Midland ISD sues Texas Education Agency over funding

[00:00:00]A Texas school district is now officially challenging the state's system that funds our public schools.

[00:00:07]The school board at the Midland Independent School District voted unanimously this week to sue the Texas Education Agency. The result of this legal challenge could have far-reaching effects here in Texas. So, joining us now to talk more about his reporting into this is Isaac Yu. He is a politics reporter for the Houston Chronicle and the San Antonio Express-News. Isaac, welcome to our show and thanks for talking to us today.

[00:00:31]>> Thanks for having me.

[00:00:32]>> What exactly is Midland ISD seeking to change through this lawsuit? What's the motivation?

[00:00:40]>> So, Midland ISD is trying to keep more of its local property taxes. Um under the state's finance system known as Robin Hood, property-rich districts send money to the state, which is then redistributed.

[00:00:53]Um they they say that they're sending too much money under the state's restrictive formulas, and they want to keep more part of it at home.

[00:01:01]>> Did Midland ISD share how much money that it believes it will soon have to send back in through this recapture?

[00:01:08]>> I think in the most recent year, um their total property tax levy was over 300 million, and about 80 million of that is going to be sent to the state.

[00:01:18]Um they say that over the last decade they've paid over a billion of their local property taxes to the state.

[00:01:23]>> Hm. Well, just, I believe, Tuesday night was when this vote happened, but um did district leaders say anything there in Midland about what they would do if their lawsuit is ultimately successful?

[00:01:36]>> Well, the lawsuit is hoping to force the legislature to rewrite or overhaul the state's formulas. Um like I said, to help them keep more money. Um they said that they would like to reinvest that back into their into their communities, and um they have you know, a I think a lot of um budget issues and things that they're wanting to pay for, Um um, that they'd like to put that money towards instead of sending a check to, um, the state government.

[00:02:04]>> Of course, right now we're hearing a lot from Midland ISD about their motivations for bringing this lawsuit, but, uh, how is it perhaps landing with the TEA or some other state leaders?

[00:02:15]>> Um, the Texas Education Agency has said that it cannot comment on legal matters and state leaders so far have not responded to this, but, um, Midland school board members have said they've received, um, encouragement from other districts who are also paying, um, you know, towards the state known as recapture. They say that they are hopeful that other districts will join on and help split the legal costs, um, similar to previous challenges where hundreds of school districts joined together to sue the state.

[00:02:46]>> Yeah, I That was my next question was, uh, this is not a new complaint for a lot of districts across our state about the challenges that this particular system creates. So, is there a likelihood, according to the reporting so far, that perhaps other school districts could join the legal fight?

[00:03:03]>> We haven't heard directly from any school districts. We have been asking around, um, but say they are going to join the lawsuit at this time. It was just filed this morning at 9:00 a.m. in Travis County. Um, last time I think it was somewhere between half and two-thirds of all Texas school districts, um, ended up joining the suit, um, that was unsuccessful in 2016.

[00:03:24]Um, you know, it it could take a broad coalition of districts to, um, you know, make this case to the court.

[00:03:32]>> Because of those previous legal challenges and where they ended up, is Midland ISD and the leaders there confident about their chances that this could lead to some change?

[00:03:42]>> They are saying that they are hoping for a different outcome this time around.

[00:03:46]They are making some similar arguments to the past. They're saying that the state's restrictions essentially amount to a statewide property tax, which is not allowed under the Texas Constitution. They are specifically targeting a 2019 overhaul of the school finance system that gave the TEA commissioner more power over setting limits on property tax levies.

[00:04:11]It'll be up to the court to see whether that's a convincing argument.

[00:04:14]>> Certainly will be interesting to see where this lawsuit moves forward now that it's been officially filed here in Travis County. But Isaac you with the Houston Chronicle and the San Antonio Express News. Thank you again for joining us and for your reporting and everyone should check out his story there on those websites. But Isaac, thanks again.

[00:04:31]>> Of course, thank you.