An increase in the state’s share of the cost of education will result in a reduction of the financing burden on local school districts and local property taxpayers. Additional money should also be provided for public education in general. Over the short term, the state should seek to become a full partner in the education system by funding at least 50% of the cost. This share should be increased over the long term.

The costs involved in providing public education are enormous. The Task Force understands the challenge of meeting the objective of a larger share of state funding. It is easy to simply declare that the state should pay more of its fair share, but this is an arduous goal in terms of dollars and cents. The Texas Education Agency notes that a 1% error in projecting state cost is worth $220 million in a biennium.140 Even so, during the MALC hearing process, public testimony was clear that local entities and citizens want relief.

The state’s options for revising the current finance system (such as raising the guaranteed yield) or revamping the manner in which we generate revenue (increased sales tax base, state income tax, etc.) were discussed in the hearings and have been addressed in other legislative committee proceedings and reports. The tax options available to the Legislature have been repeatedly laid out.

As MALC members review and debate these alternatives during the next legislative session, it is important that any solution increase the state’s financial responsibility, lessen the burden on local school districts and provide more money for education. No proposal that is revenue-neutral for education should be considered.