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Legislative Update June 2 , 2009

Legislative Update June 2 , 2009. 2009 Texas School Districts Accounting and Auditing Conference Gwen Santiago Executive Director Texas Association of School Business Officials. Disclaimer.

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Legislative Update June 2 , 2009

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  1. Legislative UpdateJune 2, 2009 2009 Texas School Districts Accounting and Auditing Conference Gwen Santiago Executive Director Texas Association of School Business Officials

  2. Disclaimer • This presentation is based on a preliminary review of material available through various sources. In some cases, implementation will require interpretation and the adoption of rules. In other words, do not rely on this document as the final word. Watch for updates!

  3. Caution • Do not assume that a specific bill is dead because it was not approved by both Houses – A number of “Dead” bills were inserted into other bills that made it through the process.

  4. Bipartisanship • The “Love Fest” didn’t happen • The House seemed to be headed for an unusually cooperative Session after electing Straus as Speaker • The Senate started off badly with the rules change for the Voter ID Bill • Voter ID differences caused “chubbing” in the House

  5. Updated Information At the time this presentation was initially prepared, most education bills were in limbo. A lot of changes occurred between May 29 and June 1. An attempt was made to incorporate those changes into this final document.

  6. 81st Regular Session Unofficial Session Recap of Education-Related Bills FiledPassed House Bills 734 Who Senate Bills 296 knows? Total 1,030

  7. Major Bills • SB 1 – State Appropriations Bill • $ 182.3 Billion • $ 49.1 B for education with $ 37.3 B dedicated to the Foundation School Program-an increase of $1.9 B • If school finance legislation does not pass, TEA is authorized to establish a method for distributing $ 933 M in each year of the 2010-11 biennium to school districts through the state’s primary funding formulas, pursuant to provisions of ARRA. TEA must consult with the Governor and prior approval of the LBB is required. Will be sent to Governor

  8. Major Bills • HB 3 – Accountability (In Conf Committee) • End-of-Course Exams for graduation • House version requires students to pass Algebra II and English III- In CC Report • Senate version requires students to pass 8 of the 12 exams • Exam score counts as 15% of course grade and students must pass all courses Will be sent to Governor

  9. Major Bills • HB 3 – Accountability (continued) • Modifies sanctions related to underperforming campuses • Modifies calculation of dropouts • Completion of a dual-credit course would exempt student from end-of-course exam- Leg did not accept this provision • House version eliminates the 65% requirement- This requirement is history!

  10. Major Bills • HB 3 – Accountability (continued) • Includes requirement for financial ranking of districts and campuses based on a system to be developed by the State Comptroller • Modifies requirements related to the current ban on social promotion - still required for grades 5 and 8 • Sets up Financial Early Warning System

  11. Major Bills • HB 3646 – School Finance • Approved by the House • Substitute approved by the Senate • Will be sent to Governor

  12. Major Bills • HB 3646 – School Finance (continued) • “Robin Hood” payments would be reduced • 2.5 to 3% average increase for school districts • Senate version would help several above-average-wealth districts more than House version • HS Allotment at $275 and moved to Tier 1

  13. Major Bills • HB 3646 – School Finance (continued) • Permanent roll-forward of EDA • House-Modifies CEI by removing 50% subtraction from calculation of WADA • House-Allows midsize “add on” for property-wealthy districts - In CC Report • House uses current year property values and Senate uses prior year property values - not clear at this time what CC Report uses

  14. Major Bills • HB 3646 – School Finance (continued) • Allows indirect cost of 45% for special program allotments-indirect percentage for other programs to be determined by TEA • Repeals TEEG incentive pay and provides flexibility for DATE incentive pay- in CC • Repeals old Hold Harmless provisions- in CC • House-Limits district benefits from Chapter 313 agreements (wind farms, etc.)

  15. Major Bills • HB 3646 – School Finance (continued) • Bus evacuation training becomes optional (also in SB 300) • Repeals requirement for energy saving goals and replaces with requirement for long range energy plan (also in SB 300)

  16. Major Bills • HB 3646-Provisions in CC Report • BA = $4,765 or 1.65% of statewide avg. property value • Equalized wealth level=$476,500 • Min increase of $120 WADA & cap of $350 • Eliminates Comp Ed set-asides • $800 or $60 per WADA salary increase • Retains $31.95 per penny • Interim study of weights and formulas

  17. Other Bills • HB 8* – Studies and Reviews of Appraisal Districts • Requires ratio study by Comptroller’s Office every other year, rather than every year • Comptroller may conduct study of school district property values every other year *Bill has been sent to the Governor for signature

  18. Other Bills • HB 130 – Enhanced Full-Day Prekindergarten Program • Establishes $25 M grant program based on criteria related to identifying high-quality programs • Districts must use 20% of funds to contract with eligible community providers Will be sent to Governor

  19. Other Bills • HB 281* – School-Based Health Centers • Establishes grant program for school-based health centers • Requires matching funds, which may be “in-kind” contributions • HB 401* – Allows districts to change date for Board election *Both bills will be sent to Governor

  20. Other Bills • HB 464 – Dynamic Fiscal Impact Statements • Would require LBB to provide extensive information regarding certain bills and joint resolutions affecting taxes and fees – Will this apply to what school staff call “Unfunded Mandates”? Will be sent to Governor

  21. Other Bills • HB 635 – Competitive Grants Through TEA – Will be sent to Governor • Head Start • Professional Development • Literacy • HB 772 – Broadcast of SBOE Meetings- Signed by Governor

  22. Other Bills • HB 987 – Competitive Procurement Requirements • Changes threshold from $25,000 to $50,000 • Repeals requirements related to purchases between $10,000 and $25,000 Will be sent to Governor

  23. Other Bills • HB 1191 – TRS Retirees have 90 days to enroll in insurance program • Sent to Governor • HB 1364 – Pre-existing conditions • Education Code will now include a provision that plans must comply with the Insurance Code with regard to pre-existing conditions • Signed by Governor

  24. Other Bills • HB 1365* – Education Service Records • Entitles an individual to receive back pay of salary for up to one year upon receipt of a service record verifying experience • Requires school districts to provide service records to other school districts within 30 days of request *Sent to Governor

  25. Other Bills • HB 1470 – Notification to Employees • School district handbooks must provide information to employees regarding the availability of assault leave • Will be sent to Governor • HB 2004 – Breach of Computer Security • Requires notice to affected individuals if “sensitive personal information” is released • Sent to Governor for signature

  26. Other Bills • HB 2263 – Innovation Grants • Makes innovation grants available to Middle, Junior High, and High School Campuses (previously allowed only for high schools) – Sent to Governor • HB 2291 – Adoption of Tax Rate- Sent to Governor - Title indicates does not apply to school districts-language not clear • Effective rate is adopted rate unless jurisdiction acts to change it.

  27. Other Bills • HB 2488* – Open-Source Textbooks • Allows adoption of open-source textbooks • It appears to have been approved-report unclear • HB 2763 – Portable buildings • Must meet requirements for industrialized housing/buildings – Sent to Governor

  28. Other Bills • HB 3041* – Schedule of Reporting Requirements • TEA must establish a comprehensive list • Will be sent to Governor

  29. Other Bills • HB 2656 – TRS Board • Reduces # of members recommended by SBOE from 2 to 1 • Adds # of members selected from retirees from 1 to 2 Will be sent to Governor

  30. Other Bills • HB 3347 – Health Insurance through TRS • Establishes system for handling insurance for members in the military • Will be sent to Governor • HB 3480 – Annuities and Investments • Modifies current law related to investment products and companies authorized to provide the products – Will be sent to Governor

  31. Other Bills • HB 3918 – Testing of Liquified Petroleum Gas Systems • Requires testing of gas systems every year instead of every other year Sent to Governor for signature

  32. Other Bills • HB 4294* – Use of Textbook Fund • Would allow use of State Textbook funds for electronic textbooks, technological equipment, and instructional materials • HB 4435* – School Leadership Pilot Program for Principals • Exempts principals from participation if they were not principal during the year school was rated academically unacceptable *Both bills will be sent to Governor

  33. Other Bills • HB 4586* – Supplemental Appropriations and Reductions • Increase for Criminal History Background Checks • Reduction of FSP funds ($500 M) not needed for fiscal biennium ending 8-31-09 and other funds not needed for that period • Will be sent to Governor

  34. Other Bills • HJR 36* – Valuation of a residence homestead solely on the basis of the property’s value as a residence homestead (HB 3613 approved by both Houses) • Will be sent to Governor – Constitutional vote also required

  35. Other Bills • SB 68* – Licensing and Inspection Requirements for Day Care Facilities • Excludes school districts • Sent to Governor • SB 229 – Procurement Methods for Public Projects • Specifies that Section 271 of the Local Government Code (Design-Build Procedures) applies to local governmental entities with a population of 100,000 within boundaries (was 500,000) – Will be sent to Governor

  36. Other Bills • SB 300 – Eliminating certain mandates • Modifies 22:1 – allows requests for exception if submitted by October 1 or 30th day after the first school day that 22:1 is exceeded • Makes bus evacuation training voluntary • Requires plan rather than goal for energy reduction – repeals 44.901 of the Education Code Will be sent to Governor

  37. Other Bills • SB 522 – Use of Personal Leave • Allows employee to determine the order in which personal leave will be used • Sent to Governor • SB 638 – Pooled Collateralization • Sent to Governor

  38. Other Bills • SB 1313-Career and Technical Education Programs- No action since 5-23-09 • Establishes online Clearinghouse on best practices in Career & Technology programs • Modifies processes related to determining best practices Bill did not pass but Clearinghouse changes included in HB 3

  39. Other Bills • SB 867 – Summer Nutrition Programs • Districts with 50% or more students eligible for free or reduced-price lunches must offer a summer nutrition program for 30 weekdays – No further action since 5-23-09 • SB 1182 – New requirements related to the public information law • Will be sent to Governor

  40. Other Bills • SB 1629 – Exempts reporters from prepayment of personnel costs for Open Records Requests • Will be sent to Governor

  41. What Didn’t Pass • Any bill that would have eliminated the requirement to pay TRS above the statutory minimum (annual cost to districts currently is about $215 M and will increase) – Rep. Hochberg attempted to modify the requirement through HB 3646 - depending on interpretation, may now allow use of current salary schedule

  42. What Didn’t Pass • Check Register Bill • Financial Transparency Bills - however, HB 3 will require posting of budget for 3-year period • Requirement for sales price disclosure for property tax purposes-will probably be approved someday-already the law in more than 40 states

  43. What Didn’t Pass • HB 3740 – Development of replacement for PEIMS • HB 1693 – Development of Software Standards – TASBO will work with Dept. of Information Resources to implement this provision • SB 270 – Reporting of Income-Producing Contracts

  44. What Didn’t Pass • HB 3697 - Modification of the 50 cent test for debt service – failure will require school districts to spend millions of dollars in interest cost that could have been avoided • Voucher bills

  45. Need more information? • Go to www.tasbo.organd click on Capitol Building • Go to www.capitol.state.tx.us and check by bill number • Call Gwen at (800) 338-6531, ext. 213

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