Legislative Agenda

After the legislature failed to pass SB1811, the Governor called a special session that began this morning to cobble together sufficient revenue and budget timing plans to balance the state budget, as well as to determine the method for allocating $4 billion (6%) of public education cuts across each school district. If you have questions, don’t hesitate to reach out to Drew Scheberle, Sr. Vice President for Education/Talent Development, at dscheberle@austinchamber.com.

What Next for Our School Districts?

The Legislature has already adopted a state budget which eliminates $4 billion in general K12 support (a 6% overall cut) and $1 billion in grant funds for items such as pre-k, teacher incentive pay, tutoring for academically struggling students and so forth. Look today (Tuesday) for whether the Legislature will revisit the school finance agreement reached by House and Senate Republicans late Friday night in their nearly 400 page bill called SB1811. If legislators do not attempt to rewrite SB1811, most area school districts will have 6% cuts in this fall’s FY12 public school budgets. Most school districts will see further reductions of approximately 2.5% in FY13, for a total of approximately 8.5% by the end of the biennium (see below). Several items new to the late Friday night agreement as they relate to career & technology, the guaranteed year, and incentives for school districts to hold tax rate elections, are being further studied to determine impact. All area Republican Reps voted for the cuts; all area Democratic Reps voted against this plan on Saturday night.

What Next for Local School Property Tax Rates?

We will save that discussion for after it is decided whether the Legislature will discuss and attempt to amend the SB1811 agreement reached by House and Senate Republican leadership on Friday night. Suffice it to say the school tax rate will not go down for the next two years, though many property owners are seeing lower appraisals for FY12.

What Next for State Taxation?

We will save that discussion for the resolution of the budget in a special session.

What Next for Higher Education?

Austin Community College will receive approximately same state overall appropriation for the next two fiscal years as it did in the previous two; however ACC's enrollment has grown nearly 25% during that time. UT-Austin, Texas State-San Marcos and Texas A&M will receive about a 10% reduction in state appropriation and a 25% reduction in special items. I have not seen per student appropriation cuts to community college and universities. Additionally, the Legislature has sent to the Governor HB 9, which allows up to 10% of state general financial higher education support to be used to reward student course and degree completion.

What Next For Area Higher Education Tuition and Fees?

Sen. Finance Chair Steve Ogden said of the state budget cut's effect on higher education in the months to come: "It's just going to be harder for poor kids to go to college." State TEXAS Grant appropriations were reduced 10% for the coming two budgets; the 33,000+ new grants will go first to financially needy students who enter college/career ready, if the Governor signs SB28. Pell Grants and other federal financial aid is still under deliberation by Congress. ACC Trustees announced several months ago their intent to raise tuition to compensate for expected per student state revenue reductions. Look in coming weeks for whether UT and Texas State Boards of Regents increase tuition; Texas A&M Regents elected not to do so for the coming academic year.

The Greater Austin Chamber of Commerce announces the co-chairs for their 12th annual advocacy visit to Washington D.C. this June 19-21. Ben Barnes, Former Lieutenant Governor for the State of Texas, and Karen Hughes, former Under Secretary of State for Public Diplomacy and Public Affairs in the U.S. State Department, will both return as the visit's Co-chairs and be accompanied by top leaders of Central Texas businesses, higher education institutions, as well as elected officials and community leaders.

Karen Hughes is the Global Vice Chair of the PR firm Burson-Marsteller, where she provides clients with senior level communications strategy and counsel. Previously she served as Under Secretary of State for Public Diplomacy where she led several thousand public diplomacy professionals working in almost every country in the world, and oversaw three State Department bureaus: Educational and Cultural Affairs, Public Affairs and International Information Programs. She also served as Counselor to President George W. Bush, where she acted as strategic advisor to the President on policy and communications and managed the White House Offices of Communications, Media Affairs, Speechwriting and the Press Secretary.

Ben Barnes successful political career has deep roots, beginning back when he was only 22 and was elected to the Texas House of Representatives. Three years later, Barnes was elected as the youngest Texas Speaker of the House. In 1968, Barnes was elected lieutenant governor--again the youngest ever-- and captured the most votes of votes of any statewide candidate in Texas history.

Barnes has been an active player in Democratic politics for over 20 years, referred to by Texas Monthly as "one of the chief financial and strategic architects of the Democratic resurgence in the Senate." In 1995, he joined Lady Bird Johnson and Walter Cronkite as Distinguished Alumni of University of Texas.

Barnes now focuses on public policy advocacy and venture capital opportunities. With offices in Washington, D.C. and Austin, Texas, the Ben Barnes Group represents a number of Fortune companies and trade associations that advocate for both public and private interests.

The 2012 program will continue our region’s support for advancing U.S. innovation, global competiveness, education, and transportation issues at the federal level. The delegation is limited to 50 prominent Austin area leaders with expertise in emerging technology, clean energy, healthcare, international markets, higher education, and transportation amongst other areas.

  
The annual visit provides Central Texas with an unparalleled opportunity to build and strengthen relationships with officials in Congress, the Administration, and the White House whose decisions directly impact the Austin region. The delegation will share their varied expertise with federal decision-makers to further policies that support economic growth and workforce development, spur innovation, and improve the ability of Austin area companies to do business.

The Austin Chamber's 2012 federal advocacy visit is scheduled for June 19 – 21. For additional information contact Erika Sumner, VP, Public Policy, Austin Chamber, 512.322.5638.