86th Legislative Session Legislation Supporting or Related to Austin ISD’s Legislative Priorities (April 4, 2019) Bills that support or relate to Austin ISD’s legislative priorities are listed below. To see a complete list of the district’s priorities, go to https://www.austinisd.org/legislature. To track legislation, read bill analysis, or watch committee hearings, please visit www.capitol.state.tx.us. Public School Finance A state system of public school finance that provides an adequate and equitable public school finance system, ensuring an excellent education for all Texas students. Supports • HB 3 by Rep. Dan Huberty sets the minimum basic allotment at $6,030; provides an incentive for additional instructional days for students to attend up to 30 days of school during the summer; creates the dyslexia allotment with a weight of 0.1; amends the compensatory education allotment to be based on the census block in which the student resides, and requires the Commissioner of Education to establish an index for economically disadvantaged census blocks with five tiers; the compensatory education allotment would have a weight of 0.225 to 0.275; modifies the bilingual education allotment to provide an additional 0.05 weight to students using a dual language immersion/one-way or two-way program model; expands the eligibility for the career and technology allotment to grades 6 through 8; creates the early reading allotment, which would provide an additional weight of 0.1 to each student in grades K-3 that is educationally disadvantaged or a student of limited English proficiency in a bilingual education or special language program, and provides a weight of 0.2 for students in grades K-3 who are both educationally disadvantaged and a student of limited English proficiency in a bilingual or special language program; modifies the state maximum compressed tax rate to be the product of the state's compression percentage, which is set at 96 percent or lower by appropriation, multiplied by $1.00; entitles districts to reimbursement for fees for certain college preparation assessments and for certain certification examinations; requires full-day prekindergarten class for children who are at least four years of age. The bill makes many other changes to school finance formulas. Passed by House April 3, 2019 1 State Share. A state system of public school finance that keeps all local property taxes in public education and a constitutional amendment that allows voters to decide whether to return State funding to at least 50 percent of the cost of maintaining and operating public schools. Supports • HJR 24 by Rep. Charlie Geren proposes a constitutional amendment requiring the state to pay at least 50 percent of the cost of maintaining and operating the public school system and prohibiting the comptroller from certifying legislation containing an appropriation for public education unless the requirement is met. Hearing in House Public Ed March 19, 2019; left pending • SJR 40 by Sens. Nathan Johnson and Jose Rodriguez is companion bill to HJR 24. • SJR 48 by Sen. Kirk Watson is companion to HJR 24. Also, SB 1141 by Sen. Watson is the statutory language the implements the constitutional 50/50 requirement. A state system of public school finance in which the amount of the basic allotment is tied to increases in property tax growth, calculated on, at a minimum, a biennial basis. Supports • HB 2139 by Rep. Vikki Goodwin requires that the basic allotment is adjusted annually to increase the allotment by the greater of: (1) one percent of the amount of the allotment for the preceding school year; or (2) the amount that results from applying the inflation rate, as determined by the comptroller on the basis of changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the U.S. Department of Labor, to the allotment for the preceding school year. A state system of public school finance that increases sustainable state revenue sources, to reduce the current overreliance on local property taxes as a revenue source. Supports • HJR 3 by Rep. Dan Huberty proposes a constitutional amendment to provide funding for the cost of maintaining and operating the public school system and to reduce school district ad valorem tax rates through an increase in the state sale and use tax rate. Set for hearing in House Ways & Means on Tuesday, April 9, 2019 at 8 a.m. 2 • HB 4621 by Rep. Dan Huberty would impose and allocate certain revenue from sales and use taxes to school district property tax relief and public education. Set for hearing in House Ways & Means on Tuesday, April 9, 2019 at 8 a.m. • HB 4216 by Rep. Matt Krause requires that the Comptroller deposit the amount of hotel occupancy and car rental tax revenue collected in August into the foundation school fund. • HB 4239 by Rep. Vikki Goodwin requires that a portion of funds be transferred to the foundation school fund to be used only for the purposes of public primary and secondary education. Relates • HJR 43 by Rep. Donna Howard requires the basic allotment to be raised by the same percentage change in total taxable property value for the current tax year as compared to the preceding tax year. • HJR 66 by Rep. Donna Howard dedicates the net revenue from any tax on the sale or use of cannabis or marijuana to public education. Bilingual Allotment. A state system of public school finance that removes restrictions on the use of appropriated funds and permits local school districts the flexibility to allocate such funds, specifically bilingual and compensatory education allotments, toward teacher salaries or other uses the district deems necessary to satisfy accountability requirements. Supports • SB 451 by Senator Beverly Powell Relates HB 3 by Rep. Dan Huberty permits the expenditure of the funds for the incremental costs associated with providing smaller class sizes [Sec. 48.105(b)] Passed by House April 3, 2019 Recapture. A state system of public school finance that freezes or limits the amount of recapture collected by the state under Chapter 41, Texas Education Code. Supports • HB 443 by Rep. Morgan Meyer limits recapture to not exceed a school district’s Maintenance & Operations expenditures plus inflation. 3 • HB 664 by Rep. Ken King limits recapture to the amount equal to 60 percent of the amount of Maintenance and Operations tax revenue collected by the district • HB 729 by Rep. Kyle Beidermann limits recapture, allowing property wealthy districts to keep at least the state average per student. • HB 2084 by Rep. Sheryl Cole reduces the amount of recapture paid by a Chapter 41 district by a percentage equal to the amount by which the percentage of students enrolled in the district who are educationally disadvantaged exceeds 40 percent. Social Security. A state system of school finance that provides an allotment for districts that are required to participate in the Social Security retirement program, gives credit when determining a Chapter 41 district’s recapture payment, or adds the payment of Social Security as a factor in determining a district’s cost of education index. Supports • HB 2208 by Rep. Gina Hinojosa provides a reduction in the amount of the taxable value of property of a school district that pays social security by a percentage of value equal to the percentage of the district’s required contribution for social security coverage. Update Formulas & Weights. A state system of public school finance that accurately reflects the cost of education, in the basic allotment, cost of education index, and funding weights, and that is updated at regular intervals. Supports • SB 1015 by Sen. Beverly Powell requires TEA to review several elements of the public school finance system on a six-year cycle. Relates • HB 89 by Rep. Mary Gonzalez and companion bill SB 136 by Sen. Jose Rodriguez requires TEA to conduct a review of weights, allotments, and adjustments to determine the effectiveness of existing weights, allotments, and adjustments in fulfilling the mission of the public education system, and provides specific factors to be considered in the review. • HB 202 by Rep. Diego Bernal relates to a study regarding the costs of educating educationally disadvantaged students and students of limited English proficiency. • HB 699 by Rep. Cėsar Blanco increases the bilingual allotment from 0.1 to 0.25. 4 P-Tech. A state system of public school finance that provides state formula funding for programs in which public school students are enrolled and receive credit in college courses, including dual credit, early college high school, and P-TECH programs. • HB 3 by Rep. Dan Huberty provides an annual allotment equal to the basic allotment multiplied by a weight of 1.35 and $50 for each of the following in which the student is enrolled in a campus designated as a P-TECH school under Section 29.556 or a campus that is a member of the New Tech Network and that focuses on project-based learning and work-based education. [Sec. 48.106] Passed by House April 3, 2019 CTE. A state system of public school finance that provides funding for career and technical education for students in 6th through 8th grades. Supports • HB 3 by Rep. Dan Huberty {Sec. 48.106(a)] Passed by House April 3, 2019 Relates • HB 341 by Rep. Phillip Cortez provides CTE funding for students in 8th grade. CTE. A state system of public school finance that provides weighted career and technical education funding for technology applications. Supports • HB 963 by Rep. Cecil Bell Heard in House Public Ed on April 2, 2019; left pending • SB 2433 by Senator Larry Taylor Heard in Senate Education on April 4, 2019 TWC Skills Development Fund.