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The following is a detailed summary of the provisions of HB 1 as it was sent to the governor. We will continue to update this summary as we further analyze and refine our understanding of the legislation. School Finance and Property Tax Relief
Download TEA's Frequently Asked Questions about HB 1
Article I: Public School Finance and Property Tax Relief
Maximum M&O property tax rates are reduced to $1.33 for 2007 and $1.00 for 2008. Districts may add up to 4 cents of local revenue to that rate without voter approval (an additional 2 cents can be added in 3 years). Any rate increase beyond those amounts will require voter approval. Wealthy districts are not subject to recapture on the 4 cents; property poor districts will have the 4 cents equalized at a higher level (94.5 percentile, as opposed to 88th – which is improved under the bill from the current 73rd – for other pennies; this issue was at the heart of the Senate compromise)
Article II: Fiscal Accountability
Establishes up to three Education Research Centers for conducting research regarding impact of state and federal education programs, the performance of educator preparation programs, public school finance, and best practices of school districts regarding classroom instruction, bilingual education, special language programs and business practices.
Requires the commissioner of education to have a third-party contractor develop and implement procedures to make all financial and academic performance data submitted through the Public Education Information Management System (PEIMS) available through the Texas Education Agency Web site. The commissioner must appoint an advisory panel consisting of educators and interested stakeholders to assist the commissioner in developing requirements for the system that is easily accessible by the general public. States that this section does not authorize the disclosure of student information that may not be disclosed under the Family Educational Rights and Privacy Act. The system must be in place by August 2007.
Best Practices Clearinghouse: Requires TEA to establish an online clearinghouse of information relating to best practices of campuses and school districts regarding instruction, public school finance, resource allocation and business practices.
Administrative Efficiency: Shared services. Requires the commissioner, by December 1, 2006, to evaluate the feasibility of including a uniform indicator in the financial accountability rating system that measures effective administrative management through the use of cooperative shared services arrangements. If the commissioner determines that such an indicator is feasible, the commissioner must include the indicator in the rating system beginning with the 2007-08 school year. Allows the commissioner to require a district to enter into a shared services arrangement if the commissioner determines that the district has failed to satisfy a financial accountability standard and that entering into a shared services arrangement would enable the district to enhance its performance on that financial accountability standard and promote the efficient operation of the district.
Publication of proposed budget: Requires school districts to post a summary of the proposed budget on the school district's internet Web site or, if the district does not have a Web site, in the district's central administrative office. The summary must include information relating to per student and aggregate spending on instruction, instructional support, central administration, district operations, debt services, and any other category designated by the commissioner.
Review of accounting system: Requires the commissioner to conduct a comprehensive review of the accounting systems used by school districts to see if changes need to be made to improve transparency and more thorough information. Not later than January 1, 2007, the State Board of Education must submit a report to the legislature evaluating the benefits of providing school districts with standardized accounting software.
Spending targets for district expenditures: Requires the commissioner to annually establish and publish proposed expenditures for each school district based on an evaluation of information relating to the best practices of campuses and districts regarding instruction, public school finance, resource allocation and business practices.
Article III: Academic Accountability
Electronic student records system: Requires each school district, institution of higher education and charter school to participate in an electronic student records system that satisfies standards approved by the commissioners of education and higher education. The system must include information concerning a student's course or grade completion, teachers of record, assessment instrument results, receipt of special education services and personal graduation plan.
Requires the language proficiency assessment committee to reevaluate any student who is transferred out of a bilingual education or special language program if the student earns a failing grade in any foundation subject during any grading period in the first two years after the student is transferred to determine whether the student should be reenrolled in the bilingual or special language program.
Measure of annual improvement: Requires the commissioner to determine the method by which TEA can measure annual improvement in student achievement from one year to the next on an assessment instrument. TEA will report the student's expected annual improvement to the district, which the district must provide to the teachers and to parents. But there are no other accountability requirements for its use.
Adds a measure of progress toward preparation for postsecondary success and measure of progress toward dual language proficiency for LEP students to AEIS indicators by the 2008-2009 school year (but district/campus rating will not be based on these indicators). Conditions TEA's evaluation of school districts/campuses based on measure of progress toward dual language proficiency upon districts receiving a bilingual allotment that exceeds the amount of that allotment for the 2005-2006 school year. Clarifies that the requirement of a measure of progress toward dual language proficiency shall not be construed to require the development of additional state assessments or that a student in a dual language program be assessed in more than one language on any one assessment.
Requires the commissioner to annually determine the accreditation of a school district based on the academic accountability system and the financial accountability system. The commissioner also may consider the district's compliance with reporting requirements via PEIMS, high school graduation requirements, extracurricular activities, health and safety, purchasing, elementary school class size limits, removal of a disruptive student from the classroom, at-risk programs, prekindergarten programs, the effectiveness of the district's program for special populations, and the effectiveness of the district's career and technology program. Based on the district's performance on the factors listed above, the commissioner must either assign an accreditation status or revoke the accreditation of the district and order closure of the district. Requires districts to notify parents if the district receives accredited-warned or accredited-probation status.
Technical assistance and campus intervention: The commissioner must assign a technical assistance team if a campus is acceptable but would be rated unacceptable the following school year. The commissioner can waive this requirement if the improvement in performance standards among all student groups over the preceding three years indicates that the campus is likely to be rated academically acceptable in the following school year. The commissioner must assign a campus intervention team if a campus is rated unacceptable. The campus intervention team must conduct a comprehensive on-site evaluation of the campus to determine the cause for the campus's low performance and lack of progress, recommend actions, and assist in the development of a school improvement plan for student achievement, and assist the commissioner in monitoring progress in the school improvement plan. The campus intervention team must continue to work with the campus until it is rated acceptable for two years, or it is rated acceptable for one year but the commissioner determines that it will continue to operate in a manner to improve student achievement. Any time the commissioner determines that a campus is not fully implementing the intervention team's recommendations or the school improvement plan, the commissioner can order the reconstitution of the campus. If a campus is rated academically unacceptable for two consecutive years, including the current year, the commissioner must reconstitute and assign a campus intervention team. The campus intervention team will decide which educators may be retained at the campus. A teacher of a TAKS-tested subject can only be retained if the campus intervention team determines that a pattern exists of significant academic improvement by students taught by the teacher. If an educator is not retained, the educator may be assigned to another position in the district. If the campus continues to be unacceptable for a subsequent school year after reconstitution, the commissioner may order alternative management or closure of the campus. If a campus continues to be unacceptable for two consecutive years after the campus is reconstituted, the commissioner must order closure or pursue alternative management of the campus. Alternative management is limited to qualified (as defined in the bill) non-profit entities, including a school district other than the district in which the campus is located that is within the same regional education service center boundaries as the campus is located. After one year, if alternate management is not working, the district can terminate the contract. If after two years of alternate management the arrangement is still not working, the district must terminate the contract. The commissioner can decide that a district can resume operation of the district at that point, but the commissioner must assign a technical assistance team. Districts can appeal the commissioner's decision to close the district/campus or pursue alternative management to the State Office of Administrative Hearings.
Requires a joint interim study on the impact of school assessment instruments.
Article IV: Education Employees
School Leadership Pilot Program: Requires TEA to develop and implement a school leadership pilot program for principals in cooperation with a nonprofit corporation. TEA must consult with business schools at institutions of higher education to develop program course work that focuses on management and business training. A principal or a person interested in becoming a principal can apply to participate in the program. A principal of a campus rated academically unacceptable must participate in the program.
Salaries: Provides for a $2,000 across-the-board pay raise for all teachers, librarians, counselors and nurses.
Health insurance: Eliminates the health insurance supplement by converting the current $500 health insurance supplement to salary. For non-administrative employees who are not subject to the state minimum salary schedule, funding continues to flow to districts for the health insurance supplement.
Mentors: Allows each school district to assign a mentor teacher to each classroom teacher with less than two years of teaching experience. The mentor must teach in the same school, to the extent practicable, teach the same subject or grade level, complete a research-based mentor and induction training program, complete a mentor training program provided by the district, and have at least three years of teaching experience with a superior record of assisting students as a whole in achieving improvement in student performance. Funds appropriated for this program must be used for mentor teacher stipends, scheduled time for mentor teachers to provide mentoring, and mentor training.
Awards for Student Achievement Program (teacher incentive pay): A grant program that codifies the Governor's Educator Excellence Awards program (via his executive order), but is expanded from $10 million per year to $100 million in 2006-07 and $100 million per year thereafter. The program is also expanded to the top half (as opposed to current top one-third) of campuses with the highest percentages of economically disadvantaged students. Eligible campuses must also be rated exemplary or recognized, or ranked in the top quartile of campuses in comparable improvement in math or reading. A campus-level decision-making body must develop a campus incentive plan that is designed to reward teachers who have a positive impact on improving student achievement. A district-level decision-making body must approve the campus incentive play before the plan is submitted to TEA. The plan must be submitted to TEA with evidence of significant classroom teacher involvement in the development of the plan presented through the campus-level decision-making body's meeting attendance records or minutes or other appropriate means, letters from at least three classroom teachers at the campus describing their support for and involvement in developing the plan, and evidence that the plan has been made available to the public. Seventy-five percent of the funds must go to teachers who demonstrate success in improving student achievement using objective, quantifiable measures, such as local benchmarking systems, portfolio assessments, end-of-course assessments, and value-added instruments, and who successfully collaborate with other faculty/staff in contributing to overall student achievement. Other factors that may be considered are assignment to a shortage subject area, demonstration of ongoing initiative, and involvement in activities that directly result in improved student achievement. The remaining twenty-five percent of the funds must be used for incentive payments to campus employees other than teachers who have contributed to improved student achievement, professional development for teachers, signing bonuses for teachers new to the campus who are teaching in subject shortage areas, a teacher mentoring program that meets the requirements for the mentoring program described above, new teacher induction programs, common planning time and curriculum development, proven teacher recruitment/retention programs, activities that further the goal of an incentive system to improve student achievement, stipends for teachers who participate in an after-school or Saturday program, stipends for teachers who are certified in the main subject area in which they teach, stipends for teachers who hold a postgraduate degree, additional funding for feeder campuses that aren't assigned performance ratings (such as kindergarten –grade 2), and/or any other program that directly contributes to improved student achievement.
Educator Excellence Awards Program (teacher incentive pay): Also a grant program, with the primary distinction between this and the Student Achievement Awards program being that this program applies to entire school districts (as opposed to individual campuses) and is not limited to campuses with high percentages of economically disadvantaged students. Funding is set at $840 per teacher beginning September 1, 2007 ($230 million, of which $100 million must be used for the Student Achievement Awards, leaving $130 million for the Educator Excellence Awards). That funding increases to $1,000 per teacher beginning September 1, 2008 ($280 million, of which $100 million must be used for the Student Achievement Award program, leaving $180 million for the Educator Excellence Awards). The district-level committee develops the plan, and a majority of classroom teachers assigned to a campus selected to participate in the plan must approve participation to be included in the local plan. The district must submit the plan to TEA for approval along with evidence of significant teacher involvement in development of the plan. Sixty percent of the funds must be used to directly reward teachers who effectively improve student achievement as determined by meaningful, objective measures. The remaining forty percent must be used to provide stipends to mentors or teacher coaches, stipends for subject shortage certification, stipends for teachers who are certified in the main subject they teach, stipends for assignment to hard-to-staff schools, stipends for teachers holding postgraduate degrees, awards to principals who effectively increase student performance, awards to other campus employees who demonstrate excellence, or for implementing components of a Teacher Advancement Program.
Both programs are required to be evaluated by TEA or a third party, including a description of the design and implementation of the programs, detailed information regarding the distribution of awards to teachers, comprehensive, quantitative analysis of the impact of the awards, and a summary of approaches used by campuses/districts in distributing remaining funds not reserved for classroom teachers.
Article V: High School Success and College Readiness
Requires the commissioner to establish vertical teams of high school educators and college faculty to align the high school curriculum with higher education curriculum and expectations. By September 1, 2011, the teams will recommend college-readiness standards and expectations to address what students must know and be able to do to succeed in entry-level courses in higher education (these are to be incorporated into the high school TEKS), evaluate whether current high school curriculum requirements successfully prepare students for college-level course work, develop instructional strategies for teaching courses in high school which prepare students for college success, jointly develop English Language Arts, math, science, and social studies courses to be offered by fall 2009, to students who need additional assistance in preparing for college success. These courses can be used to meet the recommended high school program graduation requirements.
College credit program: Requires each district to implement a program in which students may earn the equivalent of 12 semester credit hours of college credit in high school by fall 2008.
Provides an optional flexible school day program for students in grades 9-12 who have dropped out of school or are at risk of dropping out.
Establishes Texas Governor's Schools, a summer residential program for high-achieving high school students.
Four-by-four curriculum: Provides that the recommended and advanced high school programs include a requirement to complete four courses in each subject of the foundation curriculum (English Language Arts, math, science, social studies) to be applied to 9th graders beginning with the 07-08 school year. This will require the addition of another Math credit and Science credit to the current Recommended and Distinguished high school programs, although the SBOE has already added a fourth science credit contingent upon funding by the legislature.
High school allotment: Provides the $275 per student in grades 9-12 for high school reforms such as college-readiness programs, advanced academic courses, and the four-by-four curriculum (noted above).
Article VI: Prekindergarten programs : allows children of military families to qualify for prekindergarten programs.
Article VII: Texas School for the Deaf provisions
Article VIII: TEA Sunset provision : extends TEA's Sunset Advisory Commission review date to 2012.
Article IX: School start date : Sets the school start date at the fourth Monday in August with no waivers, beginning with the 2007-08 school year.
Article X: Health and Safety : Allows student self-administration of anaphylaxis medication.
Article XI: Elections : Provides that school board elections must be held either on the uniform November election date or on the same date as the local municipal elections.
Article XII: Permissive transfer of students : Allow siblings of special education students to transfer to the same school as the special education student.
Article XIII: States that the legislature will implement reforms to the textbook adoption system; that the State Board of Education should forego the issuance of all proclamations on textbook purchases on or after effective date of this Act (in effect beginning with Proclamation 2006 which includes elementary English and Spanish reading/ELA textbooks, and secondary literature). Reforms to the existing system may include changes in the manner in which funding for instructional materials is provided and such changes may affect the materials called for in Proclamation 2005 (K-5 Math).
