House Bill 1 will be considered by the legislature beginning on Friday, April 1. The bill, as voted out of committee, would reduce the Foundation School Program formulas by an estimated $3.9 billion per year. It also reduces or eliminates many of the grant programs districts currently rely on, such as the technology allotment, the student success initiative, the pre-kindergarten grant program, and the D.A.T.E. program. Combined, these reductions cut another $800 million per year. On top of these cuts, the textbook program is $430 million short (for the biennium) of being fully funded.
The attached printout reflects the district-by-district impact of the potential changes to the foundation school program as a result of the education budget under House Bill 1. Although a school finance bill has not yet been considered in committee, the terms of the appropriations bill will require formula changes to reduce funding for districts.
We have provided two examples of reductions totaling $3.9 billion per year.
The first assumes an across-the-board reduction of state and local general fund revenue, an 11.3 percent reduction..
The second assumes formula changes to get to a $3.9 billion reduction per year, including the elimination of hold-harmless funding associated with the target revenue system (Additional State Aid for Tax Reduction), the elimination of the chapter 41 hold harmless, and a reduction to the basic allotment.
The results are based on a combination of data from various sources, including the Texas Education Agency, the comptroller, individual districts, and projections made by Moak, Casey & Associates. **If you are a client, we did not have time to incorporate your most recent data submissions. We plan on updating our system this week and any model going forward will contain this information.
In an additonal attachment, we have used 2009-10 actual financial data to show district-by-district use of certain grant programs.
We encourage districts to share information on the potential local impact of cuts of this magnitude on educational programs in their district. If the bill is voted down, it will be sent back to committee where members can consider other revenue raising mechanisms necessary to reduce the overall negative impact of this budget on public education.