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NEWS RELEASE
FOR IMMEDIATE RELEASE

CONTACT: Jennifer Ransom Rice or Bryan Hadley
(512) 463-0108
Monday, June 1, 2009

Shapiro & Hochberg Pass Landmark $1.9 Billion School Finance Bill

Austin, Texas — Sen. Florence Shapiro, R-District 8 and Rep. Scott Hochberg, D-137, today passed House Bill 3646. From the introduction of the appropriations bill, they set aside $1.9 billion for public education. The Legislature has been guided by the goals of improving equity, reducing recapture and providing all districts some relief.

"We had an opportunity to be proactive without a court order, focusing on a system that can reduce the funding disparities between schools," Senator Shapiro said.

HB 3646 re-establishes the funding system back to a formula system and away from target revenue. The bill focuses on ending an historical inequity of paying for set asides out of district's compensatory allotments.

"Taking advantage of this opportunity to halt the historic slide in state share, this Legislature has set a precedent to directly deal with the challenges facing the state," Senator Shapiro said. "This is promising not just for this biennium, but for the future of Texas."

In addition to formula changes, HB 3646 includes additional education reforms. These reforms include an automatic roll forward of the existing debt allotment, the creation of a credit enhancement program to assist districts in building facilities, and ensuring our teachers benefit from the new funds through an educator salary increase.

HB 3646 also provides additional funding for districts with successful career and technical education programs, extends the mid-size adjustment to chapter 41s and ensures all districts receive an increase in funding. The bill also modifies the law to allow grants to districts to include seat belts on new bus purchases.

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