Law & Courts

Judge’s Ruling Cites Flaws in Texas’ School Finance System

By Joetta L. Sack — December 07, 2004 3 min read
  • Save to favorites
  • Print

A state judge told Texas last week that it has until next fall to fix its school funding system—a change that would likely force the legislature to add billions of dollars to the education budget.

Travis County Chief Judge John K. Dietz had declared in September that Texas’ school aid system was unconstitutional. (“Texas Judge Rules Funds Not Enough,” Sept. 22, 2004.)

Last week, he released his much-anticipated final ruling, in which he wrote that the state’s way of paying for its schools “is financially inefficient, inadequate, and unsuitable … because the school finance system fails to recognize or cover the costs of meeting the constitutional mandate of adequacy, or the legislature’s statutory definition of a comprehensive adequate education.”

But the ruling stopped short of setting a specific level of funding to reach adequacy.

See Also

The Nov. 30 court order gives the legislature until Oct. 1 of next year to find a new system to fix persistent inequities in the education funding formula.

The state is appealing the decision. Because of the short time frame given to overhaul the system, lawyers for the state are seeking to bypass the appellate system and go directly to the state supreme court early next year.

Texas now uses a “Robin Hood” formula that requires property-wealthy districts to share a portion of their tax revenues with poor districts. But the system also caps the amount school districts can collect at $1.50 of every $100 in assessed property value.

That cap has become “a floor and a ceiling, denying districts meaningful discretion in setting their tax rates,” the judge wrote.

The ruling echoes arguments made by leaders of Texas’ largest districts when they testified before Judge Dietz in August that they were barely able to afford an adequate education for their students, and were seeing increasing burdens and costs from federal and state accountability laws.

Three separate groups of districts, many with predominantly Latino enrollments, brought the case. They argued that their lack of property wealth did not allow them to raise enough money, and that the state’s formula did not give them enough relief.

David Hinojosa, a lawyer for the Mexican American Legal Defense and Educational Fund who helped argue the case for some of the plaintiffs, said that the judge’s decision reaffirmed that the districts were doing as well as they could with the money they had, but that more money was needed.

“Overall, it is a victory for our children; certainly we still have lingering problem with access to revenue,” Mr. Hinojosa said.

‘No Easy Solutions’

The state is hoping for a speedy appeal to resolve the case, said Debbie Graves Ratcliffe, a spokeswoman for the Texas Education Agency. It’s impossible to tell which way the state high court would rule, she added.

“We’re optimistic we can get a quick appeal to the supreme court,” she said.

The state had argued that the districts had discretionary funds that they used for activities such as athletics that could be redirected toward providing basic education services.

But Judge Dietz rejected that claim. He said the state’s accountability requirements, and its constitutional mandate of adequacy in education, set the funding bar at a higher level than the current $30 billion K-12 education budget could provide—particularly considering the added challenges of educating students who are poor or still learning English.

Last week’s ruling will not affect districts’ ability to issue bonds or take on public debt before the October 2005 deadline.

Regardless of which court takes up an appeal—and when it is heard—the topic of school finance is expected to be a dominant theme when the Texas legislature reconvenes for its 140-day session beginning in January.

But whether lawmakers can find an acceptable solution is unclear. The legislature met in a 30-day special session last spring on school finance, but was unable to agree on a new formula. (“‘Robin Hood’ Still Alive After Texas Special Session,” May 26, 2004.) Though various legislative remedies have been debated, and several school finance bills have been filed before the opening session, nobody has found a “magic bullet” that will solve the state’s finance problems, Ms. Ratcliffe said.

“There are no easy solutions left on the table,” she said.

Mr. Hinojosa, the MALDEF lawyer, said he worries that many legislators are more interested in tax cuts for their constituents than in finding more money for schools. “They just want to replace the money received with one tax with another [tax cut],” he said. “Hopefully, they’ll put partisan politics aside and talk about children’s education, which is a priority.”

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Smarter Tools, Stronger Outcomes: Empowering CTE Educators With Future-Ready Solutions
Open doors to meaningful, hands-on careers with research-backed insights, ideas, and examples of successful CTE programs.
Content provided by Pearson
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Recalibrating PLCs for Student Growth in the New Year
Get advice from K-12 leaders on resetting your PLCs for spring by utilizing winter assessment data and aligning PLC work with MTSS cycles.
Content provided by Otus
School Climate & Safety Webinar Strategies for Improving School Climate and Safety
Discover strategies that K-12 districts have utilized inside and outside the classroom to establish a positive school climate.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts The Stark Divide in the States Recouping K-12 Grants Cut by Trump's Ed. Dept.
A fifth of lawsuits challenging Trump admin. education policies have come from multistate coalitions.
8 min read
Students sit on bleachers after science, technology, engineering and mathematics activities, facilitated by the Kentucky Science Center, in Simpsonville Elementary School, Nov. 18, 2025, in Simpsonville, Ky.
Students sit on bleachers after STEM activities facilitated by the Kentucky Science Center at Simpsonville Elementary School in Simpsonville, Ky., on Nov. 18, 2025. The school district serving Simpsonville is one of nine in north-central Kentucky that was able to hire new school counselors with the help of a federal grant that the Trump administration terminated last year.
Jon Cherry/AP
Law & Courts Full Appeals Court Signals Openness to Ten Commandments Classroom Laws
The full 5th Circuit seemed sympathetic to unblocking two laws requiring Ten Commandments displays.
5 min read
Ten Commandments Texas 25322117067170
A Ten Commandments poster is seen with boxes of others before they were delivered to local public schools in New Braunfels, Texas, on Monday, Nov. 17, 2025. A federal appeals court appears open to reviving blocked Ten Commandments school laws in Louisiana and Texas.
AP Photo/Eric Gay
Law & Courts Parents Ask Supreme Court to Restore Ruling on Gender Disclosure
Parents asked the U.S. Supreme Court to intervene over school gender-identity policies in California.
4 min read
A group of California parents has asked the nation's highest court to reinstate a federal district court decision that said parents have a federal constitutional right to be informed by schools of any gender nonconformity and social transitions by their children. The Supreme Court building is seen on Jan. 13, 2026, in Washington.
A group of California parents has asked the nation's highest court, whose building is shown on Jan. 13, 2026, to reinstate a federal district court decision that said parents have a federal constitutional right to be informed by schools of any gender nonconformity or social transition by their children.
Julia Demaree Nikhinson/AP
Law & Courts Supreme Court Signals Support for State Bans on Trans Girls in Sports
The U.S. Supreme Court weighed Idaho and West Virginia laws that bar transgender girls from sports.
7 min read
Becky Pepper-Jackson holds hands with her mother Heather Jackson outside the Supreme Court after arguments over state laws barring transgender girls and women from playing on school athletic teams on Jan. 13, 2026, in Washington.
Becky Pepper-Jackson holds hands with her mother, Heather Jackson, outside the U.S. Supreme Court after arguments over state laws barring transgender girls and women from playing on female athletic teams on Jan. 13, 2026, in Washington.
Julia Demaree Nikhinson/AP