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TCTA Executive Director's Message
We’ve all heard those characterizations about how the hallmark of a good compromise is that everyone leaves the negotiation feeling shortchanged. If that’s the test, then the Legislature’s most recent actions surely passed; it seems that everyone got some, but not all, of what they sought.
Key outcomes
Property owners will get significant reductions in their property taxes in the near-term future, though how those cuts will be funded going forward remains in question.
Teachers, counselors, nurses and librarians (those subject to the state minimum salary schedule) will get a $2,000 pay raise in the 2006-07 school year, though not the minimum $3,000 we had sought.
All public school employees currently receiving the $500 health insurance supplement will continue to receive those dollars, though the amount was not restored to $1,000.
Despite deploying dozens of high-paid lobbyists, the tobacco companies and their customers will see significantly higher taxes, but implemented later than originally contemplated (January 2007).
All school districts will continue to receive at least as much funding as they currently have due to “hold harmless” language adopted, but not the major infusion of new revenue that they need.
Property-rich school districts will have access to the long-sought goal of some unequalized enrichment, but property-poor districts will see an enhanced level of equalization and more funding.
Major urban districts like Dallas and Houston that were about to enter the “Robin Hood” system and be subject to recapture have dodged that arrow, ensuring their support of the proposed legislation. The price to be paid, however, was that the ability of local school boards to raise taxes without voter approval has been severely curtailed.
Proponents of an after-Labor Day school start date didn’t get the September date, but did prevail on a uniform start date of the 4th Monday in August, with no waivers, beginning with the 2007-08 school year.
Compromise reached under pressure
This session was characterized by less arm-twisting and more negotiation on the school finance issue than its predecessors. At numerous points, particularly on the Senate side, the difficulties of reaching a deal were painfully obvious and the potential of yet another failed session loomed large. In the end, though, the spirit of compromise prevailed – likely facilitated by the approaching deadline of June 1 that the Texas Supreme Court had imposed for legislative action.
The parameters of the deal were determined largely by the constitutional spending cap being in play. Though it can be argued that legislators could have handled the spending cap, which limits the growth in the state budget for each biennium, differently, the new revenue generated to replace property tax revenue was counted toward the cap. The dirty little secret of state government is that increases in property values have been subsidizing the general state budget for years, while the public has been assuming that all of their school property taxes were going to support the public school system. As property values rose, so did revenue generated by local districts, and the state cut its share of funding for public education commensurately. The loss of this subsidy and dedication of the revenue to be generated by the tax changes to further property tax reductions is what will make future sessions tricky for legislators. Despite those concerns, however, the bundling of the property tax relief with the reform components of the bill made it virtually impossible for legislators to vote “no” and explain it to their constituents, as evidenced by the unanimous vote in the Senate and 136-8 vote in the House for passage of House Bill 1.
TCTA advocacy leads to bill improvements
Most of the debate and negotiation during the session took place on the Senate side, where the “reform” component of the bill and the teacher pay raise were initiated. The subject of most of the closed door meetings was not, however, teacher issues – it was equity and recapture. At no time was the proposed pay raise for teachers more than $2,000 in HB 1, and the chair of the Senate Education Committee was vocal in her incredulity when the teacher groups opposed an earlier draft of the bill containing the $2,000 pay raise. What wasn’t reported as thoroughly was this: Even though teachers and others subject to the state minimum salary schedule would have received a $2,000 raise, support personnel would have lost the remaining $500 of the health insurance stipend after the 2007-08 school year. After our strenuous objections, and the threat that the $2,000 pay raise might go away, the bill was revised to continue the $500 supplement for all employees currently receiving it.
In addition to that significant improvement of the bill as finally passed, we were able to effect a few other positive changes, as well. Language that would have deprived retired/rehired personnel of the protections of the minimum salary schedule was deleted. Language allowing the commissioner to consider factors other than longevity in developing the state minimum salary schedule was cleaned up to clarify that those other factors must be in addition to, not instead of, longevity. Language from multiple versions of “reform” bills in prior sessions that would have reduced teacher contractual protections or allowed exemplary districts and campuses to ignore state law regarding employee rights and benefits did not appear.
Once more into the breach, dear friends
Perhaps most importantly, legislators are scheduled to return in regular session in January 2007. Public school finance and reform will no longer be at the top of the legislative agenda, having occupied that spot for the past two regular and no fewer than four special sessions. But even without our issues driving the agenda, the regular session will provide an opportunity for us to renew our efforts to address the issues we have with the most recently passed legislation (such as the second phase of the incentive program, not scheduled to kick in until the 2007-08 school year) and to continue to pursue longstanding priorities, such as significant teacher pay raises, TRS improvements, the restoration of the $1,000 health insurance supplement and improved compensation for paraprofessionals.
When the Legislature does reconvene, there will be 22 new members of the Texas House and five new senators based on the results of the primary elections in March; more changes could take place after November. We expect the Legislature to be somewhat more “teacher-friendly” as a result of these changes. Educators played a major role in many of the election outcomes in March; your continued and informed active participation in the political process will help us as we work to address the ongoing needs of school employees and the students you serve.
