Written Testimony: Senate Finance SB 2 Texas Education Agency

February 9, 2015
Chandra Villanueva villanueva@cppp.org

The Center for Public Policy Priorities is an independent public policy organization that uses data and
analysis to advocate for solutions that enable Texans of all backgrounds to reach their full potential.
Last fall, District Court Judge John Dietz ruled the Texas school finance system is unconstitutional
because our schools are not adequately funded and the funding that is available is not distributed
equitably. In his ruling, Judge Dietz expressed concerns that the growing population of economically
disadvantaged students, who face significant educational challenges, are being denied access to the
meaningful opportunities needed to achieve academic success.
When adjusting for inflation, per student spending is $631 lower in the 2014-15 biennium than it was in
2008, prior to the recession.

Current Student Spending is Below

Pre-Recession Levels

$9,917

$9,756

$9,467

$9,576

$10,458

$10,623

$11,524

$10,467

$10,594

$10,651

$10,313

$8,000

$10,550

$10,000

$10,754

$12,000

$10,690

PER-STUDENT SPENDING IN 2014 $

$14,000

$6,000
$4,000
$2,000
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Includes state, local, and federal funding. LBB data on state revenue for TEA, minus recapture, and local revenue for FSP, M&O,
and I&S; Federal funds recommended in GAA 2013.

At the same time, the number of economically disadvantaged students is growing at twice the rate of
the overall student population. From 2008 to 2013, the population of economically increased by 18.8
percent, while total students only grew by 8.8 percent. Growth in economically disadvantaged students
is not just a byproduct of the recession. Since 1995 the average annual growth rate for economically
disadvantaged students is 3.31 percent, while the growth rate for non-economically disadvantaged
students is 0.09 percent.

Economically Disadvantaged Students are Growing at a Faster

Rate than Non-Economically Disadvantaged Students
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-

Non-Economically Disadvantaged

Economically Disadvantaged Studnets

Source: TEA Snapshot data 1995 - 2013

The Legislature doesnt need to wait on the State Supreme Courts final ruling to make meaningful
investments in the students being educated in our public schools today.
The House budget has $2.2 billion more than the current law Foundation School Program entitlement,
and the Senate budget should aim, at the very least, to match that level of investment.
To increase equity and adequacy within the school finance system, the Center for Public Policy Priorities
has two priority recommendations:

Increase the Basic Allotment this is the rising tide that lifts all boats. Increasing the basic
allotment reduces the cost of target revenue and reduces the amount of recapture property-

wealthy districts send back to the state. (The phased-in 5.8 percent increase of $275 last
biennium cost $2.2 billion according to the Legislative Budget Board).

Invest in full-day Pre-Kindergarten Judge Dietz specifically stated that the state is not doing
enough to ensure the academic success of economically disadvantaged students and English
language learners. Pre-K is an essential tool for closing the achievement gap. Increased funding
would not only allow for more instructional time, but also provide districts with the resources
needed to make quality improvements such as class size limits and student-teacher ratios. (The
Legislative Budget Board estimates the cost to be $770 million annually).

To prepare for a future special session on school finance, through the budget, the Senate should call on
the Legislative Budget Board to study and report on the weights for compensatory education and
bilingual education, to ensure that districts are receiving an appropriate amount of funding to
adequately serve these growing populations.
Before the Legislature considers tax cuts, it must first ensure its doing everything possible to provide a
quality education to all five million school children in our public schools today and in the future.