1. Plano School Coalition Legislative Report
August 2013
This is the first in a series of reports from the Plano School Coalition regarding important
educational issues that affect Plano ISD and its students.
School Finance
Though some are touting a positive result for education in the 83rd
session of the legislature, in
that the state restored some of the money eliminated in the 2011-12 session, for Plano ISD,
however, the increased state funding had little impact in restoring the dramatic per student cuts
made during the previous biennium. Though there was a $131 per student increase in state
funding, this amount only slightly decreases the significant cut of $656 per student felt by PISD
in 2011 and 2012. Plano ISD is still $169 per student under the state average of $300 per
student increase. The increase in state funding is still a far cry from restoring the $5.4 billion in
funding cuts that caused increases in class size and reduction in staff.
What is the financial impact of the 2013 legislative session on Plano ISD? The 2013-14 PISD
budget will have a $20 million deficit since only one-third of state funding has been restored.
This is over and above the $19 million estimated deficit realized in 2012-13. In total Plano ISD
reduced its budget in 2011-2012 by over $26 million through a combination of staff and other
reductions.
Since the state education funding system depends on a “recapture” process of equalization that
requires so-called property wealthy districts to send a portion of collected tax revenue back to
the state for distribution to less wealthy districts, Plano ISD is unable to realize increased per
student funding even when property values increase. Unless there is a dramatic increase in
state funding, operating revenue only increases with an increase in student enrollment or an
increased tax rate.
The methodology used by the legislature flowed additional funds to poorer districts. This was
most likely done in an effort to get more equity among districts to mute the finance cases that
are going on in the courts.
OTHER FINANCIAL IMPLICATIONS
1. Beyond the impact of inadequate state funding, Senate Bill 1 will require Plano ISD,
along with other districts in the state to make a larger contribution to the Texas Teachers
Retirement System. Though the legislature provided some funds to help defray the
impact in the first year, there is no additional state funding thereafter.

2. 2. It appears that in addition to the items listed above, there have been no reductions in
existing unfunded mandates.
3. CURRICULUM
1. There is increased flexibility in diploma programs. The Distinguished Achievement
Diploma (which enables student eligibility for top 10% automatic admission to state
universities) requires 26 credits and provides multiple pathways to graduation through
endorsement plans in which students may take classes that are more relevant to their
chosen career paths. Each district must offer at least one endorsement and can also
offer all endorsements. If a district offers only one endorsement, it must be Multi-
Disciplinary.
2. The Foundation diploma will require 22 credits. More specifics will be forthcoming, and
school counselors will be required to make students aware of the various diploma
avenues. The changes will affect incoming 9th
-11th
graders, a very short lead time for
districts to implement all of the required changes including Career and Technical
Education Courses that will be needed for the endorsements.
3. The number of end-of-course exams required for graduation was reduced from 15 to
five: English I and II (reading and writing will be combined into one state assessment),
Algebra I, Biology, and US History. All incoming ninth graders must select an
endorsement plan, which they may change at any time or opt into the foundation degree
plan after the 10th
grade after consultation with a school counselor and with parental
approval.
4. Increased funding was provided for several grant programs, including
a. Supplemental Prekindergarten ($30 million)
b. Communities in Schools ($11 million)
c. Student Success Initiatives ($10.4 million
Whether Plano ISD will be eligible to apply for grants in these areas is not determined.
The PISD Board of Trustees will hold a public meeting on Tuesday, August 20, to
determine the tax rate for 2013-14, and to determine whether to hold a Tax Ratification
Election on Nov. 5. You are welcome and encouraged to attend the meeting and let the
board know your opinion. See the attached document which provides and overview of
the impact of legislative funding on the PISD budget and the request for a Tax
Ratification Election.