School Finance Week 1 Assignment Part 1

Top Three Events in the History of Texas School Finance
1. Mirabeau B. Lamar is known as “The Father of Texas Education” because he was the driving force that persuaded the legislature to establish three leagues of land in each county to support education and 50 leagues of land for two universities. These land grants provided the initial funding for Texas A&M University and the University of Texas. Why? This event was selected because it provided land for the early higher education system as well as land for other schools throughout the state. Utimately it placed emphasis on the importance of education for the state and definitely set the tone for future generations of Texans.
2. The Republic of Texas became the state of Texas in 1845 and the new Texas Constitution provided for the establishment of free schools and called for state taxes to support education. One-tenth of the state revenue was dedicated for educational purposes and became the basis for what we now call the Permanent School Fund. Why? This event was chosen because it came forth after our annexation to the United States. The new state constitution provided a free education to its citizens and created a method of payment for these services, although it would not be sufficient for the future.
3. The Texas Supreme Court in November, 2005, in the case of Neeley v West Orange-Cove CISD, et al, decided in a 7-1 decision that indeed the $1.50 tax cap for M&O created a de facto statewide property tax which is unconstitutional. It also stated:
• Current school funding was adequate
• That although a disparity existed between rich and poor districts, the disparity was not large enough to be unconstitutional
• Consolidation of smaller districts should be considered in the name of fiscal efficiency;
and
• The state legislature is cautioned that soon the funding disparities between rich and poor districts would rise to a point it is unconstitutional and is in need of a remedy
Why? This event was chosen because it was a more modern view and impact on school finance. When to Texas Supreme Court determined this form of finance unconstitutional it required major changes to funding.