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Texas Agriculture Archive

March 15, 2002

School financing will be tough issue...

The focus of the discussion on the Joint Select Committee on Public School Finance is becoming more defined with each hearing.

At the Committee's March 7 meeting in Austin, State Rep. Paul Sadler, who co-chairs the panel, summed it up best.

"Here's what it boils down to. I'm asked all the time—our school district can't pay for its required programs, it can't raise taxes, and the state has a $5 billion shortfall. What are we going to do, Paul?" said Rep. Sadler, widely regarded in the Texas Legislature as the premier expert on public school finance issues.

Led by Rep. Sadler and co-chairman Sen. Teel Bivins, the Committee agreed to tackle the question by formatting its report to the Legislature based on a series of policy priorities. The Committee will not recommend a specific school finance plan to overhaul the current system. Instead, Committee members plan to offer a menu of options for lawmakers to consider for each priority issue. They admitted the attractiveness of each option will depend largely on the budget and political environment facing the Legislature next session.

It is unclear which policy priorities will be the focus of the Committee's final report, but a few ideas and likely issues were prominently discussed:

1) Do we want to do away with "Robin Hood"?

2) Do we need more capacity in the existing system?

3) Do we want to reduce the reliance on property taxes?

4) Do we need to maintain equity?

For each priority issue, Rep. Sadler envisions possibly three options for lawmakers to consider to address the problem. The options would be bracketed by the level of state funding desired and needed to make the change. Lawmakers can choose from categories based on full funding available, limited funding available, and no additional funding available.

Creating a report that has "usefulness" in the next Legislature is a major goal of the Committee.

The revenue side of the school finance equation is next on the agenda for the Committee. Several funding proposals are expected to be offered at its next meeting, including a plan by Lieutenant Governor Bill Ratliff that is expected to close the franchise tax loophole and shift the overall reliance of local property taxes to other revenue sources.

Texas Farm Bureau will be most interested as these revenue proposals are discussed. We will continue to follow the work of this important committee as we strive to protect the policy interests of our organization and its members. The Committee will deliver its final report to the Legislature no later than Nov. 15.