The Center for Public Policy Priorities held a webinar to go over recommendations for renovations to the school finance system ahead of the Texas Supreme Court ruling.
 
Strengths of our current school finance system

  • Texas acknowledges that different kids need different support and resources
  • Texas attempts to reduce inequities created by property tax disparities
  • Texas prioritizes early education for low-income students

 
Adequacy weaknesses of current finance system

  • Legislature has never done study to determine resources necessary to meet our standards
  • Funding has remained relatively flat
  • Economically disadvantaged students lead population growth
  • Teacher salaries are flat and teachers with advanced degrees are declining
    • Teacher turnover is increasing
  • Standards to be met have increased, but have not been tied to increase in funding
  • We are $3.5 billion below 2003 funding levels, and we do not call 2003 a golden standard for education

 
Equity weaknesses of current school finance system

  • Property poor districts tax at a higher rate, but property poor districts still receive less funding due to property value
  • “Meaningful Discretion” = Local control to set tax rates
    • School districts need to be able to set their own tax rates, but many districts have already reached the maximum tax rate
    • Because of this, there is a chance that the TX Supreme Court will say Texas has instituted a Statewide Property Tax which is unconstitutional

 
Recommendations

  • We do not need to tear down the current school finance system; we need to renovate it
  • School finance formulas need updating and modernizing
    • Research the appropriate levels of funding to meet the educational standards
    • Update funding elements such as funding for special populations and other cost adjustment
    • Increase Basic Allotment in order to increase funding levels for all districts, so that each district can provide a quality education
    • Develop a strong revenue system that meets today’s needs and prepares Texas for future growth
    • We need to adjust formulas for inflation
    • Build in periodic reviews of the formulas into law
  • Judge Dietz said “It is the people of Texas who must set the standards, make the sacrifice, and give direction to their leaders as to what kind of education system they want”

 
Next steps from CPPP

  • Will analyze what the court ruling means for Texas
  • Provide technical trainings
  • Will release more concrete solutions to improve adequacy and equity in the school finance system