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YES Prep and the Texas Budget Crisis

April 13, 2011 by Ryan Dolibois

It seems that every day  there is a new article or news report about the Texas budget crisis. As the news has highlighted, lawmakers in Austin are currently grappling with a budget shortfall that could be as high as $27 billion for the biennium.  The vast majority of the state budget is allocated to education and health/human services, so cuts to state education funding are inevitable.

Since we are a public school system, YES Prep is tracking this budget issue very closely. According to a recent study conducted by R.C. Wood & Associates, Texas charter schools annually receive up to $2,000 less per year, per student than traditional school districts across Texas. This means that the proposed budget cuts could affect us even more severely than traditional districts, depending on how lawmakers decide to implement the cuts.

The current bills being debated in the House and Senate have education funding cuts that total anywhere from 3% to as much as 8% of our budget over the next two years. The House bill which was passed earlier this month included roughly $8 billion in public education cuts. The Senate has not yet taken their version of a budget bill to the floor for a vote, and the general sentiment is that their final  version will include a relatively smaller cut to education funding.  Consequently, the key decision making will land in conference committee where they must reconcile their two versions of the bill.

Just as importantly, and happening concurrently, is the ongoing discussion about how the cuts will be made. The Texas Tribune's recent article "How to Navigate Texas' School Finance System" outlines how the state’s education funding formula currently works; there is a high likelihood that the formula will have to be overhauled in light of this shortfall. YES Prep is budgeting for next school year assuming a 5% cut in state funding and we are assessing the additional measures that will be required if the budget cuts are deeper or the funding formula is radically altered. Even at 5%, these are difficult budget decisions with real consequences to our operation. We have been very fiscally disciplined in the past and have always operated a “lean” organization. Legislative action in Austin will ultimately determine how much we are able to keep these cuts away from the classroom and our direct services to students.

We will be reaching out to our supporters and families in the coming weeks as lawmakers determine how the funding cuts will apply to public education and, specifically, charter schools like YES Prep. When the time comes, we will be sure to provide our community of supporters with the contact information and specific talking points needed to advocate on our behalf. Thank you for continuing to support our mission and our work in Houston! The 4,200 students we currently serve—and the 9,000 students sitting on our waiting list deserve the opportunity to pursue their dreams of college success and we look forward to keeping you updated as the budget dialogue continues.

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