Governor Perry has announced that a Fourth Special Session of the 78th Texas Legislature will begin on April 20. The session will deal primarily with the funding structure for public schools and educational reform. Gov. Perry said he did not know if the state's public school crisis could be fixed in one, two, or three 30-day sessions but that lawmakers would stay for however long necessary.

As a precursor to the start of the session, the Subcommittee on Cost Adjustments of the House Select Committee on Public School Finance is scheduled to hold a public hearing on Monday, April 19 at 10:00 am. The Committee will take public testimony on various public school finance distribution models. A report containing some of the finance models reviewed by the Committee is available at www.capitol.state.tx.us/psf/Reports/GRZ_TX_Rev_Options_03-09-04.pdf.

Information about the House Select Committee as well as the Joint Select Committee on School Finance is available off of the state's website (www.capitol.state.tx.us/psf/). Related documents and final reports are also accessible.

While the parameters of the special session may change, the state's leadership has consistently maintained that the work of a special session would be to determine an alternate means of paying for public education. Over the last several months, elected leaders have made various proposals on how to change the current finance system. The Governor's Office made public a plan to end the so-called "Robin Hood" finance system and provide tax relief to homeowners. Some of the elements in the plan include a limit on increases of tax appraisals, alternate revenue through "sin" taxes, such as on cigarettes, and voter-approved increases of local budgets. Other state leaders have discussed changing the structure for business taxes, including both business activity taxes and property taxes. There is currently no consensus on a plan.

Virtually all education, business, and special interest lobbies are following this issue closely, because (in some fashion) a new taxing structure will affect almost all areas of state operations. Educational groups that deal with K-12 matters are concerned about maintaining equity among all schools and improving the quality of education for all students. They clearly articulate the need for additional revenue for public education. Local government organizations, while supportive of the growing need to revamp the state's public school system, are concerned about taxing changes that would limit the ability of local taxing jurisdictions to maintain public services. Businesses are concerned about potential increases in taxes (e.g., potential business activity taxes or changes to business property taxes) that would limit their ability to operate.

School libraries, which are funded through the state's education system (through both state and local dollars), and public libraries, which are funded primarily through local governments and taxing districts, will certainly be affected by any state changes.

The special session may be expanded to deal with other issues at the discretion of Governor Perry. While we do not expect issues of higher education to be addressed during the special session, the Legislature will continue its work reviewing funding models for higher education as well.

Please be sure to continue monitoring Texline. Information on hearings and "call to actions" on specific legislative matters will be sent as the session progresses.