Bill raises teacher pay; districts set amount

One-third of extra funds would go to salaries or insurance premiums under reform plan

AUSTIN — Public school teachers in Texas could see a pay raise under the Legislature’s sweeping education reform bill, but the size depends on the district, which can choose whether to boost salaries or put the money toward health insurance benefits, according to a copy of the plan obtained by the Houston Chronicle and San Antonio Express-News.

Every school district is poised to receive more state funding from the $11.4 billion, two-year plan and administrators must use at least a third of that extra cash to boost employees’ compensation, the documents show. From there, $3 of $4 dollars must go to teachers, counselors, nurses and librarians.

“It’s definitely not all raises,” said Monty Exter, a lobbyist for the Association of Texas Professional Educators, but “if you’re paying less in premiums, your paycheck is going to go up.”

Texas teachers have complained of crippling health care costs, saying they have taken side jobs or put off seeing doctors. Some Texas educators now pay premiums starting at $1,000 a month for family coverage under the state-sponsored plan. The

premiums have roughly doubled over the last decade.

The plan that lawmakers pitched Thursday would give at least $4.5 billion more for education and $5 billion more for property taxes, although earlier versions would have dedicated more to education and less to tax relief. Exter said the overall effect is still good for teachers.

“At least half of that is going directly into public education programing, which is still a huge amount of money at half the bill. Most of the things that educators asked not to be in the bill aren’t, so those are all pluses,” he said. “It’s mostly a step in the right direction.”

The bill has yet to be released to the public, but a fiscal analysis released Friday shows districts across the state receiving more money while paying less in socalled “Robin Hood” payments, which are taken from propertyrich districts to fund those with less resources. Houston ISD, for instance, would stop paying Robin Hood and receive an overall $100 million bump in funding — roughly $521 per student, the documents show. Under the bill, roughly $30 million of that would be earmarked for employee compensation increases.

Fulfilling a promise

Northside ISD in San Antonio, meanwhile, would receive roughly $42 million extra in the first year, or about $427 per student, according to the analysis.

“It’s not as far as we would have liked to be, but we’re in way better shape than we have ever been,” said Nicole Conley Johnson, chief financial officer of Austin ISD, the district that shoulders the biggest Robin Hood payments in Texas.

Top Republican leaders have promised to increase teacher pay this year — at one point with Lt. Gov. Dan Patrick and the Senate insisting upon a $5,000 raise to every full-time teacher and librarian in the state. In the House, lawmakers called for an average of $1,800 raises for all school employees, including janitors and counselors. Surveys have shown that the average Texas teacher makes about $54,000 a year — $6,000 less than the national average.

The plan gives school districts more discretion on how to distribute additional funding for compensation while also investing in full-day preK programs for low-income students, increasing basic per-student funding and capping future increases in local property taxes.

The state now pays $75 per month toward health care premiums, which will likely double to $150 under a plan by Republican leaders under SB12, according to Exter. Districts also pay $150.

Approval still needed

To cover some of the extra costs, lawmakers plan to tap $300 million a year in revenue from the Texas Permanent School Fund, as well as the proceeds from a new state sales tax on internet commerce, the documents show. That tax is estimated to yield $550 million over the next two years.

Otherwise, lawmakers are counting on continued economic growth to fund the expanding cost, several members said.

On Thursday, Republicans Gov. Greg Abbott, House Speaker Dennis Bonnen and Patrick celebrated the legislation, which they called a historic win for Texas. In addition to the school funding, they disclosed details of a property tax relief package that will lower school property tax rates by an average of 8 cents per $100 in home value in 2020 and by 13 cents in 2021. For the owner of a $200,000 home, that would amount to decrease of about $160 in 2020.

The plan still needs the approval of the Republican-led House and Senate before the legislative session ends Monday. Until then, details could change.

Besides increases to teacher compensation, the plan increases the base amount of money the state spends per student by more than $1,000 to $6,160.