The Chronicle Interviews Spring Branch About "Robin Hood"

Regular readers of this blog know how I feel about the current "Robin Hood" system of funding public education in Texas (see prior posts here).

Annette Baird, of the Houston Chronicle, just published this article on the subject

May  2, 2006,  8:10PM

Spring Branch says Robin Hood rules are unfair

Hope is slim for Chapter 41 reform by end of legislative session May 17

By ANNETTE BAIRD
Chronicle Correspondent

Spring Branch school district officials hold slim hope the Legislature will eliminate or ease the constraints of Chapter 41, a section of the Texas education code requiring wealthy school districts to fund poorer ones, during its special session.

Lawmakers are working out ways to reduce reliance on property taxes to fund the state's schools, but what is commonly referred to as "Robin Hood" is getting short shrift, said Mike Falick, school board trustee and board legislative liaison.

"This session isn't over yet, so I haven't given up," said Falick, who said he thinks Chapter 41 is unfair.  "I continue to hold out hope that, if not now, it will be considered in the regular session (to convene in January)."

The Texas Supreme Court in 2005 ruled the current school finance system unconstitutional, because it essentially establishes a statewide property tax, but Chapter 41 was not part of that ruling.  Unless something changes before the session ends, this means that Spring Branch, as a Chapter 41 district, must continue to share its wealth with poor districts, such as Laredo.

Spring Branch became a Chapter 41 district three years ago, when the taxable value of all property in the district, divided by the number of students (using a formula for weighted average daily attendance), exceeded the limit of $305,000.  Above that, the district has to buy credits to bring it down to $305,000.

That first year, the district paid out $3 million to fund poor school districts.  The following year it jumped to $13 million.  This year, payments could reach $18 million, and an estimated $26 million could flow out of the district during 2006-07.  The pay-out for 2007-08 is expected to exceed $35 million.

"It's getting very serious for us," Superintendent Duncan Klussmann said.  "One thing the district has managed to do is make the majority of reductions in non-campus positions, but that is getting harder to do.   Klussmann said the district budget since becoming a Chapter 41 district has been flat, requiring deep cuts in some areas.  He said central administration has suffered the most, and the district is falling behind on funding capital items.

Diane Jackson, who works on policy administration and government relations, said Spring Branch is among approximately 150 Chapter 41 districts out of 1,034 across the state.  Those districts will have paid out a total of $1.3 billion this year.  Next year, Jackson said about 170 districts will qualify as Chapter 41 districts and face a combined pay-out of approximately $1.7 billion. 

"My concern with recapture (Chapter 41 payments) is that it is going out of control," Klussmann said.  "I think elected officials in Austin want to take care of the situation, but as (Chapter 41 payments) get larger and larger, they have to come up with something that generates that much more money."  At the least, the district wants the Legislature to raise the per-student limit to $400,000, if Chapter 41 is not eliminated.

Klussmann and Falick agreed the state should have an equitable school finance system, but that it shouldn't be borne almost entirely on the backs of homeowners.  "The tax system needs to be reformed, but it is not appropriate for 20 percent of our tax dollars to go out of the district," Falick said.