Court rules school finance unconstitutional By R.A. Dyer
Star-Telegram Austin Bureau
In a landmark decision that could dramatically change how Texans pay for schools, the state Supreme Court on Tuesday ruled that the property tax system violates the Texas Constitution and gave lawmakers until June 1 to make a fix or face a possible shutdown of schools.
But the court, in a mixed 7-1 ruling, found that the state provides adequate funding for schools - and therefore does not violate a Constitutional requirement that Texas guarantee a general diffusion of knowledge for school kids. It also rejected a lower court finding that property-poor districts dont get enough money for facility construction.
The June 1 deadline to overhaul the tax system means that Gov. Rick Perry will be obliged to call a special legislative session before the next regularly scheduled one in 2007. Five previous sessions under Perry including three special ones have ended with no resolution to the school finance tangle.
The landmark ruling from the all-Republican court is the result of a lawsuit brought by more than 300 districts property rich ones, property poor ones, and those in between who alleged the current system does not provide an adequate education for students, that school districts fail to have enough control over their own tax rates, and that poor districts are treated inequitably.
Citing testimony that showed a significant achievement gap between economically disadvantaged students and others, state District Judge John Dietz had upheld most of those claims in a Sept. 15 ruling. At the time, he said that Texas will suffer long-term consequences unless that gap shrinks.
This is really remarkable when you consider that over half of our public education students in Texas are economically disadvantaged, Dietz said when he issued his ruling. The key to changing our future is to close the gap in academic achievement between the haves and the have-nots.
But Justice Nathan Hecht, writing for the majority, noted that the public education system need not operate perfectly; it is adequate if districts are reasonably able to provide their students the access and opportunity the district court described. Further, he noted that more money does not guarantee better schools or more-educated children.
This latest legal war represents the fifth over education funding since San Antonios Edgewood school district first sued the state in 1984. The last time the Legislature overhauled the school finance system when it created the current share-the-wealth system known as Robin Hood was in 1993, when lawmakers were under the gun from another court mandate.
Perry and other GOP lawmakers swept into office promising an end to Robin Hood, and an overhaul of the current tax system. Lawmakers flailed at the problem during two regular sessions and three special ones but so far, every attempt to overhaul Robin Hood has failed.
The state provides about 40 percent of the roughly $33 billion spent each year on Texas public schools, the federal government provides 9 percent, and the rest comes from local property taxes.
Justice Scott Brister cast the sole dissenting opinion. Judge Don Willett, who was sworn into office this week, recused himself.