Judge overturns Texas school finance system; discounts fixes by Legislature

Kindergartners Giselle Juarez, left, and John Diaz, right, raise their thumbs in the air while chanting positive slogans during a student rally for the district's positive behavior plan on the first day of school, Monday, Aug. 25, 2014 at Townsell Elementary in Irving. (Ben Torres/Special Contributor)

A state judge overturned Texas’ school finance system for the second time in 18 months on Thursday, ruling that a funding boost by the Legislature last year failed to fix a system that is both unfair and inadequate for the state’s five million public school students.

State District Judge John Dietz decided in favor of the more than 600 school districts who sued the state. They argued the Legislature has consistently underfunded schools while imposing new and expensive academic requirements for students.

In his ruling, the judge also pointed to inequities in the system that leave lower-wealth school districts with far less money to spend on their pupils than their wealthier counterparts across the state.

“The court finds that the Legislature has failed to meet its constitutional duty to suitably provide for Texas public schools because the school finance system is structured, operated and funded so that it cannot provide a constitutionally adequate education for all Texas schoolchildren,” Dietz wrote in his 21-page final judgment in the case.

“The court enjoins further funding under the system until the constitutional infirmities are corrected.”

Dietz also said lawmakers erred by sharply limiting the taxing ability of school districts, which amounts to an illegal statewide property tax.

Schools will not be immediately affected, as Dietz put the ruling on hold until July 1. The decision is expected to be appealed directly to the Texas Supreme Court, which last ruled on school finance in the fall of 2005. That order forced the state to revamp its method of funding education so that it was less reliant on local property taxes.

If the high court affirms Dietz’ new ruling, it would force the Legislature back to the drawing board. That would probably not occur until after the upcoming legislative session in January.

The judge originally found the funding system unconstitutional in February of 2013 after a 12-week trial pitting the state against school districts – including dozens from North Texas. But he withheld his final decision in the case after legislative leaders indicated they would address the issues raised by Dietz during their 2013 session.

Lawmakers did increase school funding by $3.4 billion in the current biennium. However, that did not make up for the $5.4 billion that was cut in 2011 to offset a severe shortfall in state revenue. Lawmakers also dropped 10 of the 15 high school tests that were slated to be required for graduation.

Additional hearings were held by Dietz earlier this year to decide whether the actions of the Legislature would temper his earlier decision.

They didn’t.

In his original ruling, the judge suggested it could take an extra $2,000 per child to meet all state standards – a total price tag of $10 billion to $11 billion a year.

“Education costs money, but ignorance costs more money,” he summed up. “It is the people of Texas who must set the standards, make sacrifices and give direction to their leaders about what kind of education system they want. The longer we wait, the worse it gets.”

Plaintiff school districts praised the judge’s ruling, while legislative leaders cautioned that Dietz won’t have the final word on whether the funding system is constitutional. That rests with the Supreme Court.

The lawsuit was triggered by the massive funding reductions of 2011, which forced elimination of 11,000 teaching jobs and increased class sizes at thousands of campuses across Texas. Many school districts, including Dallas, still received less funding per student this year than they did before the 2011 cuts.

In addition, a study by the National Education Association earlier this year showed that Texas ranks 46th among the 50 states and District of Columbia in spending per pupil. Last year, Texas ranked 49th.

Update at 3:10 p.m.: Sen. Wendy Davis, the Democratic nominee for governor, hails the ruling in a written statement as “a victory for our schools, for the future of our state and for the promise of opportunity that’s at the core of who we are as Texans.”

Davis, as she has before, blasted Republican opponent Greg Abbott, the current attorney general, for defending the school finance system in court. “The reality is clear and indefensible: insiders like Greg Abbott haven’t been working for our schools; they’ve been actively working against them,” she said. “Abbott has been in court for years, defending overcrowded classrooms, teacher layoffs and public-school closings, and today, Judge John Dietz ruled against him. This ruling underscores the crucial need to invest in education and reminds us of just how much our schools, teachers and students have had to sacrifice over the past three years just to get by.”

Abbott has not yet weighed in on the ruling, but he’s widely expected to appeal it.

Update at 4:25 p.m.: Greg Abbott, the Republican nominee for governor, has issued a statement pointing to his education plans, saying he hopes to “improve education for our children rather than just doubling down on an outdated education system constructed decades ago.”

Abbott, who as attorney general will have to decide whether to appeal Thursday’s ruling, did not address the court case directly. Instead, he noted that as a candidate for governor, “I have proposed substantial improvements for our schools that will do a better job of educating Texans while spending tax dollars wisely. My plan will make Texas top-ranked in the nation for education by returning genuine local control to school districts, ensuring all children are reading and doing math at grade level by third grade, and graduating more students from high school than ever before.”

School Finance Final Judgment by rjrusak

School Finance Findings Conclusions by rjrusak

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