House to Vote on Appropriations Bill

Funding level for higher education is disappointing

The Texas treasury is bursting with money compared to recent years, and although lawmakers have said higher education is one of their highest priorities this session, the budget that the House of Representatives will vote on today is generally disappointing in terms of funding for the state’s postsecondary institutions.

Based on figures contained in the Legislative Budget Board’s summary of funding in the Appropriations bill, General Revenue Funds (GRF) for public higher education would increase by 7.9 percent in the 2008-2009 biennium. However, GRF for general academic institutions would increase by a scant 3.5 percent and for public community/junior colleges by a meager 3.4 percent. Health-related institutions would do better with a GRF increase of 7.8 percent. Much of the overall change in GRF is due to a $175 million or 50 percent increase in the Higher Education Fund mandated by legislation enacted by the 79th Legislature.

One bright spot in the Appropriations bill is an increase in the TRS state contribution rate from 6 percent to 6.7 percent and an increase in the base ORP contribution from 6.0 percent to 6.4 percent. Also, in order to bring the state’s premium contribution rate for higher education employees closer to that of state employees, GRF would increase by $26 million.

Why is the budget for higher education disappointing at this point in the appropriation process? In a nutshell, the explanation lies in the fact that the legislature remains under the control of fiscal conservatives who are more interested in cutting taxes than they are in providing Texans with a truly first class system of higher education. For example, the Legislature has already approved $14.2 billion in property tax relief. Also, the proposed budget leaves $4.2 billion in general state revenue unspent; in addition, another $4.3 billion is expected to accumulate in the state's Rainy Day Fund. Legislative leaders are trying to set aside billions to ensure that they can cover more property-tax cuts in 2010 and 2011. Some lawmakers favor moving some of that money into education and other programs. However, when establishing the rules that would guide their debate on the budget, House members voted last week that any proposed changes to the budget cannot increase overall spending. Therefore, those who want to increase spending for higher education will have to make reductions elsewhere.

Of course, all is not lost. Typically, in the Texas Legislature, the moment of truth comes in May when the House-Senate conference committee meets to iron out funding differences in the Appropriations bill between the two chambers. At that point, legislative leaders may throw more money higher education’s way. In order to make that happen, it will be imperative when the conference committee meets that they hear en masse from TFA members about higher education’s needs.

 

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