The effects of equalized funding on the local tax rate of property-wealthy and property-poor districts in Texas

With the inception of Senate Bill 7's school finance component, better known as the “Robin Hood” plan, which was designed to equalize educational funding, many districts have felt the budgetary effects on school management. The adjustments required depend upon whether a district is considered a property wealthy or property poor district. Property wealthy districts are also referred to as Chapter 41 districts and they have revenue of over ;Senate Bill 7's school finance component has a clause within it stating that no district can have a maintenance and operation tax rate of over ;The research revealed that there had been a decrease in interest and sinking tax rates, maintenance and operation tax rates and total local rates with data inflation adjusted for the plaintiff and defendant intervenors of the Edgewood vs. Kirby case and for the Texas School Districts. It showed that Senate Bill 7 had accomplished what it set out to do and that was to equalize funding. In addition, the total local revenue and instructional expenditure, per ADA increased overall. The study further revealed that the total expenditures, instructional expenditures, staff development, school leadership, general administration, extra curricular and total state aid all increased from 1993 to 2001. Instructional leadership was the only expenditure that experienced a decrease from 1993 to 2001. The statistical significance for each is outlined in Chapter V.;This research had encompassed a multitude of revenues and expenditures, which drives a school budget, a school district's program availability, facility improvements, and salaries that can have an affect on the quality of teachers and the success of students. The study was a beginning for further research to be conducted to measure the complexity of school funding and its implications for the Texas educational and economic future.