October 25, 2010
I have a poor understanding of public school financing, asked Rotan after the meeting for some explanation and think I understand it better now. I plan to write about what I think I know in the next day or so. Meanwhile, listen to the video because there are a couple of senators that would like to make changes to way money for public schools is collected.
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Rough transcript
Rotan-you've read in the paper that the state is facing an 11 billion dollar deficit up to 25 billion . TEA has been asked to reduce expenditures by 10 percent, and those reductions are likely going to go into the Foundation School Program. Rumours of cuts to school district target revenue, cuts to WADA. Reduction in the amount we're allowed to keep per student since we don't get state funding. 10 percent reduction would be almost 1.7 million dollars. .... would have to reduce staff and benefits. Talk about statewide property tax, would require a constitutional amendment approved by voters. proponents say it eliminates Robin Hood. but in reality everything is Robin Hood because the states going to keep it and then send it back. Doesn't bring any additional money but changes how the pie is sliced, Chapter 41 school districts are not going to get the same slice of pie. Would also create a statewide property tax rate. Proposed 4 years ago, $1.00 M&O taxrate would raise tax rate 18 cents. Homeonwers would lose their 20 percent homestead exemption, effectively raise rates, (35 cents higher) and district would keep less money than it had before. Ultimate recapture. State takes all the money and sends it back. Lose local right to set our own tax rate but also get less money.
TASB plan replaces 2 tiered school system with one tier. Formula .... Hold harmless. Questions -holds everyone harmless mininum 35 per WADA increase but doesn't say what happens to the Tier II pennies. Doesn't say it if't rolled in or the pennies would be frozen forever, so if your values went up next year, you'd have those Tier II pennies would bring in the same amount of revenue regardless of what your property value increases. If Comanche Peak expands 2 new units and adds to tax roll, we'd be frozen at what we have, so any tax gain would go back, no benefit of any property gain ever. Downfall in TASB plan is that it's going to require an adidtional 2 billioin from the state (with deficit does not look liikely) Plan also requires every school district to have a 95 cent M&O minimum, so would have to increase our tax rate. We'd be generating more money for the state. Neither plan is very palatable for our district. Either one of these plans require us to go up on our M&O rate and all that money woudl go back to the state. Discussion about taking the districts that have top ten percent target revnues and giving revenue to bottom. Bills can't start getting filed till next week. No school distric has ever come out with less than they went in with, but this year may be different due to the deficit Lege going in with. Lounsberry-temporary solution with golden pennies and hold harmless. Rotan if they can get the 830 million Federal funding that Texas couldn't get until they pledged to keep the level constant.
Ironic that the state is doing the same thing with federal stimulus funds that we're having to appeal with MOE (Maintenance of Effort). Saying GRISD hasn't maintained their local effort yet when the state received the stimulus funds they reduced THEIR effort. They took out state money and plugged it with federal money and that's the thing you're not allowed to do. The 830 million could bringup the lower schools and GRISD could remain revenue neutral-best case scenario.
