Duncan names school finance as priority issue

School finance will be the most important issue facing the Texas Legislature when it convenes next month, according Sen. Robert Duncan (R-Lubbock).

Speaking to a group of more than 30 citizens in the Donley County Courthouse Tuesday afternoon, Duncan said a recent district court decision declaring the Robin Hood system of school finance to be unconstitutional hasn’t affected his feelings on the issue. He already knew it was bad.

“I think it’s broken any way, and I don’t need a judge to tell me that.”

The senator said the state is facing three basic options when it comes to generating new revenues for schools. Shift the revenue from commercial property taxes to the state level, enact a new payroll tax, or broaden the corporate franchise tax.

Duncan said the first two options would not be equitable, but broadening the franchise tax could be equitable if the state closed loopholes, which allow some companies to avoid taxation.

“You’re looking at companies like SBC and Dell Computers,” he said. “These large businesses are not paying taxes to support our schools. We need to spread the base to pick up all sectors of the economy at a lower tax rate and reduce the property tax.”

Most businesses don’t mind paying their fair share of taxes provided their competitors are paying like they are, the senator said.

Duncan also said that the current funding formulas for sending money to schools benefits rural Texas because they were crafted when West Texas had more clout in Austin. He said there will be talk in the next legislative session of changing those formulas and of consolidating schools but said the state should be very careful in those areas.

Water will be another big issue facing the Legislature, Duncan said. He thinks a priority in that area should be to provide funding to assist communities in developing water projects such as pipelines, water treatment, and sewer treatment facilities.

Duncan also said he believes rural Texas needs to be ready for potential growth.

“I think we will see the next migration in this country from urban to rural areas as people flee the cities. You can only stack so many people in Dallas,” Duncan said. “We don’t even necessarily have to offer economic development money to bring them here. If we have the resources and the infrastructure, they will come.”

Careful management of groundwater supplies and reforming the workers’ compensation system are also priorities for the Legislature.

Duncan responded to questions from local citizens. He agreed with Clarendon Economic Development Corporation President Jerry Woodard that local EDCs need to be able to provide funds for infrastructure improvements – an ability which is restricted under legislation passed last year.

Duncan also responded to comments by City Administrator Sean Pate and Alderman Michael Tibbets by saying he thinks all taxing entities should have a voice on appraisal district boards and said his office would look into the matter further.