Dan Branch

Member

Texas House of Representatives

May 20, 2004

Dan Branch is Budget and Oversight Chairman of the Public Education Committee and a member of the Select Public School Finance Committee in the Texas House.

Special Session falls short

Any seasoned Texas traveler knows that smooth sailing is rare in April and May. Texas turbulence grounds or thwarts many air travel plans during the Spring. Similarly, the Texas Legislature faced exceedingly choppy skies during its first attempt to reach a school finance solution. Though a silver lining never appeared during the 28-day session, all is not lost. A favorable forecast may still be on the horizon.

Texas’ current system of education funding has been studied, discussed and litigated for more than a decade. For much of that time, advocates of reform have attempted to convince stakeholders that the system needs change. Today, there is considerable consensus surrounding the vision for reform. The Legislature must now find consensus on the specifics.

Though the outcome of the recently concluded special session was deeply disappointing for our community and your representative, the special session was worth legislators’ time and taxpayers’ money because it focused members on the details. After months of theoretical and hypothetical debate, the pressure of the session forced decision-makers to put specific ideas on paper and proposals on the table. Sponsors presented and defended their potential solutions. Many votes were taken in the House. Unfortunately, the Senate failed to even take a vote in committee, let alone the floor, claiming that 14 days provided insufficient time to pass a bill. (Ironically, it took that body just 6 days to pass its school finance plan during the 2003 Regular Session.)

Though the first school finance special session ended without new legislation, legislative leaders discovered viable options and some areas of common ground. We also realized the political hot spots and question marks. Legislators, as well as constituents, who had never addressed school finance or considered revenue-raising measures became more educated on the benefits and burdens of different solutions.

A recent Scripps Research Center Texas Poll shows points of agreement among voters. In order to improve public education, a majority of voters support a slight increase in the sales tax, a cigarette tax hike and video lottery terminals at race tracks where wagering currently exists. My own recent constituent survey of approximately 400 registered voters from our District also reflects those sentiments. These funding options would generate roughly $3 billion in new revenue that could offset 30 cents of tax relief per $100 of property value or provide additional resources for public schools.

Property tax relief versus a broad business tax – the debate will likely center on this question. In order to dramatically reduce property taxes, sufficiently fund public schools with a revenue source that grows with Texas’ economy and significantly scale back Robin Hood, I favor reforming the existing franchise tax in addition to the previously mentioned sources. Since businesses benefit greatly from an educated workforce, reforming the franchise tax (reducing the rate and broadening the base) would give most Texas businesses a level playing field to contribute to the long-term success of our public schools.

Broadminded business leaders with the Greater Dallas Chamber and the Dallas Citizens Council see and support the connection. They favor a low-rate, broad-based tax that includes business entities that are currently excluded from the business franchise tax. Along with these leaders, I favor such an approach because of the critical need for funding an excellent public education system, significantly lower property taxes (to rein in Robin Hood), no state personal income tax and no sales tax on services.

The window for action is closing. That’s why I sponsored legislation in 2003 that set a September 1, 2004 deadline for action. The Legislature voted to self-impose the deadline in order to prompt reform. The Governor added his signature. In addition, a lawsuit between more than forty Texas school districts (including DISD and HPISD) and the State of Texas returns to state district court on August 9. If the Legislature does not implement a new system by then, the court could. As the elected representatives of all Texans, the Legislature should control the destiny of school finance reforms, not the courts.

The Legislature has stated in law that it would act by September 1, 2004, and the Governor has committed to calling multiple special sessions until the problems are fixed. Any constitutional amendments should go before the voters this November. In recent days, I have encouraged the leadership to remain intent on fixing the problem soon. Lt. Gov. Dewhurst and Speaker Craddick have formed two joint working groups to locate areas of consensus among legislators. One group will address education reforms while the other will focus on financing alternatives. Regrettably, property wealthy school districts appear to be under represented in these working groups.

It is time to walk the talk. The time for leadership is now, and leaders must translate the vision of school finance reform into reality, no matter the turbulence.