By J. Lyn Carl, GalleryWatch.com
Austin, TX – "We have taken on a daunting task," said Sen. Florence Shapiro in laying out her school finance legislation before the Senate Committee of the Whole Friday. The bill, she said, addresses the most urgent concern of Senate members' constituents - property tax relief, fair and equitable school funding and the elimination of the Robin Hood school finance plan.
"This is an historic day. We are gathered here in the Committee of the Whole with 31 senators who have signed on to this bill. We are addressing school finance, which nobody thought we would be able to do.
"Is this a perfect bill? No. But we mustn't let perfect get in the way of good."
Shapiro said the day was an end of an era for her, since 10 years ago she cast a vote against the school finance plan that has come to be know as the 'Robin Hood' plan.
"It is the end the era of Robin Hood," she said, citing bringing legislation today "with the blessing of the lieutenant governor, the leadership, 31 senators and most important to me - the father of Robin Hood, Sen. Bill Ratliff."
She said the Senate has "found a consensus" on the issue. "We in the legislature - all of us in the legislature, not just the Senate - have the same laudable goals." She praised the House and particularly Rep. Kent Grusendorf, author of HB 5, which sunsets the Robin Hood plan as well. "We are coming on different paths. We are coming at different timetables. But we have the same laudable goals of fixing the school finance system."
Shapiro said both the House and Senate are cognizant of the need to reduce property taxes and said fixing the school finance system is "simply mandatory."
"I hope these bills not only initiate discussion of possible solutions, but absolutely propel those solutions to fruition."
Under the Shapiro legislation proposal:
Robin Hood finance plan is dead.
The Texas Education Fund is created to fund schools. A system is created to replace recapture. Dedicated revenue includes a 75-cent state property tax which cuts current property taxes in half. Property tax rate capped at 75 cents.
Expands the state sales tax to include current exclusions to the tax not excluded by law.
Increases state sales taxes and new vehicle taxes.
Dedicates proceeds from the state lottery to education.
Eliminates the two-tier system, making only one tier, avoiding the complication of understanding school finance.
Ensures $4,300 per student in weighted average daily attendance (ADA ), up from the current $4,187. The current weights, allotments and adjustments of the current system are retained.
Appoints a Blue Ribbon Taskforce to review the system. The cost of education adjustment has not been adjusted in 12 years and this bill contains a mechanism to adjust it every two years.
Creates a Public Education Enrichment tax, where school districts have the discretion to allow local voters to approve enrichment up to 10 cents. The state will ensure such revenue as that the 90th percentile district can generate, an average of $32 per penny generated.
Provides mandatory tenant property tax relief, with landlords having to rebate tenants for at least 75 percent of the landlord's property tax relief.
Provides 40 percent sales tax exemption for Lone Star Card holders.
Shapiro said her legislation will provide "the most equitable system the state has ever known" with dollars distributed equally and guaranteeing the same state spending for all areas of the state. Funding will be at the state level, she said, with decisions made at the local level.
The Plano Republican said the bill provides relief for school districts by guaranteeing $4,300 per student. A hold harmless provision ensures that no school district will receive less money than they receive under the current system. She said the proposal includes $621 million in new money and a roll forward of current EDA.
Shapiro said the bill provides relief for property tax payers "by literally cutting taxes in half."
There will be an evaluation by the Blue Ribbon Taskforce to define what constitutes a "thorough and efficient education," as outlined in the State Constitution, and to determine how much it costs and how to pay for it. The taskforce also will review best practices, and look at academic input and programs geared to increase graduation rates.
"The Senate has unanimously determined that we have a proposal that moves forward in meeting our collective laudable goal," said Shapiro, and does so by providing taxpayer relief, school district relief, and by addressing concerns of parents and meeting the needs of Texas students.
Scott McCown, executive director of the Center for Public Policy Priorities, praised the Senate and its leadership for taking on the challenge of school finance but also expressed concerns. He said the state only has three options for tax revenue - an income tax that taxes what is earned, a sales tax that taxes on what is spent, and a property tax on investments.
"If an income tax is off the table and we can't limit property taxes, the only pot of money left to fund the state is a sales tax," he said. He expressed concern that "this one pot is not big enough or growing fast enough" to meet the state's needs, particularly when 75,000 new students are being added to public schools each year.
Testimony is continuing on the bill in the Senate Chamber.