School Finance 101

1
School Finance 101

• Texas school finance system
  was broken.
• Lacked equity due to over-
  reliance on property taxes.
• Property tax rate cap for school districts was
  1.50 per 100 of valuation.
• SAISD had been at the cap for several years.

2
What happened in 2007 Legislative Session?

• State leaders wanted to look like they were
  providing property tax relief.
• Lowered cap to 1.04 per 100.
• Districts were guaranteed the same revenue as in
  2006-07 (target revenue).
• Was supposed to protect districts from revenue
  losses.

3
School Finance 101, cont.

• If property values go up . . . .
• State reduces its contribution.
• Property rich districts were frozen at higher
  target revenue.

4
Inequities magnified

• Districts had ups and downs in funding.
• Caught higher wealth districts in
  upswing.
• Caught lower wealth district in
  downswing.

5
So the result is . . .

• Texas school finance system is
  still broken.
• Still lacks equity.
• Worse for SAISD than prior to 2007 Legislative
  Session.

6
Target Revenue by district

• SAISD
• 4,693 per weighted ADA
• Alamo Hts
• 5,804 per WADA

• North East
• 5,350 per WADA
• Northside
• 5,046 per WADA

7
What if . . . .

• SAISD had Alamo Heights target revenue?
• 77.2 million more!
• SAISD had North Easts target revenue?
• 45.6 million more!
• SAISD had Northsides target revenue?
• 24.5 million more!

8
Thats real money

• A 1 pay increase for all SAISD employees
• approximately 3.1 million.
• A 5 pay increase for all SAISD employees
• approximately 15.5 million.
• A 10 increase for all SAISD employees
• approximately 31 million.

9
What can you do?

• Get educated and involved and get others
  involved!
• Sign up now for the TSTA Briefing and the Texas
  AFT Legislative Hotline. (TSTA.org, TexasAFT.org)
• Plan to attend Alliance Lobby
  Day during Spring Break on Monday, March
  9.