School Finance 101

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					        School Finance 101
• Texas’ school finance system
  was broken.

• Lacked equity due to over-
  reliance on property taxes.

• Property tax rate cap for school districts
  was $1.50 per $100 of valuation.

• SAISD had been at the cap for several years.
       What happened in 2007
        Legislative Session?
• State leaders wanted to look like they were
  providing property tax relief.

• Lowered cap to $1.04 per $100.

• Districts were guaranteed the same
  revenue as in 2006-07 (“target revenue”).

• Was supposed to protect districts from
  revenue losses.
    School Finance 101, cont.
• If property values go up . . . .

• State reduces it’s contribution.

• Property rich districts were
  frozen at higher “target revenue.”
       Inequities magnified

• Districts had ups and downs in

• Caught higher wealth
  districts in upswing.

• Caught lower wealth
  district in downswing.
        So the result is . . .

• Texas’ school finance
  system is still broken.

• Still lacks equity.

• Worse for SAISD than prior to
  2007 Legislative Session.
  Target Revenue by district

• SAISD:            • North East:
• $4,693 per        • $5,350 per WADA
  weighted ADA

• Alamo Hts:        • Northside:
• $5,804 per WADA   • $5,046 per WADA
            What if . . . .
SAISD had Alamo Heights’ “target revenue?”
 =$77.2 million more!

SAISD had North East’s “target revenue?”
 =$45.6 million more!

SAISD had Northside’s “target revenue?”
 =$24.5 million more!
        That’s real money
A 1% pay increase for all SAISD employees
  =approximately $3.1 million.

A 5% pay increase for all SAISD employees
  =approximately $15.5 million.

A 10% increase for all SAISD employees
  =approximately $31 million.
        What can you do?
• Get educated and involved and get
  others involved!
• Sign up now for the TSTA Briefing
  and the Texas AFT Legislative
  Hotline. (,
• Plan to attend Alliance Lobby
  Day during Spring Break on
  Monday, March 9.

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