Court Rules Texas School Finance Still Unconstitutional

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DALLAS - The Texas system for financing public schools remains in violation of the state constitution even after lawmakers restored some of the $5.4 billion cut in the 2011 session, state district court judge John Dietz ruled Thursday.

Dietz's second ruling in the case involves about two-thirds of the state's school districts and is expected to become the centerpiece of the 2015 session of the Texas Legislature that begins in January.

The Texas Supreme Court will review the ruling, which "enjoins further funding under the system until the constitutional infirmities are corrected."

Dietz originally ruled the system unconstitutional in February 2013 after a three-month trial.

That ruling came while the Legislature was in session. During that session, lawmakers restored $3.7 billion of the $5.4 billion that had been cut in the 2011 session.

To account for the partially restored funding, Dietz reopened the trial, taking three more weeks of testimony.

Assistant Attorney General Shelley Dahlberg asked the judge to overturn his previous decision. Thursday's second ruling shoots down that request.

The key finding of both rulings is that the current system of finance essentially establishes a statewide property tax, which is banned by the state constitution. Under the current "Robin Hood" system, the state balances funding between districts by taking more from the so-called "property-rich" districts and giving more to the "property-poor" districts.

The net effect is that local districts do not have "meaningful discretion" over how taxes are raised, assessed or spent, the judge found.

Moreover, the finance system has failed to provide "a constitutionally adequate education for all Texans," Dietz said in his order.

The nonprofit Equity Center estimates the difference in per pupil spending between districts at about $1,700 to $1,800 before the 2013 legislative session. With the additional funding from the legislature, the gap may have been reduced $100 to $150 by legislators, but the system is still not equitable, according to a spokesman.

In the second trial, lawyers for school districts argued that the funding boost was short-term and that new mandates on instructional programs had imposed additional expenses on schools. Dietz agreed.

Education Commissioner Michael Williams issued a statement that state leaders, "not a single judge," should be determining school finance policy.

"Any revisions to our school finance system must be made by members of the Texas Legislature," said Williams, an appointee of Gov. Rick Perry.

"The Texas Education Agency will continue carrying out its responsibilities in providing funding for our public schools based on the current system and ultimately the legislative decisions made at the end of this legal process," he said.

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