Texas seeks new school fund plan

• Article
• Comments ()
• Click-2-Listen
• Videos

By

DALLAS -- The Texas Legislature, which in recent years has failed on five occasions to come up with a new plan for funding its massive school system, likely will converge on Austin again in mid-March -- this time knowing that something somewhat unpalatable eventually must evolve.

Most politicians agree that some taxes must be raised. Few enjoy that prospect -- and that has proven to be the stumbling block in the Legislature for several years.

Texas has no state income tax. A few over the years have advocated such reform, without much success.

But a stinging verdict from the Texas Supreme Court three weeks ago is forcing legislators to make some difficult decisions.

Texas funds most of its $33 billion-a-year school system from property taxes. The state Supreme Court, upholding a lower court ruling of last year, called that practice unconstitutional and has given the lawmakers until June 1 to come up with an alternative.

If not, the edict reads, further funding from the state cannot be allocated.

To date, the maximum tax that school districts have been able to collect from property owners has been $1.50 per $100 valuation. Forty-eight percent of the state's districts (with 54 percent of the state's public school students) have reached that peak, with nowhere to go as operational costs continue to grow. Sixty-seven percent of the state's 1,037 school districts are at $1.45 or higher.

Although the court clearly placed the burden on the Legislature, the 117-page near-unanimous ruling -- with one dissent -- left the much-maligned "Robin Hood" plan intact, at least for the time being. That met with mixed reaction.

Robin Hood is the name for the system -- more than a decade old -- that forces Texas' richer districts to share tax revenues with poorer districts. Although the system has enabled many poor districts to remain in operation, it has been a constant thorn in the sides of the richer districts.

Highland Park, the wealthy enclave surrounded by Dallas, for instance, has been sending more than 70 percent of its tax collections to poor districts.

The majority-opinion verdict, written by Justice Nathan Hecht, said the present system of funding is unconstitutional because it is the state that controls property tax rates. And the Texas Constitution bars a statewide property tax. All through these years of trepidation by the Legislature and top politicians, school officials have cried out for help.

Gov. Rick Perry, who never attained the strength to force the issue in past sessions in Austin, comes in with a stronger hand this time, partially because of his leadership in helping Louisiana evacuees find relief and aid in Texas.

Another advantage for the governor is that the state high court left the property tax structure fixed, which is expected to result in tax breaks for homeowners as business picks up more of the burden.