Texas Association of School Boards School Finance Plan October 2010

Why did TASB Create a school finance plan? TASB represents all 1034 Texas school districts; Districts agree that the current system is seriously broken:  Too difficult to explain;  Not enough money to meet expectations  Significant funding gaps among districts

Underlying Principles of TASB Plan Make school finance system easier to understand All districts get new money; no “Losers” Close existing funding gaps among districts

The TASB Plan is better than the current school finance system because… Easier to understand Increases the state’s investment in public schools Guarantees all districts new money Closes the funding gaps among districts Gives locally elected school boards more discretion over how to spend district funds

Features of the TASB Plan Provides a single Guaranteed Yield for every penny of the district’s M&O tax rate up to $1.17 Increases the Guaranteed Yield annually to achieve 85% equity goal within six years Applies recapture to every penny of M&O tax rate

Features of the TASB Plan (cont.) “Minimum annual gain” and “Hold Harmless” provisions so that no districts lose money as long as legislature funds TASB Plan WADA calculated separately using current weights and adjustments Districts continue to receive technology and transportation allotments; high school allotment distributed on per WADA basis

7 Current School Finance System

8 The TASB Plan WADA Calculation (Based on weights, allotments and adjustments)

The Guaranteed Yield Over time $51.50 $53.30 $54.40 $55.65 $57.64 $ M&O Tax Rate 0$1.17

Guaranteed Yield in $ $1.170 M&O Tax Rate

Guaranteed Yield Increases $ M&O Tax Rate $1.170

Guaranteed Yield Increases $ M&O Tax Rate 0$1.17

Assumptions Underlying the TASB Plan The impact of the TASB Plan is based on the following: TEA enrollment estimates Property value per WADA remains constant over the period of study District tax rates are fixed at 2009 levels No change in CEI, weights or adjustments High school allotment applied on a per WADA basis

Estimated State Cost, Compared to Current Law for the Same Year $447.3 M additional state cost $1.068 B additional state cost $1.543 B additional state cost $2.169 B additional state cost

15 Replaces current school finance system with simpler system. Directs additional state funds to public education. Guarantees all districts more money. Closes revenue gaps among school districts over time. Summary

Additional Resources For more information about the TASB Plan go to Video presentation One-page description Explanation of assumptions Frequently asked questions