Six Finance Lawsuits in Texas

Last Updated: July 27, 2012

This article appeared in the July 2012 Rural Policy Matters.

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Two different organizations, each representing charter schools have filed lawsuits in Texas. Four other finance lawsuits have already been filed and are scheduled to go to trial in October. The charter lawsuits could be rolled into one or more of these cases.

The Texas Charter School Association, along with five parents, is asking the state for facilities funding for charters and to lift the cap on the number of charters, which currently stands at 215. The second charter lawsuit, brought by a coalition of groups calling itself Texans for Real Efficiency and Equity in Education (TREE), also wants the charter cap lifted. In addition, it alleges that the "inefficiency" of the funding system makes it unconstitutional. In its complain, TREE lists a number of education regulations and programs, including state teacher salary schedules, that it categorizes as "problems" that contribute to the inefficiency of the system. 

Three of the remaining four lawsuits charge that the current finance formula is inadequate and/or inequitable. The fourth is brought by wealthy districts that benefitted when the state cut property taxes in 2006 and replaced revenue with state funds; it also charges that state funding is inadequate.

A decision is expected soon on how the lawsuits will be heard.

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News coverage:

This chart explains the basics of each of the six lawsuits:


Read more from the July 2012 Rural Policy Matters.