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Under Senate’s HB3, the State of Texas saves money while local districts lose dollars. 2/
Current year values make it virtually impossible to plan prudently; districts will be preparing budgets before the appraisal process is completed. 3/
Funding disruptions will occur after start of the school year – leading to disruption of educational services and a reduction in the quality of those services. 4/
The elimination of the prior year values for fast growing districts makes it impossible for those schools to accommodate the inherent enrollment fluctuations. 5/
SOLUTION: Maintain Prior-Year Values
Prior year values affords local school districts predictability and certainty; values have already been through the state study and local appeals process. 6/
Prior year values affords local school districts predictability and certainty; values have already been through the state study and local appeals process. 6/
Prior year values provides the Legislature with greater budgeting sureness each legislative session. 7/
Regarding the Senate’s version of #HB3 property tax relief provisions: The Senate’s version will be extremely costly to the state in the future and could lead to painful spending reductions for schools. 8/
If property tax relief is contingent on the passage of future tax options, districts should receive a dedicated portion for the buy-down of property tax rates. 9/
Revenue caps will be a huge impediment for districts to meet even the most basic educational requirements. 10/
It is dis-equalizing to require a state-imposed reduction for differential buy down of tax rates in some districts when other districts maintain the same rate. This will result in districts taxing at different rates to receive the same funding level under Tier 1. 11/
SOLUTION: Support tax rate compression as outlined in the House-passed version of HB 3. 12/
Regarding across-the-board pay raises in Senate’s version of #HB3: Majority of new state dollars to districts is forever dedicated to salaries for only a select group of educators... 13/
... this is even more of a concern when transition aid expires but districts must continue to fund the pay increase. 14/
This eliminates flexibility for local school boards in the management and governance of personnel... 15/
...It diminishes—if not eliminate—a district’s ability to increase salaries for other school employees, to hire more teachers to reduce class sizes, or to pay a stipend for teachers to work in hard-to-staff subjects. 16/
Districts will be required to maintain salary requirements long after any hold harmless monies have expired (five-years as outlined in the Senate version). 17/
SOLUTION: Consider a balance between giving teachers a pay raise and allowing decision-makers to address other local priorities. 18/
