Education dollars may be settled, but much work remains

If you’ve read TCTA’s daily updates, or for that matter picked up a newspaper this week, you know that most of the talk and action at the Texas Capitol is centered on “will they or won’t they” budget speculation.

The state budget is in conference committee negotiations between House and Senate members, who are trying to bridge a multi-billion dollar gap between the two versions of the appropriations bill. Negotiators began the process approximately $4 billion apart on public education funding, with the Senate plan cutting about $4 billion from current school spending levels and the House version nearly $8 billion. Given strong resistance in the House to increased spending, most observers believed that the final product – if one could be agreed on – would more closely resemble the House version.

But late this week, it was reported that the House had accepted the Senate’s higher spending level for public education. This is welcome news, at least for those who accept the parameters of the two versions of the budget. The predictions earlier in the session that up to 100,000 school employees would have to be laid off were based on the House model – a worst-case scenario – so halving the budget cuts should help mitigate the job losses. However, there is some sentiment among supporters of public schools that lawmakers should delay approval of the education budget in the hope that the improving economy will allow for more money weeks or months from now.

Comptroller Susan Combs released a revised revenue estimate that is helping bridge the gap between spending preferences and revenue. The improving economy and subsequent increases in sales tax collections and other income allowed the Comptroller to add $1.2 billion to the amount lawmakers can appropriate.

Closely tied to the budget are “fiscal matters” bills that authorize some of the changes in law needed to balance the budget. For example, to afford the Senate’s spending levels, the legislature must change a date for payments to public schools to allow a deferral of one month’s payments (pushing it to the next fiscal year), reducing the budget’s costs by $1.8 billion. A number of other changes, including reductions in the state’s contributions to TRS and revisions to certain education programs, are also needed to comply with the proposed budget figures.

The two relevant fiscal matters bills (SB 1811 covers all areas of the budget, SB 1581 is specific to education, but both contain education-related provisions) have been scheduled for House floor action for weeks, but have been postponed on a daily basis while the budget talks continue. In addition to containing some financial issues that are not universally supported, these bills represent an opportunity for House members to get their pet proposals adopted as amendments, and some of those proposals are quite controversial. House leaders would prefer not to take a number of politically difficult votes before they know whether a budget deal can be reached.

Complicating the situation is a Senate amendment to the education fiscal matters bill that added the infamous “campus carry” legislation to require Texas public colleges to allow concealed handgun license holders to carry guns on campus. College administrators and student groups strongly opposed this legislation, but the bill’s author (Sen. Jeff Wentworth of San Antonio) was able to add it to SB 1581. Thursday, a House member called a point of order on the bill based on a constitutional law preventing legislation that contains two distinct subject matters, and the point was sustained. This action sends the bill back to the Senate, where the amendment will presumably be removed, and it could be revived. There is some disagreement regarding whether this bill is necessary, though, since its provisions could also be included in the more comprehensive SB 1811.

Also adding complexity to the situation are 800 pages worth of pre-filed amendments to SB 1811 and 200 pages of proposed amendments to SB 1581. The proposals include private school vouchers, a resurrection of HB 400 “deregulation” language, and much more. There are rumors that, if and when the fiscal matters legislation is finally considered by the House, many of these amendments will be pulled down or voted down, but TCTA is continuing to work to educate lawmakers about harmful proposals and urge defeat of any such amendments.

As noted above, the current expectation is that any budget agreement will resemble the Senate version of the education budget. But resolution has not yet been reached on whether a school finance restructuring must also be part of the deal, and if so, what it would look like; and the Senate has reportedly submitted a list of "must-pass" bills that the House may not have agreed to.

Governor Perry and fiscal conservatives in the House continue to prefer to hold the line on spending; Democrats are expressing reservations about the use of "accounting tricks" such as the school payment deferral; and nearly everyone would prefer to avoid a special session this summer. We are now at the point in this session that determining whether the budget and accompanying bills can pass the House and Senate (and avoid a gubernatorial veto) could remain in question for a few more days...or could be quickly resolved.

The House will be working throughout the weekend, and we will update our members of any important developments through the TCTA Capitol Updates page.