Law & Courts

Judge’s Ruling Cites Flaws in Texas’ School Finance System

By Joetta L. Sack — December 07, 2004 3 min read
  • Save to favorites
  • Print

A state judge told Texas last week that it has until next fall to fix its school funding system—a change that would likely force the legislature to add billions of dollars to the education budget.

Travis County Chief Judge John K. Dietz had declared in September that Texas’ school aid system was unconstitutional. (“Texas Judge Rules Funds Not Enough,” Sept. 22, 2004.)

Last week, he released his much-anticipated final ruling, in which he wrote that the state’s way of paying for its schools “is financially inefficient, inadequate, and unsuitable … because the school finance system fails to recognize or cover the costs of meeting the constitutional mandate of adequacy, or the legislature’s statutory definition of a comprehensive adequate education.”

But the ruling stopped short of setting a specific level of funding to reach adequacy.

See Also

The Nov. 30 court order gives the legislature until Oct. 1 of next year to find a new system to fix persistent inequities in the education funding formula.

The state is appealing the decision. Because of the short time frame given to overhaul the system, lawyers for the state are seeking to bypass the appellate system and go directly to the state supreme court early next year.

Texas now uses a “Robin Hood” formula that requires property-wealthy districts to share a portion of their tax revenues with poor districts. But the system also caps the amount school districts can collect at $1.50 of every $100 in assessed property value.

That cap has become “a floor and a ceiling, denying districts meaningful discretion in setting their tax rates,” the judge wrote.

The ruling echoes arguments made by leaders of Texas’ largest districts when they testified before Judge Dietz in August that they were barely able to afford an adequate education for their students, and were seeing increasing burdens and costs from federal and state accountability laws.

Three separate groups of districts, many with predominantly Latino enrollments, brought the case. They argued that their lack of property wealth did not allow them to raise enough money, and that the state’s formula did not give them enough relief.

David Hinojosa, a lawyer for the Mexican American Legal Defense and Educational Fund who helped argue the case for some of the plaintiffs, said that the judge’s decision reaffirmed that the districts were doing as well as they could with the money they had, but that more money was needed.

“Overall, it is a victory for our children; certainly we still have lingering problem with access to revenue,” Mr. Hinojosa said.

‘No Easy Solutions’

The state is hoping for a speedy appeal to resolve the case, said Debbie Graves Ratcliffe, a spokeswoman for the Texas Education Agency. It’s impossible to tell which way the state high court would rule, she added.

“We’re optimistic we can get a quick appeal to the supreme court,” she said.

The state had argued that the districts had discretionary funds that they used for activities such as athletics that could be redirected toward providing basic education services.

But Judge Dietz rejected that claim. He said the state’s accountability requirements, and its constitutional mandate of adequacy in education, set the funding bar at a higher level than the current $30 billion K-12 education budget could provide—particularly considering the added challenges of educating students who are poor or still learning English.

Last week’s ruling will not affect districts’ ability to issue bonds or take on public debt before the October 2005 deadline.

Regardless of which court takes up an appeal—and when it is heard—the topic of school finance is expected to be a dominant theme when the Texas legislature reconvenes for its 140-day session beginning in January.

But whether lawmakers can find an acceptable solution is unclear. The legislature met in a 30-day special session last spring on school finance, but was unable to agree on a new formula. (“‘Robin Hood’ Still Alive After Texas Special Session,” May 26, 2004.) Though various legislative remedies have been debated, and several school finance bills have been filed before the opening session, nobody has found a “magic bullet” that will solve the state’s finance problems, Ms. Ratcliffe said.

“There are no easy solutions left on the table,” she said.

Mr. Hinojosa, the MALDEF lawyer, said he worries that many legislators are more interested in tax cuts for their constituents than in finding more money for schools. “They just want to replace the money received with one tax with another [tax cut],” he said. “Hopefully, they’ll put partisan politics aside and talk about children’s education, which is a priority.”

Related Tags:

Events

Student Well-Being K-12 Essentials Forum Boosting Student and Staff Mental Health: What Schools Can Do
Join this free virtual event based on recent reporting on student and staff mental health challenges and how schools have responded.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Curriculum Webinar
Practical Methods for Integrating Computer Science into Core Curriculum
Dive into insights on integrating computer science into core curricula with expert tips and practical strategies to empower students at every grade level.
Content provided by Learning.com
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and other jobs in K-12 education at the EdWeek Top School Jobs virtual career fair.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts How a Supreme Court Case on Job Transfers Will Impact Schools
The justices consider whether workers alleging employment discrimination must show that a lateral job transfer harmed them.
8 min read
Photograph of the United States Supreme Court building in Washington DC, USA.
E+/Getty
Law & Courts Wisconsin Teachers Sue to Restore Collective Bargaining Rights
The lawsuit takes fresh aim at a 2011 law that severely restricted bargaining, and has survived several legal challenges since.
6 min read
Wisconsin Education Association Council (WEAC) vice president Betsy Kippers leads a chant during a rally to protest Governor Scott Walker's budget repair bill, at the Brown County Courthouse in downtown Green Bay on February 16, 2011.
Betsy Kippers, vice president of the Wisconsin Education Association Council, leads a chant during a rally to protest Gov. Scott Walker's budget repair bill, at the Brown County Courthouse in downtown Green Bay on February 16, 2011.
H. Marc Larson/The Green Bay Press-Gazette via AP
Law & Courts What Sandra Day O'Connor Did to Shape School Law and Civics Education
O'Connor wrote influential opinions on affirmative action, Title IX, and other education issues. Then she tirelessly worked on civics.
10 min read
Justice Sandra Day O'Connor listens as Justice Ruth Bader Ginsburg pays tribute to O'Connor's advocacy work on behalf of civic education, impact on female judges and justice for women and girls worldwide at the Seneca Women Global Leadership Forum at the National Museum of Women in the Arts, on April 15, 2015 in Washington.
Justice Sandra Day O'Connor listens to a tribute to her advocacy work on behalf of civics education and women's role in the legal profession at the National Museum of Women in the Arts, on April 15, 2015, in Washington.
Kevin Wolf/Invision for Seneca Women via AP Images
Law & Courts U.S. Supreme Court Takes Up Major Gun Case With School Safety in Backdrop
The principle that guns may be barred from schools may bolster a federal law restricting firearm possession by domestic abusers.
6 min read
Gun safety and domestic violence prevention organizations gather outside of the Supreme Court before oral arguments are heard in United States v. Rahimi on Nov. 7, 2023, in Washington.
Gun safety and domestic violence prevention organizations gather outside the U.S. Supreme Court before oral arguments are heard in <i>United States</i> v. <i>Rahimi</i> on Nov. 7, 2023, in Washington.
Stephanie Scarbrough/AP