Texas School Finance - Robin Hood Alternative

About 1% of Texas sales taxes would pay about 10% of the total cost (tuition) on average for Texas public school students. However, no sales taxes are allocated to public education. Currently students are paid for with a combination of local property taxes, State & Federal money, and local taxes transferred between districts.

My suggestion based on input from various people is for a 2.5% sales tax as the base amount for Texas students then the balance would be paid by the existing means except that property taxes would be eliminated until voted in by school boards and citizens. None of the property taxes would be redistributed except when a student enrolls in a different district or charter school while still a resident of the local district. Specific suggestions are as follows:

1. Raise sales taxes 2.5% to provide approximately 25% of the average tuition (cost) for every Texas public school student.

2. Eliminate all current school property taxes except for bond payments.

3. Allow school boards to vote in up to a limited amount in property taxes and require a school board vote every year to continue those taxes.

4. Allow local voters to approve up to a limited amount in property taxes separate from any amount approved by the school board and require voter re-approval at every election that involves anything for the local school district like trustee and bond elections.

5. Have amounts 1 & 3 (but not 4) follow a student that enrolls in a different district or charter school.

This approach establishes a base level for all Texas students, allows local communities to adjust based on the cost of living, and puts property taxes back into local control.

In Texas (possibly not in other states) property taxes are regressive (lower income people pay higher percentage of their income due to this tax); whereas, sales taxes are progressive; and incidentally, the state lottery (although not considered a tax) takes advantage of those least able to pay it.

State sales taxes are not applied to staples; therefore, a family buying milk/bread/other similar items does not pay state sales tax; whereas, property taxes have homestead exemptions which are not allowed for rental property causing higher costs to lower income people. Also, property taxes ripple through our economy as higher costs for everything including the staples that are exempted from sales taxes, rents, and fuel.

Thank you for your input.

David Lee Hall

dhall.texas@gmail.com