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

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
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, as well as responsible adoption.
Content provided by Lightspeed Systems
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
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs 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 Schools Sue Trump, But It's Getting Harder for Them to Recoup Money
Judges have recently ruled against districts as they challenge Ed. Dept. funding cuts and threats in court.
7 min read
Vector illustration of a man in a suit with flashlight looking into hole in the shape of a dollar sign.
DigitalVision Vectors
Law & Courts School Board Sues Trump Admin. to Defend Transgender Student Policy
The lawsuit challenges the Ed. Dept.'s finding that the district violated Title IX.
3 min read
A sign for a newly-constructed gender neutral bathroom is seen at Shawnee Mission East High School on June 16, 2023, in Prairie Village, Kan.
A sign for a newly-constructed gender neutral bathroom is seen at Shawnee Mission East High School on June 16, 2023, in Prairie Village, Kan. The Trump administration's finding that a northern Virginia school district violated Title IX by allowing students to use restrooms consistent with their gender identity is the subject of a new lawsuit.
Charlie Riedel/AP
Law & Courts Judge Blocks Texas Law Requiring Ten Commandments in Schools
A federal district judge ruled that the Texas law requiring Ten Commandments displays is schools likely violates the First Amendment.
4 min read
Jackson County High School in Kentucky posts the Ten Commandments in the front hall of the school, shown here in 2000, and in every classroom, on June 25, 2025. A group of North Texas reverends filed a federal lawsuit this week to challenge a new state law that would require posting the Ten Commandments in each public school classroom.
The Ten Commandments is seen on display at Jackson County High School in Kentucky in 2000. On Aug. 20, 2025, a federal judge blocked—in 11 school districts for now—a Texas state law requiring similar displays. Similar state laws in Arkansas and Louisiana have also been halted recently in at least part of each state.
<a href="https://www.gettyimages.com/search/2/image?artistexact=Lexington%20Herald-Leader">Lexington Herald-Leader</a>/Getty Images
Law & Courts Judge Tells Trump Admin. to Restore Some Education Research Programs
The federal judge found the termination of contracts for the Comprehensive Centers and Regional Educational Laboratories was illegal.
5 min read
President Donald Trump, right, speaks during a news conference with Elon Musk in the Oval Office of the White House, Friday, May 30, 2025, in Washington.
President Donald Trump, right, speaks during a news conference with Elon Musk in the Oval Office of the White House on Friday, May 30, 2025, in Washington. Under Musk's leadership, the Department of Government Efficiency spearheaded the abrupt cancellation of dozens of Education Department contracts, including those for the Comprehensive Centers and Regional Educational Laboratories, which a judge found to be illegal.
Evan Vucci/AP