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Preserving Progress on Public Education a Priority in '21 Legislative Session

Published Nov 12, 2020 by Ben Melson

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For decades, the Texas Legislature attempted to solve the complex issues in Texas public school finance, and for decades the body failed in that attempt. The systems that the Legislature and Supreme Court managed to create were riddled with inequities and failed to adequately prioritize the improvement of student outcomes. Instead, the system continued to support mediocre achievement gains for students of color, those experiencing poverty, and students with special needs. An overview of the previous funding system can be found here
 
All of this changed during the 86th Texas Legislative Session with the passage of a landmark school finance reform bill, House Bill 3. The effort to overhaul the school finance system began with the creation of a School Finance Commission. Most interested parties were skeptical that any substantial change would be spurred on by the commission and most presumed that there was a lack of enthusiasm for true reform. 
 
Guided by the leadership of State Representative Dan Huberty, State Representative Diego Bernal, and State Senator Larry Taylor, the commission produced a wholistic report that included recommendations for increasing equity and opportunity in all Texas public schools. 
 
In lockstep with the Commission’s report, the legislature included nearly all of the recommendations in the final version of House Bill 3. In fact, all of the Partnership's school finance reform principles were included in the final legislation. Those principles include:

  • Weighted formula funding for low-income and English language learner students.
  • Additional dedicated funding for early education with an emphasis on programs that increase reading proficiency by third grade.
  • Increase pay for the best teachers and incentivize those teachers to teach in the lowest-performing schools.
  • Equitably reduce the burden of recapture and increase the state's share of public education funding.

Ultimately, this legislation not only increased funding for all school systems, but also removed outdated formula elements and specifically included formula funding for traditionally underserved student populations. 
 
This was a huge win for Texas and every generation of student that is or will be attending a public school. Now we must ensure that the new school finance system is maintained and fully funded this coming legislative session. This is why Public School Finance continues to be one of the top policy priorities for the Greater Houston Partnership.

A statement submitted by Representatives Martinez Fischer, Beckley, J. Gonzalez, Goodwin, Israel, Meza, Morales, Muñoz, Ramos, Rodriguez, and Rosel to the House Journal at the passage of House Bill 3 sums this up well.

HB 3 is one of the most significant bills to come before this body, but none of its provisions will matter, none of our work will matter unless there is a plan to sustain its investments in full beyond this biennium.
Those of us voting in support of HB 3 today must hold ourselves accountable for finding those revenue streams in order for the 87th Legislature to honor this financial commitment.

While COVID-19 is certainly a new reality for all of us, the legislature will be forced to confront hard financial decisions over the next several sessions. The Partnership will continue to play a lead role in advocating for the preservation of the reforms that were included in HB 3 and funding our public schools in their entirety this coming legislative session.

Learn more about the Partnership's efforts around public school finance

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Mayor John Whitmire released the City of Houston’s proposed $7 billion Fiscal Year (FY) 2026 operating budget, which includes a balanced General Fund. For Houston’s business community, sound fiscal management at City Hall is more than just good governance – it’s essential to maintaining the services and infrastructure that enable our region to thrive. Perhaps most significantly, this plan reduces General Fund spending – the city’s primary tax-supported budget – by 2.4%, or $74.5 million.  “We applaud Mayor Whitmire for making hard choices to put forward a balanced budget proposal,” said Steve Kean, President and CEO of the Greater Houston Partnership. “The mayor has made good on his commitment to address waste and duplication, and the Partnership is committed to working with his administration to put the City on a sustainable path, delivering the quality services Houstonians expect.”  Explore the City’s structural deficit and potential solutions in our report, State of the City’s Finances: A Deep Dive into Houston’s Fiscal Issues Facing the City. Key savings in the budget come from a combination of:  Workforce reductions: Over 1,000 city employees took advantage of the Voluntary Municipal Employee Retirement Payment Option, resulting in over $99 million in annual savings across all funds, including $29 million for the General Fund.  Operational efficiencies: Department budget reductions reached $16 million in savings.  Strategic reforms: $19 million associated with the consolidation of departments.   These efficiencies recommended in the Ernst & Young Citywide Efficiency Study underscore the city’s commitment to fiscal responsibility moving forward. The proposed budget also addresses critical public safety needs, funding the first year of a new police contract and the second year of the firefighter contract. While also providing infrastructure investments, as the budget sets aside $184 million from property tax revenue for street and drainage projects, aligning with the recent drainage settlement agreement.  During the press conference, the mayor highlighted that while this budget is balanced through efficiency and cost-cutting, the door remains open for future revenue discussions: “It would be wrong for me to say we are not going to allow Houstonians to consider a garbage fee or other matters,” the mayor said. “My responsibility is to balance the budget and provide services. I made a commitment to address waste and duplication. [Later] we will talk to Houstonians about the type of city they want to live in.” What’s next: Over the next two weeks, department directors will present their budgets in a series of workshops providing a deeper look into the FY 26 budget through Tuesday, May 20. After these sessions, City Council will review the budget, with a final vote expected in June.  
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Markovich Grover PLLC: Markovich Grover is a Houston-based law firm specializing in complex commercial litigation, bankruptcy and restructuring, and energy litigation, representing clients across various industries with a focus on achieving favorable outcomes through strategic and effective legal advocacy. Website. MetroNational: MetroNational is a prominent Houston-based real estate development and investment firm known for its diverse portfolio of commercial, residential, and mixed-use properties that have significantly shaped the city's landscape. Website. Shell Federal Credit Union: Shell Federal Credit Union is a member-owned financial institution serving the Houston, Texas area, offering a range of financial products and services such as checking and savings accounts, loans, and investment options, with a focus on providing personalized service and supporting the financial well-being of its members. Website. Weltrio: WelTrio is a Houston-based company specializing in providing comprehensive language solutions, including translation, interpretation, and localization services, to help businesses and individuals communicate effectively across diverse linguistic and cultural landscapes. Website. Click here to see the Partnership's Membership Directory. To learn more about membership with the Greater Houston Partnership click here, or contact membership@houston.org.
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