Updated 1:35 p.m. May 16
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 Plano 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 PISD 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 court's opinion.
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.
The Texas Classroom Teachers Association and the Association of Texas Professional Educators, both based in Austin, released statements regarding the ruling that asserted the public school system is underfunded and inequitable. The organizations requested lawmakers seek input from local school districts in order to improve the current system.
"It's unfortunate that the Supreme Court has decided the minimum is enough for Texas public school children," ATPE Executive Director Gary Godsey said in a news release. "As ATPE has done for years, we will continue to press lawmakers to take responsibility for crafting solutions that will make our school finance system not simply 'minimally' acceptable under the constitution, but in line with all of the state’s other expectations for our public schools. The burden is on the legislature to act, but it is also on voters to elect lawmakers who will have the fortitude to make the necessary decisions."
When the Legislature convenes in January, lawmakers must make significantly improving education funding a priority, so that schools have the resources to match the increasing expectations and challenges of educating this state's diverse population.
State Rep. Jeff Leach, R-Plano, responded to the Texas Supreme Court's ruling.
"This is not the end of the journey, but the beginning," Leach said in a statement. "The duly elected Texas Legislature—not the courts—has the immense responsibility to work to reform, improve and strengthen education in Texas. As I have done since the first day I took office, I am eager to continue advocating and fighting for our school children so that the Texas of tomorrow is even brighter than the Texas of today."
Plano ISD ranks fourth among the state for the amount of money it sends to the state in recapture payment, according to the TEA. The district contributed $34.6 million in local tax dollars to property-poor districts during the 2014-15 fiscal year. The impact of these payments on Plano ISD's operations has been serious, according to Plano ISD. The district's current tax rate is $1.17 for its general operating fund. The district also reduced staff and made other cuts totaling $17 million in the 2004-05 budget and $26 million in 2011, according to the district. Plano ISD joined some 100 school districts in the state to challenge the law's constitutionality.
Plano ISD release this statement May 13 from Chief Financial Officer Steve Fortenberry:
"We are respectful of, yet obviously very disappointed by today’s ruling from the State Supreme Court on the issue of school funding in Texas. Among other issues, we respectfully disagree with the conclusion that the current system does not constitute a state property tax.
Recently in Plano, our taxpayers have seen large increases in their property values. Because of the Robin Hood system, which the Supreme Court has now upheld, funds from those increased property taxes do not remain in the district’s operating budget. Since we are essentially funded on a set amount of revenue per student that the state determines, our property tax collections above that amount are sent to the state. Those dollars are placed in the state’s budget in order to reduce what they would otherwise have to generate through their own taxes to meet their funding obligations to other districts.
In real numbers, because of an increase in property values this year, our payment to the state will increase from $102.1 million to $137.2 million. Since Robin Hood began, the state has already recaptured over $1.4 billion of taxes from Plano ISD property owners, which is second only to Austin ISD. It is, therefore, unclear to us why this is not considered to be a state property tax. The state may not levy it, but they benefit from it by using it in the state budget.
The ruling, however, is far from being a stamp of approval. The court made it clear that:
'Our Byzantine ‘system' is undeniably imperfect, with immense room for improvement.…We hope lawmakers will seize this urgent challenge and upend an ossified regime ill-suited for 21st century Texas.'
With that, our district leadership wholeheartedly agrees."