School Finance |

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Texas depends on property tax revenue to provide services like education and healthcare to its residents. This form of revenue has its advantages and disadvantages as we have seen in the past and are currently experiencing.

There are several solutions that we can adopt to buffer Texas from property tax, sales tax and volatile gas prices that are already being using by the majority of U.S. states and several industrialized countries.

Solutions:

Reform or ban capital appreciation bonds in the state of Texas

Close corporate loopholes in the state sales tax

Reallocate some of the $800 million wasted on border security

Repeal the Texas sales tax holiday

Most affluent school districts use bonds to avoid the recapture process. We propose creating a state public bank to finance school infrastructure

The Gas Tax hasn’t risen since 1991 and would need to use a variable rate similar to other states since it funds 25% of the Permanent School Fund

Reform the Rainy Day Fund

Replace the franchise tax with a simpler Corporate Income Tax

Medicaid Expansion

Create a pilot program using Land Value Tax with counties

Do a feasibility study on reforming a constitutional loophole that allows schools to use bonds, also known as interest and sinking, to avoid the recapture

Close corporate loopholes and stop cutting the franchise tax

Pre trial reform could save the state of Texas roughly $100 to $200 million annually

Reform the cost of education index that has not been updated since 1981

Alternatives:

Amend the spending limit in the Texas constitution

Individual Income Tax

Texas Constitution
Code – Education Code
Chapter – 41 Equalized Wealth Level
Section – 41.02 Equalized Wealth Level
Chapter – 42 Foundation School Program
Section – 42.102 Cost of Education Adjustment

Code – Texas constitution
Article – 7 Education
Section – 5 Permanent School Fund; Available School Fund; Use of Funds; Distribution of Available School Fund
Section – 7.3 (a)(b) Taxes for Benefit of Schools; School Districts
Section – 19 Texas Tomorrow Fund

NCSL – State Role in Education Finance

NCSL – Frequently Asked Questions on the Property Tax

NPR – Texas Schools Grapple With Big Budget Cuts

NPR – Frustration. Burnout. Attrition. It’s Time To Address The National Teacher Shortage

NPR – Your State’s Schools Are In Trouble When A Judge Says …

NPR – How Much Does It Cost To Educate A Student In Michigan? (Or, In The U.S.?)

Houston Public Media – After Decades of Texas School Finance Battles, Some Say Little Has Changed

CBS – Judge says Texas’ school funding still unconstitutional

Texas Comptroller – Texas School Funding at a Glance

PBS – How Do We Fund Public Schools

The Washington Post – Spending in nation’s schools falls again, with wide variation across states

Texas Observer – Texas to Offer GED Alternatives After Test Costs Triple