School Finance Reform: The Plot Thickens

November 22, 2005

©2005 Wade EmmertThe Texas Supreme Court agreed today that the State’s method of funding public education through property taxes is unconstitutional.

Back in September 2004, State District Judge John Dietz declared the system unconstitutional and ordered the problems fixed. The State appealled to the Supreme Court arguing that changes to the funding system should be made by the Legislature, not the courts. Unfortunately, the Legislature has been unable to solve the problem.

Today, the Texas Supreme Court agreed with Judge Dietz and ruled that local property taxes used to pay for public schools amount to an unconstitutional statewide tax and has given the state until June 1 to fix the system.

In the not to distant past, public education was funded primarily from the State general fund rather than local property taxes. As time went on, the Legislature decreased the percentage of State funding and shifted the burden to property taxes. Not surprisingly, the property taxes increased to make up the shortfall.

Compare state aid in Texas to other states. In Colorado approximately $48 per capita of state aid is given to cities for public education. In Massachusetts that number soars to $177.68. Wyoming, the highest in the nation, is $296.01. In Texas, the State contributes only $3.10 (that’s right, 3 dollars and ten cents) to public education. The rest is funded through property taxes.

This is an interesting time for Texas. With the June 1 deadline looming, the Govenor will no doubt call another special session. Keep your fingers crossed.

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