HB5419 - Relating to eliminating inefficiencies in the organization, operation, powers, regulations, and management of the Texas Education Agency to prioritize the provision of funding directly to public schools.

      By: Hinojosa H.B. No. 5419       A BILL TO BE ENTITLED   AN ACT   relating to eliminating inefficiencies in the organization,   operation, powers, regulations, and management of the Texas   Education Agency to prioritize the provision of funding directly to   public schools.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 7.004, Education Code, is amended by   amending Subsection (a) and adding Subsection (c) to read as   follows:          (a)  The Texas Education Agency is subject to Chapter 325,   Government Code (Texas Sunset Act).  Unless continued in existence   as provided by that chapter, the agency is abolished September 1,   2027 [ 2029 ].           (c)     In this subsection, "contract" includes an amendment,   modification, renewal, extension, a purchase order, or an   interagency contract and includes a contract that was paid with   federal funds or funds not appropriated by the General   Appropriations Act.   The Sunset Advisory Commission, with the   assistance of the State Auditor's Office, shall evaluate the   efficiency and effectiveness of the organization, operation,   powers, regulations, and management of the agency, including growth   in full-time equivalent staff at the agency and growth in grant   programs and grant conditions that result in hiring of additional   staff at public schools. The evaluation shall include a review of   each contract that was entered into by the agency since 2016 and   that equals or exceeds $100,000, with a review of contracting   procedures used by the agency and total cost of all contracts for   each program area or activity. The review also shall include, if   the contract is for a good or service used in public schools, an   annualized cost of each contract, annual number of students,   educators, or other users directly using a good or service under   each contract, the annualized cost per user under each contract,   and the amount of any implementation costs to public schools. In   addition to its report required under Chapter 325, Government Code,   the commission shall present to the 90th Legislature a report on its   evaluation and recommendations under this subsection. This   subsection expires September 1, 2027.          SECTION 2.  Subchapter B, Chapter 7, Education Code, is   amended by adding Sections 7.041 and 7.042 to read as follows:           Sec.   7.041.     STATE POLICY: PRIORITIZE PUBLIC SCHOOLS. (a)   It is the policy of this state that the agency shall be efficient in   its operations and that state funds be prioritized for the direct   support and maintenance of the public schools.           (b)  Notwithstanding any other law, the agency may not:                 (1)     set aside or encumber funds, including a federal   block grant, that otherwise could go directly to public schools for   purposes of Subsection (c);                 (2)     enlarge, or request legislation to enlarge, the   agency's scope; or                 (3)     increase the number of full-time equivalent   employees beyond the level authorized by the 88th Legislature.           (c)     It is the policy of this state that funds for education   that are not obligated by constitution or statute be prioritized as   follows:                 (1)     attaining and maintaining pay for classroom   teachers of at least the national average, with an adjustment   upwards for pay that is competitive with professionals in the   region who have similar levels of education and skill;                 (2)     providing an increase to the school safety   allotment sufficient to meet the needs of public schools and to   cover the costs and requirements of statutes and rules regarding   school safety; and                 (3)     providing funding for public schools sufficient to   meet the needs of students with disabilities and to cover the costs   and requirements of statutes and rules regarding special education.           (d)     It is the policy of the state that when, due to school   districts' property value growth, increase in attendance credits   under Chapter 49, or change in student enrollment or attendance,   state appropriations of general revenue to the Foundation School   Program maintenance and operations funds for a year are supplanted   as surplus, the agency identify the amount of that general revenue   surplus and submit a request to the office of the governor and the   Legislative Budget Board for an appropriation or budget execution   authority under Chapter 317, Government Code, to provide the   general revenue surplus back to the Foundation School Program for   the priorities under Subsection (c). If in any year an   appropriation or budget execution authority does not provide the   surplus to the Foundation School Program or to school district   property tax relief, the next tax bill under Section 31.01, Tax   Code, shall inform each taxpayer of the diversion of the Foundation   School Program surplus.           Sec.   7.042.     ZERO-BASED BUDGET REQUIRED FOR TEXAS EDUCATION   AGENCY OPERATIONS; CONTENTS. (a) In this section, "agency   operations budget" means the budget for agency administration and   operations. The term does not include any state aid or allotment   under this code that is received by school districts or   open-enrollment charter schools or, under Section 48.308, by the   higher education coordinating board.           (b)     In addition to the required annual budget under Section   7.055, the commissioner shall prepare, in plain language and an   easily readable and understandable format, a zero-based agency   operations budget every tenth fiscal year that contains:                 (1)     a description of the discrete activities the   agency conducts or performs with:                       (A)     a justification for each activity by   reference to the state constitution, statute, or rule; and                       (B)     an external evaluation of the effectiveness   and efficiency of the agency's policies, management, fiscal   affairs, and operations in relation to each activity;                 (2)     for each activity identified under Subdivision   (1):                       (A)     a quantitative estimate of any adverse   effects that may reasonably be expected to result if the activity   were discontinued, with a description of the methods by which the   adverse effects were estimated;                       (B)     an itemized account of expenditures required   to maintain the activity at any minimum level of service required by   law, with a concise statement of the quantity and quality of service   required at that minimum level; and                       (C)     an itemized account of expenditures required   to maintain the activity at the current level of service, with a   concise statement of the quantity and quality of service provided   at that level;                 (3)     a ranking of activities identified under   Subdivision (1) that illustrates the relative importance of each   activity to the overall goals and purposes of the agency at current   service levels; and                 (4)     recommendations to the legislative budget board   and office of the governor regarding whether the agency should   continue funding each activity identified under Subdivision (1)   and, if so, at what level.           (c)     The commissioner shall file a copy of the zero-based   budget with the legislative budget board and the office of the   governor on or before the date the proposed annual budget is filed,   and the zero-based budget shall be posted on the agency's Internet   website.          SECTION 3.  Section 7.055(c), Education Code, is amended to   read as follows:          (c)  The budget the commissioner adopts under Subsection (b)   for operating the Foundation School Program must be in accordance   with legislative appropriations and provide minimal funds for the   administration and operation of the agency and any other necessary   expense required by statute . The budget must designate any expense   of operating the agency or operating a program for which the board   has responsibility that is paid from the Foundation School Program.   The budget must designate program expenses that may be paid out of   the foundation school fund, other state funds, fees, federal funds,   or funds earned under interagency contract.  Before adopting the   budget, the commissioner must submit the budget to the board for   review and, after receiving any comments of the board, present the   operating budget to the governor and the Legislative Budget Board.   The commissioner shall provide appropriate information on proposed   budget expenditures to the comptroller to assure that all payments   are paid from the appropriate funds in a timely and efficient   manner.          SECTION 4.  Section 322.017, Government Code, is amended to   add Subsection (b-1) to read as follows:           (b-1)     The board shall review and analyze the effectiveness   and efficiency of the policies, management, fiscal affairs, and   operations of the Texas Education Agency and report its findings by   September 1, 2026, for consideration in connection with the   legislative appropriations process. This subsection expires   September 1, 2027.          SECTION 5.  (a) The commissioner of education shall prepare   an initial zero-based budget as described by Section 7.042,   Education Code, as added by this Act, for the fiscal year beginning   September 1, 2026.          SECTION 6.  This Act takes effect September 1, 2025.