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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)
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Financing Public EducationJune 7, 2012 Dale Craymer El Paso Chamber of Commerce
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
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
Student Population Source: TEA Snapshot 1999 and 2011
Total Annual Funding $48.1 Billion2011-12 School Year Federal Funds Property Tax $5.6 Billion $ 22.0 Billion ( 11%) ( 46%) State Funds $20.5 Billion (43%)
Student Population 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. Source: TEA Snapshot 2011
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.”
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.
Voters may approve an additional $0.13 for enrichment Schools boards may levy an additional $0.04 at their discretion for “enrichment” Schools levy up to $1,00 to finance their share of the cost of education
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
2011-12 Revenue per WADA in El Paso County Source: TEA Summary of Finance
2011-12 Revenue per WADA in El Paso County Source: TEA Summary of Finance
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.
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.
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. $18.4
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
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)
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
The 2012-13 Budget, as passedGeneral Revenue, Federal Stimulus & Property Tax Relief 1 An additional $2.3 billion will be made available in September of 2013.
School District Staffing 2010-11 vs. 2011-12 Data Source: Texas Education Agency
Thanks for Joining Us! If you have any questions or comments, please feel free to contact TTARA staff. Dale Craymer dcraymer@ttara.org John Kennedy jkennedy@ttara.org Sheryl Pace space@ttara.org Bill Allaway ballaway@ttara.org George Christian gchristian@ttara.org Ryan Ash ryan@ttara.org