Texas Association of School Boards

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Texas Association of School Boards

• School Finance Plan
• October 2010

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Why did TASB Create a school finance plan?

• TASB represents all 1034 Texas school districts
• Districts agree that the current system is
  seriously broken
• Too difficult to explain
• Not enough money to meet expectations
• Significant funding gaps among districts

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Underlying Principles of TASB Plan

• Make school finance system easier to understand
• All districts get new money no Losers
• Close existing funding gaps among districts

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The TASB Plan is better than the current school
finance system because

• Easier to understand
• Increases the states investment in public
  schools
• Guarantees all districts new money
• Closes the funding gaps among districts
• Gives locally elected school boards more
  discretion over how to spend district funds

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Features of the TASB Plan

• Provides a single Guaranteed Yield for every
  penny of the districts MO tax rate up to 1.17
• Increases the Guaranteed Yield annually to
  achieve 85 equity goal within six years
• Applies recapture to every penny of MO tax rate

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Features of the TASB Plan (cont.)

• Minimum annual gain and Hold Harmless
  provisions so that no districts lose money as
  long as legislature funds TASB Plan
• WADA calculated separately using current weights
  and adjustments
• Districts continue to receive technology and
  transportation allotments high school allotment
  distributed on per WADA basis

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Current School Finance System
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The TASB Plan
WADA Calculation (Based on weights, allotments
and adjustments)
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The Guaranteed Yield Over time
2016-17
59.62
2015-16
57.64
2014-15
55.65
54.40
2013-14
2012-13
53.30
2011-12
51.50
0
1.17
MO Tax Rate
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Guaranteed Yield in 2011-12
51.50
2011-12
1.17
0
MO Tax Rate
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Guaranteed Yield Increases 2013-14
2013-14
54.40
1.17
0
MO Tax Rate
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Guaranteed Yield Increases 2016-17
59.62
2016-17
0
1.17
MO Tax Rate
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Assumptions Underlying the TASB Plan
The impact of the TASB Plan is based on the
following TEA enrollment estimates Property
value per WADA remains constant over the period
of study District tax rates are fixed at 2009
levels No change in CEI, weights or
adjustments High school allotment applied on a
per WADA basis
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Estimated State Cost, Compared to Current Law for
the Same Year

• 2011-12---447.3 M additional state cost
• 2012-13---1.068 B additional state cost
• 2013-14---1.543 B additional state cost
• 2014-15---2.169 B additional state cost

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Summary

• Replaces current school finance system with
  simpler system.
• Directs additional state funds to public
  education.
• Guarantees all districts more money.
• Closes revenue gaps among school districts over
  time.

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Additional Resources

• For more information about the TASB Plan go to
  www.gr.tasb.org.
• Video presentation
• One-page description
• Explanation of assumptions
• Frequently asked questions