Property-tax Provision in Texas School Finance Plan Is a Poison Pill for Students, Superintendents Say

School leaders say an "accounting ploy" threatens to keep $1.8 billion from school districts even though lawmakers promised to funnel more money to public education. A plan to overhaul school finance is in flux as legislators hash out differences between the House and Senate versions. A final vote on the bill is expected next week. But Dallas-area school and business leaders on Friday urged the Legislature to reject a Senate provision that would call for calculating school funding based on current year property values instead of using the prior year. "They're going to give money on this hand and then turn around and take it out of your wallet while you're not watching," Richardson superintendent Jeannie Stone said Friday at a joint news conference of area school leaders. She called the provision in the Senate finance bill an "accounting ploy." Dallas school officials estimate the district could lose up to $100 million in new money under such a scenario. Plano estimates $35 million, although districts haven't been given a state analysis on what they would gain or lose under the Senate's plan. Texas public schools are largely funded by local money raised from property taxes and state funding. When more local revenue is raised, the state's share is reduced. The sticking point comes down to whether the state calculates its share based on the prior year's property values -- as is done now -- or the current year. With property values generally rising, that would mean the state has to pony up less for schools. Plano Superintendent Sara Bonser said that would amount to another form of "Robin Hood," taking money away from school districts to provide savings to the state to the tune of about $1.8 billion annually. "This would have a detrimental impact on student achievement and success," she said. Plano already pays the state about $211 million for recapture under the so-called Robin Hood provision in which property-rich districts sends money to help offset costs for property-poor districts. Under current law, that payment would go up to more than $260 million a year. Both the House and Senate plans for a school-finance overhaul funnels billions more to schools -- for things like prekindergarten or for students with dyslexia -- through various formulas that reduce how much districts like Plano and Dallas would have to pay in recapture. The plans also offer homeowners some property tax relief. But the Senate's plan has significant differences, such as requiring districts to spend more money on teacher pay raises and moving the state's property value calculations to the current year, which could potentially wipe out much of the new money districts wanted. "We were promised transformational legislation that adds significant new money to our schools while providing property tax relief," Bonser said. Traditionally, the Legislature hasn't made significant changes to how schools are funded unless directed by a court to do so. But this year state leaders said school finance was a top priority for the legislative session. Stone said each legislative session she's been disappointed that lawmakers don't give public schools more money. But in a year when the state has a budget surplus, she was optimistic they would so that her district could take critical steps like hiring more special education teachers. Instead, if the state bases Richardson's funding on current year values, Stone worries that she'd have to cut about 50 teachers or eliminate the Accelerating Campus Excellence program that puts additional resources at schools where students are struggling the most academically. The move to current year values was recommended in the School Finance Commission report, a year-long panel that evaluated how schools should be funded. But the House version of the school funding bill, House Bill 3, by Rep. Dan Huberty, R-Houston, relied on prior year values, in large part, because school districts were so uncomfortable with the change. The Senate, which was on the hunt for more money to fund expensive teacher pay raises and deeper property tax cuts, ended up including the shift to current year values. Sen. Larry Taylor, R-Friendswood, who authored the Senate's version of the bill told school districts during a committee meeting that even with the change, no district would be left with less money than they currently have. Meanwhile, GOP leaders are trying to scrape together every dollar possible to find dollars to give property tax relief within the school budget. As pressure is mounting to approve a bill before the end of the month when session ends, about 120 business executives from across the state sent lawmakers a letter on Friday urging them to strike a deal that includes enough discretionary dollars so that districts can afford full-day pre-K, help students from low income families that have and teacher raises based on merit rather than across-the-board.Staff writer Rebekah Allen contributed to this report.  Continue reading...