District and campus Administrators cannot prepare for the safety and education of students.  Schools cannot operate without money!

Hochberg - Distribution of Funds

Since the distribution of Public Education Funds is not applied fairly or equitably, all school districts remain hesitant to form an opinion on any plan until they analyzed the system that will distribute the funds.  Under Rep. Hochberg’s newest plan, the “winners” lose the smallest of percentages in revenue while the “losers” have their revenue reduced by 10%.  Hochberg claims that this updated system of distributing funds will ease the pain for many districts.  His statement is strictly dependent on which side of the fence the district stands!  Districts that lose 3% or less should feel good about their funding.  Districts that lose 8% or greater should demand a more equitable reduction in revenue.  Districts that lose 4% - 7% should do everything they can to make certain they do not lose more.  And so, school districts really are divided on their perspective of the distribution of public education funds.  Remember, battles are usually won if your opponent can be divided!

Local Citizens Spend on Local Education

About 70% of May 2011 Bond Elections passed!  This rate of success on referendums is the highest since 2008.  Many experts, who predict the outcome of elections, must be surprised since their forecast of failure was based on the conservative movement of the 2010 elections.  Texas Legislators might want to spend some time talking with citizens who vote.

The Fight for Public Education

Public educators are generally civil people who possess a positive attitude and a “can-do” mentality.  Educators accept and move-on no matter the situation.  Educators are not politicians.  They serve in communities and schools to prepare students for a better future.  So, fighting for public education in this political environment is unknown, unfamiliar and strange. 

The Effects of Public Education Cuts

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Public Education information and articles can be found at: www.texasisd.com

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The Effects of Public Education Cuts

As the Senate tries to pass a State Budget, school districts continue to develop plans for the unknown.  The House has stripped $10 Billion from Public Education.  The Senate appears serious about a reduction of $4 Billion from Public Education.  What will be the effects of large cuts to Public Education? A common statement by some taxpayers, and even some Legislators, is “If the school district can cut 20 or 100 or 400 employees and still operate then they must have had too many employees.”  This statement seems to suggest that some people believe the operation of schools will not change and the product of Public Education will not be different when the State Budget drastically reduces public education funds.

The cuts to Public Education will directly effect:

Academics – Student-to-Teacher ratios will increase above the level prior to 1984 when the State instituted the famous 22-1 Law.  While that Law will remain in effect for the future, saving elementary teacher jobs, the bulk of teacher layoffs will occur in Middle Schools, Junior High Schools, and High Schools.  Classrooms with 25 students will balloon to 30 or even as high 35 students next year.  Teachers will grade 24% to 40% more papers.  Attention to individual students will decrease.  Individual plans for student learning will be substituted with “one size fits all” teaching.  The effect will be a “class” education where only the strongest few survive.  And there will not be enough skilled students to sustain the Texas workforce.

Pre-Kindergarten – No longer will 4 year old children access full day education.  Parents will be required to find baby sitters, day care, or work part time so that their children are not left at home alone.  As this group of students move through the educational system, there be a further separation of the “haves’” and” have not’s”.  And the “have not’s” will be the majority!  School ratings will drop, school dropouts will increase, and college prepared students will decline.

Safety – Due to less money, campus assistant principals, directors, and facilitators will be released, school police forces will be reduced, and school resource officers will return to their local police departments.  The priority of schools, safety of the students, will be jeopardized and compromised.  Because educating students is a priority, every school district will choose between the lesser of two evils – cut a teacher who directs learning or cut the person who keeps kids safe. 

Transportation – As school districts look to the service side of their operations, school buses will carry more students to and from school in fewer buses.  Bus routes will be condensed adding time to the route causing students to get up earlier and get home later.  Extra-curricular activities will send student athletes and participants to events on one bus.  Teachers, after spending a full day in the classroom, will be forced to drive buses. 

Extra-Curricular Activities – The number and amount of coaches, sponsors, and directors will decrease while the number of student participants will continue to rise.  The research and evidence indicates that now more students, than ever before, are involved in sports, the arts, clubs, and after school programs.  The success of these programs will diminish as participation increases but adult guidance decreases.

Who really believes there will not be an effect on Public Education?

House vs Senate, Local Control, Local Decisions

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Public Education information and articles can be found at: http://www.texasisd.com/

House vs Senate

As the Senate prepares to spend more than the House in the next biennium, Republicans and Democrats are bracing for a battle that will pit the “we must live within our means” group against the “we must fund our priorities” group.  Republicans, like most people, don’t want an increase in taxes.  Democrats, like most people, don’t want to cripple the workforce of future Texans.  Republicans, like most people, want government to operate efficiently.  Democrats, like most people, want a government for the people.  Republicans, like most people, expect government to spend less when revenue is less.  Democrats, like most people, expect government to make wise choices in funding priorities.  Most people can agree with the principles that guide Legislators in their decision making.  But, the development of this State Budget will bring a battle that will definitely affect Public Education.

The House has already expressed concerns about the Senate “finding” additional revenue.  The Senate has already expressed concerns about the House “cuts” to Public Education.  The Conference Committee that will be gathered to address the differences in both budgets will meet, discuss and propose a budget to both chambers that will hopefully enhance the future of Texas.

Local Control becomes State Control

“Local Control” used to be the words of choice by Legislators.  Many people used to believe that the best decisions are made by those closest to the effects of decisions.  There was a day when Public Education was best performed by local communities, local citizens, and local elected officials.  State Mandates and Court Orders have essentially stripped local officials from “local control”.  Then, the Legislative Body slashed “local control” of the revenue source for Public Education.  “Local Control” used to mean that locally elected officials determined the School Tax Rate for their public education.  Not anymore!  Local citizens that want to save teacher jobs, enhance their public schools, address their local values in education, strengthen their programs, and support their students with additional revenue have no means to raise revenue.  The State capped the local School Tax Rate, capped the revenue from local values, and capped local community’s ability to raise revenue.  So now, the State has control of mandates and money. 

Local Decisions will be Examined

School Districts still have local decisions that must be made.  While the state has wrestled “local control” from every community, local school officials can still make effective, efficient decisions that will affect students.  During these times of tight budgets and high anxiety over potential cuts, every school district must carefully plan and execute local decisions and expenses.  While every school district has reasons for expenses, right now, the perception of an expense is huge!  An acceptable expense by a school district will be determined by the perceived need of the expense.  Planning, explaining, and communicating will assist every school district with the organization’s perception and the public’s perception of a “necessary” expense.

Dewhurst Makes Bold Statement

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Maok, Casey’s latest version of the House cuts to Public Education can be found at: www.texasisd.com

Lt. Gov. Dewhurst Makes Bold Statement

At a Legislative Conference in New Braunfels, last Friday, Lt. Gov. Dewhurst stated that spending on Public Education can be maintained and even increased in the next 2-year budget.  Dewhurst is counting on selling state land, reducing some expenses and raising other revenue to prevent the catastrophic cuts to Texas school districts.  Dewhurst believes the Foundation School Program can be funded “at the same appropriate level we’re funding right this second”.   A Senate Subcommittee is currently working to find revenue to meet expenses for the next biennium.

The House version of a State Budget slashes Public Education funding by $8 Billion.  Many in the House believe that Public Schools need to “tighten their belt” and cut their budgets just like businesses have to do when their company experiences a downturn in the economy.  While this is a noble claim by some legislators, public education is not a “business”.  It is not a company.  Public Education is managed by a team of elected officials from a local community whose primary revenue comes from taxation of its citizens.   There are no clients, customers, contracts, or profit margins in Public Education.  Public Education is governed by legislative law, judge’s orders, education codes, administrative codes, the State Board of Education, Local Board policy, State Board policy, societal demands, community values, and the Texas Education Agency.  While business principles can and should be applied to the management of a Public School system, the organization and structure of public education is very different from business.  Public Education is a supplier for every business and company.  It remains the single largest supplier of citizens, employees, and employers for communities and the state. 

 In many Texas communities, Public School employees work for the largest employer in the town – the Independent School District.  Under the House version of the State Budget, 335,000 employees(70,000 public school employees),  will hit the streets looking for jobs.   Jobs that are not available in the Texas economy.  The unemployment rate in Texas could move from one of the lowest in the United States to one of the highest in the U.S. in just two years.  If the 335,000 employees forced from their jobs earned an average of $30,000.00 per year, the economy of Texas will lose more than $10 Billion in household earnings over the 2-year period.

As a Senate-House Budget Showdown is certainty, there is hope that all in the Chambers will consider the short and long term effects of their decisions.

Education Continues

While many leaders in the business world would be overwhelmed with the magnitude of focus, energy and input needed to address the State Budget Shortfall.  School leaders must maintain a focus on the maintenance of buildings, development of curriculum, expenses from the current school budget, and the well being of students and staff. Communities count on schools to educate and prepare the future generation that will live, work and lead in towns and cities.  The education community will continue to do its part to prepare students for citizenship, workmanship, and leadership.

The Senate Hybrid Model

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The Senate Hybrid Model

This is a closer look at the Senate Hybrid Model for Public Education Funding.  It is important to note that for FY 2012 and FY 2013, the CL WADA, is a projection of district WADA for the 2 year period.

Current Law(CL) Total M&O Revenue is equal to the CL WADA multiplied by the CL Revenue per WADA.

Every school district should look closely at the FY 12 and FY 13 CL WADA and CL Revenue per WADA to determine if the numbers used in the runs are accurate.  Below is an example from one school district:

Fiscal Year 2012 HYBRID Model Numbers

Current Law (CL) WADA –                                                  6188

Current Law (CL) Total M&O Revenue -                          $33,777,173        

Current Law(CL)  Revenue Per WADA -                            $5,458

Change in Total M&O Revenue –                                     ($2,614,361)       

Total M&O Revenue per CL WADA -                                $5,036

Change in Total M&O Revenue per CL WADA –            ($422)

% change in Total M&O Revenue -                                   -7.7%

2012 True Total Revenue to Operate                              $31,162,768  (Multiply $5,036 times 6188)

Fiscal Year 2013 HYBRID Model Numbers

Current Law (CL) WADA –                                                  6144

Current Law (CL) Total M&O Revenue -                         $33,576,453

Current Law (CL) Revenue Per WADA -                           $5,465

Change in Total M&O Revenue –                                    ($2,972,195)

Total M&O Revenue per CL WADA -                                $4,981

Change in Total M&O Revenue per CL WADA –            ($484)

% change in Total M&O Revenue -                                   -8.9%

2013 True Total Revenue to Operate                              $30,603,264  (Multiply $4,981 times 6144)

From FY 2012 to FY 2013 the true loss in Revenue will be          ($559,504)

For every school district, the loss in revenue will change by an increase in WADA.  Below is an example of the change in revenue based on an increase in WADA:

If 2013 CL WADA remains the same as 2012 CL WADA (6188) then the

Total Revenue to Operate becomes                                $30,822,428        

Then, from FY 2012 to FY 2013 the decrease in Revenue will be               ($340,340)

If 2013 CL WADA is increased by 113 from (6144) to (6257) then the

Total Revenue to Operate becomes                                $31,166,117

Then, from FY 2012 to FY 2013 the increase in Revenue will be                $3349

If 2013 CL WADA is increased by 256 from (6144) to (6400) then the

Total Revenue to Operate becomes                                $31,878,400

Then, from FY 2012 to FY 2013 the increase in Revenue will be                $715,632

WADA is a significant factor for revenue potential. Develop and implement plans to increase WADA!

Rainy Day Fund, Comptroller, Legislators

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The Rainy Day Fund, Comptroller Finds Money, Legislators Work to Lower Deficit

Governor Perry has agreed in principle to use about $3.2 billion from the Rainy Day Fund to meet the needs of the current budget (2009-11).  Since the state’s deficit represented funds needed for the ’09-’11 budget and funds needed for the ’11-’13 budget, the Governor has improved conditions and the outlook for Public Education.  Governor Perry has stated that no rainy day funds will be used for operational purposes in 2011-13.  Therefore, most agree that use of the Rainy Day Fund for the current budget cycle is a “best case scenario”.  At this time, it appears that no additional Rainy Day Funds will be used to lower the anticipated deficit for 2011-13.

The State Comptroller has found an additional $300 million in tax revenues for the 2011-13 State Budget.  No one should be surprised that additional funds have been found, by the Comptroller, and that additional funds will be found.  The Comptroller is part of the Legislative process and will continue to adjust her estimate of revenue for the next biennium.

Senator Ogden and Senator Shapiro continue to work behind closed doors to reduce the deficit.  Working with other Senators, Senator Shapiro is working to reduce the current deficit of $9 Billion for Public Education to $4 Billion.

House Appropriations Committee Chairman Jim Pitts, R-Waxahachie, faces tremendous pressure from fiscal conservatives  after his showdown with Governor Perry about usage of the Rainy Day Fund.  Pitts has not backed down from his belief that use of the Rainy Day Fund is essential. 

 Pitts is also working on a measure to reduce the shortfall in the next two-year budget period by a slight delay in state payments which would push them into the following fiscal period. That would make available $2.4 billion, the largest part from delaying payments to school districts.

Pitts other idea would yield $3 billion through tax collection changes, including a requirement for the state's business tax to be paid quarterly.

The House Appropriations Committee recommends 2 Major Items:

a.       Increased funding to the Foundation School Program by $2 billion, contingent on the passage of House Bill 275(Use of Rainy Day Fund)

b.      $6.6 million cut from education service centers

Senators Discuss School Funding Models

One model would phase-out the hold-harmless provision over six years while increasing the basic allotment.

The second model anticipates stepping up school funding reductions over the next two years so that $1.5 billion would be reduced from school funding in 2012 and $2.5 billion would be cut in 2013 to achieve the committee’s goal of $4 billion in biennial savings.

Sen. Shapiro asked the LBB and TEA to come back with one more model. The model would have:

                $2.0 billion in cuts over the next two years;

no additional cuts after FY2013;

an illustration of how to grow the system with new money until 2017 when the state would achieve 85% equity.

Another $400 million that is set aside in the Senate budget bill, to be distributed by TEA through grants, could be placed into the Foundation School Program to reduce the deficit.

Both the House and Senate will continue to look for ways to reduce the deficit.  The state of Texas has a large budget and there are many avenues to close the gap between revenue and expenditures.