School Finance Update

82nd Texas Legislature

Only six weeks remain in the legislative session with major issues yet to be decided including the 2012-2013 budget. The Senate and House versions of the budget are close to $10 billion apart with lawmakers considering several options for revenue sources.

The federal repeal of the "Doggett Amendment" would bring a lump sum of $830 million to Texas. Dipping into the "Rainy Day Fund", selling state assets and closing tax loopholes are all under consideration.

The Senate version would allow for the purchase of textbooks to support the college-readiness standards found in the new STAAR and end of course exams, better fund prekindergarten and other discretionary grant programs such as teacher incentive pay, and limit school district cuts to 5% to 7%.*1

In a difficult budget climate, cuts to education spending are deemed inevitable. In spite of these cuts, CTE will remain a vital contributor in preparing students for post-secondary pursuits. Cuts to the federal Perkins Act amount to 10% of the previous appropriation, primarily tied to the loss of funding for Tech Prep, but accountability measures remain firmly intact. While state funding has not yet been determined, we are advocating for funding levels adequate for the Maintenance of Effort required by the Perkins Act. Additionally, if Senate proposals for school finance prevail, we expect that a reduction of the per student Basic Allotment in the Foundation School Program will impact CTE at roughly the same rate.

*1 Texas Institute for Education Reform

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