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Financing Public Education June 7, 2012. Dale Craymer El Paso Chamber of Commerce. Texas School Finance by the Numbers. 1,250 school districts (#1 in the nation) 1,024 Independent School Districts (Size ranges from 17 – 200,000 students) - PowerPoint PPT Presentation
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Texas Taxpayers and Research Association June 7, 2012
www.ttara.org
(512) 472-8838
Financing Public Education
June 7, 2012
Dale Craymer
El Paso Chamber of Commerce
Texas Taxpayers and Research Association June 7, 2012
www.ttara.org
(512) 472-8838
Texas School Finance by the Numbers
Texas Taxpayers and Research Association June 7, 2012
www.ttara.org
(512) 472-8838
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
Texas Public Education System2010-2011 School Year
Texas Taxpayers and Research Association June 7, 2012
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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
Texas Public Education System (cont.)2010-2011 School Year
Source: TEA Snapshot 2011
Texas Taxpayers and Research Association June 7, 2012
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1999 2011Growth/ Decline
Hispanic 39% 50% +11%
White 44% 31% -13%
African American 14% 13% -1%
Other 3% 6% +3%
100% 100%
Student Population
Source: TEA Snapshot 1999 and 2011
Texas Taxpayers and Research Association June 7, 2012
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Total Annual Funding $48.1 Billion2011-12 School Year
Federal Funds$5.6 Billion
(11%)
Property Tax$22.0 Billion
(46%)
State Funds$20.5 Billion
(43%)
Texas Taxpayers and Research Association June 7, 2012
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Percent of Total
Economically Disadvantaged
59%
Limited English Proficient 17%
Student Population 2011
Source: TEA Snapshot 2011
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.
Texas Taxpayers and Research Association June 7, 2012
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The Foundation School ProgramIn 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.”
Texas Taxpayers and Research Association June 7, 2012
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School Finance… supposedly
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
District A District B District C District D District E
$100,000 $200,000 $300,000 $500,000 $1,000,000
State AidLocal Property Tax
M&O Revenue Per Student at $1.00 Tax Rate
Recapture
Property Wealth Per Student
Texas Taxpayers and Research Association June 7, 2012
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School Finance... more accurately
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
District A District B District C District D District E
$100,000 $200,000 $300,000 $500,000 $1,000,000
State AidLocal Property Tax
Recapture
Property Wealth Per Student
M&O Revenue Per Student at $1.00 Tax Rate
Texas Taxpayers and Research Association June 7, 2012
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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.
Texas Taxpayers and Research Association June 7, 2012
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$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
1 2
Tax Rate Per $100 of value
Schools levy up to $1,00 to finance their share of the cost of education
Schools boards may levy an additional $0.04 at their discretion for “enrichment”
Voters may approve an additional $0.13 for enrichment
Texas Taxpayers and Research Association June 7, 2012
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School Districts & their Tax Rates 2011 Tax Year
0
100
200
300
400
500
600
700
Under $1.04 $1.04 $1.05 to $1.16 $1.17
Number of Districts
Texas Taxpayers and Research Association June 7, 2012
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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
Texas Taxpayers and Research Association June 7, 2012
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School Districts InEl Paso County
Compared toHighest Target
Revenue Districts
2011-12Total State & Local
M&O Revenueper WADA
2011-12State & Local
Revenueper WADA @Compressed
M&O Rate # WADA
CompressedM&O Tax
Rate
2011M&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
2011-12 Revenue per WADA in El Paso County
Source: TEA Summary of Finance
Texas Taxpayers and Research Association June 7, 2012
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School Districts InEl Paso County
Compared toHighest Target
Revenue Districts
2011-12Total State & Local
M&O Revenueper WADA
2011-12State & Local
Revenueper WADA @Compressed
M&O Rate # WADA
CompressedM&O Tax
Rate
2011M&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
2011-12 Revenue per WADA in El Paso County
Source: TEA Summary of Finance
Texas Taxpayers and Research Association June 7, 2012
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Public Schools in the State Budget
Texas Taxpayers and Research Association June 7, 2012
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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 2010-11 federal stimulus money used to supplant general revenues.
Texas Taxpayers and Research Association June 7, 2012
www.ttara.org
(512) 472-8838
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 2010-11 federal stimulus money used to supplant general revenues.
Texas Taxpayers and Research Association June 7, 2012
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(512) 472-8838
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 2010-11 federal stimulus money used to supplant general revenues.
Comptroller’s Revenue Estimate (Billions of Discretionary Dollars)
$18.4
Texas Taxpayers and Research Association June 7, 2012
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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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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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Revenue/Savings Measures,continued
• SB 1 by Duncan (special session “fiscal matters” bill):– Defer August school payment $2.3– Various tax provisions $0.8– Rewrite school finance formulas $4.0
Texas Taxpayers and Research Association June 7, 2012
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The 2012-13 Budget, as passedGeneral Revenue, Federal Stimulus & Property Tax Relief
Area 2010-11 2012-13 $ Diff % Diff
Public Education $42.1 $38.31 ($3.8) -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%
Total $94.5 $85.0 ($9.5) -10.0%
1 An additional $2.3 billion will be made available in September of 2013.
Texas Taxpayers and Research Association June 7, 2012
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% 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%
Total 666,502 641,542 -24,960 -3.7%
School District Staffing 2010-11 vs. 2011-12
Data Source: Texas Education Agency
Texas Taxpayers and Research Association June 7, 2012
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Thanks for Joining Us!If you have any questions or
comments, please feel free to contact TTARA staff.
Dale Craymer [email protected]
John Kennedy [email protected]
Sheryl Pace [email protected]
Bill Allaway [email protected]
George Christian [email protected]
Ryan Ash [email protected]
