Finance at Austin ISD

Austin ISD is the single largest payer of recapture in the state, representing about 10.9 percent of
the total $1.18 billion collected by the state in 2014.
Property Wealth Does Not Equal District Wealth
A districts relative wealth is measured in terms of the taxable
value of property within the districts borders, divided by the
number of students in weighted average daily attendance.
Chapter 41 of the Texas Education Code defines a school district
as property-rich, while Chapter 42 defines districts as propertypoor. Chapter 41, also known as recapture or Robin Hood,
requires districts to send some property tax revenue to the state.
Though Austin ISD is considered property wealthy under this

system, the district serves a more diverse student population

with costlier educational needs than a typical Chapter 41 district:
61.2 percent of the students AISD serves meet the federal definition
of poverty and are considered economically disadvantaged and
almost 30 percent have limited English proficiency.
AISDs annual payment is projected to exceed $300 million in the
2018 fiscal year. By then, one-third of every school property tax
dollar collected locally will be recaptured, by the state.

Top Five Largest Payers of Recapture, 201314

Rank

District

Recapture

Bilingual
students

Economically
Students with
disadvantaged limited English
students
proficiency

Special
education
students

At-risk
students

Austin ISD

$128,343,304

27.8%

61.2%

27.0%

9.9%

55.9%

Highland Park ISD

$68,933,313

0.7%

0.0%

0.8%

7.1%

8.8%

Eanes ISD

$55,864,686

2.1%

3.1%

2.3%

7.4%

11.7%

Plano ISD

$36,333,491

12.4%

27.6%

12.9%

9.8%

24.2%

Rankin ISD

$28,257,083

8.4%

47.5%

8.8%

5.0%

51.7%

Source: 201314 Texas Academic Performance Report, Texas Education Agency

Recapture, in millions

Raising Revenue
The most effective way for AISD to raise
revenue is to increase the local school
property tax rate. However, limitations
under Chapter 41 allow the district to
retain only about half of the additional
taxes generated from an increase in
the property tax rate. That amount will
continue to decrease over time.

During the past decade through the 2014 fiscal year, Austin ISD has paid $1.45 billion to the state as part of the
recapture system. Because of rapidly escalating property values, the district is projected to pay another $1 billion
during the next five years.

If AISD could secure voter approval to set

its tax rate at the maximum allowed under
law, the district would receive $31.9 million
of the projected $60.7 million the tax
would generate each year.

$200

Such constraints make it difficult to take

the case to taxpayers to support a tax rate
election when nearly half the revenue
would go to the state.

$50

WE ARE AISD.

$350
$301.1

$300
$263.4

$250

$228.4

$177.7

$175.5

$150
$117.4

$111.9

$123.8

$124.6

$120.1

FY 2011

FY 2012

FY 2013

$128.3

$100

FY 2008

FY 2009

SOMOS AISD.

FY 2010

FY 2014
Amend.

FY 2015
Project.

FY 2016
Project.

FY 2017
Project.

FY 2018
Project.