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 4:25 p.m. May 13 to include new information
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 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 Austin, Pflugerville and Round Rock ISDs 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."
Likewise, State Rep. Donna Howard, D-Austin, said in a statement it is incumbent on the Texas Legislature to better ensure students have access to adequate and equitable public education.
"For far too long, the state has been neglecting its responsibilities, failing to pick up its fair share of the school finance tab and pushing the costs down to overburdened local taxpayers,” she said. “The Legislature may no longer have the urgency of a court decision pushing us to address our school finance system. But the needs of our students and the future prosperity of our state demand it."
In a statement, RRISD Superintendent Steve Flores also said he was disappointed with the ruling.
"Although the state finance system meets the constitutional needs of Texas, according to the court’s ruling, our belief is students deserve more than the minimum. The future of the Texas economy is contingent on how well we educate our children," he said.
Flores said the funding system puts much of the burden on local taxpayers, making it difficult for districts to raise the money needed to meet a growing demand for quality teachers and learning services.
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."
At a May 13 press conference, AISD board of trustees President Kendall Pace said, "Although I am incredibly disappointed, we have some expectation that the Legislature will address the ruling and do the right thing."
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
proposed $1 billion budget for FY 2016-17 in late June.
AISD Superintendent Paul 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.
PfISD Superintendent Alex Torrez said in a statement the district will continue to work toward a positive outcome.
"As part of the original lawsuit, we are disappointed," Torrez said. "Quite honestly I am surprised. I had high hopes that the Supreme Court would rule on behalf of the students and school districts."
View the Texas Supreme Court ruling
here.
Kara Nuzback and Scott Thomas contributed to this story.