decnn2010

News & NotesDecember 2010Vol. 29, No. 7

Standing Up For Texas Children

THE MEMBERSHIP ISSUE

a new school finance plan for the new year, one that’s

good enough for every childTexas has been reforming public school finance off and on, more or less from the very beginning. After 175 years,we have arrived at Target Revenue Hold-Harmless (TRHH), which persistently and arbitrarily favors one set ofschool districts over their neighbors, sometimes by double and even more.

No one thinks it’s fair; no one thinks it’s efficient. In fact,we all agree that the disparities in funding levels are notdefensible and are indeed unfair to school children andtaxpayers alike. But we still have TRHH as the regularprogram funding mechanism for 75% of Texas schooldistricts. And the 25% that are not funded by TRHH arefunded at even lower levels.

Efforts in earlier legislative sessions to close the fundinggaps by phasing in a series of improvements have fallenapart before they ever started, causing many to doubt thewisdom of such an approach.

Instead, the 2011 Legislature should adopt a new schoolfinance plan that includes all of the things we all know areessential to any plan that’s good enough for every child. Forexample, the basic allotment should be raised to at least$6,000; regular program funding weights for compensatoryeducation and bilingual education should be raised to thelevels consistently indicated in recent state-funded studies;transportation funding should be increased to the levelcommiserate with actual costs; and so on.

The fundamental principles that must lead, guide, anddirect as decisions are made about what should or shouldnot be included in this new funding plan are actually quite simple. If the new system is not good enough foryour child, then it’s not good enough for my child. And, if the new system is determined to be good enough formy child, then it’s good enough for every other child.

We should develop this new system as if no one had a clue as to which districts our own children andgrandchildren will be attending. Then, and only then, will we have a system that’s good enough for every child.

A parent should be assured that the quality of educational opportunities available for their children will not berandomly determined by a school’s zip code. And, yes, it will cost significantly more. Money does make adifference, and excellence requires it. But, there is also the reality of a limit to resources that will be available formoving to this new system that’s good enough for every child. How will it be possible to get there?

(continued on page 2)

There will always be those who run

away from a challenge by insisting, “It

can’t be done now. We need to wait

until a better time.” Unfortunately, the

right time never comes for them, and

things that should be and could be

never are.

But, there are also those who will say,

“Why can’t it be done now? If it needs

to be done now, then let’s do it now!”

These are the people who make

consequential differences if only by the

sheer force of their determination.

Each year, each district’s Tier 1 funding would be determined by a mix of their Tier 1 funding under current law and their Tier 1 funding under the new system—for example as 85% of current law and 15% of the new plan. Over time, the percent of current law used in determining each district’s Tier 1 funding will decrease to zero while the percent of the new system increases correspondingly until it is fully funded.

The percent of increase will depend on the amount of funds available for this purpose, but that is what allows the new system to actually be what it should be. In fact, the percent of increase in any given year could be at any level, but it should provide at least an increase that compensates for inflation and other pressures beyond the control of the district.

Below is an illustration of the framework: If the legislature decided to apply 15% of the new system’s funding level, for example, then that amount would be added to 85% of the current funding level.

good enough for every child(continued from FRONT)

Districts that are currently funded at higher levels than the new system would be treated similarly.

Even though these districts would experience a funding reduction over time, in each of the years transitioning into the new system, they would always be funded higher than those districts moving up to the new system. Not a bad place to be. Bottom line, every district will move toward a level playing field where all districts are truly in the same boat, and, for the first time, all districts will have a common interest in keeping a funding system that is, indeed, good enough for every child.

December 2010 Equity Center News & Notes

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85% of Tier 1 amount in CURRENT system

Funding Reduction

15% of Tier 1 amount in NEW system

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+

85% of Tier 1 amount in CURRENT system New Funding

+

꞊

85% of Tier 1 amount in CURRENT system

Funding Reduction


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+

85% of Tier 1 amount in CURRENT system New Funding

2010-11 EXECUTIVE COMMITTEE


Immediate Past President

Danny KingPharr-San Juan-Alamo ISD

Legislative Advisor

Bill GrusendorfTX Assn. of Rural Schools

Legislative Advisor

Rod SchroderAmarillo ISD

Vice-President, Membership

Rolando PeñaLasara ISD

Vice-President, Finance

Robert DuronSan Antonio ISD

Secretary/Treasurer

Paul CloreGregory-Portland ISD

President

Vivian BakerBelton ISD

Vice-President, Program

Louis StoernerAlief ISD

First Vice-President

Joddie WitteVan ISD

Region 3 Region 4

Mark PoolEl Campo ISD

Region 1 Region 5

Region 7 Region 8

Stan SurrattLindale ISD

Darrell MyersLivingston ISD

Region 6 Region 10

Region 13 Region 14

Charles DuprePflugerville ISD

Brad LewisStamford ISD

Region 15

Region 17 Region 18 Region 19

Karen GarzaLubbock ISD

Michael QuatriniSan Elizario ISD

Monty HysingerClarendon ISD

Region 16 Region 20

Gonzalo Salazar Los Fresnos CISD

Shannon HolmesHardin-Jefferson ISD

Gary VanDeaverNew Boston ISD

Kyle CollierPottsboro ISD

Russ PerryNueces Canyon CISD

Dennis McEntirePresidio ISD

Leland WillamsDickinson ISD

Region 2

Scott ElliffCorpus Christi ISD

Region 9

Dean GilstrapBellevue ISD

Region 11

Melody JohnsonFort Worth ISD

Region 12

Robin BattershellTemple ISD


REGIONAL DIRECTORS

Elizabeth GarzaEdgewood (Bexar) ISD


Region 3 Region 4

Jeff BlackGanado ISD

Region 1 Region 5

Region 7 Region 8

Phil WorshamJoaquin ISD

Sam BellBrenham ISD

Region 6 Region 10

Region 13 Region 14

Bill GravesElgin ISD

Jay BaccusAnson ISD

Region 15

Region 17 Region 18 Region 19

James TaliaferroSlaton ISD

Region 16 Region 20

Vacant

Jesus GuerraRoma ISD

Larry WatsonCrandall ISD

Steven SaldivarBig Spring ISD

Ralph DraperSpring ISD

Region 2

Emilio CastroKingsville ISD

Region 9

Tom BaileyOlney ISD

Region 11

Deborah CronWeatherford ISD

Region 12

Susan KincannonBelton ISD

Pauline HargroveLittle Cyp-Mauriceville CISD

Alan RicheyBronte ISD

Toby TuckerClaude ISD

Eldefonso GarciaFabens ISD

DEPUTY DIRECTORS

James RussellTexarkana ISD


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From 2005 through 2010, Fulbright & Jaworski L.L.P. lawyers have acted as bond counsel in more than 1,343 bond issues throughout the State of Texas totalling $49.4 billion. These bond issues have included general obligation bonds for school districts, cities and counties and revenue bonds for cities, school districts, special purpose political subdivisions, and public nonprofit corporations. In addition to tax and federal and state securities services, Fulbright & Jaworski L.L.P. has attorneys with expertise in all areas of public law. We have provided school districts with assistance in the planning and conducting bond elections, including issues related to the Federal Voting Rights Act and the creation of political action committees. The Firm also has the capacity to assist school districts with the legal aspects of long-range capital planning, and multi-year planning in coordination with the school districtʼs financial advisor. The Firmʼs lawyers act as bond counsel, disclosure counsel, and general counsel to issuers and as counsel to underwriters, institutional purchasers, banks, bond insurers, borrowers, developers, corporate trustees, investment contract providers, and interest rate swap providers. The Firmʼs attorneys specializing in federal income tax matters practice in all areas dealt with by the Internal Revenue Code of 1986.

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Sunday, January 30, 2011 Austin Convention Center - Ballrooms F & G

11:30 a.m. - 5:00 p.m.

Equity Center’s 11th Annual School Finance and Legislative Workshop

Details on our website... equitycenter.org

SAVE THE

DATE!

Fulbright & Jaworski L.L.P.Bond Attorneys - www.fulbright.com

W. Jeffrey Kuhn (210) 270-7131

W.B. Kibler Construction Companywww.wbkconstruction.comJoe Spoon (214) 358-4601

Ray, Wood & BonillaState & Local Taxation Attorneys

www.rwblaw.net Buck Wood (512) 328-8877

A. Bargas and Associates, LLCFurniture Distributorwww.abargasco.com

Chico Bargas (800) 344-2821

FirstSouthwestFinancial Advisorswww.firstsw.com

George Williford (214) 953-8705

JR3 Education Associates, WebSmart and iCap

www.jr3online.com (254) 759-1902 Bob Clemons–Jim Payne–David Hankins

Southwest SecuritiesFinancial Advisors

www.swst.comBruce Wood (972) 978-8661

Schwartz & Eichelbaum Wardell Mehl and Hansen, PC

Preventive School Lawwww.edlaw.com (800) 488-9045

WRA Architects, Inc.www.wraarchitects.com

Tony Apel (214) 750-0077

Harris County Dept. of Educationwww.hcde-texas.org

Jesus Amezcua (713) 696-1371

The Aikin GroupFacilities Financing and Consulting

Bob Aikin (903) 886-3339

Innovative Transportation Solutions (ITS)

www.iTransSolutions.org Charley Kennington (713) 744-6362


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2010-11 Membership ReachesAll-Time High with 681 Members

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Spring Dr. Ralph DraperSpring Hill Mr. Wes JonesSpringlake-Earth Mr. Denver CrumSpringtown Mrs. Andrea HungerfordSpurger Mr. Joseph FisherStamford Mr. Brad LewisStephenville Dr. Darrell FloydStockdale Mr. Paul DarilekStrawn Ms. Melanie CormackSulphur Bluff Mr. Robert RossSulphur Springs Ms. Patsy BoltonSweet Home Mr. Randall MeyerSweetwater Mr. Terry PittmanTaft Dr. Chad KellyTahoka Mr. Steve BurlesonTarkington Mr. John KirchnerTaylor Dr. Bruce ScottTemple Dr. Robin BattershellTenaha Mr. Don FallinTerlingua Common Ms. Kathy KillingsworthTerrell Mr. Kelly RodgersTexarkana Mr. James Henry RussellTexline Mr. Gary B. LaramoreThree Way (Erath) Mr. David AllenThrockmorton Mr. Clay TarpleyTidehaven Mr. Donald EggTimpson Mr. Mid JohnsonTioga Mr. Andy BakerTolar Mr. Bruce GibbsTom Bean Mrs. Kathy GarrisonTornillo Mr. Paul VranishTrenton Mr. Jerry Don CookTrinidad Mr. David AtkeissonTrinity Mr. Dave PlymaleTroup Mr. Marvin BeatyTroy Mr. Kerry HansenTulia Mr. Steve PostTurkey-Quitaque Mr. Jon DavidsonTyler Dr. Randy ReidUnion Grove Mr. Brian GrayUnited Mr. Roberto SantosUtopia Mr. John WaltsValentine Mr. Doug CookValley View (Cooke) Mr. William StokesValley View (Hidalgo) Mr. Leonel GalavizVan Mr. Joddie WitteVan Alstyne Dr. Alan SeayVan Vleck Mr. John O’BrienVega Ms. Margo KnoxVenus Mr. Bobby MatthewsVeribest Mr. Michael SteckVernon Mr. Tom WoodyVidor Dr. Joseph Burns

700 MEMBERS!


Walcott Dr. Bill McLaughlinWall Mr. Walter Holik Jr.Walnut Bend Mr. Tommy HunterWalnut Springs Ms. Pat GarrettWarren Mr. Lance JohnsonWaskom Mr. Jimmy CoxWeatherford Dr. Deborah CronWellington Mr. Carl TaylorWellman-Union Mr. Dwayne ChenaultWells Mr. Dale MortonWeslaco Mr. Richard RiveraWest Mr. Marty CrawfordWest Hardin County Ms. Sharon TuleWest Orange-Cove Mr. Bill ConwayWest Oso Dr. Michael SandroussiWest Rusk Mr. Tommy AlexanderWest Sabine Mr. Mike PateWesthoff Dr. John Hardwick Jr.Westphalia Mr. Ryan SteeleWestwood Mr. Ed LymanWharton Dr. Kay ShoppaWhite Oak Mr. Michael GilbertWhite Settlement Ms. Audrey Arnold

Whitehouse Mr. Daniel DuPreeWhitesboro Dr. Steve KolbWhitewright Mr. Steve ArthurWhitharral Mr. Ed SharpWhitney Mr. Gene SolisWills Point Mr. Joe OliverWilson Mr. Bryon ShelleyWindthorst Mr. Don WindhamWinfield Mr. Gerald HamptonWinnsboro Dr. Mark BosoldWinona Mr. Wiley VonnerWinters Mr. David HuttonWoden Mr. Brent HawkinsWoodsboro Dr. Steven SelfWoodson Mr. Danny BellahWortham Mr. Albert ArmerWylie (Taylor) Mr. Joey LightYantis Mr. Harold CowleyYoakum Mr. Tom KelleyYsleta Dr. Michael ZolkoskiZavalla Mr. David FlowersZephyr Mr. David Whisenhunt

USING NEW FEDERAL PROGRAMS TO BALANCE PROJECTSThe Aikin Group is pioneering the use of Qualified School Construction Bonds and Build America Bonds.

PLANNING AND WINNING BOND ELECTIONSOur expertise includes:

• 30 years experience in running winning bond elections.• First hand expertise in early voting strategy. Former State Rep. Aikin wrote Texas’ early voting laws.

PIONEERING AND DEVELOPING ALTERNATIVES TO BOND ELECTIONSWe were among the first to offer:

• Lease Revenue Bonds (since 1994). The ideal way to supplement a bond package whose proceeds do not cover project expenses, or to address immediate facilities needs with a lease structured so it can be paid off without penalty from a future bond election.• Maintenance Notes (since 1995). The most flexible and affordable instrument to finance renovation and equipment costs from one to twenty years.• QZAB’s (since 1998). Using a unique federal program to borrow, using bonds or maintenance notes, at low, subsidized interest rates.

REFUNDING AND RESTRUCTURING CURRENT DEBTIn addition to saving cash flow by lowering payments on traditional debt we can:

• Refinance IFA supported leases (since 2000). A bond election, and its higher bond rating, can pay off a lease and continue to receive IFA support.• Refinance QZABs and refinanced debt. (since 2003). For the same purposes as refinancing IFA leases. Additionally we have qualified the refinanced debt for state EDA subsidy.


700 MEMBERS!

THE AIKIN GROUP Bob Aikin (903) [email protected] Us Show You How We Work For Your District!

2010 SILVER Sponsor - The Aikin Group


USING NEW FEDERAL PROGRAMS TO BALANCE PROJECTS The Aikin Group is pioneering the use of Qualified School Construction Bonds and Build America Bonds.

PLANNING AND WINNING BOND ELECTIONS Our expertise includes:

• 30 years experience in running winning bond elections.• First hand expertise in early voting strategy. Former State Rep. Aikin wrote Texasʼ early voting laws.

PIONEERING AND DEVELOPING ALTERNATIVES TO BOND ELECTIONS We were among the first to offer:

• Lease Revenue Bonds (since 1994). The ideal way to supplement a bond package whose proceeds do not cover project expenses, or to address immediate facilities needs with a lease structured so it can be paid off without penalty from a future bond election.• Maintenance Notes (since 1995). The most flexible and affordable instrument to finance renovation and equipment costs from one to twenty years.• QZABʼs (since 1998). Using a unique federal program to borrow, using bonds or maintenance notes, at low, subsidized interest rates.

REFUNDING AND RESTRUCTURING CURRENT DEBT In addition to saving cash flow by lowering payments on traditional debt we can:

• Refinance IFA supported leases (since 2000). A bond election, and its higher bond rating, can pay off a lease and continue to receive IFA support. • Refinance QZABs and refinanced debt. (since 2003). For the same purposes as refinancing IFA leases. Additionally we have qualified the refinanced debt for state EDA subsidy.

2010 SILVER Sponsor - wbkconstruction.com


2010 GOLD Sponsor - swst.com

When youdon’t knowthe answer,we’re thereto help.

The investment bankers ofSouthwest Securities, Inc. providea wide variety of financial servicesto school districts across Texasand the Southwest. Our bankershandle assignments as financialadvisors, negotiated underwritersand specialized consultants to helpcommunities and school adminis-trators find the solution to mostany problem.

Dallas (214) 859-9450Austin (512) 320-5859Allen (800) 848-1799Longview (903) 758-0111San Antonio (210) 226-8677Albuquerque (505) 217-2920

Corporate Headquarters:1201 Elm Street, Suite 3500

Dallas, Texas 75270

Main Phone:(214) 859-1800

Website:http://publicfinance.swst.com

Southwest Securities, Inc. is a memberof NYSE, FINRA and SIPC

When you don’t know the answer - full page R.qxp 7/27/2010 11:34 AM Page 1

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