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The Curtain Rises on the Second Act Equity Center presentation to the Texas Association of Community Schools San Antonio Conference September 14, 2015 And, away we go!!!!!

Oral Arguments before the Supreme Court of Texas Michael Williams, et al. vs. Texas Taxpayers & Student Fairness Coalition, et al. 09/14/2015Equity Center4

The State’s Argument - Adequacy Trial court ruling is based on financial inputs and not student performance (outputs) System is “working toward its goals” and is therefore constitutionally adequate Must be judged looking “through the prism” of the goals of the State; not what is happening now “Quantum leap” doesn’t happen overnight In response to questions: Money can impact results; GDK does include college readiness 09/14/2015Equity Center5

The State’s Argument – Equity An acceptable tax rate gap between the top and bottom 15% of students was 9 cents in Edgewood IV ; it is now 7.5 cents Does not matter that the funding was the same in EIV, but not now. If the Court were to decide that the funding and tax rate gaps had become too large, it must look “behind the system” to see if districts can still achieve a GDK If they can, the system is not constitutionally inefficient, regardless of the gaps 09/14/2015Equity Center6

If the Court IS going to make a decision in the case, it should ignore funding levels, studies of funding levels required to provide a GDK, and inequities within those funding levels. The Court should ONLY look at RESULTS—and by that, they should only look at State goals. In other words, as long as the State keeps their goals at the GDK level, then none of the financial data make a difference. 09/14/2015Equity Center7 The State’s Argument

Fort Bend ISD, et al. – Former Chief Justice Wallace Jefferson – Justiciability + Suitability + State Property Tax Calhoun County Group – Adequacy Edgewood ISD, et al. – Suitability, especially with respect to funding for Compensatory Education and Bilingual/ESL Texas Taxpayer & Student Fairness Coalition – Equity + Adequacy + Suitability 09/14/2015Equity Center8 The ISD Plaintiffs

Most thorough record on school finance ever developed The State has set a minimal standard of college readiness – 60% chance of making a C in a entry level college course Only a third of economically disadvantaged students reach that minimal level Only half of the rest reach that minimal standard The results scream at you that this system is not doing what it is designed to do 09/14/2015Equity Center9 The ISD Plaintiff Argument – TT&SFC

1.Top and bottom 15% of students at maximum tax rate: The $600 systemic Edgewood IV gap has grown to $3,436 About $100,000 less per classroom 09/14/2015Equity Center10 The ISD Plaintiff Argument – TT&SFC

2.Court adopted $3,500/WADA as GDK in Edgewood IV (1993) 09/14/2015Equity Center11 The ISD Plaintiff Argument – TT&SFC

2.Court adopted $3,500/WADA as GDK in Edgewood IV (1993) Everyone could get there, but it required the poor districts an additional 9 cents Adjusting the $3,500 for inflation only and forgetting about increased standards, the $3,500 in EIV was $6,576 in /14/2015Equity Center12 The ISD Plaintiff Argument – TT&SFC

2.Court adopted $3,500/WADA as GDK in Edgewood IV (1993) Everyone could get there, but it required the poor districts an additional 9 cents Adjusting the $3,500 for inflation only and forgetting about increased standards, the $3,500 in EIV was $6,576 in % of districts cannot get there within the $1.17 cap Using the Edgewood IV calculation (footnote 12 in the decision), ignoring the cap and assuming continued equalization above $1.17, it takes the poorest 15% $1.31 to raise $6,576 and the wealthiest 15% can raise that amount at $0.94 – a 37 cent gap 09/14/2015Equity Center13 The ISD Plaintiff Argument – TT&SFC

2.Court adopted $3,500/WADA as GDK in Edgewood IV (1993) Everyone could get there, but it required the poor districts an additional 9 cents Adjusting the $3,500 for inflation only and forgetting about increased standards, the $3,500 in EIV was $6,576 in % of districts cannot get there within the $1.17 cap Using the Edgewood IV calculation (footnote 12 in the decision), ignoring the cap and assuming continued equalization above $1.17, it takes the poorest 15% $1.31 to raise $6,576 and the wealthiest 15% can raise that amount at $0.94 – a 37 cent gap 09/14/2015Equity Center14 The ISD Plaintiff Argument – TT&SFC

2.Court adopted $3,500/WADA as GDK in Edgewood IV (1993) Everyone could get there, but it required the poor districts an additional 9 cents Adjusting the $3,500 for inflation only and forgetting about increased standards, the $3,500 in EIV was $6,576 in % of districts cannot get there within the $1.17 cap Using the Edgewood IV calculation (footnote 12 in the decision), ignoring the cap and assuming continued equalization above $1.17, it takes the poorest 15% $1.31 to raise $6,576 and the wealthiest 15% can raise that amount at $0.94 – a 37 cent gap 09/14/2015Equity Center15 The ISD Plaintiff Argument – TT&SFC

3.WOC II Comparison: Top and bottom 5% $1,678 Gap in 2003 Today, $3,265 – about $100,000 a classroom Better teachers, more aides, more equipment, better counselors, more counselors, you name it, you can do a whole lot more with $100,000 a classroom 09/14/2015Equity Center16 The ISD Plaintiff Argument – TT&SFC

Impact of the “less than 300 square miles” Small District formula on 462 Districts 09/14/2015Equity Center17

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Regardless of the Court’s Decision, the Final Act will begin in the following Legislative Session 09/14/2015Equity Center22

How much money is available to respond to a favorable Supreme Court decision? 09/14/2015Equity Center23

State Estimated Revenue Not Appropriated for the 2016 – 2017 Biennium How much was left unspent in General Revenue? $6.4 Billion How much of the $6.4 B is below the spending limit for this biennium? $2.9 Billion How much money is in the Rainy Day Fund? $11.1 Billion 09/14/2015Equity Center24

Equity Center Standing Up for Texas Taxpayers and Children 09/14/201525Equity Center