Bill outlines public school finance reform

By Adam H. Covici, The Daily Texan 2-4-05

Nearly a month into the 79th Legislature, the first House bill addressing public school finance reform has been filed.
Thursday, Rep. Kent Grusendorf, R-Arlington, chairman of the Public Education Committee, alongside House Speaker Tom Craddick, R-Midland, announced House Bill 2, which outlines a list of reforms for fixing the broken school finance system.

The bill calls for more than $3 billion in new money to be distributed throughout the districts over the biennium and includes formulas for distributing the funds.

It also calls for the state to pick up 60 percent of the costs; this is up from the 38 percent the state currently funds. The increase would be the largest share the state has contributed in more than two decades.

The question of how the state will pay for the new funding will be answered in early March, after the Ways and Means Committee figures the revenue side.

The bill includes the restoration of a $1,000 health insurance supplement built directly into teachers' salaries, along with performance incentives distributed locally by districts through performance pay programs.

The bill also addresses the issues of accountability in schools and efficiency in school board elections and start dates. School board elections are to be held in November, with offices carrying a four-year term. A uniform start date for school districts no earlier than Labor Day would be enforced, with no early-start waivers granted.

"These measures may create controversy," said Harrison Keller, senior political analyst of education for Craddick. "But we stand to save $84 million in cooling and staff costs with a post-Labor Day start date."

To increase accountability, the bill calls for swifter response to failing campuses. After a second year of poor performance, all students of the subpar school are to be granted transfers. If principals have had two consecutive failing years, they are removed immediately, and the school must be reconstituted. Any teachers at the failing school who hope to keep their jobs must have demonstrated "growth" while at the school.

Should HB 2 pass, Texas schools for the first time would be accountable for students' progress toward English proficiency in bilingual programs.

Texas' current school finance plan, which was deemed unconstitutional last year, has relied heavily on property taxes for funding. This system has resulted in an inequitable level of funding, as school districts in property-poor areas have less to work with than property-rich districts, said District Court Judge John Dietz in his ruling. To improve equity among the districts, the state has mandated that richer school districts give a portion of their property taxes to less affluent areas. The process, known as "recapture," has resulted in wealthier districts giving up $1.2 billion each year. HB 2 calls for a reduction to $145 million each year.

"We are taking the sting out of Robin Hood's arrow by reducing the money recaptured from property wealthy districts by 88 percent," Grusendorf said.

The plan calls for all state tests to be administered online beginning spring 2006. The state would fund tests like the SAT and ACT.

Greater freedom for the districts in terms of textbook purchasing is granted, as the bill will no longer require schools to follow the state cycle of buying new textbooks.
"This bill is ultimately focused on flowing money through the districts," Keller said.

The issue of school maintenance and construction is not addressed in HB 2, but is expected to be addressed in future bills.

"Together, these measures strengthen the core of Texas public education," Grusendorf said. "However, they don't stop there. They create the basis for a new generation of public schools that will successfully meet the demands of the 21st century. HB 2 is a road map to results."