THE BILLION -DOLLAR BILL Plano ISD has paid almost $1.2 billion in recapture to the state in the last decade and around $2.43 billion since fiscal year 1993-94. The state has recaptured more than 30% of PISD’s property tax revenues in three of the last four fiscal years.
Net revenue (property taxes + state funding - recapture)
Recapture amount
Income from property taxes
Income from state funding
Enrollment and property taxes are key factors in determining recapture payments. Between fiscal year 2017-18 and FY 2021-22, Plano ISD saw a:
2012-13
$27M
$431M
2013-14
$31M
$479M
2014-15
decline in enrollment -8.5% rise in property taxes +8.3%
$45M
$492M
2015-16
$59M
$512M
2016-17
$102M
$519M
2017-18
$154M
$509M
2018-19
$208M
$501M
2019 House Bill 3 increased education funding and lowered property tax rates to help ease district payments into the recapture system.
2019-20
$164M
$492M
2020-21
$191M
$476M
*2021-22
$213M
$428M
0
$100M
$200M
$300M
$400M
$500M
$600M
$700M
$800M
*PROJECTED NUMBERS
SOURCES: TEXAS EDUCATION AGENCY, PLANO ISD/COMMUNITY IMPACT NEWSPAPER
state, around 160 of them paid into recapture during fiscal year 2020-21, according to the Texas School Coalition. That group is made up of school districts that advocate for sustainable state educa- tion funding, the coalition’s Executive Director Christy Rome said. The coalition estimates the state collected nearly $3 bil- lion in recapture from school districts last year. Since Texas began the recapture program in 1994, PISD officials said their district has sent more than $2.43 billion to the state. “Texas education code makes provisions for certain
the main drivers for the dis- trict’s increasing recapture payments, Hill said. As PISD has had to do for the last several years, Hill said he anticipates another deficit budget will be put in place for fiscal year 2022-23. “There’s no inflationary factor built into our budget, so … all of that additional tax collection is simply being collected by the district and being sent on to the state,” he said. “That’s why our deficits [are] going up and up and up.” Calculating recapture Of the more than 1,000 public school districts in the
school districts to share their excess local tax revenue with other school districts,” said Amy Copeland, TEA’s director of state funding, in a video on recapture shared on the agency’s YouTube page. “Excess local revenue is local revenue that exceeds a school district’s formula entitlement.” Hill explained that enti- tlement is based on factors related to the district’s enroll- ment—including student characteristics, special needs and more—as well as district characteristics, including size and property taxes. “If you actually [collect]
more [property tax] money than what you’re entitled to, that excess revenue goes back to the state,” Hill said. As part of the TEA video, Copeland explained those excess funds “are recaptured by the school finance system to assist with the financing of public education” in Texas. The TEA video showed that it took a decade for the recapture program to collect more than $1 billion annually. Another 14 years then passed before it surpassed the $2 bil- lion threshold in 2018. However, due to rising property values, state collec- tions were projected to jump
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now at the point where [very soon] we are going to have to stop delivering the programs that we currently deliver because we can’t infinitely fund a deficit budget.” For this school year, the PISD board approved a bud- get that had $19.6 million more in expenses than in rev- enue. The district tapped its fund balance to cover the dif- ference. The decline in PISD’s student enrollment over the last several years combined with rising property tax rev- enues due to Plano’s strong housing market have been
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