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FOR IMMEDIATE RELEASE Contact: Gabriel J. Valenzuela
February 5, 2003 (512) 463-0690

Rep. Truitt  Files Bill to Reform School Finance Formula

AUSTIN, TX -- There are many issues facing the current Texas Legislature. Foremost on the mind of a great number of voters is how the state finances public education. Although the state constitution states that the state must provide for public education, much of the cost has increasingly been borne by local school districts. In addition, the current system has unintentionally pitted school districts against each other in competing for state dollars by classifying some as rich and others as poor.

Many suggestions on how to resolve the issue have ranged from doing nothing to completely doing away with the entire system and starting from scratch. However, one of the major problems with the financing system that many people are overlooking is simply that many of the school finance formulas or their components are now outdated or irrelevant.

The cost of education index (CEI) for example, which is a multiplier in determining the adjusted allotment a school district will get from the state per student, has not been updated in more than a decade. The CEI is supposed to account for uncontrollable cost variations, particularly regional variations in the salaries that teachers demand.  Since it is outdated, some districts in high-cost areas are at a disadvantage in competing for teachers, particularly inner-city and suburban areas. The CEI determines the distribution of about thirteen percent of state aid, totaling more than $1.25 billion per year, as well as how much tax revenue is subject to recapture from property-wealthy school districts.

To remedy the situation Texas House Representative Vicki Truitt (R-Keller) filed legislation, House Bill 717, that would update the formula to reflect current costs. In addition, the bill would provide for a continual revision of the formula to prevent it from once again becoming outdated.

 “This proposal will update the public school finance formula so that it will more accurately reflect the true cost of paying for education,” Truitt said. “Some school districts will see a larger increase in funding from the state. Others will experience a reduced payment of ‘recapture’ more commonly referred to as a ‘Robin Hood’ payment.”

 To symbolize the impact that the current financing system has on individual students, Grapevine-Colleyville Independent School District (GCISD) students created a paper chain to present to members of the Texas Legislature.  Each link in the chain had a student’s name, grade, school and special message for Texas lawmakers. The chain was created by more than 8,400 GCISD children measuring approximately 2,125 feet or 708 yards. In addition, because of the February 1st events, the children added seven white links to the chain in memory of the Columbia astronauts who perished and will dedicate the chain in honor of their pursuit of science and knowledge.

If passed, the bill will take effect September 1, 2003. The bill could become effective upon passage if it receives two-thirds support in each chamber of the legislature.

To follow the progress of this or any other legislation you can log on to the legislature’s web-site at www.capitol.state.tx.us.  Interested individuals can also call the Texas Legislative Reference Library’s toll-free hotline at 877-824-7038 or 512-463-2182. The hotline will be open during the legislative session from 8:00 am to 5:00 pm, Monday through Friday, with extended hours if either chamber is convened.