1. Texas School Finance History & Legislative Update April 2, 2019
B o e r n e I S D
Texas School Finance History & Legislative Update April 2, 2019

2. School Finance History
B o e r n e I S D
School Finance History
7 lawsuits since 1984
Legislature tends to act only when facing deadlines or school financing system is ruled unconstitutional
“Robin Hood” plan upheld by Texas Supreme Court in 1995
Recapture began with 34 districts paying $127 million/year
Currently 217 districts pay $2.7 billion in recapture
Without reform will grow to 350 districts at $5 billion by 2023

3. B o e r n e I S D
Recapture Since 1994
Total: $25,960,100,000

4. B o e r n e I S D
Source Of K-12 Funding 2008 to 2020

5. Last Major School Finance Reform - 2006
B o e r n e I S D
Last Major School Finance Reform
Legislature cut local school property tax by 1/3
Lost revenue replaced by a new business tax
State allocated more to public education
State allowed extra $.06 in local school tax rate to pay for $3000 raise in teacher salary

6. Perfect Storm - 2011 Great Recession
B o e r n e I S D
Perfect Storm
Great Recession
Federal Stimulus Aid expired - covered gap in state $ from
Slow economic expansion = smaller appraisal & tax revenue growth
2011 Legislature cuts $5.4 billion in K-12 education funding
Despite gain of almost 400 students, Boerne ISD’s budget declined by $1.5 million between and school years

7. As Economic Growth Accelerated: Boerne ISD shared in the prosperity
Road to Recovery
As Economic Growth Accelerated:
Property tax revenues grew at faster rate
State Aid increased
This more than offset growing recapture
Boerne ISD shared in the prosperity
From to budget grew $18 million
Enrollment grew by 1900 students and district added over 100 teachers
Increase in pay after several years of no raises

8. Road to Recovery Impact on Salaries: 2015-16 – 2% raise
B o e r n e I S D
Road to Recovery
Impact on Salaries:
– 2% raise
– 2% raise
– 2% raise
– 3% raise

9. B o e r n e I S D
Road to Recovery
Impact on Benefits – Contributions to TRS Active Care:
2002 to 2015 – Increase from $225 to $262/mo. (16% over 14 years)
2016 – Increase from $262 to $287/mo.
2017 – Remained at $287/mo.
2018 – Increase for Employee Only from $287 to $305, Employee & Children to $320, Employee & Spouse to $335, and Employee & Family to $350

10. B o e r n e I S D
Road to Recovery
Impact on Benefits – Contribution to TRS Active Care from to present :
Employee Only - $43/mo. or 16%
Employee & Children - $58/mo. or 22%
Employee & Spouse - $73/mo. or 28%
Employee & Family - $88/mo. or 34%
BISD increased benefits contribution by $450,000 since 2016

11. B o e r n e I S D
2019 Legislature
“BIG 3” – Governor Abbott, Lt. Governor Patrick, Speaker Bonnen are all in agreement on key legislative priorities:
School Finance Reform
Teacher Raises
Property Tax Reform

12. House Bill 3 - $9 billion in New Funding
B o e r n e I S D
House Bill 3 - $9 billion in New Funding
$2.7 billion in tax relief – reduce M&O tax rate from $1.04 to $1.00
$6.3 billion in new funding beyond enrollment growth
Increase Basic Allotment from $5140 to $6030 by redirecting Cost of Education Index, HS & GT Allotments
Chapter 41 districts now eligible for transportation aid
New Early Education & Dyslexia Allotment, increase Dual Language $
Educator Effectiveness Allotment
Increase in Comp Ed from 0.2 to range of .225 to .275
Expand CTE to Middle School
Teacher pay raises to come from increase in Basic Allotment

13. Senate Bills 3, 4, 5 - $9 billion in New Funding
B o e r n e I S D
Senate Bills 3, 4, 5 - $9 billion in New Funding
$2.7 billion in tax relief – increase Homestead Exemption by 10k
$2.3 billion in new funding beyond enrollment growth
Many of the same features as HB 3, but not specific on $ amounts
Includes Outcomes Based funding for 3rd grade reading & HS graduates being college, career, or military ready
$4 billion for 5k teacher and librarian raise
For Chapter 41 districts, pay increase reduces Recapture

14. What’s Next? Senate Finance Committee passed its budget 15-0
B o e r n e I S D
What’s Next?
Senate Finance Committee passed its budget 15-0
Senate must pass its budget & education bill
House passed HB 1 (budget) that finances HB 3 by 149-0
HB 3 passed on April 3 by 148-1
Form Conference Committee to negotiate – by April 18?
We will continue to lobby
What we are not hearing this year – vouchers!!

15. Boerne ISD Legislative Priorities
Increase in Basic Allotment – HB 3
Eligible for Transportation Aid – included in HB 3
Reduce Recapture – HB 3
Increased Transparency – HB 569, SB 328
Increase Aid for Fast Growth districts – NIFA increase in HB 3
Make TRS pension system actuarily sound – both House & Senate

16. Achieving our Priorities Would Mean
B o e r n e I S D
Achieving our Priorities Would Mean
Increased teacher pay
Hire more teachers to reduce class size
Fund Capitol Replacement Plan
School Security

17. B o e r n e I S D
Next Steps
Contact legislators
Questions?