Texas 2025 - 89th Regular

Texas House Bill HB5419 Compare Versions

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Version 2 (New)

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1	1		By: Hinojosa H.B. No. 5419
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to eliminating inefficiencies in the organization,
7	9		operation, powers, regulations, and management of the Texas
8	10		Education Agency to prioritize the provision of funding directly to
9	11		public schools.
10	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	13		SECTION 1. Section 7.004, Education Code, is amended by
12	14		amending Subsection (a) and adding Subsection (c) to read as
13	15		follows:
14	16		(a) The Texas Education Agency is subject to Chapter 325,
15	17		Government Code (Texas Sunset Act). Unless continued in existence
16	18		as provided by that chapter, the agency is abolished September 1,
17	19		2027 [2029].
18	20		(c) In this subsection, "contract" includes an amendment,
19	21		modification, renewal, extension, a purchase order, or an
20	22		interagency contract and includes a contract that was paid with
21	23		federal funds or funds not appropriated by the General
22	24		Appropriations Act. The Sunset Advisory Commission, with the
23	25		assistance of the State Auditor's Office, shall evaluate the
24	26		efficiency and effectiveness of the organization, operation,
25	27		powers, regulations, and management of the agency, including growth
26	28		in full-time equivalent staff at the agency and growth in grant
27	29		programs and grant conditions that result in hiring of additional
28	30		staff at public schools. The evaluation shall include a review of
29	31		each contract that was entered into by the agency since 2016 and
30	32		that equals or exceeds $100,000, with a review of contracting
31	33		procedures used by the agency and total cost of all contracts for
32	34		each program area or activity. The review also shall include, if
33	35		the contract is for a good or service used in public schools, an
34	36		annualized cost of each contract, annual number of students,
35	37		educators, or other users directly using a good or service under
36	38		each contract, the annualized cost per user under each contract,
37	39		and the amount of any implementation costs to public schools. In
38	40		addition to its report required under Chapter 325, Government Code,
39	41		the commission shall present to the 90th Legislature a report on its
40	42		evaluation and recommendations under this subsection. This
41	43		subsection expires September 1, 2027.
42	44		SECTION 2. Subchapter B, Chapter 7, Education Code, is
43	45		amended by adding Sections 7.041 and 7.042 to read as follows:
44	46		Sec. 7.041. STATE POLICY: PRIORITIZE PUBLIC SCHOOLS. (a)
45	47		It is the policy of this state that the agency shall be efficient in
46	48		its operations and that state funds be prioritized for the direct
47	49		support and maintenance of the public schools.
48	50		(b) Notwithstanding any other law, the agency may not:
49	51		(1) set aside or encumber funds, including a federal
50	52		block grant, that otherwise could go directly to public schools for
51	53		purposes of Subsection (c);
52	54		(2) enlarge, or request legislation to enlarge, the
53	55		agency's scope; or
54	56		(3) increase the number of full-time equivalent
55	57		employees beyond the level authorized by the 88th Legislature.
56	58		(c) It is the policy of this state that funds for education
57	59		that are not obligated by constitution or statute be prioritized as
58	60		follows:
59	61		(1) attaining and maintaining pay for classroom
60	62		teachers of at least the national average, with an adjustment
61	63		upwards for pay that is competitive with professionals in the
62	64		region who have similar levels of education and skill;
63	65		(2) providing an increase to the school safety
64	66		allotment sufficient to meet the needs of public schools and to
65	67		cover the costs and requirements of statutes and rules regarding
66	68		school safety; and
67	69		(3) providing funding for public schools sufficient to
68	70		meet the needs of students with disabilities and to cover the costs
69	71		and requirements of statutes and rules regarding special education.
70	72		(d) It is the policy of the state that when, due to school
71	73		districts' property value growth, increase in attendance credits
72	74		under Chapter 49, or change in student enrollment or attendance,
73	75		state appropriations of general revenue to the Foundation School
74	76		Program maintenance and operations funds for a year are supplanted
75	77		as surplus, the agency identify the amount of that general revenue
76	78		surplus and submit a request to the office of the governor and the
77	79		Legislative Budget Board for an appropriation or budget execution
78	80		authority under Chapter 317, Government Code, to provide the
79	81		general revenue surplus back to the Foundation School Program for
80	82		the priorities under Subsection (c). If in any year an
81	83		appropriation or budget execution authority does not provide the
82	84		surplus to the Foundation School Program or to school district
83	85		property tax relief, the next tax bill under Section 31.01, Tax
84	86		Code, shall inform each taxpayer of the diversion of the Foundation
85	87		School Program surplus.
86	88		Sec. 7.042. ZERO-BASED BUDGET REQUIRED FOR TEXAS EDUCATION
87	89		AGENCY OPERATIONS; CONTENTS. (a) In this section, "agency
88	90		operations budget" means the budget for agency administration and
89	91		operations. The term does not include any state aid or allotment
90	92		under this code that is received by school districts or
91	93		open-enrollment charter schools or, under Section 48.308, by the
92	94		higher education coordinating board.
93	95		(b) In addition to the required annual budget under Section
94	96		7.055, the commissioner shall prepare, in plain language and an
95	97		easily readable and understandable format, a zero-based agency
96	98		operations budget every tenth fiscal year that contains:
97	99		(1) a description of the discrete activities the
98	100		agency conducts or performs with:
99	101		(A) a justification for each activity by
100	102		reference to the state constitution, statute, or rule; and
101	103		(B) an external evaluation of the effectiveness
102	104		and efficiency of the agency's policies, management, fiscal
103	105		affairs, and operations in relation to each activity;
104	106		(2) for each activity identified under Subdivision
105	107		(1):
106	108		(A) a quantitative estimate of any adverse
107	109		effects that may reasonably be expected to result if the activity
108	110		were discontinued, with a description of the methods by which the
109	111		adverse effects were estimated;
110	112		(B) an itemized account of expenditures required
111	113		to maintain the activity at any minimum level of service required by
112	114		law, with a concise statement of the quantity and quality of service
113	115		required at that minimum level; and
114	116		(C) an itemized account of expenditures required
115	117		to maintain the activity at the current level of service, with a
116	118		concise statement of the quantity and quality of service provided
117	119		at that level;
118	120		(3) a ranking of activities identified under
119	121		Subdivision (1) that illustrates the relative importance of each
120	122		activity to the overall goals and purposes of the agency at current
121	123		service levels; and
122	124		(4) recommendations to the legislative budget board
123	125		and office of the governor regarding whether the agency should
124	126		continue funding each activity identified under Subdivision (1)
125	127		and, if so, at what level.
126	128		(c) The commissioner shall file a copy of the zero-based
127	129		budget with the legislative budget board and the office of the
128	130		governor on or before the date the proposed annual budget is filed,
129	131		and the zero-based budget shall be posted on the agency's Internet
130	132		website.
131	133		SECTION 3. Section 7.055(c), Education Code, is amended to
132	134		read as follows:
133	135		(c) The budget the commissioner adopts under Subsection (b)
134	136		for operating the Foundation School Program must be in accordance
135	137		with legislative appropriations and provide minimal funds for the
136	138		administration and operation of the agency and any other necessary
137	139		expense required by statute. The budget must designate any expense
138	140		of operating the agency or operating a program for which the board
139	141		has responsibility that is paid from the Foundation School Program.
140	142		The budget must designate program expenses that may be paid out of
141	143		the foundation school fund, other state funds, fees, federal funds,
142	144		or funds earned under interagency contract. Before adopting the
143	145		budget, the commissioner must submit the budget to the board for
144	146		review and, after receiving any comments of the board, present the
145	147		operating budget to the governor and the Legislative Budget Board.
146	148		The commissioner shall provide appropriate information on proposed
147	149		budget expenditures to the comptroller to assure that all payments
148	150		are paid from the appropriate funds in a timely and efficient
149	151		manner.
150	152		SECTION 4. Section 322.017, Government Code, is amended to
151	153		add Subsection (b-1) to read as follows:
152	154		(b-1) The board shall review and analyze the effectiveness
153	155		and efficiency of the policies, management, fiscal affairs, and
154	156		operations of the Texas Education Agency and report its findings by
155	157		September 1, 2026, for consideration in connection with the
156	158		legislative appropriations process. This subsection expires
157	159		September 1, 2027.
158	160		SECTION 5. (a) The commissioner of education shall prepare
159	161		an initial zero-based budget as described by Section 7.042,
160	162		Education Code, as added by this Act, for the fiscal year beginning
161	163		September 1, 2026.
162	164		SECTION 6. This Act takes effect September 1, 2025.