Texas teachers are no doubt looking forward to the salary increase that legislators promised them this session. But what they likely don't know is that the federal government could pull the rug from under them.
State lawmakers approved a bill that included a minimum $800 raise for public school teachers, counselors, librarians, nurses and speech pathologists, but, according to language in the bill awaiting Gov. Rick Perry's signature, the money is contingent on approval from the federal Education Department.
That caveat, and the state having yet to file its request, has put some districts in the peculiar position of drawing up two budget proposals — one with the new money promised from the state and one without — and some are holding off on budgets altogether, despite looming deadlines.
The money in question is part of economic stimulus funds from the American Recovery and Reinvestment Act.
“I am all for increasing teacher salaries, but the question is, can the money be used for that purpose,” said John Folks, superintendent of San Antonio's largest school system, Northside Independent School District.
Folks said he has postponed making any budget decisions until he hears from the Texas Education Agency that the funds have been approved.
Folks, like many San Antonio superintendents, objects to legislators' decision to use federal stimulus money to cover the $1.9 billion the state is putting into education over the next two years.
“That is supplanting instead of supplementing,” Folks said. “How is that economic stimulus?”
In North East ISD, where the fiscal year begins July 1, officials are drafting a budget that includes the state-required raise but are adding a caveat. Trustees are scheduled to vote on the budget and salary schedule Monday.
“It will be contingent on the money coming from the federal government,” Superintendent Richard Middleton said.
The state raise, plus a step increase, would translate to about a $1,400 bump for most teachers, Middleton said, and he's already looking at ways to pay for that if the state's request isn't approved. For example, trustees may decide to cut employees' annual retention stipend to fund a raise.
State Rep. Scott Hochberg, D-Houston, who authored the school finance bill, said it's “silly” to wait to put together a budget. He is confident the federal money will be approved. The question, he said, is whether the state can require that the money be used for teacher raises.
“The language was put in the bill basically as a safeguard to allow us to send money to the schools even if the feds say we can't put strings on its use,” he said. “We were $4 billion down coming into this year. ... In the absence of stimulus money, there would've been no increased funding for education.”
Judson ISD also has to approve a budget by month's end. The district's chief financial officer, Jose Elizondo, said he has prepared two proposals. The one without the bump from the state would put the district at a $2 million deficit.
“We're concerned that the federal government will say you can't have any of that,” Elizondo said. “It's an uncomfortable position to be in.”
Officials in all three districts said they are receiving little guidance, if any, from TEA, though they were initially warned about using stabilization money that flowed directly to the districts for students with disabilities on reoccurring expenses, such as salaries.
“It's interesting that TEA is telling us not to do that, yet they're doing it themselves,” Elizondo said.
A TEA spokeswoman said the governor's office is handling the request to the federal government, which is due July 1.
“Once that application is in, then we'll await further information from the U.S. Department of Education on stimulus funding,” TEA's DeEtta Culbertson said.
A spokeswoman for the department offered few details but said in an e-mail that the money could be used for teacher raises, but that the state could not require local districts to use the money for raises.
House Public Education Committee Chairman Rob Eissler, R-The Woodlands, said he believes the federal money will come through.
As to school leaders' complaints about using federal money exclusively to fund education for the next two years: “The only reason we were able to balance the budget ... is we inserted stimulus money,” he said.
But district officials said they are still uneasy.
In San Antonio ISD, officials are hoping to give the state-required raise and step increase, plus a little extra, to teachers who haven't seen a pay raise in two years.
Steve Bassett, SAISD's chief financial officer, said that even if federal officials say the state can't require a raise, SAISD will give one.
“It'll be interesting to see whether this is what the DOE intended and if they're going to allow it,” he said. “I don't know what will happen, honestly.”
