On Tuesday, lawmakers in Texas began a special 30-day session to discuss Republican Governor Rick Perry's sweeping new school finance and property tax cut plan. The proposal would reform the current system, which takes money from "property rich" districts and distributes it to "property poor" districts. In place of this so-called "Robin Hood" system, where a maximum of $1.50 of taxes is collected per $100 assessed value to help fund an educational equality initiative, the governor proposes a two-part property tax system with a small tax cut for commercial property (to $1.40 per $100 of assessed value) and a steeper cut for residential property taxes (to $1.25 per $100 of assessed value). The proposal would supplement lost revenue with higher "sin taxes" on cigarettes, gambling, and adult entertainment. While supporters argue that this new system will maintain the equity of the Robin Hood system while reducing the overall tax burden on home owners, critics maintain that it will open a larger hole in the state budget and hurt rural areas (which often have low residential property values, hence rely on commercial assessments to fund schools). Lieutenant governor Carole Keeton Strayhorn has predicted that the state will face a $10 billion budget shortfall over five years if implemented as-is. Everyone knows that there's no perfect answer to school financing, in Texas or elsewhere. The Perry plan deserves careful attention. So do others. The larger question is whether Texas policymakers will also avail themselves of this terrific opportunity to retool not just how the money is gathered and distributed but also the rules by which the Lone Star State's K-12 system operates and the uses made of these billions.
"Paul Sadler, former state lawmaker: We will forever be seeking a solution on school finance," Austin American Statesman, April 20, 2004 (registration required)
"Educators 1st concern should be quality of education for all," Austin American Statesman, April 20, 2004 (registration required)
"Strayhorn raps Perry plan: Comptroller projects $10 billion shortfall," by Keri Herman and Ben Wear, Austin-American Statesman, April 20, 2004 (registration required)
"School storm is gathering: Perry, Strayhorn at odds as session on funding starts today," by Robert T. Garrett and Terrence Stutz, Dallas Morning News, April 19, 2004 (registration required)
"Legislators prepare for special session beginning Tuesday," by Melissa Blasios, News 24 Houston, April 20, 2004
"Perry's plan to abolish Robin Hood," by Jennifer Wilson, Amarillo Globe News, April 13, 2004