Documented history · Court records & legislation

The evolution of Texas school finance

From the Edgewood court rulings to Senate Bill 7, recapture, and today's Austin ISD budget crisis — a fact-based timeline for community understanding.

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Senate Bill 7 and the Robin Hood system

Texas had no state income tax. When courts ruled school funding unconstitutional, lawmakers built a workaround: take excess local property tax from "wealthy" districts and redistribute it statewide.

EventDateOutcome
Edgewood ISD v. Kirby1984–1989Texas Supreme Court ruled the system unconstitutional — four times.
Senate Bill 7 (SB 7)1993"Robin Hood" recapture signed as a transitional compromise.
Chapter 49 recapture1993–presentProperty-wealthy districts send local revenue back to the state.
Fact: Recapture was sold as a temporary fix to a constitutional crisis.
No state income tax meant leaning on property taxes from "rich" land — not rich families.
Texas school finance flowchart
Fact: Today, recapture often offsets state spending instead of equalizing opportunity between districts.

Understanding WADA — weighted attendance

Texas does not fund students as whole people alone. It funds Weighted Average Daily Attendance (WADA) — decimal multipliers tied to student categories.

Student typeWeightPurpose
General education1.00Baseline unit (basic allotment × WADA)
Economically disadvantaged1.22Extra weight for qualifying students
Bilingual / ESL1.10Language support services
Special education1.15–5.0Scaled by intensity of need
The state counts weights, not just heads.

Multipliers only matter if the base dollar amount keeps pace with real costs.

The basic allotment held at $6,160 for years while inflation climbed.

Weights without a rising base leave districts solving the same gap every budget cycle.

How we got to 2026

1984–1989

Edgewood ISD v. Kirby — Courts find unequal funding unconstitutional under the Texas Constitution.

1993

Senate Bill 7 — Recapture created as a remedy; described at the time as transitional.

1993–2019

Recapture expands. Austin's rising property values increase local collections — and state recapture bills — without matching per-student formula growth.

2019–2024

Basic allotment frozen at $6,160 across multiple legislative sessions despite wage, benefit, and operating cost inflation.

2025–2026

AISD projects a $181 million deficit. Staff reductions and library cuts land on local board agendas — while the state reports large surpluses.

Manufactured scarcity — and libraries on the cut list

The state reports a $23.8 billion surplus while Austin faces a $181 million deficit. That gap is policy design — not an accident.

Austin ISD is labeled property-wealthy while nearly 48.4% of students are economically disadvantaged. Recapture sends hundreds of millions to the state each year. When the district must balance its budget, libraries and librarians — cornerstones of a child's education — appear on cut lists.

Restoring libraries long-term requires fixing the revenue formula, not only reversing one year's cut list.

View the data sheet → · Share your library story → · Wealthy recapture briefing

Primary sources