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A bill has been introduced this session that would end the current school finance system as we know it. Many of you know this system by its nickname Robin Hood, since it essentially takes money from rich school districts and gives it to poor school districts in an effort to provide equity among districts throughout the state. Only about 10% of the school districts in the state contribute money, while the remaining 90% either receive money or are not affected. School districts in Fannin and Grayson Counties receive money under the current system.
House Bill 5 by Rep. Kent Grusendorf would end the Robin Hood system in September 2005, at which time a new finance structure would have to be in place. The bill does not offer a replacement system. Opponents of the bill say that it would be unwise to do away with the current system without having a new system in place. They say that we cannot be sure that the legislature will agree on a new financing structure by the 2005 deadline.
I have worked with other representatives whose school districts benefit from Robin Hood to add a provision to HB 5 that would ensure that the current system stays in place should the legislature not enact a new school finance system by August 2004.
In addition to putting an ending date on the state's school finance system, the bill injects $1.2 billion in new funding for education. Over the next two fiscal years, school districts throughout the state would receive an additional $300 per student. The new money will be used at the discretion of the school district and is over and above the money provided under the system's current formula funding.
There will be several amendments offered on the bill. One such amendment would fully fund the teachers' health insurance $1,000 supplement. Another amendment would provide $20 million in relief to small schools.
House Bill 5 would almost ensure a special session in late fall of this year or early spring of next year to come up with a new finance system to give relief to local property owners. The plan will likely reflect a decrease in local property tax. Many options will be debated, but it is safe to say that replacing the current system with an income tax is highly unlikely.
This bill was heard on the House Floor last Thursday and was knocked down due to a procedural technicality. It is expected to return to the House soon.
You can reach me by writing to P.O. Box 2910, Austin, TX 78768-2910 or by e-mailing me at larry.phillips@house.state.tx.us.
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