1. Legislative Update & Overview June 12, 2014

2.  November 4, 2014 - Election Day  November 10, 2014 - Bill filing begins  January 13, 2015 – 84 th Session begins  June 1, 2015 – Sine Die 84 th Legislature - Dates to Remember

3.  All new state leaders  Governor  Lieutenant Governor  Comptroller  Attorney General  New Committee Chairs  Senate Education  Senate Finance  House Appropriations 84th Legislative Session

4.  Speaker Straus expected to be re-elected  Currently, 63% of members are certain to return (51 Republicans and 43 Democrats)  22 are not returning to their seats (due to retirements or primary losses)  34 face general election opponents Texas House of Representatives

5.  New Lieutenant Governor (which also means new committee chairmanship assignments)  17 of 31 senators are certain to return to their seats (with Hegar and Van de Putte maintaining their seats and returning if their bids for others offices fail)  Could be as many as 8 new senators (meaning that one-third of the Texas Senate will not have served a full four-year term in the Senate in 2015) Texas Senate

6. Analysis from Mark P. Jones, chairman of Rice University's political science department

7. Percent with Majority Ch. 41 Legislative District Texas House Texas Senate

8.  Budget surplus (projected $2.5 - $5 billion)  But a Legislature unwilling to spend  $1 billion shortfall from Medicare needs  Transportation and water needs  Calls for tax relief  Property tax appraisals Issues at play

9. Step in the process Possible timeline Judge Dietz files final judgment & findings of fact July/August 2014 Appeal filed (30 days, up to 90) September – November 2014 Supreme Court takes caseOctober – December 2014 Briefings scheduledSpring 2015 Arguments before Supreme CourtMay 2015 Supreme Court issues final rulingSeptember/October 2015 Legislative response Spring 2016 (maybe 2017) Timing of the School Finance Case

10.  Pre-Kindergarten  Debt Limitations & Transparency  TRS contribution  Virtual Schools  Teacher Quality  Local Control (freedom from mandates)  Accountability  Achievement School Districts  Private School Vouchers Education Issues at Play in 2015

11. School Finance - 2014-2015 FSP  1.8% Increase to Basic Allotment (to $5,040), resulting in increase to EWL  Golden Penny Yield increased to $61.86  Adjustments made through General Appropriations Act, not statutorily

12. 12 Revenue per Student in 2004 Dollars Ex. 6618

13. District ADA shown by Quintiles

14.  As school and state leaders try to measure school district equity by comparing two districts’ total revenue per WADA, the basic assumption is that such numbers are comparable.  But often they are not.  Such comparisons within the Foundation School Program assume that school district formulas distribute funds in a manner that properly accounts for the differences in district needs. Chasing “false equity”

15. Common Comparison used for Equity

16. Highland Park ISDIrving ISDDifference M&O/WADA (Adopted Rate) $6,411$5,453$958 M&O/WADA (Compressed Rate) $5,571$5,218$353 Total WADA7,43544,901(37,466) Administrative Costs per WADA $627$402($265) Teacher Base Pay per WADA $2,670$2,247($423) Comparisons should examine full picture

17.  No comparisons should be taken at face value  Help others understand the story behind your numbers o Size o Cost of Education Index o English Language Learners o Comp Ed students o Facility/Insurance costs o Hold harmless/historic funding levels o And many other factors So what?

18.  Big changes in all state leaders and Senate + more conservative and Tea Party affiliated legislators  With a surplus they don’t want to spend  In a holding pattern for school finance changes in 2015 awaiting the court ruling  However, 2015 is the time to lay the groundwork for special sessions to come In summary