Texas Commission on Public School Finance has "one month left before we turn into a pumpkin" and has started its meeting live at senate.texas.gov/av-live.php.
The Commission will consider proposals from the revenues working group, posted at tea.texas.gov/schoolfinancec…
A small drafting group will come up with a report, with the chairs of the Outcomes, Expenditures, and Revenues working groups primarily tasked with drafting. @SenRoyceWest points out the need for diversity. Suggestion made that @nicolekConley ideas will be put into appendix.
Chairman Scott Brister says members will be welcome to disagree with parts and prefers to do that by letters in an appendix appended to the report. If there is a large split, it's not helpful to #TxLege, he says. Would like unanimous recommendations, perhaps menu of options.
Although the recommendations would be costed out, "a lot of this comes down to balancing the state budget," Brister says, and he's uncomfortable recommending a dollar figure overall.
School Finance Commission will meet December 11 and 19, tentatively at 10 a.m.
Commission now discussing revenue. Here is their statutory charge. 
Recommendation #1 - Use increase in general revenue.
Revenue working group chair @TeamBettencourt says there's a strong foundation for reliance on increases in sales tax collections, at least through next biennium.
Recommendation #2 - Governor's Comprehensive School Finance Reform
The 2.5% compression plan prevents an imminent collapse in state share, says @TeamBettencourt.
Sidenote: School districts in the current school year are at 33.9% state share for the Foundation School Program using traditional measures of state share.
Property taxes are growing faster than Texans' ability to pay, says @TeamBettencourt. If we just put money into the system, it's "literally an override" that pushes the convergence line out a few years, he says.
Recommendation #3 - Recapture from the Taxpayer's Perspective (from @txtaxpayers recommendations)
Recommendation #4 - Share property value growth so it doesn't benefit just the state as it does now. [Sidenote: ISD state aid appropriations were reduced by $2.6 billion from last biennium to the current biennium, in reliance on their higher local property tax values.]
As $2.6 billion was reduced in state aid from school districts from last biennium to the current biennium, in reliance on higher local school district taxes, charter schools' estimated state aid increased $1.4 billion and $1.2 billion was swept into state budget.
Recommendation #5 - Severance tax revenue
@nicolekConley notes 20 percent of Travis County's property tax bills are going to the state under recapture.
@nicolekConley lays out $10B+ revenue recommendations to modernize Texas' tax system, including increasing the motor fuels tax, which is below the national average, and indexing it over time; accessing Rainy Day Fund; and eliminating some sales tax exemptions.
Other ideas: reinvesting school district property value growth back into schools (so as not to benefit state), raising Texas' low alcohol taxes to compensate schools for large expenses of adverse childhood experience that impact children and schools, and e-commerce fairness.
@DanHuberty asks if TEA LAR used 6.7% taxable value increase and Governor's plan used 2.5% cap, would that require a district to have a TRE? There's discussion on if 2.5% applies only to first dollar or to other 17 cents.
As local money goes up, state money goes down, and it wouldn't cost anything to keep the state's money flat, to not create impression that state is stealing money, says Chair Brister.
Earlier today, Joint Select Committee on the Economic Stabilization Fund Balance adopted a balance limit of $7.5 billion, after hearing from the Comptroller’s office that the Fund has $12.48 billion in it – the highest amount in fund history. #RainyDay money could be used.
@TeamBettencourt argues for getting rid of recapture, which he calls "crack cocaine."
@DiegoBernalTX says it looks like Commission is now focusing on property tax relief first. Why don't we invert the conversation and look at what we'd like to achieve, he asks. Brister: we focused on outcomes and their costs, but we can't cost it out; depends on how much we have.
@nicolekConley points out that long-term revenue is needed. Chair Brister suggests keeping the state share amount level. [Question: Is that the state share for ISDs, which has plunged from 43% to 33.9% in five years, or does it include state-funded charters?]
Will severance tax and other options be able to fill school funding bucket in light of a tax cap? asks @nicolekConley. Chair Brister says now is a great time to do this because there is funding; can include that if this doesn't happen, we can include Wayfair & other alternatives.
Teacher and Commission member Melissa Martin says she sees the problems in school system due to alcohol abuse and speaks in favor of @nicolekConley idea to raise alcohol taxes. Previous Commission discussion noted they are a reliable source of revenue (inelastic).
Rep. Ken King said severance tax is unfair because only royalty owners and oil and gas producers pay it, and oil and gas prices fluctuate, which is why there was a shortfall causing a large public ed cut. "We never make it sustainable," he says about revenue. #Amen
Drafting committee will have working group chairs @williamstodd78 @DanHuberty and @TeamBettencourt picking ad hoc members working groups. TEA reminds committee they must meet in public and post if they have quorum. Brister says they'll put this into report and meet again.
Meeting adjourned. 🍿
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