The deadline for filing bills during the 84th legislative session passed March 13 and with it so did the chance for major changes to the state's school finance system this session.
Legislators and public education officials across the state are awaiting a decision from the Texas Supreme Court regarding a school finance lawsuit that Cy-Fair ISD and nearly 600 districts across the state joined in 2012.
For that reason, instead of an all-encompassing school finance bill this session, Dan Casey, partner with consulting firm Moak, Casey and Associates, said he believes legislators could address school finance through the general appropriations bill.
"We are watching the budget because [legislators] can make increases to formula elements like the basic allotment," Casey said. "That's probably where the action will be, similar to two years ago."
Although bills have not been filed that would specifically address CFISD's legislative finance priorities approved by trustees last fall, there are still quite a few bills related to school finance, CFISD Chief Financial Officer Stuart Snow said.
State Rep. Jimmie Don Aycock, R-Killeen, filed House Bill 654 in January, which rewrites most of the existing school finance laws as they stand to reduce disparities in property wealth among school districts.
"His goal is to try and eliminate disparities out there and basically force districts to join together as a type of new taxing unit," Casey said. "I think ultimately you'd end up with 30 taxing units."
Snow said Aycock filed HB 654 partly as a starting point to begin a conversation about school finance in the future while the legislature waits for a final say regarding the lawsuit.
"We're not sure at this point how much traction or attention [HB 654] will get," Snow said. "It's complex and pervasive in terms of how it repeals current law and would take quite a bit of study to determine how it would operate."
The current school finance lawsuit is not the first time school districts in Texas have sued the state over the issue. In the 1980s and 1990s, the Edgewood ISD court cases sought to bring more equality into the school finance system but changes to legislation over time further complicated the funding system.
In 2006, the Legislature mandated a statewide reduction in property taxes by one-third. To make up for the reduction in tax money, the legislature guaranteed that each district would receive target revenue based on money it would have received from weighted average daily attendance counts and the district's maintenance and operations tax rate from 2005–06.
All of these issues, in addition to the elimination of $5.4 billion in public education funding in 2011 by the Legislature, prompted the most recent lawsuit. Hearings began in the lawsuit in October 2012, and the existing school finance system was ruled unconstitutional by Judge John Dietz in 2014. The case was appealed to the state Supreme Court where oral arguments are expected to be heard this fall. A final decision could be handed down in early 2016.
There is a possibility a special session could be called in 2016 to tackle school finance if deemed necessary by the governor, Casey said, which happened previously in 2006 to reduce property taxes.
"It's possible [Gov. Abbott] could call for a special session, but depending on what the court rules, it may not be of major importance to address until the 2017 session," Casey said.