State+Formula+Insights

Three basic issues with the school finance formula are property tax adjustment, weighting formulas, and federal funding. Property taxes fluctuate through the State of Texas. If an adjustment is not entered by the State to accommodate the differences between property in various parts of the state an inequity is created. Even with an adjustment it is difficult to ascertain if the weighting is valid and also how long is it viable.

Students with additional educational needs are also weighted in the funding formula. These weights attempt to cover the differing costs of educating students in vocational, bilingual, special education, and other programs. The Weighted Average Daily Attendance (WADA) is used to augment the funds received by other students. There are differences in how districts assist these students and there are differences in the costs related to some of the services across the state. Utilizing one set percentage is problematic because of location and constancy of costs.

Federal funding is the final issue. The federal government is going through its own crisis with debt and may need to start cutting funding to programs. If funding for educational programs cease to Texas this will leave a gap that the State may not be able to fill because of their own funding woes and the program may have to be eliminated.