What do you think of the Plan ?

School officials find fault with plan
By KATHERINE CROMER BROCK
STAR-TELEGRAM STAFF WRITER

STAR-TELEGRAM/JIM ATHERTON
CHART: Impact on local district
New legislation that overhauls the state's school finance system will not be the long-term fix schools need, area educators say.
And it could spell trouble for districts facing rapid growth.
"It doesn't do a lot for us. We still face the capacity problems that we've faced for a long time. I'm worried about how stable the funding is for this bill down the road," Birdville Superintendent Stephen Waddell said.
The special session that ended this week was called by Gov. Rick Perry in response to the Texas Supreme Court's ruling that the current method of funding public education is an unconstitutional statewide property tax. The court gave lawmakers until June 1 to fix the system or face a possible shutdown of schools.
In their sixth attempt to revamp the system, lawmakers approved House Bill 1 and other measures to address the court's concerns. It lowers local property tax rates from a cap of $1.50 to $1 over the next two years, while also providing a $2,000 raise for teachers, school nurses, counselors and librarians. Schools will receive an additional $275 per student in grades nine to 12 for programs to prevent dropouts and prepare for postsecondary education.
And all school districts will be required to start school on the fourth Monday in August, with no waivers.
How most of the new regulations will be implemented is uncertain. While Perry signed another piece of legislation Thursday that cuts property taxes and restructures the business tax to fund education, HB 1 has not been signed. But local districts have begun to try to figure out what it will mean for them.
Many have focused on the property tax reduction, touted as the largest in state history.
According to HB 1, property taxes will be reduced to a cap of $1.33 for maintenance and operations in 2007. School districts can then, at their discretion, add 4 cents to the rate without voter approval in 2007.
In 2008, the cap will be reduced to $1. In 2009, districts can add 2 more cents.
But for any property tax increase beyond that, districts must get voter approval. That concerns some districts, particularly those facing rapid growth.
Claude Cunningham, assistant superintendent for curriculum and instruction in the Mansfield district, said the new money his district is projected to receive is tied up in the teacher salary increases and high school initiatives. But the 25,700-student district is projected to grow by 2,500 students this year and is opening four new schools. That growth rate is expected to continue for a decade.
"We need to hire close to 200 teachers just to take care of student growth for next year," he said. "We're not seeing the ability to use much, if any, of the funding that we're getting in a discretionary manner."
Like most districts, Mansfield will see increased utility, gasoline and food costs. Also, HB 1 requires four years of math and science for all high school students. That will mean hiring teachers and perhaps building science labs.
"What sounds like a really good thing to do on paper, it creates some issues that we're going to have to deal with," Cunningham said.
Most districts say the new legislation cannot stand on its own in the long term. Funding will be provided for the first year, in part because a portion of the state's $8.2 billion budget surplus will be used. After that, there are doubts about whether funding will be adequate.
"This bill falls short as a permanent answer to school funding," said a statement issued by the Fort Worth school district.
The statement said lawmakers are expected to tackle school funding and more education issues during the regular session, scheduled to begin in January. If they do not, voters can expect annual elections, with school districts asking for more tax revenue, just to keep up with inflation.
In Northeast Tarrant County, a number of districts that have been paying into the Robin Hood share-the-wealth system will have that annual payment cut. The Northwest school district, for example, will see its payment drop from a projected $56.8 million to $41.7 million next year.
But the success of the system as a whole can be judged only in the coming years, Northwest Superintendent Karen Rue said.
"It was a property tax reduction," Rue said. "It was not school finance reform."
Northwest is also a fast-growth district, expected to climb from 9,000 students to 44,000 students in 16 years.
"[Lawmakers] have to address long-term school finance reform, the cost of educating today's child," Rue said.
" If they don't do that, do we find ourselves over time back at the same issue that we have now ? "

source: http://www.dfw.com/mld/dfw/14618689.htm
Katherine Cromer Brock, (817) 685-3813 kcromer@star-telegram.com
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As it was presented to Brownwood readers.......

Friday May 19, 2006
News

Perry signs ‘centerpiece’ of school finance reform bill
By Steve Nash — Brownwood Bulletin

Texas Gov. Rick Perry signs House Bill 3, part of a school finance reform package, Thursday morning at McCoy’s Building Supply Center in Brownwood. McCoy’s employees watch as Perry, flanked by state legislators, from left, Dan Branch, Jim Keffer and Troy Fraser, and McCoy’s CEO Brian McCoy, signs the legislation. Photo by Steve Nash
Elected officials, school administrators and private citizens were among several dozen people at McCoy’s Building Supply Center in Brownwood Thursday morning as Gov. Rick Perry signed House Bill 3, legislation Perry said will create comprehensive business tax reform but also helps deliver the largest property tax cut in the state’s history.
Perry made stops in several cities including Brownwood to sign the bill. He said the legislation is the centerpiece of school finance reform that includes a $2,000 pay raise for teachers.
House Bill 3 is one of five bills in a package of legislation that “provide the largest property tax reduction and the most comprehensive education reforms in decades,” Perry’s office said.
Several McCoy’s employees stood line abreast behind Perry, who was accompanied at McCoy’s by state representatives Jim Keffer, R-Eastland, and Dan Branch, R-Dallas, and state Sen. Troy Fraser, R-Marble Falls. Brian McCoy, the company’s chief executive officer, introduced Perry. McCoy said the legislation is “a great plan for Texas and a great business plan.”
“I look forward to seeing businesses like McCoy’s all across the state booming with activity once our tax relief and reform goes into place,” Perry said.
“For years, Texas has needed a comprehensive business tax reform that encourages job growth.”
Under old business tax laws, Perry said, there were loopholes that “divided people into winners and losers in our economy.”
Businesses with good accountants and good lawyers, he said, could avoid paying their fair share. At the other end were employers who “got stuck with carrying ... an unfair tax load” for financially struggling school districts.
“Homeowners have been forced to make up the difference in that funding with skyrocketing tax rates and appraisals, and as I sign this piece of legislation all that’s going to change,” Perry said.
Perry said the legislation spreads the cost of education across “a very broad spectrum” and will help generate a $15.7 billion property tax cut to Texans.
Over next three years, he said, the owner of “an average priced home” will see a $2,000 decrease in his property tax bill.
Perry credited Branch, Keffer and Fraser with helping guide the legislation to his desk. The legislators praised Perry’s leadership.
“This is a historic day, a great day ... ” said Keffer, who authored the legislation. “It made sense. (House Bill 3) is the economic engine that will generate the funds, the money for the ... goods and services that Texas will provide.”
Fraser said, “It’s an issue we worked hard on the last couple of years. It was a difficult issue but it’s also a fairness issue.”
After Perry’s remarks, Brownwood Mayor Bert Massey said in an interview that the bill is “a good piece of legislation that needed to be done.
“It puts more money in schools, and I think that’s important. And secondly ... appraisals are going up, and this is going to at least soften that blow.”
Brownwood school Superintendent Sue Jones said in an email to the Bulletin: “At this point, we are still evaluating the financial impact to the district. One of the more positive aspects of the bill is the $2,000 teacher salary increase that is anticipated to be funded by the state.
“The reduction in property tax is also very positive for local property owners and does not appear to have an adverse impact on district funding. Although final revenue numbers have not been received, we do not anticipate any increased funding to offset the increased costs of utilities and transportation. This will provide some challenges as we prepare the 2006-07 budget.
“However, we do appreciate the hard work of our legislators in meeting the June 1 deadline and insuring our public schools continue to serve the children of the state.”
Early school Superintendent Brett Koch said, “The reduction in property taxes is very positive for taxpayers throughout the state. ... I think it’s very good legislation. The bulk of it is tax legislation and what it does for taxpayers.
“ ... Many of the caveats are things we’ll work through and we’ll be fine. ... It’s very encouraging.”
According to Perry’s office, House Bill 3:
Rewards employers for creating jobs and investing in employee benefits. Every time a business hires someone, pays for health insurance or invests in a pension plan, their tax liability will go down.
Protects small employers so that they can continue to drive Texas’ economic growth.
Exempts sole proprietors and general partnerships from the tax, as well as businesses whose gross receipts total $300,000 or less, and those whose tax bill is less than $1,000.
Rewards employers that create jobs and contribute to our economy, but also mandates that. Businesses that hire illegal immigrants will pay the price with higher taxes.
School finance legislation passed by the legislature will:
Reward every Texas teacher with a $2,000 pay increase and provides the largest teacher merit pay program in the nation.
Invests millions of new dollars into dropout prevention and college readiness efforts.
Guarantees a historic level of funding equity, and significantly reduces the impact of Robin Hood.
Lowers Texans’ overall tax burden by some $7 billion.
source: http://www.brownwoodbulletin.com/articles/2006/05/19/news/news02.txt
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