Welcome!

1. Welcome! Membership Meeting September 27, 2014

2. Meeting Overview Welcome and Introductions School Finance Litigation Update Legislative Update Election of Officers Adjourn

3. Update on Texas School Finance TrialFrisco I.S.D. School BoardMarch 4, 2013 Update on Texas School Finance Litigation TASA Convention September 27, 2014

4. The 2012-13 School Finance Litigation: Six Consolidated Cases West Orange-Cove v. Neeley It would be arbitrary, for example, for the Legislature to define the goals for accomplishing the constitutionally required general diffusion of knowledge, and then to provide insufficient means for achieving those goals. West Orange-Cove v. Neeley, 176 S. W.3d 746,785 (Tex. 2005)

5. The Perfect Storm

6. Figure 46. 1991-92 through 2011-12 Adjusted Per Student Operating ExpendituresSource: MCA Analysis of PEIMS Actual Financial Data, Adjusted by State and Local Government Price Deflator Source: Moak, Casey & Associates October 2012

7. Revenue per Student in 2004 Dollars Ex. 6618

8. The 2012-13 School Finance Litigation: Six Consolidated Cases

9. RISD Inflation Adjusted Revenues per WADA: Operating Fund (Net of Recapture) RISD Inflation Adjusted Revenues per WADA: Operating Fund (Net of Recapture)

10. The 2012-13 School Finance Litigation: Six Consolidated Cases Difference Between Texas Per-Pupil Spending and National Average

11. 2004 $.25 $.50 $.75 $1.00 $1.25 $1.50

12. 2006 Restructuring (post WOC II) $.25 $.50 $.75 $1.00 $1.25 $1.50

13. 2006 Restructuring (post WOC II) $.25 $.25 $.50 $.75 $.50 $1.00 $.75 $1.25 $1.00 $1.50

14. 2006 Restructuring (post WOC II) Enrichment $1.17 $1.04(TRE) $.25 $.50 $.75 $1.00

15. Changes since 2006 2006 Restructuring (post WOC II) Increase in ELL/Econ. Disadv. STAAR/EOC CCRS (curriculum changes) HB3 GDK Enrichment $1.17 $1.04(TRE) $.25 $.50 $.75 $1.00

16. What should have happened Increase in ELL/Econ. Disadv. STAAR/EOC CCRS (curriculum changes) HB3 GDK Enrichment $1.17 $1.04(TRE) $.25 $.50 $.75 $1.00

17. Arguments regarding financial efficiency The 2012-13 School Finance Litigation: Six Consolidated Cases

18. The 2012-13 School Finance Litigation: Six Consolidated Cases Arguments regarding financial efficiency 1. Districts with higher Tier 1 per-WADA funding are overwhelmingly districts in smaller communities for whom funding comparisons are not always meaningful.

19. Presentation of Catherine Clark of TASB = $228 $5,801 $5,573 176,531 / 6,078,575 = 2.9% Ex. 6622 6,078,575 Total WADA

20. The 2012-13 School Finance Litigation: Six Consolidated Cases Arguments regarding financial efficiency 2. Chapter 41 districts have already borne the brunt of funding cuts over the last several years and still have not been restored to pre-cut levels.

21. Ex. 6622

22. The 2012-13 School Finance Litigation: Six Consolidated Cases Arguments regarding financial efficiency 3. In an environment of rising costs and standards, no district should now be brought below its hold-harmless level established years ago.

23. The 2012-13 School Finance Litigation: Six Consolidated Cases Arguments regarding financial efficiency 4. Taking funds from a small group of districts (or increasing recapture on these districts) would help no one. The emphasis should be on bringing up all school districts in Texas.

24. Texas State Supreme Court - 2005 Paul W. Green Wallace B. Jefferson Nathan L. Hecht Phil Johnson Dale Wainwright David M. Medina Harriet O’Neill Don R. Willett Scott A. Brister

25. Texas State Supreme Court - 2005 Paul W. Green Wallace B. Jefferson Nathan L. Hecht Phil Johnson Dale Wainwright David M. Medina Harriet O’Neill Don R. Willett Scott A. Brister

26. Texas State Supreme Court - 2011 Eva Guzman Paul W. Green Wallace B. Jefferson Nathan L. Hecht Phil Johnson Dale Wainwright David M. Medina Harriet O’Neill Don R. Willett Scott A. Brister Debra H. Lehrmann

27. Texas State Supreme Court - 2014 Eva Guzman Paul W. Green Wallace B. Jefferson Nathan L. Hecht Phil Johnson Jeffrey S. Boyd Dale Wainwright David M. Medina Don R. Willett John Devine Jeffrey V. Brown Debra H. Lehrmann

28. Thank You! Calhoun County ISD, et al. Plaintiffs JOHN TURNER Partner Haynes and Boone, LLP john.turner@haynesboone.com 214.651.5671

29. Legislative Update Christy Rome Executive Director

31. 84th Legislative Session • All new state leaders • Governor • Lieutenant Governor • Comptroller • Attorney General • New Committee Chairs • Senate Education • Senate Finance • House Appropriations

32. Texas House of Representatives • Speaker Straus expected to be re-elected • Currently, 63% of members are certain to return (51 Republicans and 43 Democrats) • 22 are not returning to their seats (due to retirements or primary losses) • 34 face general election opponents

33. Texas Senate • New Lieutenant Governor (which also means new committee chairmanship assignments) • 17 of 31 senators are certain to return to their seats (with Hegar and Van de Putte maintaining their seats and returning if their bids for others offices fail) • Could be as many as 8 new senators (meaning that one-third of the Texas Senate will not have served a full four-year term in the Senate in 2015)

34. Analysis from Mark P. Jones, chairman of Rice University's political science department

35. The Learning Curve • 14 Members of the Texas Senate were serving as legislators during the last special session on school finance (12 as senators and 2 as house members) • 51 members of the Texas House were serving at the time.

36. Percent with Majority Ch. 41 Legislative District Texas House Texas Senate

37. Issues at play • Budget surplus (projected $2.5 - $5 billion) • But a Legislature unwilling to spend • $1 billion shortfall from Medicare needs • Transportation and water needs • Calls for tax relief • Property tax appraisals

38. Education Issues at Play in 2015 • Pre-Kindergarten • Debt Limitations & Transparency • TRS contribution • Virtual Schools • Teacher Quality • Accountability • Achievement School Districts • Private School Vouchers

39. Timing of the School Finance Case

40. Appropriations Levers • Since it is very unlikely that a school finance bill will pass in 2015, it is even more important to monitor what can be accomplished through the General Appropriations Act. • Basic Allotment: statutory floor of $4,765, but may be higher by appropriation ($5,040 in FY 2015) • Tier 1 Equalized Wealth Level (EWL): statutorily linked to Basic Allotment, so it increases when the BA does ($504,000 in FY 2015) • ASATR Reduction Factor: percentage set in appropriations (0.9263 in FY 2015) • Golden Penny Yield: increases with Austin ISD wealth per WADA • Tax Rate Compression Percentage: Established by appropriation

41. ASATR Over Time

42. The Decline of ASATR • ASATR Reduction Factor, leading up to current statutory expiration in 2017 • Increased property values • Increased Basic Allotment and Equalized Wealth Level

43. Objectives for the 2015 Legislative Session • Secure suitable funding for public schools • Ensure funding for public schools remains with public schools • Provide local control for locally collected revenue

44. Secure suitable funding for public schools • Guarantee per-student funding for each school district to at least 2010 levels. • Reduce Robin Hood’s impact by increasing the State’s investment in education thereby keeping local dollars in local communities; create more “golden pennies” or raise the Basic Allotment and therefore the Equalized Wealth Level. • Protect the promise of Additional State Aid for Tax Reduction (ASATR) until another funding source is put in place to ensure that no school receives less revenue.

45. Secure suitable funding for public schools • Provide resources necessary to achieve reasonable state standards and expectations for college and career readiness. • Continue state assistance for new Teacher Retirement System (TRS) required contributions until such a time when adequate funding is provided by the school finance formulas.

46. Ensure the funding for public schools remains with public schools • Oppose vouchers or any measure that would divert money away from public schools. • Support measures that empower locally-elected school boards with authority over local tax rates and revenue for the purpose of enrichment. • Increase flexibility for innovation and choices within public school districts. Provide local control for locally collected revenue

47. How do we get there? The Abraham Lincoln Rule: “In the long run, legislative battles are not won in the halls of the legislature but in communities across the state.”

48. Effective Advocacy • Don’t suffer in silence • Provide personal experiences • Personal experience is the single most powerful factor that will influence how a legislator votes. • Tell your story & make it their story

49. Between now and January • Credibility requires time – invest it now • Begin or strengthen personal relationships with legislators and staff • Invite legislators and staff to your district • Schedule meetings at their district office • Make personal phone call or write a hand-written note congratulating elected officials on their election/re-election after November 4 and offer your assistance during legislative session

50. January 13 – March/early April • Plan your visit to the Capitol to meet with legislators • Consider coordinating with other districts in your area • Let us help you!