lb sand said:
Last year at this same time, I was talking with David Slattery who was a school board candidate then. He was explaining the Robin Hood aspect of tax redistribution especially how it pertains to sbisd. I don't remember the exact amount he said, but it was well over 50% of the tax collected in sbisd was sent to the state to be used in other districts. I was flabbergasted.
The "Robin Hood" and "sent to be used in other Districts" are kind of lies. That is the conceptual rationale for the mechanism, but it is not actually how it works.
The "other districts" do not get extra money when SBISD or Austin ISD or HISD or whichever districts send more money to the state. The recapture payments are reimbursements sent directly to the state general fund and they get to spend them however they want.
Imagine a Texas with only 2 school districts, and based on the complicated ass formulas used to decide such things, both districts require $100,000,000 or whatever amount. The poor district has a low property tax base that can really only raise, lets say $50,000,000. So the state cuts them a check for the extra $50,000,000. The rich district has a tax base that is able to cover the $100,000,000, but not to levels that would be subject to recapture, so they raise $100,000,000 themselves from their tax base and get $0 from the state.
So in this case, local taxpayers paid out $150 million, the state kicked in $50 million to cover the shortfall in the poor district.
Now ten years go by and the tax base in the rich district has doubled due to rising property values and even the poor district went up by lets say 50%. Lets also say the cost of educating children went up by 25% for inflation or whatever.
So poor district now has a budget need of $125,000,000 according to the formulas, their tax base went up 50%, so they are now raising $75,000,000 in taxes, and the state still has to kick in $50,000,000 in order to get them up to the $125M that they need.
Now the other school district has blown through into Robin Hood territory. Their taxes now raise $200,000,000. But now they have to send $75,000,000....not to the other school district, but to the State of Texas and use the rest of the $125,000,000 to fund their district.
So after ten years, now taxpayer burden has increased from $150 million (50 and 100) to $275 million (75 and 200). The state used to pay $50,000,000 for education. But now under "Robin Hood" in this example they would pay out $50,000,000 still to the poor district and take in $75,000,000 from the rich district and now have $25 million of free local tax revenue that they can spend just like their state tax revenues.
That is what has been happening over the years. As property values go up and up and up, the state continues to bankroll education but they profit off of all the gains that are being forced out of property taxpayers. The state no longer has to use their state revenue sources to pay for education, they just get more and more back from "rich" school districts. Basically the way Recapture has been functioning for the last 30 years or so as the real estate boom has been happening is that the State is slowly able to implement "Robin Hood" by replacing their own obligation to poor school districts with more and more money for rich districts while they just get themselves out of funding schools altogether and put it totally on the backs of local taxes.