Future Capacity
Reliable data show that
Texas’ public education system is
at 98% fiscal capacity. This percentage is projected to increase
to
over 99% within the next two years. When fiscal capacity
hits 100%, the entire system of public education is likely to
collapse. We are
perilously close to that point.
Even though the Legislature
has appropriated additional money to schools in the last several
sessions, the
state share
has decreased
to its lowest level since World War II. The state
share has fallen to 41% while the local share has
increased
to 59%
over the past
58 years.
Education must be a priority
for this legislature and it is critical that lawmakers demonstrate
commitment
to education
by providing
the necessary resources to sustain this important
state
function. This
is a critical time for public schools. We need
support now from this legislature because we
cannot wait
for additional state
assistance beyond this legislative session. Reducing
costs is not a new or
novel
concept for public schools. School leaders have
been in a
cost
reduction mode for several years. A majority
of the school districts in Texas
are at or are rapidly approaching the tax cap.
Over 600 school districts, representing over
76% of the
students
in Texas,
have tax rates of
1.46 to 1.50. The number of school districts
at the tax cap is expected to increase significantly
in
the coming
school
year.
Because they cannot raise
their tax rates as their financial burdens increase, these districts
will
have no alternative
but to begin
cutting programs. These cuts will vary from
the
extreme–which includes
the elimination of enrichment programs–to the highly undesirable–which
means laying off teachers and increasing class sizes. How soon these
cuts will occur and how deep they will go will depend upon each district’s
particular circumstances. In fact, many school
districts across Texas have already begun to
reduce funding for
instructional programs and
to cut staffing. Approximately, 60% of our
public school districts face this scenario
right now.
School districts already
have made cuts and have also increased local taxes in order to
forestall
this crisis.
When school
districts reach
the property tax cap, superintendents and
boards have difficulty balancing interests within
the district. They will be faced
with the unenviable task of cutting programs
in an effort to avert
a complete crisis. If the Texas Legislature
doesn’t
come to the rescue, the fate of Texas public schools
will be doomed.
The Issue: Each year, the enrollment of Texas
public schools increases by approximately
75,000 students.
In real terms,
that’s about
the size of Fort Worth ISD.
In addition, state demographic
estimates project that future enrollment trends in
Texas will
be students with limited
English proficiency
and students with other special needs.
Studies prove that it is more costly to provide an
education to
these
students.
In order for school districts to be able
to maintain adequate and equitable funding
with
these constraints
in mind, the
future capacity
of the school funding system must continue
to grow at a pace consistent with growing
need.
Analysis
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