Austin ISD school finance decision May 13 From left: Austin ISD board Trustee Jayme Mathias, Superintendent Paul Cruz, board President Kendall Pace and board Vice President Paul Saldaña spoke at Travis Early College High School May 13 after the Texas Supreme court held the state school finance system as constitutional.[/caption]

Updated at 3:45 p.m. May 13


to include new information

AISD Superintendent Paul Cruz, along with board of trustees President Kendall Pace, Vice President Paul Saldaña and trustee Jayme Mathias talked about the Texas Supreme Court decision to uphold the state school finance system at Travis Early College High School on May 13.

“Although I am incredibly disappointed, we have some expectation that the Legislature will address the ruling and do the right thing,” Pace said.

Regarding the proposed $1 billion budget for AISD in FY 2016-17, Cruz said the district needs to look at a multi-year approach to budgeting, but the district has not been able to do so because funding streams are not definitive.

“The budget modifies and changes with so many things here in Austin—particularly when you look at growth values, property values and recapture,” Cruz said.

Trustee Yasmin Wagner told Community Impact Newspaper she is extremely disappointed with the decision.

"I hope taxpayers of Austin are aware of how our schools are funded so that they can have a strong voice, speaking to their legislators and deciding who they vote for, so that public education remains a priority," Wagner said.

Drew Scheberle, senior vice president of education and talent development and federal and state advocacy with the Greater Austin Chamber of Commerce, also commented on the Texas Supreme Court ruling.

"Even though the Texas Supreme Court ruled otherwise, the Austin Chamber encourages the Legislature in 2017 to provide resources sufficient to ensure the overwhelming percentage of our young people graduate college and career ready and that Central Texas taxpayers receive dramatic relief from the approximately $1 billion the state takes during this two-year period,” Scheberle said in a statement.

Speaking with Community Impact Newspaper, Rep. Celia Israel, D-Austin, said the government should be focused on the school finance issue.

"It is incumbent upon me to reflect what I think the number one issue is in my district and state, which are kids getting the best education possible,” Israel said.

State Rep. Donna Howard, D-Austin, also released a statement, saying her being disappointed at the ruling is an understatement, and the Legislature has to find a solution for Texas children.

"The Legislature may no longer have the urgency of a court decision pushing us to address our school finance system," Howard said. "But the needs of our students and the future prosperity of our state demand it."

Original story, posted at 11:55 a.m. May 13


Texas Supreme Court Justice Don Willett delivered a court opinion May 13 that holds the Texas school finance system as constitutional, validating the oft-criticized "recapture" concept.

“Despite the imperfections of the current school funding regime, it meets minimum constitutional requirements,” Willet said in his opinion.

Recapture, also known as "Robin Hood," is a system through which property-rich districts, such as Austin ISD are required by law to send some of their property tax revenue to the state to be redistributed among districts deemed property-poor.

For years, school districts including AISD have battled the Texas State Board of Education and the Texas Education Agency over the legality of recapture.

The TEA deferred to the Office of the Governor for comments about the ruling.

In a statement, Gov. Greg Abbott said the ruling is a "victory for Texas taxpayers and the Texas Constitution."

"The Supreme Court's decision ends years of wasteful litigation by correctly recognizing that courts do not have the authority to micromanage the state's school finance system," Abbott said.

State Rep. Celia Israel, D-Austin, in a statement urged Abbott to call a special session to fully fund public education in the aftermath of the Texas Supreme Court ruling.

"I am extremely disappointed in the ruling today from the Texas Supreme Court," Israel said in a statement. "It was especially surprising to see the court label our system 'Byzantine' and 'meeting minimal standards' at the same time."

AISD board of trustees member Jayme Mathias commented on the ruling, hoping that the state Legislature figures out how to update the school finance formula the next time it meets.

“It is difficult to believe that recapture is constitutional in light of the burden that it places on the taxpayers of Austin,” Mathias said. “I am in disbelief.”

AISD, which is in the process of developing its budget for fiscal year 2016-17, may owe the state more than $400 million for the fiscal year because of recapture. The AISD board of trustees is set to approve the budget in late June.

View the Texas Supreme Court ruling here.