Three issues impacting the state formula

Texas school funding formula is based on the state’s ability to equalize funds for all districts to meet the needs of their students.  There are more than three issues explaining the state formula, but the three I will focus on include: property values i.e. taxes, average daily attendance (ADA), and program weights to compensate districts.  

Property taxes

The first of the three issues that impact the state funding formula are the local property taxes.   The local property taxes are the primary source of revenue for most school districts which accounts for a majority of a district’s local tax revenue.  Texas property taxes help to distribute state aid for all students receiving public education including the neediest school districts, schools, and students. 

ADA

The second of the three issues that impact the state funding formula is ADA.  Texas Administration Code states that all public schools in Texas must maintain records to reflect the average daily attendance (ADA) for the allocation of Foundation School Program (FSP) funds and other funds allocated by the Texas Education Agency (TEA). Superintendents, principals, and teachers are responsible to their school boards and to the state to maintain accurate, current attendance records.

Program weights

The third of the three issues that impact the state funding formula are program weights.  After adjusting the basic allotment for district size and disparities in the cost of education, the formulas apply program weights to compensate districts for students.  These weights can include the compensatory education weight, small district adjustment, special education weight, transportation allotment, and Cost of Education Index.  The focus on such weights helps to equalize differences among students and districts.