Texas school districts assail state over financing

Court opens case on inequality due to system rules

Lawyers representing Texas school districts spoke Monday in state District Judge John Dietz’s courtroom in Austin.
Austin American-Statesman/Ralph Barrera/Associated press
Lawyers representing Texas school districts spoke Monday in state District Judge John Dietz’s courtroom in Austin.

AUSTIN, Texas — Attorneys representing about 600 school districts argued Monday that the Texas school financing system is so ‘‘hopelessly broken’’ that it violates the state Constitution and keeps students from being prepared for the well-paying jobs of tomorrow.

Six lawsuits have been filed on behalf of about two-thirds of Texas school districts, which educate about 75 percent of the state’s roughly 5 million students. They have been rolled into a single, massive case, which opened before state District Judge John Dietz in Austin. The trial is expected to last into January.

The Texas Constitution guarantees an ‘‘efficient system of public free schools,’’ but the plaintiffs say many schools cannot provide an adequate education because the way they are funded is inefficient and unfair.


Districts in rich and poor parts of the state are on the same side in the matter, because Texas relies on a ‘‘Robin Hood’’ scheme in which districts with high property values or abundant revenue from oil or natural gas taxes turn over part of their money to poorer districts.

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‘‘The system of school finance, as we see it, is hopelessly broken,’’ said Rick Gray, who represents more than 400 districts, mostly in poorer areas of the state. All the plaintiffs ‘‘are a united front in our belief that the system is unconstitutional,’’ he said in his opening statement, adding that ‘‘the stakes are simply too high to ignore [the problems] anymore.’’

The lawsuits were filed after the Legislature cut $4 billion in state funding to schools and $1.4 billion more for grant programs in 2011. The plaintiffs note the money was cut even though the Texas population has boomed and the number of low-income students has skyrocketed.

Students from low-income families generally cost more to educate because many require instruction to learn English. Others participate in costly remedial programs outside the classroom.

Meanwhile, Texas has established a regimen of increasingly more difficult standardized tests that high school students must pass to graduate. The districts assert that funding cuts have forced them to lay off teachers, increase class sizes, and cut back on education programs — all steps that ultimately leave their students less prepared for tougher exams.


‘‘The bar has been raised and yet one hand has been tied behind school administrators’ backs,’’ Gray said.

He said experts will testify in coming days that, if current educational trends continue, the earning power of Texas residents forced to settle for low-wage jobs will decline so much that it will cost the state $11 billion in lost tax revenue by 2050.

The office of the state attorney general, Greg Abbott, counters that the blame lies with individual districts. It says there is no direct link between the amount of money spent on education and students’ success.

‘‘Given the fact that the public education system is founded on local control, success or failure of a school district is necessarily linked to the school district’s own leadership, policies, and operations,’’ the office said in pretrial brief. ‘‘If a local school district fails to provide its students a general diffusion of knowledge, such a result, while unacceptable, does not render the entire public school system unsuitable.’’

Legal battles over school finance are nothing new in Texas; the case that began Monday is the sixth of its kind since 1984.


In 1993, the Texas Supreme Court ruled that it cost $3,500 per student for schools to meet state standards, a figure Gray said now equals $6,576 when adjusted for inflation. But he said only 233 of the state’s 1,024 school districts can raise that amount because of state-imposed caps on how much they can take in property taxes.

Also, districts considered property-wealthy collect on average about $2,000 more per student per year than those in poorer districts — even though they charge an average 8 cents less per dollar paid by area residents in property taxes. Gray said that works out to a discrepancy of about $64,000 per classroom each year.

Attorneys for other plaintiffs told the judge that it costs more to educate the growing number of students who are poor or do not speak English as a native language.

David Hinojosa, who represents the Mexican American Legal Defense and Educational Fund, said that 60 percent of Texas students receive free or reduced-price lunches at school, and as Texas enrollment grows by 80,000 students per year, as many as 95 percent of those new students are from low-income families.

Mark Trachtenberg, arguing on behalf of mostly property-wealthy districts, noted that the state’s growing Hispanic population means roughly one in five students requires extra instruction in English.