Texas Taxpayers and Research Association
June 7, 2012
Financing Public Education
June 7, 2012
Dale Craymer
El Paso Chamber of Commerce
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Texas School Finance
by the Numbers
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Texas Taxpayers and Research Association
June 7, 2012
Texas Public Education System
2010-2011 School Year
 1,250 school districts (#1 in the nation)
– 1,024 Independent School Districts
(Size ranges from 17 – 200,000 students)
– 226 charter schools, military, special
districts
 8,526 campuses
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Texas Taxpayers and Research Association
June 7, 2012
Texas Public Education System (cont.)
2010-2011 School Year
 4.9 million enrolled students (#2 in nation)
– 4.8 million in ISD’s (97.3%)
– 0.1 million in charter schools (2.7%)
– Enrollment increases 1.7% per year
(80,000 students)
 663,146 school employees (#1 in nation)
– 334,876 teachers
Source: TEA Snapshot 2011
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Texas Taxpayers and Research Association
June 7, 2012
Student Population
Growth/
Decline
1999
2011
Hispanic
39%
50%
+11%
White
44%
31%
-13%
African
American
14%
13%
-1%
3%
6%
+3%
100%
100%
Other
Source: TEA Snapshot
1999 and 2011
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Texas Taxpayers and Research Association
June 7, 2012
Total Annual Funding $48.1 Billion
2011-12 School Year
Federal Funds
$5.6 Billion
(11%)
Property Tax
$22.0 Billion
(46%)
State Funds
$20.5 Billion
(43%)
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Texas Taxpayers and Research Association
June 7, 2012
Student Population 2011
Percent of Total
Economically
Disadvantaged
59%
Limited English Proficient
17%
Economically disadvantaged is defined as eligible for the free and reduced price lunch
program. Eligibility income requirements are between $29,055 - $41,348 annual income
for a family of four.
Source: TEA Snapshot 2011
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
The Foundation School Program
In a Nutshell
• School finance is a shared responsibility of the
state and local school districts.
• In its very simplest terms, the state guarantees
districts a certain amount of money per student
at certain tax rates.
• If local tax revenue falls short of that guarantee
the state makes up the difference.
• If local tax revenue exceeds the guarantee, the
excess is “recaptured.”
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
School Finance… supposedly
$12,000
M&O Revenue Per Student at $1.00 Tax Rate
$10,000
State Aid
Local Property Tax
$8,000
Recapture
$6,000
$4,000
$2,000
$0
District A
District B
District C
District D
District E
$100,000
$200,000
$300,000
$500,000
$1,000,000
Property Wealth Per Student
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Texas Taxpayers and Research Association
June 7, 2012
School Finance... more accurately
$12,000
M&O Revenue Per Student at $1.00 Tax Rate
$10,000
Recapture
State Aid
Local Property Tax
$8,000
$6,000
$4,000
$2,000
$0
District A
District B
District C
District D
District E
$100,000
$200,000
$300,000
$500,000
$1,000,000
Property Wealth Per Student
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Is the School Finance System
Completely Equal?
• No, but whether the disparities in funding
rise to a level that violates the Texas
Constitutional provision for an “efficient”
system will be decided by the courts.
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Texas Taxpayers and Research Association
$1.25
Tax Rate Per $100 of value
$1.00
June 7, 2012
Voters may approve an
additional $0.13 for
enrichment
Schools boards may levy an
additional $0.04 at their
discretion for “enrichment”
$0.75
Schools levy up to $1,00 to
finance their share of the
cost of education
$0.50
$0.25
$0.00
1
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2
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
School Districts & their Tax Rates
2011 Tax Year
700
Number of Districts
600
500
400
300
200
100
0
Under $1.04
www.ttara.org
$1.04
$1.05 to $1.16
$1.17
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Has the Local School Tax Become
a De-Facto State Property Tax?
• The Texas Constitution prohibits a state
property tax
• While school tax rates are “clustered” near
$1.04 and $1.17, it will be up to the courts
to decide if schools have sufficient
meaningful tax discretion, or if the local tax
is, for all intents and purposes, a state tax
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Texas Taxpayers and Research Association
June 7, 2012
2011-12 Revenue per WADA in El Paso County
School Districts In
El Paso County
Compared to
Highest Target
Revenue Districts
2011-12
Total State & Local
M&O Revenue
per WADA
2011-12
State & Local
Revenue
per WADA @
Compressed
M&O Rate
# WADA
Compressed
M&O Tax
Rate
2011
M&O
Tax Rate
Anthony ISD
$5,166
$4,988
1,183
$1.00
$1.04
Canutillo ISD
$6,031
$5,308
7,353
$1.00
$1.17
Clint ISD
$5,399
$5,185
14,008
$1.00
$1.04
El Paso ISD
$5,315
$5,191
74,701
$1.00
$1.04
Fabens ISD
$5,279
$5,087
3,362
$1.00
$1.04
San Elizario ISD
$5,437
$5,053
5,269
$1.00
$1.11
Socorro ISD
$4,970
$4,811
51,413
$0.91
$0.95
Tornillo ISD
$5,520
$5,093
1,772
$1.00
$1.09
Ysleta ISD
$5,608
$4,995
53,569
$1.00
$1.17
Wink-Loving ISD
$22,976
$12,544
550
$1.00
$1.04
Sundown ISD
$19,025
$12,544
842
$1.00
$1.04
Westbrook ISD
$18,341
$13,121
339
$0.93
$1.00
Source: TEA Summary of Finance
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
2011-12 Revenue per WADA in El Paso County
School Districts In
El Paso County
Compared to
Highest Target
Revenue Districts
2011-12
Total State & Local
M&O Revenue
per WADA
2011-12
State & Local
Revenue
per WADA @
Compressed
M&O Rate
# WADA
Compressed
M&O Tax
Rate
2011
M&O
Tax Rate
Anthony ISD
$5,166
$4,988
1,183
$1.00
$1.04
Canutillo ISD
$6,031
$5,308
7,353
$1.00
$1.17
Clint ISD
$5,399
$5,185
14,008
$1.00
$1.04
El Paso ISD
$5,315
$5,191
74,701
$1.00
$1.04
Fabens ISD
$5,279
$5,087
3,362
$1.00
$1.04
San Elizario ISD
$5,437
$5,053
5,269
$1.00
$1.11
Socorro ISD
$4,970
$4,811
51,413
$0.91
$0.95
Tornillo ISD
$5,520
$5,093
1,772
$1.00
$1.09
Ysleta ISD
$5,608
$4,995
53,569
$1.00
$1.17
Wink-Loving ISD
$22,976
$12,544
550
$1.00
$1.04
Sundown ISD
$19,025
$12,544
842
$1.00
$1.04
Westbrook ISD
$18,341
$13,121
339
$0.93
$1.00
Source: TEA Summary of Finance
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Public Schools in the
State Budget
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Texas Taxpayers and Research Association
June 7, 2012
Comptroller’s Revenue Estimate
(Billions of Discretionary Dollars)
Item
2010-11 2012-13 Difference
Beginning Balances
$5.8
($4.3)
($10.1)
Federal Stimulus Funds
$8.3
$0.0
($8.3)
Current Revenues
$75.8
$80.9
$5.0
Total Revenue Available
$89.9
$76.7
($13.4)
Note: Amounts include state general revenue funds and all
funds which interact with general revenue as an offset,
including the property tax relief fund and the portion of 201011 federal stimulus money used to supplant general revenues.
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Comptroller’s Revenue Estimate
(Billions of Discretionary Dollars)
Item
2010-11 2012-13 Difference
Beginning Balances
$5.8
($4.3)
($10.1)
Federal Stimulus Funds
$8.3
$0.0
($8.3)
Current Revenues
$75.8
$80.9
$5.0
Total Revenue Available
$89.9
$76.7
($13.4)
Note: Amounts include state general revenue funds and all
funds which interact with general revenue as an offset,
including the property tax relief fund and the portion of 201011 federal stimulus money used to supplant general revenues.
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Comptroller’s Revenue Estimate
(Billions of Discretionary Dollars)
Item
2010-11 2012-13 Difference
Beginning Balances
$5.8
($4.3)
($10.1)
Federal Stimulus Funds
$8.3
$0.0
$18.4
($8.3)
Current Revenues
$75.8
$80.9
$5.0
Total Revenue Available
$89.9
$76.7
($13.4)
Note: Amounts include state general revenue funds and all
funds which interact with general revenue as an offset,
including the property tax relief fund and the portion of 201011 federal stimulus money used to supplant general revenues.
www.ttara.org
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Start of Session Horror Stories
• Public schools would see a 15% cut in per
student spending
• Medicaid providers were going to be cut
10% across-the-board
• 4 junior colleges were going to be closed
• No financial aid for incoming college
freshmen
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Texas Taxpayers and Research Association
June 7, 2012
Revenue/Savings Measures
• Comptroller raised 2011 revenue
estimate by $1.5 billion
• HB275 by Pitts: Appropriates $3.2 billion
from the Rainy Day Fund to close the
2011 deficit
• HB4 by Pitts: Cuts a net of $1.2 billion
from existing 2011 state appropriations
(and appropriates an additional $0.8 billion
for schools)
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Texas Taxpayers and Research Association
June 7, 2012
Revenue/Savings Measures,
continued
• SB 1 by Duncan (special session “fiscal
matters” bill):
– Defer August school payment
– Various tax provisions
– Rewrite school finance formulas
www.ttara.org
$2.3
$0.8
$4.0
(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
The 2012-13 Budget, as passed
General Revenue, Federal Stimulus & Property Tax Relief
Area
Public Education
2010-11
2012-13
$42.1 $38.31
$ Diff
($3.8)
% Diff
-9.0%
Health/Human Svcs
25.8
22.7
(3.1) -12.1%
Higher Education
13.1
11.8
(1.3)
-9.9%
Pub Safe/Crim Jus
8.6
8.1
(0.5)
-6.1%
Other
4.9
4.2
(0.7) -14.8%
$94.5
$85.0
($9.5) -10.0%
Total
1
An additional $2.3 billion will be made available in September of 2013.
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
School District Staffing 2010-11 vs. 2011-12
% of
Total
2010-11
School Year
2011-12
School Year
Difference
%
Difference
% of
Reduction
District
Admin
3%
20,899
20,978
80
0.4%
0%
Campus
Admin
3%
17,664
17,350
- 314
-1.8%
1%
Teachers,
Instr Staff
61%
406,732
390,387
-16,345
-4.0%
65%
Campus
Prof Staff
33%
221,207
212,827
-8,380
-3.8%
34%
666,502
641,542
-24,960
-3.7%
Total
Data Source: Texas Education Agency
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(512) 472-8838
Texas Taxpayers and Research Association
June 7, 2012
Thanks for Joining Us!
If you have any questions or
comments, please feel free to
contact TTARA staff.
www.ttara.org
Dale Craymer
dcraymer@ttara.org
John Kennedy
jkennedy@ttara.org
Sheryl Pace
space@ttara.org
Bill Allaway
ballaway@ttara.org
George Christian
gchristian@ttara.org
Ryan Ash
ryan@ttara.org
(512) 472-8838