Texas legislators open session looking for education solution

AUSTIN — Lawmakers gathered today for their fourth special session since being sworn in 16 months ago, summoned by Gov. Rick Perry to consider his multi-point plan for changing how Texas funds public schools.

In an opening Senate prayer, Sen. Craig Estes, R-Wichita Falls, said, "Help us in this special session to do something wise and wonderful for our children and our grandchildren."

Lt. Gov. David Dewhurst revealed that Sen. Jeff Wentworth, R-San Antonio, will serve as the Senate's new president pro tempore, a largely ceremonial post that requires him to preside over that body in Dewhurst's absence.

Before the session-opening gavels fell, nearly 40 House Democrats and Republicans from disparate regions of the state promised to avoid partisan conflict, protect small-class size limits for kindergarten through fourth grade and oppose any effort to merge school districts.

Rep. Kent Grusendorf, R-Arlington, has suggested giving districts the flexibility not to enforce the 22-1 student-teacher ratios put in place by lawmakers in 1984.

"We are here to try and find a solution," said Rep. Jim Keffer, R-Eastland. "Some of us are Republicans, some of us are Democrats, some of us are urban, some of us are rural. But first and foremost we are Texans. We are here to resolve a problem. It must be resolved from the districts up, not from Austin down."

San Antonio members in the mix included Democratic Reps. Joaquin Castro and Carlos Uresti and Republican Reps. Ken Mercer and Elizabeth Ames Jones.

In his proclamation issued last week calling the 30-day special session, Perry listed 14 "purposes" reflecting the package of education, finance and tax ideas he has rolled out in three waves since late January.

Legislators are asked to consider giving teachers "performance-based" incentives, capping the annual growth of homestead tax valuations and making local governments seek voter approval before raising taxes beyond population growth and inflation.

Perry's desires also include legislation to tweak how property appraisals are done and "modifications" to the Robin Hood redistribution mechanism created by lawmakers in 1993 that requires more than 100 property-rich school districts to share tax revenue with more than 900 less fortunate districts.

Revenue-producing ideas spelled out in his proclamation include an increase in cigarette and other tobacco product taxes, closing loopholes in the corporate franchise tax, an admission fee on adult entertainment clubs and a proposed constitutional amendment to legalize video lottery terminals at dog and horse race tracks and certain Indian reservations.

Members gathered today after Comptroller Carole Keeton Strayhorn on Monday slammed Perry's proposals to lower school property taxes, saying they could lead to a state budget deficit exceeding $10 billion in five years.

Strayhorn's analysis, issued 11 days after Perry unrolled his tax package in San Antonio, was not mentioned during Perry's one-hour appearance before a select education panel of legislators and citizens the same day

"You know, the trouble with her is she wants to do everybody's business but her own," Sen. Steve Ogden, R-Bryan, said later of Strayhorn.

House Speaker Tom Craddick, R-Midland, called for "respect," adding, "We're not just seeking a better way for our schoolchildren. We're setting an example for them and the taxpayers who contribute their hard-earned dollars to the schools and this government."

Perry, who could face a 2006 challenge by Strayhorn, a fellow Republican, said he had not seen her numbers and suggested she present a "constructive" plan of her own.

His spokeswoman, Kathy Walt, said Strayhorn's rhetoric grows "meaner as her grasp of policy matters grows leaner," and added, "It's important to keep in mind that these projections are coming from an individual who was 100 percent off in the revenue estimate."

Walt was referring to Strayhorn raising her estimate of the state's revenue shortfall to $10 billion as lawmakers convened in January 2003 after earlier saying it was running close to $5 billion. Strayhorn defended her revenue estimators, saying, "I am telling the people of Texas the truth."

Strayhorn said she issued her critique — which aides traced to disputes with Perry's office on cost calculations — in keeping with her constitutional responsibility to "ensure a pay as you go, no deficit spending balanced budget."

Asked if she will present her own school funding plan, Strayhorn said she will continue to "frame the issue."

Nearly 500 of the state's more than 1,000 school districts have reached the state's maintenance and operations property tax cap of $1.50 per $100 valuation, creating pressure on legislators to act.

Perry's plan, reviewed Monday by the Joint Select Committee on Public School Finance, calls for a statewide rate for businesses at $1.40 per $100 valuation and a maximum rate for homes of $1.25 per $100, which would continue to be collected by districts.

The plan also calls for a constitutional amendment guiding future legislatures to lower tax rates on businesses and homes to 75 cents per $100 valuation as state revenue comes available. However, Perry said he doesn't know if anyone has a "crystal ball" capable of pinpointing how many years that will take.

New revenue would come from raising the cigarette tax by $1 a pack, legalizing video lottery terminals at racetracks on Indian lands and imposing a $5 entry fee at topless nightclubs — elements that drew criticism Monday from Ana Yañez-Correa of the League of United Latin American Citizens.

"There is just not enough sin in the state of Texas to adequately fund the state's public education," she said.

According to Strayhorn, "during its first five years alone, Perry's plan would accumulate an unfunded and swelling deficit of more than $10 billion even as it produces zero additional property tax rate cuts beyond the amount promised for the very first year."

Her critique came in a traditional pre-session assessment of state revenues sent to Perry, Craddick and Dewhurst.

The state can count on slightly more than $59 billion in revenue through August 2005, Strayhorn said, with $727 million unspent and available for appropriation.

Strayhorn said her office's taxpayer amnesty repayment program has generated $379 million, compared with $50 million previously projected, leaving {quot}us with no excuse to delay any longer restoring the tragic losses of health insurance that Texas children are suffering from being kicked off (Children's Health Insurance Program) rolls.{quot}

The number of CHIP children has dropped by more than 120,000 since last summer, to 377,000 as of April 1, mainly due to eligibility changes and budget cuts approved by the 2003 Legislature.

Perry's office has pointed out that Strayhorn last year personally recommended one eligibility change projected to shave CHIP enrollment by more than 110,000 children by 2005.

Perry wants legislators to focus initially on {quot}educational excellence and property tax reform{quot} in the session, Walt has said.

GOP leaders want to change the way Texas funds public schools partly by eliminating or altering the Robin Hood redistribution mechanism.

So *that's* how the "Texas Education Miracle" was funded: slam "the rich" with huge property tax valuations, but don't let the money stay in "the rich's" school districts. Instead, spread it around so that poor districts have "parity." And people in Texas went along with that? Amazing.

So in other words, the economically smart thing to do is move to a very cheap, low-valued house out in the boonies somewhere, and homeschool your kids. Wait a minute - that's what *is* being done in Texas now! Not that the homeschooling is a problem - but the tax situation sounds grossly unfair.

What Texans need is not "education reform;" what they need is tax reform Missouri-style - *no* tax increases whatever unless voted on by a *referendum* of those affected by the tax.

Why is "education reform" at bottom simply helping oneself to the contents of someone else's pockets?

You do seem to have nicely summed-up the Governor's plan!

Why is it I feel that any proposed "more fair" plan of his is simply going to cost me a lot more money in taxes?

Without, BTW, any improvement in school performance?
Not that I think an improvement is necessary; chicken-littles notwithstanding, our school district rates "exemplary" while being rated "below average" in per-pupil spending.
Hmmm...

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