July 27, 2011
On behalf of the more than 2,500 members of the Texas Association for Gifted and Talented (TAGT), we register our strong disagreement with the proposal to raise the allowable percentage of money that can be expended for indirect costs from funds for gifted and talented education (GT), allotted in Texas Education Code Section 42.156. This item was presented to the State Board of Education (SBOE) as a discussion item in the Committee on School Finance and Permanent School Fund on July 20 and will be brought forward at the next meeting for first reading.
Senate Bill 1 clearly provides express authorization for the State Board to raise the indirect cost percentages for all other special allotments and specifically identifies the appropriate statutes, however, there is no express authorization to raise the indirect costs percentage for GT. Furthermore, the legislation does not contain a catch-all provision that would capture all of the special allotments. The language in the relevant section of Senate Bill 1 states:
SECTIONA57.13. Subchapter C, Chapter 42, Education Code, is amended by adding Section 42.1541 to read as follows:
Sec. 42.1541.AAINDIRECT COST ALLOTMENTS. (a) The State Board of Education shall by rule increase the indirect cost allotments established under Sections 42.151(h), 42.152(c),42.153(b), and 42.154(a-1) and (c) and in effect for the 2010-2011 school year in proportion to the average percentage reduction in total state and local maintenance and operations revenue provided under this chapter for the 2011-2012 school year as a result of S.B. Nos. 1 and 2, Acts of the 82nd Legislature, 1st Called Session, 2011.
(b) To the extent necessary to permit the board to comply with this section, the limitation on the percentage of the indirect cost allotment prescribed by Section 42.152(c) does not apply.
(c) The board shall take the action required by Subsection (a) not later than the date that permits the increased indirect cost allotments to apply beginning with the 2011-2012 school year.
Note that Section 42.156, the statute that addresses the GT allotment, is not included in the language of this bill. If the Legislature intended to alter the allowable percentage of indirect costs for gifted education, they would have identified the statute as they did with the other special allotments. If this was an oversight, which is common in drafting legislation, there would have been legislative intent to help provide guidance, but the record is silent on this issue.
Additionally, please note that there is a history of having different levels of allowable indirect costs. As noted in the proposal the State Board will consider, the allowable indirect costs for career and technical education programs are 6% less than other proposed areas. While gifted students make up 7.5% of all students, this allotment is less than 1.5% of all state money for education. The money provided for gifted education is by far the smallest dollar figure of these allotments, and services have already been reduced in many school districts across the state.
In January 2011, the figure for allowable indirect costs was adjusted from 15% to a 45%, after having been unchanged since 1996. TAGT worries that as these allowable indirect costs rise, services for gifted students will continue to wither. Further reducing these dedicated funds is not required and unnecessary. TAGT urges you to not alter this allotment.
TAGT appreciates the continued support that the State Board of Education has given to the gifted education community for many years. We urge you to maintain the existing allowable indirect cost percentage, and ensure that services for gifted students remain a vital part of the educational community.
Sincerely,
J.J. Colburn Michelle Swain
TAGT Executive Director President, TAGT Executive Board
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