P  E  Y  T  O  N     W  O  L  C  O  T  T
PAYING FOR TEXAS PUBLIC
EDUCATION:  A PRIMER
PAYING FOR TEXAS PUBLIC EDUCATION:  A PRIMER
By Peyton Wolcott - June 8, 2006 - 9:00 p.m.
As elsewhere, public school finance in Texas is Hatfield & McCoy
territory, which feud we note began with
Randolph McCoy
accusing
Floyd Hatfield of stealing his pig. Similarly, the past three
and a half decades of litigation here have had to do with poor
districts wanting more pig at the expense of richer districts, all the
while singing the "Mo' Money Mantra." Long gone are the days of
struggling folks taking a hard look at their circumstances and
saying, "Golly, gee, I want better for my kids. Guess I'll work harder
and move across town to that better school district." Now, they find
a special interest group whose lawyers will litigate on their behalf
over constitutional nuances, aided and abetted in this enterprise
by liberal legislators and professionals running the education
establishment variously named the
Texas Education Agency, the
Texas Association of School Boards, the Texas Association of
School Administrators,
and their ilk.

The 79th/3rd Lege's Legacy:  
You do the Math

Appropriations by FY 2009  $ 10.3 billion

Revenues by FY 2009          
$    4.2 billion

Shortfall                             $     6.1 billion
NOTE:  The source for these numbers is the
Legislative Budget Board, which is appointed
by Governor Rick Perry--and presumably
a pro-Perry source of information.
But first--
Let's go back in history to March 2, 1836, the cold, dank and stormy day our
Declaration of Independence from Mexico was signed. Even though this
document had been written on the fly the night before as the siege at the
Alamo entered its second week, the framers still took time to point out Mexico's
failure to produce a "public system of education" despite "almost boundless
resources," thus making it clear that from the beginning public education and
paying for it has been a major issue even when under duress: The same day
our declaration was being signed at Washington-on-the-Brazos some of our
bravest men--
Davy Crockett, Jim Bowie, William Travis, 186 others--were 57
hours by hard riding and four days away from their deaths at the hands of
Santa Anna's army in San Antonio.
'The Fall of the Alamo'
(Courtesy/Governor's Mansion
Austin, Texas)
Paying for public education
From the get-go, paying for our public schools has been a responsibility assumed by
the legislature starting with our first constitution, a hastily thrown together pastiche
which expeditiously incorporated bits of the U.S., Mexico's and various states'
constitutions; only later did local property taxes become a vehicle.
Texas has no state income tax, I like to think because we are the only state in the nation
to have been our own country before we were a state and our citizens therefore prone to
clear and independent thinking. But long-time public policy researcher and publisher of
the
New Katy News George Scott has his own take. "No political party will guarantee
that government will not spend as much next year as this year," he says. "The bottom
line is no one who is in a position of actual authority wants to control spending on
public education. Consequently, those who believe that public education is
systemically corrupt and past the tipping point of academic integrity are not going to be
willing to create a new revenue source of an industry that has become the new
Tammany Hall of American governance. From a practical standpoint, Texas Democrats
know that calling for a state income tax will not bring them majority status and Texas
Republicans know that advocating for a state income tax will cost them majority status."

For almost a century after the Civil War public schools were funded by a state poll tax
"on all male inhabitants between the ages of twenty-one and sixty," originally a dollar a
head then increasing in price and including women after suffrage passed.
First signature page
Texas Declaration
of Independence
Our litigious ways
Two pivotal lawsuits both occurred in 1931:  Love v. City of Dallas which said that the
state could not force local school districts to use local taxes to pay for education of
non-local students, and
Mumme v. Marrs, the first attempt by the Texas judiciary to
impose so-called wealth equalization or socialism, depending on your political stance,
on school finance.

The Gilmer-Aikin laws in 1949 created the
Foundation School Program for sending state
funds to local schools, further laying the groundwork for state senator
Bill Ratliff's Robin
Hood system
of state edu-funding in 1993 which introduced socialism to state public
school finance and in the bargain "destroyed about $81 billion of property wealth in
Texas," according to a report published in 2004 by
Harvard's Caroline Hoxby and Ilyana
Kuziemko,
who noted that "good intentions about redistribution are not enough in school
finance." Robin Hood was a multi-tiered system which forced property-rich districts to
send their "excess" funds to property-poor districts via a complicated formula talked
about by educrats in terms of "pennies" (really). Two years later Ratliff introduced SB 1
which at the local level stripped elected school boards of their authority, giving it to their
hired superintendents, and at the state level similarly robbed the
State Board of
Education
of its authority, giving its power instead to a governor-appointed Texas
education commissioner.
Bill Ratliff, the state
senator responsible for
bringing socialism aka
'Robin Hood' to Texas
public schools, now a
paid TASB lobbyist
earning $50,000-99,000.
So here's the bind: While as we have noted paying for public education has been a constitutionally mandated
duty of the state from the beginning, in actual practice parents by their own efforts through property taxes have
paid for the bulk of their children's educations at the local level. Where current annual distributions to local
schools from the
Texas Permanent School Fund only run about $765 million, $18.6 billion will be generated
this year by local taxes for public education.

Enter two decades of legislation and lawsuits by rich and poor districts alike--although the poor ones started
it--resulting in judges making decisions our elected representatives wouldn't.
What the current (1876) Texas Constitution says
"A general diffusion of knowledge being essential to the preservation of the liberties
and rights of the people, it shall be the duty of the Legislature of the State to establish
and make suitable provision for the support and maintenance of an efficient system of
public free schools" (Article VII, Section 1). It's the words "general diffusion of
knowledge" and "efficient" that have proven troublesome to the point of litigation,
especially with the stretching of the latter to include "equity."

Edgewood and its spawn
Regarding the first Edgewood lawsuit (of an eventual five) filed in 1984, "The Supreme
Court said that efficient means producing results with little waste--but that under the
current system some were being taxed at higher rates to achieve lower student
expenditures," says
Charles Rhodes, constitutional and state constitution law
specialist and associate professor of law at
Houston's South Texas College of Law,
pointing out that because school funding is the responsibility of the Lege, efficiency has
to be looked at statewide, not on a district-by-district basis.
1876 Texas Constitution
"Local school district supplementation still doesn't change the fact that the system must
be efficient statewide," Rhodes says. "The problem was you had places like Edgewood
taxing at over $1.00 per $100 valuation while
Alamo Heights [both San Antonio suburbs]
taxing at less than half that rate. But now Robin Hood's created its own inequities."

After a decade-plus of Robin Hood, many districts are fast approaching the maximum
property tax rate allowed under the scheme--$1.50 per $100 for M&O and $0.50 for
I&S--while others such as
Katy ISD in suburban Houston are already there. As one
example of the inequities to which Rhodes refers, when
Llano ISD (a Hill Country school
district now ranked 63rd wealthiest among the state's 1,031) sent a $2 million Robin
Hood payment to
Panther Creek CISD during the 2001-02 school year, the monies
generated for the hefty check came from Llano ISD's taxing its residents at $1.62 while
Panther Creek residents were enjoying a much lower $1.33 tax rate.
Edgewood HS
The mo' money mantra
For a variety of reasons, including inequities such as these and also because
wealthier districts were chomping at the $2.00-max bit, the most recent Robin Hood
lawsuit was filed,
West Orange-Cove, with a mix of plaintiffs: 47 rich, 260 middle-
income, and 24 poor districts. This was the suit heard before
Judge John Dietz in
Austin during August-September 2004 in which Bill Ratliff testified that Texas would
not be able to get away from Robin Hood without a statewide property tax--or income
tax--and Dietz found that mo' money needed to be found for educating children--
despite massive evidence presented to him that more money does not equate better
education. And, oh, he also found that Texas' school finance system was
unconstitutional because it didn't allow districts “meaningful discretion” in setting
their local property tax rates. According to West Orange Cove plaintiff
Austin ISD, "The
scope and detail of Judge Dietz’s written orders is unprecedented in the history of
Texas’s school finance litigation–Judge Dietz’s findings consisted of 655 fact
findings and 24 conclusions of law, and totaled 125 single-spaced pages."
Judge John Dietz
Robin Hood trial, Austin
Last November the Texas Supremes found Robin Hood
unconstitutional as it amounted to a state property tax, and that “the
public education system has reached the point where continued
improvement will not be possible absent significant change,” giving
the Lege a June 1, 2006 deadline for repairs.
What the 79th/3rd did
Appropriations by FY 2009   $ 10.3 billion
Revenues by FY 2009            
 $   4.2 billion
Shortfall                                    $   6.1 billion
The 79th Lege's 3rd called
So the current Legislature in its third special session, called specifically to resolve school finance, has just
passed a series of bills which will lower the maximum property tax to $1.00 in two years for districts already at
$1.50 M&O, and make up the difference with a revised business franchise tax meant to cure the
Delaware Sub
loophole
, with an additional $1.00 cigarette tax along with a new used car tax, all projected to yield $4.2 billion** by
fiscal year 2009. At the same time, Lege appropriations, projected at $10.3 billion** by FY 2009, include a $2.4
billion across-the-board teacher pay increase over the next three years, $600 million in teacher awards, and $275
per high schooler for reducing dropout rates and college prep. Texans are torn between taking bets as to how
much difference this $1 billion commitment over the next three years will actually make as throwing money at
education problems has never worked before, as with the example of Kansas City and others, and conjecturing as
to just how many more consultants will now be employed in our schools.
Robbing Peter to pay the piper
Because it's difficult to put Governor Perry's announcement that "homeowners and
businesses will save $15.7 billion on school property taxes" together in the same
sentence with the projected $6.1 billion shortfall, we queried the governor, whose
spokesman Kathy Walt responded yesterday, "The revenue sources you cite [above]
represent only those bills passed during the special session. They do not reflect the
surplus, nor do they take into account new revenue estimates that will be generated
prior to the start of the 2007 regular session. The tax measures passed by the
legislature will go into a property tax reduction fund to pay for future reductions of
property taxes. Should additional revenues be needed beyond what these taxes
generate and is available from surplus, general revenue (GR) funds could be used. The
new tax measures represent only a small portion of revenue that flows into GR."  
Texas Governor
Rick Perry--
All saddle, no horse?
Public education to be funded by a $23 billion 'hot check'?
Comptroller Carole Keeton Strayhorn, who is running as an independent against Perry
in this November's gubernatorial election, said in certifying HB 1, the largest single
piece of legislation this session, "Perry's entire plan is a massive increase in business
taxes that will increase the state's budget by $6 billion a year, leave a $23 billion hot
check, increase the number of businesses that will have to pay or file taxes by 200,000,
increase business taxes by 200 percent, and give the average homeowner a $52
property tax cut in school taxes only, this year."

In her press release Strayhorn says, "Were it not for the state's historic $8.2 billion
surplus, I would not be able to certify the bill and abide by the state's Constitutional
pay-as-you-go, no-deficit-spending mandate. Because of the huge surplus I would have
enough revenue to certify this bill through 2008, but not 2009 and 2010. I am certifying
this bill, but that does not mean it is good public policy--far from it. And the Governor is
not telling the people of Texas the truth. He is exaggerating, inflating and misstating
what the average homeowner is going to see cut on his or her tax bill by more than 300
percent."

Another state official, speaking on condition of anonymity, said yesterday, "All of this
money, this surplus the governor's talking about, is already dedicated. And a $6.1 billion
income spike is unrealistic, unless it comes from a combination of further cutting state
government expenses and increasing the sales tax. The problem there is that you only
get $2 billion per penny of tax, and our sales tax is already one of the highest in the
nation. So the ten per cent budget cut the governor announced yesterday afternoon
represents the first element of what we knew had to come in order to fund this
boondoggle, and the next will be an increased sales tax. Even though right now we're
awash in fuels tax money, how long will this boom continue? You can only sustain a run
like this on the economy for a short time, twelve to eighteen months, before the cycle's
over. But the governor's saying we've got to boom like this for the next ten years."
Texas Comptroller
Carole Keeton
Strayhorn first
found the $23 billion
'hot check'
(PHOTO/Dallas News)
Texas Legislature
War of the Worlds
Put simply, while a major conservative premise is that cutting taxes will boost the
economy, the corresponding liberal premise is that more money needs to be spent on
governmental services. Perry's 79th Legislature's third special called session
delivered both a tax cut and increased spending.

In a move considered by many to be not a reform but a power grab, the Lege has
agreed to a P-16 curriculum alignment to replace the previous K-12, and in the
process neatly discarded what
SBOE member Terri Leo calls "parents' last firewall" by
shifting the little power the elected SBOE has left to
commissioners Shirley Neeley
and Raymund Paredes, both gubernatorial appointees. As Leo points out, while the
SBOE has been granted "veto power over the end result, the bill language still has 'the
commissioners evaluating, reviewing, recommending, developing, aligning,
establishing, coordinating and approving the curriculum.' In other words, the two
unelected commissioners control the whole process."
Perry (left) wih educrats
Shirley Neeley, Robert Scott
TASA 1, parents and taxpayers zip
Alas, the open records "open checkbook" originally discussed--and opposed (is
"violently" too strong a word?) by the supe's union, the Texas Association of School
Administrators--in which districts would be required to post all checks written on their
districts' websites, was diluted down to a requirement that instead districts simply
post summaries of their proposed annual budgets.
Supes at 65% Task
Force meeting
at TEA - Oct. 2005
But is it constitutional?
While according to Governor Perry's press "this is one of the most significant legislative
accomplishments for Texas in a generation, because it is one of the most significant
steps we have ever taken to improve opportunity for the next generation," the jury's still out
on whether "because of House Bill 1, school finance is now out of the courthouse, and
back on constitutional footing.”

"I have questions as to how long the new financing scheme is going to be considered to
be constitutional," says
Charles Rhodes. "I think it's another short-term fix. The school
finance litigation is far from over. There will be challenges to this new system--essentially
they've come in and added dollars, but down the road in five to ten years there's going to
be a problem with funding levels creating efficient results. The legislature has dealt with
the question of the statewide property tax by increasing the state's percentage of
contribution and reducing the burden of property tax, but they've not done anything with
system-wide concerns regarding educational outputs. Nationwide school finance has
gone through waves; first is funding and financing, then the second and third are
concerned more with the adequacy and suitability of the education that's being provided.
House Bill 1 does very little to change educational quality--it's predominately a different
method of funding rather than dealing with some of the structural concerns."

Local newspaper headlines are taking a similarly cautious note: "‘Average’ tax break
depends on who you are"
(Athens Daily Review) and "Don't spend it yet--property tax cut
is not quite what Perry promised"
(Abilene Reporter-News).

Oink, oink.
West Orange-Stark HS
(of West Orange-Cove
lawsuit)
Ending on a note of drama
TASA notes: "Due to the passage of recent legislation by the Texas Legislature, Travis County District Court Judge
John Dietz has lifted the injunction that threatened the closure of public schools on June 1."
_________________________________________________________________________________________


*    "The federal court ruled . . . that if every 10th grade student has an equal opportunity to answer 5th, 6th, 7th or
8th grade questions then all must be well. " -- George Scott.

**   SOURCE: House Research Organization/Legislative Budget Board
http://www.house.state.tx.us/featured/schools&taxes79-13.pdf

If charts appeal to you, and you'd like to know more about the back and forth of litigation and legislative response,
try pages 6-7 here: http://www.capitol.state.tx.us/hrofr/interim/int77-8.pdf#6

How we take back our children's education:
one person, one question, one school at a time.
F o c u s i n g   o n   a c c o u n t a b i l i t y    f i r s t :  
T h i s    i s   h o w   w e   t a k e   b a c k   o u r   c h i l d r e n ' s    e d u c a t i o n  --
o n e   p e r s o n ,   o n e   q u e s t i o n ,   o n e   s c h o o l   a t   a   t i m e .        
  Copyright 1999-2006 Peyton Wolcott



Commentary

Edu-Conferences
____

BOOK EXCERPTS:

Education, Inc.

How To File a Public
Records Request

How To Organize

Lax Oversight

Success Stories,
Kindred Spirits
____

COMMENTARY
ARCHIVES
___

SPECIAL REPORT -
TEXAS LEGE:  TEA
POWER GRAB

PAYING FOR TEXAS
PUBLIC EDUCATION:
A PRIMER
____

About/In the News

AASA - American
Association of School
Administrators

ASA - Association of
School Administrators

CSD - Consolidated
School District

DOE - Department
of Education

ES - Elementary School

HS - High School

ISD -  Independent
School District

JHS - Junior High School

MS - Middle School

MSM - Mainstream media

NSBA - National School
Boards Association

NSPRA - National School
Public Relations Association

PS - Public School(s)

SBEC - State Board for
Educator Certification

SD - School District

Sup't - Superintendent

TAKS - Texas Assessment of
Knowledge & Skills

TASA - Texas Association of
School Administrators

TASB - Texas Association
of School Boards

TASBO - Texas Association
of  School Business Officials

TEA - Texas
Education Agency

TEKS - Texas Essential
Knowledge & Skills

USD - UnifiedUnited School
District
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QUOTES
Helping
parents &
taxpayers
implode
Education,
Inc.
ATTENTION EDUCATORS AND ADMINISTRATORS:
Every attempt possible has been made to verify all sources and information.   In the event you feel an error has been made, please contact us immediately.  Thank you.
Copyright 1999-2006 Peyton Wolcott
POP QUIZ:

How do you
yourself know for a
fact that your state
or local supe is
actually using the
funds entrusted to
them for the
correct purposes?

David v.
Goliath:

How
America's
Moms & Dads
are taking on

Education,
Inc.

PEYTON WOLCOTT
QUERY
THE SUPE
& THE PR GUY
TO:
KATHY COX-GEORGIA
SUP'T OF SCHOOLS &
CEO-GEORGIA DOE
CC:  
DANA TOFIG-
GEORGIA DOE
PUBLIC INFO. OFCR.
DATE:  JAN. 22, 2006

Can you please send me
the
annual dollar
amount
for each school
year (the five annual fiscal
cycles 2000-2005) that the
Georgia Public Schools
DOE has spent with
vendor
Computer
Consulting Services
Corp.
, described as a
consultant to Georgia's
DOE.
STATUS:
No response
rec'd from
Sup't Gray as of
June 8, 2006


The question
is not how to
measure
excellence at
public schools
and education
agencies.

The question
is how to
measure
competence.

-- Dianna Pharr
QUERY
THE SUPE
(& CC THE BOARD)
DATE FIRST SENT:   
FEB. 14, 2006

RE-SENT 03/26/06

Dear Strongsville
Superintendent
James Gray:

I'm hoping you can
clear something up for
me for my book and
website regarding your
standards for
administrative
practices in
Strongsville as there
have been not one but
two situations this past
year warranting
scrutiny....  

Regarding special ed
teacher Christine
Scarlett's
offering a
date with herself as a
grades incentive

1.    What rules/
guidelines do you now
have in place to
assure that nothing
like this happens
again?
 Would these
be administrative
changes or has your
board set specific
policies in place for
you to follow in future?

2.    
Rumors of an affair
between Scarlett and
Bradigan persisted for
several months.  You
have stated that you
have no idea such an
affair was going on.  
Do you feel
the fact
that you are
commuting from your
home in
Akron (if this
has changed, please
let me know) has
adversely impacted
your ability to monitor
what's going on with
your employees in the
Strongsville
community in an
important and
sensitive area such as
this?  Has your board
since made a
condition of your
employment that you
move to
Strongsville
and become an
integral part of their
community?

Regarding the sex
education booklet
placed last fall in
young children's
lockers

4.    What guidelines
did you follow from
your established
board's policies for
such?  

5.    There appears to
be a growing number
of parents who want to
be consulted before
such materials are
given to their students.  
As one mom put it,
"What's wrong with so
many people in the
educational fields that
they don't even think
twice about providing
children with
inappropriate
materials and not even
consider the parents
wishes....Their tactics
mirror those used in
Communist China and
Cuba where children
are considered not
children of parents, but
wards of the State."  
While this is clearly the
statement of an upset
parent, it does raise an
interesting issue
regarding public
school administrators
in the U.S.  
Do you
consider the students
in your schools yours
to educate as you
deem best or the
offspring of parents to
be consulted before
disseminating such
materials?

Regarding trainings
and conferences

6.    Of which
education-related
associations are you
and Strongsville City
Schools a member?
 
What are these
organizations'
guidelines for
disseminating such
materials?

7.    In which
education-related
conferences have
your and your staff
participated this past
year?  Where were
they and what were
the costs for each?   
Have you attended any
other seminars,
workshops or the like
offering guidance in
this area, and what
were those costs?

It may well be that
there are perfectly
reasonable
explanations for your
approving the placing
sex-education
pamphlets in young
students' lockers
without notifying
parents first, and it may
also well be that there
is a perfectly
reasonable
explanation for your
allowing a teacher to
offer a date at the Dairy
Queen with herself to a
young student; if so, I
am eager to learn such
reason or reasons.
==================
She said the booklet,
which also provides
information on the need for
parental consent for
abortion and a Web
address for the
Lesbian/Gay Community
Service Center of Greater
Cleveland, is
inappropriate for
11-year-olds.  I believe
some sex education needs
to be given, but when
subjects are discussed or
material is given to kids of
this nature, a notice
should be sent home to
the parent and they should
be allowed to opt out of
the program if they wish,
Fleming said.  School
Superintendent James
Gray said he gave an OK
for the pocket-sized
directories, which were
provided to the district by
United Way Services in
conjunction with the
county health department
and county commissioners,
to be given to students at
the high school, middle
schools and to sixth
graders.  Gray said he
received two calls from
parents who took
exception to the booklet's
content.  I understand that
and probably, in
retrospect, I should have
considered sending a
letter along with it as far
as an explanation, he
said, adding, this is a
developing situation. I
don't know what we are
going to do at this point.  
Colleen Grady, a city
resident and a member of
the state school board,
said she got calls from four
parents concerned about
their children getting the
directory.  Grady, who is
also a former city school
board member, said she
has not personally seen
the publication, but they
(parents) read me sections
over the telephone.  She
said the state board of
education may wish to
make a legislative
recommendation to the
Ohio general assembly,
and the board could also
consider discussion about
adoption of a model policy
for the distribution of such
materials.  Gray said there
will be continued
discussion, in the district's
curriculum and pupil
services departments on
whether to curtail
distribution of materials
which are considered to
be sensitive, particularly
for the younger kids.
CONTACT:
Peyton Wolcott
P.O. Box 9068
Horseshoe Bay, TX  78657
peyton@peytonwolcott.com
Key dates in Texas public school finance

1845 - Permanent School fund established (current annual distribution: apx. $765 million)
1876 - Property (ad valorem) taxes legalized.
1917 - The Lege authorizes the state's purchase of textbooks for all schools.
1949 - Gilmer-Aikin created the Foundation School Program for sending state funds to local schools in which
"equalized" local taxes would be supplemented by the state.
1968 - Ad valorem taxes abolished.
1973 - U.S. Supreme Court rules finds in Rodriguez v. San Antonio ISD that the state's school finance system
was not unconstitutional, should be settled in Texas, and that Texas would not have to subsidize poor school
districts.
1984 - More dollars to property-poor school districts via House Bill 72.
1989 - Texas Supreme Court translates "efficiency" in Art. 7, sec. 1 of constitution to mean "equity."
1992 - Texas Supreme Court links equity to "adequacy,” also to “suitable” in Art. 7, sec. 1.
1993 - Senate Bill 7 (Robin Hood) school finance plan authored by Bill Ratliff.
1995 - Texas Supremes uphold SB 7 as constitutional re "equity" and "efficiency."
1995 - SB 1 (also Ratliff) strips both local board and the SBOE of any real power, concentrating it in the hands
of locally appointed superintendents and at the state level the commissioner of education, appointed by the
governor.
2000 - Federal judge Edward Prado upholds TAAS testing in MALDEF, paving the way for the accountability
testing movement and NCLB.*
2004 (Nov.) - State District Judge John Dietz rules Texas' school finance system unconstitutional, gives the
legislature a June 1, 2006 deadline to fix.
2005 (Nov.) Texas Supreme Court concurs.
2006 (May 31) - Gov. Rick Perry signs 79th Lege's third-special session legislation into law: is it a real cure for
Texas school finance or merely the latest legislative fix which the judiciary will undo? Only time will tell.