Both chambers made progress on their versions of the budget during the months of March and April.  The only issue is both chambers still remain far apart on how they’d like to appropriate funds for the 2018-19 biennium.

On March 28, the Senate voted unanimously in favor of their budget proposal, Senate Bill 1. Here are some key elements of the Senate’s version of SB 1:

• SB 1 appropriates $217.7 billion in all funds for the 2018-19 biennium.
• SB 1 funds the current public education system and enrollment growth, but does not increase funding for public schools. Instead SB 1 keeps the basic allotment where it is today for both years of the biennium ($5,140).
• By not increasing the basic allotment, school districts in recapture will send larger checks to the state and more school districts will enter recapture for the first time this biennium. One of HISD’s main requests this session is for the state to increase the basic allotment because it provides funding to all school districts statewide and lowers recapture payments to the state.
• SB 1 eliminates funding for the Governor’s High-Quality Pre-K grant program that passed last session. Houston ISD received $9 million from the grant last year. A total of $118 million was the amount available to school districts.
• SB 1 includes a $65 million allotment for public-private partnerships in early childhood education.
• SB 1 does not tap the state’s Rainy Day Fund.
• SB 1 invests $25 million in the E-Rate program, so that schools throughout the state will have stronger Internet access. This $25 million investment triggers a federal match of $250 million to the State of Texas. Digital learning and broadband access are priorities for HISD this session.

On March 29, the House Appropriations Committee voted unanimously to replace SB 1 with their chamber’s version of the budget.  Here are some key elements of the House’s version of SB 1:

• The House version of SB 1 appropriates $218.2 billion in all funds for the 2018-19 biennium.
• The House version of SB 1 funds the current system and enrollment growth.
• The House version of SB 1 increases school funding by $1.6 billion, if the Legislature passes school finance legislation that reduces recapture payments for school districts, increases the state’s share of funding public schools and improves equity among school districts. The school finance bill the House filed is HB 21 by House Public Education Chairman Dan Huberty (R-Humble).  HB 21 increases the basic allotment, includes the transportation allotment for recapture-paying districts and adds a funding weight for students with dyslexia.
• Like the Senate version, the House version of SB 1 eliminates the Governor’s High-Quality Grant Program. However, the House version takes the $116 million set aside for the high-quality grant program and places the funds in the supplemental funding for Pre-K, so that all school districts have access to it.
• Unlike the Senate version, the House version of SB 1 does not include funding for public-private partnerships in early childhood education.
• Like the Senate version, the House version of SB 1 invests $25 million in E-Rate and draws down $250 million in federal money to improve broadband access for schools statewide, a priority for HISD.
• Unlike the Senate version of SB 1, the House version of SB 1 will use a portion of the state’s Rainy Day Fund.

On April 6, the House began debate on their version of SB 1. Over 400 amendments were filed and 200 ultimately amendments were proposed.  After 15 hours of debate, 64 amendments were adopted by the full House, including two amendments that prohibit the use of state funds for a school voucher, education savings account or tax credit scholarship program. The House amended version of SB 1 passed the House on the morning of April 7 with 131 ayes and 16 nays.

On April 18, the Senate announced their budget conferees: Senators Jane Nelson, Juan Hinojosa, Joan Huffman, Charles Schwertner and Lois Kolkhorst. Several days later, the House announced their conferees: Representatives John Zerwas, Oscar Longoria, Trent Ashby, Sarah Davis and Larry Gonzales. The 10 conferees will negotiate a final budget proposal that both chambers can live with.  If the budget is not approved by both chambers by the end of May, then the Legislature will go into a special or “extended” session until they pass the budget.