Texas Association of School Boards

School Finance PlanOctober 2010

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

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

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

• Easier to understand • Increases the state’s 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

Features of the TASB Plan

• Provides a single Guaranteed Yield for every penny of the district’s M&O 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 M&O tax rate

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

Recapture

Current School Finance System

0 $1.00

$47.65

Tier I

Yie

ld/p

en

ny/

WA

DA

M&O tax rate(assumes $1.50 M&O tax rate in 2005)

GoldenPennies

Tier 2

$1.17

Tier 2

$31.95

$59.97

$1.06

Recapture

$31.95

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Current School Finance System

8

The TASB Plan

WADA Calculation

(Based on weights,

allotments and adjustments)

The Guaranteed Yield Over time

$51.50$53.30$54.40$55.65$57.64

$59.62

2011-12

2012-13 2013-14

2014-15

2016-17 2015-16

M&O Tax Rate

0 $1.17

Guaranteed Yield in 2011-12

$51.50 2011-12

$1.170 M&O Tax Rate

Guaranteed Yield Increases 2013-14

$54.40 2013-14

M&O Tax Rate

$1.170

Guaranteed Yield Increases 2016-17

$59.62 2016-17

M&O Tax Rate

0 $1.17

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

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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• 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.

Summary

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