DALLAS - The current property-tax based funding formula for Texas schools needs more changes that would allow officials to keep providing the level of education state residents have come to expect.
And that's of great import to the state's two largest school systems - the Houston Independent School District and Dallas Independent School District - according to former DISD superintendent Mike Moses.
He said the two school districts have a combined 80,000 economically disadvantaged students and yet will begin channeling funds back to the state under the current funding system.
"The property values of these two districts continue to increase and they are about to reach the point where they're property-wealthy, or Chapter 41, districts, which means they'll start giving some money to the state," Moses said at a Dallas Regional Chamber luncheon Tuesday.
"And I find it a little bit incredulous for the state, under the current school financing system, to ask for that money," he said.
Under the state's so-called Robin Hood provisions, property-rich school districts must share their wealth with property-poor, or Chapter 43, districts. However, growing districts cannot capture much of the rising value of residential property, as increases in appraised value are capped at 10% of 2005 values.
During a special session in spring 2006, the Texas Legislature enacted HB 1 lowering the tax rate school districts could levy in what was then hailed as one of the largest tax breaks in state history. Now many view the change as a hindrance to the ability of school officials to maintain a quality level of service.
The legislation mandated that districts lower their maintenance and operations tax rate from a maximum of $1.50 per $100 of assessed value to $1.33 for the 2006-07 school year and then to $1 per $100 the following year. School administrators have the discretion to roll the rate back to $1.04, but need to get voters to pass another increase to $1.17.
On a panel with current DISD superintendent Michael Hinojosa and former superintendent Linus Wright, Moses said the Houston and Dallas districts are truly "economic drivers for our state" and need to have as much financial flexibility as possible.
"About 14 or 15 years ago, our state seemed to be talking about who's to be educated, but now it's more a discussion about how to educate every one of our students," Moses said. "But the number of regulations our school districts face has been creeping up since 1995 and I believe a board functions better with a lot of latitude."
DISD is in the midst of a capital improvement plan that includes $1.35 billion of bonds approved by voters in May 2008. Officials have sold $400 million of that authorization so far with plans to issue the balance in annual sales over the next three years.
The bond package approved last year calls for 15 new schools, 12 additions and about $500 million of renovations to more than 200 campuses. Many of the district's 229 schools are more than 50 years old.
DISD, which currently serves about 160,000 students, is the 12th-largest school district in the country. HISD is the largest school system in Texas and seventh-largest in the country with nearly 203,000 students in 293 schools.
