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Proposed funding increases mean little to Plano ISD
By Conner Hammett, chammett@starlocalnews.com
Texas legislators have taken a step toward restoring part of the $5.4 billion cut from public schools last session.
Senate Bill 1 was approved by the Senate Finance Committee on Wednesday. The budget bill includes an additional $1.4 billion in funding for public education. A similar bill passed the House Appropriations Committee on Thursday.
While many in public education regard the developments as positive, the bill's method of increasing funding would mean little in practical terms for districts such as Plano ISD.
In 2006, in response to a court ruling that found the Texas school finance system was an unconstitutional statewide property tax, the Legislature reduced local district property tax rates by about 50 cents.
To fill the gap created by the tax reductions, the Legislature enacted the target revenue system, which disburses just enough payments to negatively impacted districts to maintain their funding at 2006 levels. As part of the 2011 Legislature's cuts to education, the Legislature initiated a series of reductions in these payments with the goal of ending the target revenue system by 2017.
It is these shrinking Additional State Aid for Tax Reduction, or ASATR, payments that will make any future increase to formula funding have less of a positive impact in districts such as Plano. Further reductions in ASATR payments could mean an even smaller increase in the biennium's second year, Rome said.
"They've [increased] the basic allotment so that no district suffers a loss from that cut, which we're thankful for, but at the same time, districts that receive ASATR are not going to see nearly as big of a gain as a district that is not receiving ASATR, that are on formula," she said.
Steve Fortenberry, associate superintendent for business and facilities services for Plano ISD, said Plano's additional $34 per student can be put into perspective by looking at the amount of per-student funding the district lost during this school year: $658, or $35 million.
Fortenberry said the Legislature is likely taking this most recent approach in an attempt to make the district more equitable after Judge John Deitz ruled the school finance system unconstitutional last month as part of ongoing school finance litigation.
"From Plano's perspective, the positive is it's not another cut," Fortenberry said. "The negative is districts that were receiving the state aid for tax reduction, which was a promise made back in 2006, took the brunt of the cuts the past two years, and we get the smallest restoration of funds in the next biennium if this is what gets adopted."
Fortenberry points to the House Appropriations Committee's bill as a sign both chambers are looking to restore part of the cuts.
"There is, I think, some indication on the House side they would like to come back within next couple of months and possibly put even more money back in," he said. "I don't think there's any plan to restore the entire $5.4 billion, but there is some hope that [in] the House this is a starting point and they may actually come back and add some more to it."
Texas Comptroller Susan Combs announced in January the state will have $101.4 billion to spend this biennium. Combs also projected an $11.8 billion Rainy Day Fund and $8.8 billion ending balance for the current budget year.
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