| Taxpayers challenge state's school finance law 04/05/2001 Associated Press DALLAS – Four taxpayers filed suit today to challenge the constitutionality of the state's school finance law known as "Robin Hood,'' in which property-rich districts send part of their tax revenue to the state for redistribution to poorer districts.
The lawsuit, filed in state district court in Dallas, seeks to prevent Dallas and Highland Park independent school districts from collecting the taxes. The plaintiffs claim the share-the-wealth plan is an unfair statewide property tax that has raised taxes for all while forcing some districts to cut programs.
"We are exporting money out of the wealthy districts. We are not exporting excellence,'' said plaintiff David Hopson, a Dallas homeowner whose son attends private school.
The taxpayers' lawsuit is an early warning that Robin Hood may be in jeopardy. Dozens of property-wealthy school districts have been organizing to sue the state to put an end to the funding plan.
While major school-finance reform is not on the Legislature's agenda, Hopson said he hopes the lawsuit will spur districts to push lawmakers for change.
Highland Park schools Superintendent John P. Connolly said the district is obligated by state law to collect the taxes.
"With the oppressiveness of Robin Hood, I'm surprised there has not been taxpayer litigation before this point,'' he said. "But the issue is not a local issue. It's a statewide issue.''
Ray Zief, chief financial officer for the Dallas school district, said his district is neutral – it neither collects nor receives Robin Hood funds.
"We are a ways away from that happening,'' he said.
Hopson said he fears that the Dallas district eventually will be forced to share tax revenue.
Under the system, a property-wealthy school district's so-called recapture payment is based on enrollment estimates and property values. In the 2000-01 school year, 84 property-wealthy school districts statewide are expected to share $522 million of their property-tax revenues with other districts.
Of the $73.1 million that the Highland Park school district will collect this year, about $41.4 million will be sent to the state for redistribution.
The Robin Hood law was passed after poor school districts sued in 1984, arguing that the state's system of paying for schools was unconstitutional because children in poorer districts received an inferior education.
Texas has neither income tax nor a state property tax. By law, school districts can collect no more than $1.50 per $100 property valuation to run and maintain their schools.
But about a fifth of the state's 1,000 districts already have reached the tax ceiling. With Texas seizing a chunk for poor schools, wealthy areas are frustrated by their inability to raise more money.
The lawsuit alleges that many poor districts tax at the maximum $1.50 rate to generate the greatest yield. And wealthy districts must tax at that rate so they'll have enough to maintain their educational programs and comply with state law.
Plaintiffs' attorney Tom Thomas said Robin Hood was only intended as a temporary funding mechanism.
"Everybody's tax rate has escalated,'' he said. "Homeowners in property-poor districts are now suffering because many are now forced to tax at the maximum rate.''
But wealthy districts are suffering, as well, Thomas said. In Highland Park, students are required to pay an athletic participation fee of $150. Private funds have been used for pay for teachers, programs and staff development.
"They are paying far more money than they ever did before and getting the exact same services,'' Thomas said.
The Legislature is not likely to take up the issue this year, said Sen. Teel Bivins, R-Amarillo, chairman of the Senate Education Committee.
Bivins has asked for an interim committee to study the issue before the 2003 session.
"I feel like we will have a funding crisis on our hands if we don't act in 2003,'' he said. "I think that Robin Hood has proven to be politically, enormously unpopular.''
Other plaintiffs are Robert Windham of Dallas, and Albert and Mary Huddleston of Highland Park.
Craig Foster, executive director of the Equity Center, an association representing poorer school districts, said he was against any action that would widen the funding gap between property-wealthy and lower-wealth districts.
Foster said the state should provide a larger share of school funding.
"We don't disagree that at $1.50 (per $100 property valuation), you cannot provide a truly appropriate quality education,'' he said. "But if you do away with recapture, or even if you raise the threshold and don't also raise the funding elements for lower-wealth districts, you increase the funding gap.''
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