An Update on the 86th Legislature 1 Key Dates in the 86th - - PowerPoint PPT Presentation
An Update on the 86th Legislature 1 Key Dates in the 86th Legislative Session May 6th January 8th (119th Day) (1st Day) Last Day for Beginning of House to report Session house bills May 27th (140th Day) March 8th Sine Die (60th Day)
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January 8th (1st Day) Beginning of Session May 27th (140th Day) Sine Die March 8th (60th Day) Bill Filing Deadline May 6th (119th Day) Last Day for House to report house bills 2
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substantial changes from the filed version.
CSSB 4.
as passed by the House and the revised CSHB 3.
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Basic Allotment $5,880 $6,030 Cost-of-Education Index Both bills repeal the CEI. Small and Mid-Sized Adjustment Both bills move it into a separate allotment. CSHB 3 has slightly higher weights than HB 3, Engrossed.
Teacher Pay Classroom Teacher and Librarian Allotment of $5,000 for each full-time teacher and librarian. The allotment will decrease if a district’s ADA falls below 2018-19 levels. An additional adjustment related to benefits is included. 25 percent of district gain related to basic allotment increases dedicated to non-administrative pay raises. Teacher Incentive Pay Creates new Teacher Incentive Allotment similar to one in the introduced version of HB 3 (and identical to CSSB 4) Creates a new Educator Effectiveness Allotment with a weight of 0.012 for campuses in high-needs census tracts
Performance-Based Bonuses
based on performance on STAAR.
No performance-based allotments related to student outcomes.
Modelling Methodology for Performance-Based Allotments
that meet grade level on 3rd grade reading STAAR test or percent of grads demonstrating CCMR.
rankings for the three student subgroup listed in the bill.
use that rate as the threshold for generating an allotment.
their students that exceed that threshold.
CCMR - Edu. Dis. Rate 100% 0% 30.4% 25th percentile
Compensatory Education Allotment Both bills create a new comp. ed. allotment based on student’s resident census block, with weights ranging from 0.225 to 0.275. CSHB 3 is based on block groups, while HB 3 is based on blocks.
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Census Blocks Census Tracts
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Census Blocks
Bureau estimates demographic data for.
roads, streams, as well as nonvisible features like property lines or governmental boundaries.
provided in decennial Census.
10 years.
Census Tracts
around 4,000 inhabitants per tract. Cannot be more than 8,000 or less than 1,200.
annually on the American Community
years of data collection.
increases.
(Ex. Census Tract 1130 may be split into 1130.01 and 1130.02 if 1130 pop. increases above 8,000)
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Other Student-Based Allotments
is increased to 1.15
weight is 0.12
0.15 for ELLs and 0.05 for non-ELLs
funding to additional grade levels
is increased to 1.15
weight is 0.10
0.15 for ELLs and 0.05 for non-ELLs
grade 6
Indirect Cost Allotments/Spending Requirements
Repeals existing indirect cost allotments and does not replace them with new spending requirements.
education allotment must be spent on eligible programs
education allotment must be spent on eligible programs
allotment must be spent on eligible programs
Other New Allotments
Accelerated Campus Excellance plans.
school districts. Based on ADA, not value growth.
Allotment No similar provisions in HB 3.
Pre-K Both bills create a new early reading allotment with a weight of 0.1 that is commonly cited as providing the remaining funding needed for full-day pre-k. Both bills also provide waivers for districts to meet these requirements. CSHB 3 extends eligibility for free pre-k to the children of public school educators.
NIFA Makes no change to appropriation limit, keeping it at $25 million. Increases appropriation limit to $100 million. Transportation Allotment Uniform rate per mile as set by appropriation Uniform rate per mile as set by appropriation Set-asides Sets aside $6 million of regular program for blended learning grants, and $8 million of CTE allotment for grants to P-TECH schools. No new set-asides
Number of Golden Pennies 6 8 Golden/Copper Penny Yields Golden penny yield = $94.08 Copper penny yield = $47.04 Golden penny yield = Greater of:
at the 96th percentile of wealth, or
Copper penny yield = $48.24
Recapture Both bills redefine recapture to be excess local share compared to entitlement. Formula Transition Grant Establishes two targets based on the lesser of:
ADA, or
revenue per ADA. In even numbered years, the bill requires use of the 2019-20 prior law revenue as the target, and in odd numbered years, the use of the 2020-21 prior law revenue. Establishes targets based on the lesser of:
ADA in the same year, or
prior law revenue per ADA in the same year
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State Compression Percentage (applied to tier 1 M&O rate)
compression based on property value growth and inflation. Contingent on sales tax swap.
2021 if the sales tax swap is not approved by voters. 96 percent
Copper Penny Compression Both bills tie the compression of copper pennies to increases in the basic allotment. Rollback Rate Calculation Both bills include similar formula for calculating for the rollback tax rate (i.e. not based on effective tax rate, but on the state compression percentage * $1.00 plus compressed enrichment pennies). Of course, with a lower initial state compression percentage, CSHB 3 will result in lower rollback rates.
Duelling Rollback Rate Calculation Methodologies
rate based on the effective tax rate. The calculation for effective tax rate is unchanged for school districts under those bills from current law. ○ SB 2, As Engrossed multiplies the effective tax rate by 1.025. ○ CSSB 2 multiplies the effective tax rate by 1.02. Passed the House last night 107-40.
rate based on compressed tier 1 M&O rate plus compressed enrichment pennies.
An Illustration of the Rollback Rate Calculation Under HB 3, As Engrossed
Additional details can be found here.
Residence Homestead Exemption Increases residence homestead exemption to $40,000 Does not include increase to residence homestead exemption. Tax Rate Swaps Requires language that would indicate a district may not increase its M&O rate to create a surplus to pay debt service. Creates a basis for injunction against collection of taxes if district found in violation No similar provision Bonds Requires ballot propositions for bonds to include language “THIS IS A PROPERTY TAX INCREASE” No similar provision
Current/Prior Year Values Moves to current year values to calculate local share the FSP. Maintains use of prior year values to calculate local share of the FSP
Current Year/Prior Year Comparison
values would result in a $1.8 Billion in reduction state FSP costs.
included in CSSB 4 would cost the state approximately $540 million in 2019-20.
two CSSB 4 models, one with current year and one with prior year. Switching back to prior year in CSSB 4 greatly reduced the state aid distributed through the formula transition grant.
values is approximately, $1.2 billion.
Impact on M&O Tax Collections
Impact on FSP Revenue
$3.1 B $3.4 B
Impact on FSP Revenue Less Teacher Pay Allotment
$1.2 B
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Limits a district's use of the unspent proceeds of issued general obligation bonds to the specific purposes for which the bonds were authorized, to retire the bonds, or to another purpose if the original purposes are accomplished or
unspent proceeds may be used for another purpose if the district's board of trustees approves in separate votes the use of the proceeds for a purpose other than to retire the bonds and for the purpose specified at the time the vote is taken.
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Prohibits a political subdivision from issuing general obligation bonds to purchase, improve, or construct an improvement to real property or to purchase personal non-real property if the weighted average maturity of the issue of bonds to finance the improvements or personal property exceeds 120 percent of the reasonably expected weighted average economic life of the improvements or personal property financed with the issue of bonds. Reported from Senate Property Tax.
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Requires the ballot for a bond measure by a political subdivision to specifically state a general description of the purposes for which the bonds are to be authorized, the total principal amount of the bonds to be authorized, and that taxes sufficient to pay the principal of and interest on the bonds will be imposed. The bill also requires specific information to be included in the voter information document, on the district’s website, and published in a newspaper. The bill is pending in Senate Property Tax.
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The bill states that a political subdivision may not issue a bond for a certain purpose for five years after a vote for that same purpose was defeated by the voters. This bill will be heard in House Pensions on 5/2/19.
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As engrossed, the bill states that the question of whether to approve the issuance of bonds for the construction, acquisition, and equipment of school buildings in the district and the purchase of necessary sites for school buildings may be submitted to the voters in a single ballot proposition, except that bonds for each of the following purposes must be stated in a separate proposition:
than a gymnasium;
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determined by the district to be necessary to have a sufficient number of teachers for the district; and
used for school security purposes.
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The question of whether to approve the issuance of bonds for a building described above must be printed on the ballot as a separate ballot proposition regardless of whether that building is proposed as part of the same complex or building that contains traditional classroom facilities. Each separate ballot proposition required by this subsection must state the principal amount of the bonds to be issued that constitutes the cost for construction of that portion of the building or complex attributable to the building described above or to the traditional classroom facilities, as applicable. This bill has been referred to House Pensions.
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This bill applies only to a political subdivision located in a county with a population of more than 120,000. The bill requires a political subdivision seeking to hold an election on a measure to submit to the regional presiding judge of the administrative judicial region that the political subdivision is located in:
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A judge receiving a submission must appoint three judges from the administrative judicial region to serve on a panel to review the ballot proposition language before the election may be held. The panel will then either approve or disapprove of the language. If the panel disapproves of the language, it must rewrite the language. The political subdivision may submit revised language to the panel or use the rewritten language. This bill has been referred to House Elections.
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As engrossed, the bill states that the proposition submitted for an election to authorize a political subdivision to issue bonds must distinctly state:
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debt obligations as of the beginning of the political subdivision's fiscal year in which the election is ordered; and
the election is ordered, expressed as:
beginning of the political subdivision's fiscal year in which the election is
The bill has been referred to House Pensions.
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SB 3 by Nelson HB 1160 by Johnson HB 1632 by Bell SB 451 by Powell HJR 3/HB 4621 by Huberty SJR 76/SB 2441 by Taylor SJR71/SB 5 by Bettencourt
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HB 17 by Bonnen SB 11 by Taylor HB 18 by Price HB 19 by Price SB 12 by Huffman HB 9 by Bonnen HB 4242 by Bernal HB 3904 by Huberty HB 281 by Middleton HB 433 by Shaheen SB 29 by Bettencourt HB 1131 by Cole HB 592/SB 398 by Hernandez/Zaffirini HB 1556 by VanDeaver
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○ The bill originally provided a state-funded $5,000 annual salary allotment for every full-time classroom teacher at a traditional public school. The committee substitute (CS) now includes teachers at public charter schools. On the Senate floor, the bill was amended to add full-time librarians at a cost of $53 million. The bill now has a permanent salary floor based on a district's salary schedule in effect during the 2019-2020 school year. ○ Passed in Senate, referred to House Public Education Committee
○ The bill adds to the list of students that are considered "at risk" students with 1) dyslexia, 2) is educationally disadvantaged, 3) has been enrolled in at least two public schools in the current or preceding school year, or 4) has ten or more absences in a school year. ○ Passed in House, referred to Senate Education Committee
○ This bill would allow comp-ed funding to pay for school guidance and counseling program or counseling or social work services provided by a licensed social worker. ○ First placement on Senate Intent Calendar
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○ CSSB 2 passed in Senate 18-12 ○ HB 2 passed the House, cap lowered to 2% and discussion links passage of this bill to passage of HB 3
○ Left pending in House Ways and Means
○ Left pending in Senate Property Tax
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○ This bill is an omnibus safety and security bill. It includes facilities standards, mental health resources for district personnel, charter school provisions, school safety allotments, and a requirement for school safety plans. ○ Passed by Senate, received in House
○ This bill makes new requirements for schools pertaining to the training of principals, teachers and counselors on student mental health and substance abuse issues. ○ Passed by the House, referred to Senate Education Committee
○ As filed, this bill would require local mental health authorities to employ a non-physician mental health professional to serve as a resource for school districts in the region. ○ Passed by the House, referred to the Senate Health and Human Services Committee
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○ As engrossed, the bill sets contribution rates for members, districts, and the state. ○ Committee substitute adopted in Senate, passed 31-0 ○ Committee substitute adopted in House, passed 145-1, set on Senate Items Eligible Calendar
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○ The bill states that a private entity that receives state funds may not use the state funds to pay certain lobby expenses ○ Passed in Senate, referred to House State Affairs Committee
○ This bill would create a state financing program administered by the Texas Public Finance Authority to assist school districts with granting authority to issue bonds or other
○ Set on House Calendar for 5/1
○ The bill would require school districts to go out for a bid on non-construction purchases (current law includes only contracts for purchases) valued at $50,000 or more. ○ Passed in House, referred to Senate Education Committee
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As filed, the bill would make appraisal district board directors elected positions, instead of being appointed by participating taxing units. The bill would take effect beginning with the Nov. 2020 elections. Oppose with card
As filed, this bill would make one of the directors on the appraisal district board an elected position, with the remaining four positions still appointed by participating taxing units. The bill establishes a filing fee candidates must pay in order to run for the position. The bill would take effect in 2020, with the elected director taking office January 1, 2021. Oppose with card
Lynn M. Moak Daniel T. Casey
Partners
Susan Moak Kari Ruehman
Administrative Staff
Kathy Mathias Larry Groppel, Ed. D. Thomas V. Alvis, Ph. D. Alicia Thomas, Ph. D.
Consultants
Buck Gilcrease, Ed. D. Dee Carney Joe Wisnoski Terry Faucheux Gretchen Hoffman Catherine Knepp John Grey Monica Zdrojewski Josh Haney
901 S. MoPac Expressway, Bldg. III, Ste 310, Austin, TX 78746
www.moakcasey.com
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