Jan. 29, 2004

Gov. Rick Perry Proposes Incentives and Accountability Measures for Texas Schools

Proposals Would Reward Schools Showing Improvement and Promote Cost Effectiveness

AUSTIN - Gov. Rick Perry today unveiled the third in a series of proposals to encourage Texas schools to set a new course for educational excellence, including financial incentives to reward schools that demonstrate student progress and measures that promote cost effectiveness.

"Education is the foundation for a future of unlimited opportunity and prosperity," Perry said in a speech to the Texas Public Policy Foundation. "Educated Texans are empowered to pursue the jobs they desire, and the quality of life of their choosing."

Perry said he wants to make it clear that if he calls a special session, "the subject will not be school finance, it will be educational excellence. Until this week, the school finance debate has been focused almost solely on tax trade-offs. But I believe the most important aspect of this debate is the quality of our schools, and the achievement of our students."

In addition to the High School Advancement, Commended Performance, Distinguished Achievement, Algebra, Limited English Proficiency (LEP), and Teacher Excellence Initiatives announced earlier this week, Perry proposed an additional results-based performance incentive and a new accountability measure:

The Student Progress Incentive will reward school districts demonstrating the highest level of improvement in meeting the objectives of the Educational Excellence proposals. Perry proposed appropriating $100 million to the Successful Schools Fund to provide the financial rewards. Under the proposal, criteria will be developed by the Texas Education Commissioner and rewards will be awarded by the commissioner.

The Truth in Spending initiative will measure educational results in relation to district financial decisions to ensure that tax dollars are being efficiently spent and students are receiving a quality education. The Texas Education Agency (TEA) will implement an improved financial accountability system to rate school districts based on fiscally responsible management practices. Some factors that should be considered are:

properly defined and appropriate administrative costs
high percentages of funding going directly to the classroom
tax burden compared to other similarly situated districts
appropriate levels of protection against fraudulent activity
strong correlation between school district expenditures and student performance
effective personnel management practices
transparency in financial reporting, ensuring taxpayers are fully informed about school district financial practices

"I believe if taxpayers are going to foot the bill, they are entitled to look at every item on the receipt," Perry said. "School spending ought to be transparent, and simple to understand. Taxpayers deserve to know what percentage of their dollars makes it into the classroom, and what exactly is classified as a classroom expenditure. Administrative costs should be listed line-by-line."

The performance and accountability measures, Perry added, will give "students, schools and teachers every reason to strive for greater educational excellence and taxpayers the assurance to know that their money is being spent wisely."

Perry acknowledged that these new incentives and accountability measures, coupled with those introduced earlier in the week, set ambitious standards and goals, but he noted they also work within programs that Texas schools already have and do not require schools to develop new programs.

"My incentive proposals will raise the bar of excellence in Texas schools and help to fundamentally shift the focus of our schools from minimum expectations to maximum performance," Perry said. "And even better, my proposals are funded incentives, not unfunded mandates."

Perry also reminded Texans of the states' commitment to education, noting that $7.1 billion in new dollars have been dedicated to Texas public schools since 1999 - an increase of $1,900 per student.

"I believe any organization that approaches a challenge stating why it can't accomplish something will surely achieve that end," added Perry. "I believe the mindset must be 'we can, and we will.' "

The governor's speech to the Texas Public Policy Foundation is the third of three major education excellence speeches Perry has delivered this week. Earlier in the week Perry outlined additional proposals to help schools achieve excellence:

The High School Advancement Incentive will provide schools $100 more per student for each year they advance in high school, so long as the students pass the Texas Assessment of Knowledge and Skills (TAKS) tests. In total, schools would receive an additional $600 for each student they keep in school between grades nine through 12.
The Commended Performance Incentive will reward all schools whose students score at least 90 percent on all TAKS tests taken. The Incentive would provide Texas schools $100 per student achieving Commended Performance and $200 for each at-risk student who scores that high. The TEA defines Commended Performance as a score of 90 percent or higher on all TAKS tests taken.
The Distinguished Achievement Incentive will reward Texas high schools at least $1,000 for each graduate who successfully completes the most academically challenging course of study Texas schools offer, the Distinguished Achievement Program. The reward would jump to $2,000 for each at-risk student who graduates under this plan.
The Algebra Incentive will increase the number of students who master algebra. School campuses would receive $100 per student passing the Algebra I end-of-course exam. An additional $100 ($200 total) will be awarded for each at-risk student meeting this level of achievement.
The LEP Student Success Incentive will encourage schools to develop ways to promote academic success with LEP students to achieve academic success and close the achievement gap. School campuses will receive $100 per LEP student passing the TAKS test and an additional $100 ($200 total) for each student who receives commended performance on all sections of the TAKS.
The Teacher Excellence Incentive will reward teachers for achieving a high level of excellence in the classroom and increase the number of effective teachers working in qualifying schools. A $200 million fund will be established to reward teaching excellence by providing up to $2,500 in matching funds per qualifying teacher in conjunction with a school district-initiated teaching excellence program. Additionally, effective teachers could receive an additional $5,000 state stipend if they are assigned or choose to teach in a qualifying, struggling school.

Learn more about Gov. Perry's plan for Educational Excellence
Read Gov. Perry's speech