During the 86th Legislative Session, the Partnership will provide a weekly update on our top executive priorities and other newsworthy items from Austin. 

With all of the ceremonial functions of the Legislative Session now complete, the pace of activity in Austin noticeably accelerated this week. Many committees held organizational hearings while those committees considering Governor Greg Abbott’s emergency items began their work. Partnership staff were invited to testify on two of the Governor’s emergency items, school finance reform and flood resilience. This continued to position the Partnership as a leading voice on these issues, our two executive priorities. Property tax reform, another emergency item, also received considerable attention this week. Senate Bill 2, authored by Senate Committee on Property Tax Chairman Paul Bettencourt (R-Houston) was passed out of the Committee, paving the way for consideration by the full Senate. 
  
PARTNERSHIP EXECUTIVE PRIORITIES
FLOOD RESILIENCE
The House Natural Resources Committee invited the Partnership’s Senior Vice President, Taylor Landin, to address the panel on the Partnership’s flood resilience executive priority. Landin focused his remarks on the importance of flood recovery and mitigation to the business community. The Partnership is asking the Legislature to create a statewide flood resilience fund with an appropriation of $3 billion. The Texas Water Development Board identified over $30 billion in statewide flood mitigation needs while the Partnership’s own study found $38 billion in resilience needs in our region alone. Regardless of which number is used, it is clear that significant investment is required, and the Partnership is asking the Legislature for a ten percent down payment to make Texas more resilient. Landin concluded his comments by acknowledging the statewide scale of this issue. Since 2015, there have been eight major flood events impacting 116 counties and 65 percent of all Texans. This is a critical issue across the state and warrants significant investment from the Legislature this session. It is also important to note that the Partnership was the only business group invited to speak. 

SCHOOL FINANCE REFORM
The House Public Education Committee invited the Partnership’s education policy manager, Ben Melson, to address the committee on the Partnership’s school finance reform priorities. Melson discussed the Partnership’s support for the reform recommendations issued by the Texas Commission on Public School Finance. He also emphasized the Partnership’s support for funding quality programs consistent with the following principles: 

• Additional funding should be allocated through the formula system to ensure sustainability.
• Prioritize weighted funding for low-income and English Language Learner students.
• Prioritize funding for early education with an emphasis on programs that increase the reading proficiency of students by third grade.
• Prioritize funding to increase pay for the best teachers and incentivize the best teachers to teach in the lowest performing schools.
• Equitably reduce the burden of recapture and increase the state’s share of education funding.

Members of the Committee, specifically Chairman Dan Huberty (R-Kingwood), expressed their gratitude for the Houston business community’s involvement and support for this critical issue.
These principles are a result of the work conducted by the Partnership’s Education Advisory Committee, chaired by Andy Waite. Since Fall 2018, business leaders from this group have studied the challenges and complexities of the school finance system and developed reform recommendations to the Partnership Board. This week, the Partnership released a public school finance white paper detailing how the current school finance system is failing to provide Texas children with a quality education and why the school finance system needs reform. The white paper is available here.
  
WEEK IN REVIEW
In addition to the Partnership’s top executive priorities, the Senate advanced bills related to two of Governor Abbott’s six emergency items this week. 

• Property Tax Reform
  On Monday, the Senate Committee on Property Tax passed Senate Bill 2 authored by Chairman Paul Bettencourt (R-Houston). The bill could be debated by the full Senate as early as next week. The measure includes significant reforms to appraisal district operations intended to standardize the property appraisal process and make it easier for property owners to contest their appraisals. The most controversial aspect of the bill is the proposed 2.5% property revenue growth cap on all property taxing districts above $15 million. Chairman Bettencourt has repeatedly stated his goal of utilizing the low growth percentage to force the state to address the burden of recapture and to dedicate more state funds to public education instead of relying on local property taxes. City and county governments, school districts and other local taxing entities testified about their concerns that the 2.5% cap could negatively impact essential services. The identical House property tax reform bill, House Bill 2, was referred to the House Ways & Means Committee this week, but it has not yet been scheduled for a hearing. 
   
• Mental Health
  Senate Finance Committee Chairwoman Jane Nelson (R-Flower Mound) filed Senate Bill 10, which would establish the Texas Mental Health Care Consortium and address delivery of mental health care services in Texas. When Governor Abbott declared mental health as an emergency item during his State of the State address last week, he cited Chairwoman Nelson’s bill. The proposal aims to increase coordination of mental health services, especially between higher education institutions and local communities, establishes a network of comprehensive child psychiatry access centers, and works to expand the quality and availability of state resources for mental health. On Tuesday, the Senate Committee on Health and Human Services heard the bill in a public hearing, and it passed unanimously. 

  House Public Health Committee Chairwoman Senfronia Thompson (D-Houston) filed House Bill 10 on Wednesday. The bill would create grant programs for the research and treatment of behavioral health and psychiatric issues affecting children and adolescents, increase the training and number of residency positions leading to a medical specialty in the diagnosis and treatment of behavioral health issues affecting children, and create the Texas Behavioral Health Research Institute to improve the quality and accessibility of care in local communities. Her bill is expected to be referred to a committee next week.
   

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