The+State+Funding+Formula

The main source of funds for Texas pubic schools are local property taxes, state funding, and federal funding. The main issue that impacts this funding is the local M&O tax rate. This, of course, varies from district to district. In a rich district, one penny of tax effort might raise a million dollars where as the same penny in a poorer district might raise only $100,000. One can easily see that this difference will result in a vastly different quality of the educational program. Finding a way to fund education so that each student, regardless of the district in which s/he lives, has access to the same quality of educational opportunity is only fair to those students and to all taxpayers. Taxpayers in a poor community are subject to high property tax rates and then send their children to schools that are funded at a low dollar amount while taxpayers in wealthier districts pay a lower property tax rate and send their children to schools that are funded at a higher dollar amount. This system of funding is inherently inequitable to students in poorer communities. Many efforts to equalize funding have been attempted but have not resulted in providing all students and districts access to equitable levels of funding.

The second important issue impacting the funding of education in Texas is the weighted average daily attendance (WADA) that is used in the funding formulas. The number of students enrolled in a district who are served through special programs such as Gifted and Talented, Special Education, or bi-lingual programs yield additional funds from the state above what is allocated for the education of regular education students. This makes perfect sense as educating students with special needs is more expensive than educating students without those educational needs. In reading the TEA publication, //School Finance 101//, the importance of accurate coding of students enrolled in these programs as well as the actual attendance percentage of these students became clearly evident. Not only do we want students with special educational needs to regularly attend school in order to benefit from quality instruction, but we want the district to benefit from the additional funding opportunities provided by the state. We have to pay for the program that is designed to address those students’ needs whether they are present or absent but we do not receive the funding when they are absent.

Another important issue impacting the funding formulas in Texas is Federal Funding. Federal funds are allocated to local districts to address special programs and student needs. The current economic situation in our nation and the resultant wrangling between competing interests may well result in reduced federal support of education programs. Even if funding is reduced, the requirement to provide these programs will not go away. Our quandary is to find ways to fund programs that have lost federal monetary backing.