Across Texas new stadiums are getting built, and the obvious question is why are they building new stadiums when they are laying off teachers? Why are they building new schools and academies when there are teachers that are in the unemployment lines? These questions were asked this weekend when I had a heated conversation with my father in law.
The answer to both questions is actually quite complicated. It starts with the school taxes that you pay on your property. Local property taxes account for 54% of the funding of Texas Schools. I have included a pretty good website that discusses how funding breaks down. So the other funding comes from several different sources. The first is state funding. This accounts for quite a chunk of the funding, but depends on the district and whether it can meet the minimum per student requirement. The second source is federal funds, which typically is for special programs only like disadvantages schools or special education. The final place is an ominous category called other. This money comes from private companies and individuals who donate money.
While this may seem simple, the real problem comes down to the rules set aside for who can spend the money and how the district can spend it. The district is only allowed by the state of Texas a certain amount of money for each student. This amount is capped and has not been changed in several years. Also, local districts are not allowed to control their property taxes to increase revenue. This is only allowed at the state level. The last regulation that has been placed is the bond issue. Bonds are one of the many ways that a district can use the money it has in property taxes. Basically, bonds are money that is borrowed against the property taxes for a certain number of years. The local government pays itself back after 30 years just like a morgage, and it allows itself to build buildings. The problem is that this is for capital improvement, and does not include teachers jobs. Districts often need a new facility but then run into the problem of not having enough people to man it.
The school finance game is tricky. It really equates to to many hands in the cookie jar. This does not even take into account that most districts are administration heavy and do not put enough money into the classroom due to high overhead. To fix a problem like this it is imperative that the government fix the complexity of this system first. What good does it do to throw money at a situation that cannot support itself. We really need to look at how districts raise and utilize the money that they get and then look at how we can better utilize it. One way to help ease the burden is to allow bonds to be used for district personnel for start up costs on new projects. What good does a building do if there is no one to use it.
Check the following links out for a breakdown on school finance:
http://www.texasbudgetsource.com/school-districts/where-the-money-comes-from/
http://www.putourkidsfirst.com/kidsfirst/nat_science.asp
Until Tomorrow,
Education is the transmission of civilization. ~Ariel and Will Durant
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