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The Texas Senate unveiled a two-prong approach to overhauling the Texas educational system. SB 2 covers a broad range of educational issues.
SB 2 calls for increased accountability for students, teachers and schools. Schools would be evaluated and recognized for their success in preparing students for college. Struggling schools would be given additional resources and oversight. Additionally, schools would be required to identify "instructional" and "non-instructional" cost and make financial information readily available to taxpayers.
Additional dollars are provided in the legislation to increase teacher salaries to the national average, with recognition for performance and assignments in critical areas. To improve efficiency and reduce costs locally, a state model curriculum would be developed. Also, districts would have incentives to reduce administrative costs by cooperating with other districts and implementing costs cutting measures with savings allocated to improving teacher salaries.
The second prong of SB 2 relates to funding. The bill proposes a reduction of property taxes by one-third. The new maintenance and operations (M&O) tax would be reduced to a maximum of $1. Further, there could be no increase of the M&O without a vote of the people. The state estimates the total reduction for homeowners and business equates to more than $5.5 billion.
The legislation provides locally collected dollars by allowing a local enrichment tax of 15 cents, provided it is approved by the voters and phased in at a rate of 5 cents/year.
SB 2 would also close the current loop-holes in the franchise tax. Revisions to the franchise tax retain the current $150,000 tax free exemption and exclude sole proprietors. Other sources of revenue, according to the legislation, are increases in sales, alcohol and tobacco taxes.
The Texas Senate awaits a tax-plan from the House. According to the Texas Constitution, all bills containing a tax measure must originate from the Texas House of Representatives. The House is expected to file a bill with similarities in the education portion of the Senate bill, but with different funding streams.
