Texas ‘Robin Hood’ law: Bill looks to repeal state recapture law

Texas ‘Robin Hood’ law: Bill looks to repeal state recapture law

In 1994, Texas executed its “recapture technique,” which removes neighborhood home tax pounds from districts with the greatest degrees of home prosperity for each scholar.

AUSTIN, Texas — Editor’s be aware: The video clip released earlier mentioned was a Verify report from 2019 about Texas’ “Robin Hood” procedure.

A Texas lawmaker has filed a monthly bill aimed at repealing the state’s longstanding recapture procedure – typically dubbed by some as “Robin Hood” – which was applied in 1994. 

Texas’ recapture procedure necessary the state to remove nearby assets tax dollars from districts with the best stages of residence wealth for every scholar in an effort to present extra equal for each-pupil funding throughout the point out. In 1994, the Point out removed $127 million from 34 university districts in buy to equalize funding for community education. 

Recapture has considering that developed to about 160 districts shelling out upwards of $3 billion. 

In the most up-to-date money report from the Texas Training Company (TEA) for the 2020-21 university yr, Austin ISD was the maximum-billed district in Texas at $761.3 million, a 320{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} boost from its $181.1 million selling price tag in 2015 and additional than $500 million much more than the 2nd-most: Houston ISD at just in excess of $197 million. Plano ISD arrived in third with just in excess of $191 million. 

Condition Rep. Matt Shaheen (R-TX), who signifies Collin County in District 66, introduced Tuesday he experienced submitted Dwelling Invoice 620, which aims to “repeal Section 12.013(b) of the Texas Training Code and enable university districts to keep more property tax pounds collected to assistance and function the colleges in their group.”

In accordance to a report from Texas School Coalition, it recaptured an supplemental $1.4 billion that it did not allocate to schools and did not return to taxpayers.

There has already been laws handed to relieve the house tax profits punch to taxpayers. In 2019, lawmakers passed House Bill 3 (HB 3), which restructured how recapture is calculated. According to the Texas Education and learning Agency (TEA) site, HB 3 lowers recapture in 3 principal means:

  1. The calculation of recapture is now centered on nearby earnings in excess of entitlement in its place of equalized prosperity degrees
    • CEI: Disparities between recapture and non-recapture districts brought on by the CEI have been eradicated
    • Transportation: Costs for transportation are now funded equally concerning recapture and non-recapture districts
    • Entitlement prevails over recapture: Districts are now assured that recapture will not cut down income down below their entitlement stage (TEC, Area 48.257, HB 3 Enrolled Webpage 92)
  2. Full entitlement amplified – observe the BA enhance as effectively
    • New allotments were created (Early Instruction Allotment, CCMR Bonus, Trainer Incentive Allotment, and so on.)
    • Present allotments had been expanded (Condition Compensatory Training, particular schooling, bilingual/twin language)
  3. Reduced property tax charges
    • HB 3 reduced tax fees, ensuing in less collections
    • HB 3 has a system to lower future residence tax fees

For extra information about HB 3, simply click listed here. To read through the total recapture report from the Texas University Coalition, click on right here.

Rep. Shaheen is notably a resident of Plano and is among the taxpayers impacted by Plano ISD’s recapture fees. 

“Plano ISD taxpayers have compensated $1.67 billion collectively into Robin Hood with no sum of that dollars becoming invested on educational institutions found in Plano ISD,” Shaeen mentioned in a press release asserting HB 620’s filing. “It is a blatant exploitation of these taxpayers, myself involved, and I will carry on to combat to repeal Robin Hood.”

Below are the earlier five documented yrs of Plano ISD’s recapture expenditures, in accordance to TEA records: 

Dallas ISD is also amid the top rated charged districts for recapture, having to pay the ninth-most money in the condition in 2020-21 ($85 million), in accordance to the 2022 Texas University Coalition report.

The finance stories for 2021-22 and 2022-23 will be accessible in spring 2023 and spring 2024, respectively, according to the TEA web site.

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