{"id":398419,"date":"2026-08-05T15:46:08","date_gmt":"2026-08-05T15:46:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/398419\/"},"modified":"2026-08-05T15:46:08","modified_gmt":"2026-08-05T15:46:08","slug":"midland-lawsuit-challenging-texas-school-finance-system-has-few-allies","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/398419\/","title":{"rendered":"Midland lawsuit challenging Texas school finance system has few allies"},"content":{"rendered":"<p><img alt=\"Fifth grade students work on their assignments in their Art of Thinking class at HISD\u2019s A.A. Milne Elementary School in Houston, Wednesday, Nov. 12, 2025. HISD's Milne Elementary School is second most improved elementary schools in the Houston area according to Children At Risk's annual rankings.\" loading=\"eager\" fetchpriority=\"high\"   style=\"aspect-ratio:3 \/ 2\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>Fifth grade students work on their assignments in their Art of Thinking class at HISD\u2019s A.A. Milne Elementary School in Houston, Wednesday, Nov. 12, 2025. HISD&#8217;s Milne Elementary School is second most improved elementary schools in the Houston area according to Children At Risk&#8217;s annual rankings.<\/p>\n<p>Brett Coomer\/Houston Chronicle<\/p>\n<p>A <a href=\"https:\/\/www.houstonchronicle.com\/politics\/texas\/article\/texas-district-launches-new-legal-challenge-22354776.php\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">lawsuit by Midland\u2019s school board<\/a> to overhaul the way Texas funds education could have been a rallying cry for districts that have long bristled at having to <a href=\"https:\/\/www.houstonchronicle.com\/politics\/article\/texas-recapture-school-funding-19978739.php\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">turn over billions of local tax dollars<\/a>\u00a0to the state each year.<\/p>\n<p>But two weeks later, it appears Midland will have few allies.<\/p>\n<p>After years of crackdowns from the state\u2019s Republican leaders, superintendents aren\u2019t jumping on board to challenge Gov. Greg Abbott or his education commissioner, Mike Morath. Advocacy groups are silent or oppose it. Questions have swirled around whether the litigation is intended to help Abbott\u2019s goal of eliminating school property taxes next year.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p class=\"MM_onlineOnly\" title=\"CCI Online Only\">READ MORE: <a href=\"https:\/\/www.houstonchronicle.com\/politics\/texas\/article\/texas-district-launches-new-legal-challenge-22354776.php\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">Texas district challenges state school finance system: \u2018They\u2019re using us as tax collectors\u2019<\/a><\/p>\n<p>So far, no one has joined the suit.<\/p>\n<p>\u201cI think everybody\u2019s gun-shy,\u201d said Josh Sanderson, executive director of Equity Center, one of the groups that led the last legal effort, which ended in 2016.\u00a0<\/p>\n<p>\u201cWe\u2019re definitely not going to get involved in this one,\u201d he said.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>The response is a dramatic change from a decade ago, when more than two-thirds of the state\u2019s 1,200 school districts challenged the state\u2019s byzantine school finance system at the Texas Supreme Court.<\/p>\n<p>For decades, <a href=\"https:\/\/www.houstonchronicle.com\/politics\/article\/texas-recapture-school-funding-19978739.php\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">Texas has helped pay for schools<\/a> by collecting property taxes from property-rich districts and redistributing excess dollars to poorer ones. The practice, nicknamed \u201cRobin Hood,\u201d has been the subject of <a href=\"https:\/\/www.lrl.texas.gov\/collections\/schoolFinance\/lrlhome.cfm\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">multiple lawsuits<\/a> by superintendents and school boards since 1994.<\/p>\n<p>Midland\u2019s lawsuit argues that recent legislation has turned the system into a statewide property tax. Morath effectively sets the property tax rates by dictating how much districts can raise and how the money is spent, leaving school districts with little discretion, the suit says. This year, the commissioner\u2019s calculations mean Midland must levy $313 million in property taxes to pay for its daily operations, with $83 million of that sent to the state.<\/p>\n<p>The district\u2019s trustees also argued last month that the system has become warped. Midland is rich in property taxes thanks to its oil and gas operations, but its students are not.<\/p>\n<p>\u201cIf Robin Hood is truly doing what it was designed to do, why would you take money out of a school district that has 60% of its students economically disadvantaged?\u201d Midland school board President Josh Guinn said.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Midland trustees mentioned that Grapevine-Colleyville and Carroll school districts were interested in joining, but spokespeople for both districts would not say whether they were considering it. School districts that pay the most under Robin Hood, including Austin ISD, also haven\u2019t joined.<\/p>\n<p>If successful, the lawsuit could force the Legislature to overhaul how it finances public schools \u2014\u00a0and further inflame tensions between school and state leaders after a bruising legislative session, according to public school advocates. After more than 100 school districts sued the state in 2023 over how Morath\u2019s office calculated their school performance ratings, <a href=\"https:\/\/www.texastribune.org\/2025\/04\/23\/texas-school-districts-accountability-ratings-lawsuits\/\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">lawmakers responded<\/a> by trying to make it harder for schools to sue the state.<\/p>\n<p>Midland trustees questioned whether the district would see some blowback. The board\u2019s lawyer, Kevin O\u2019Hanlon, a veteran of several school district lawsuits, didn\u2019t directly answer. But he noted that the attorney general\u2019s office called him ahead of the meeting and suggested depositing the $83 million owed to the state in a separate account, where it would be available if the district wins its case.<\/p>\n<p>\u201cI did not call them, which was interesting,\u201d O\u2019Hanlon said.<\/p>\n<p>School advocates and observers have also noted that the case was brought by a district in a heavily Republican area instead of the usual coalition of districts from broader parts of the state.\u00a0\u00a0<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Some questioned whether politics were behind the lawsuit. Abbott is campaigning on the promise of cutting school property taxes in next year\u2019s legislative session.<\/p>\n<p>\u201cThere&#8217;s lots of talk with Abbott about no property taxes,\u201d board member Sara Burleson asked. \u201cThis doesn&#8217;t concern that at all, correct?\u201d<\/p>\n<p>The board president said it had \u201cnothing to do with the governor.\u201d But O\u2019Hanlon noted that the lawsuit would bring the issue of property taxes to the forefront just as lawmakers return to Austin.<\/p>\n<p>\u201cIdeas are going to pop up,\u201d O\u2019Hanlon said. But he added that Abbott\u2019s plan to completely do away with school property taxes and have the state fully fund public education instead was unrealistic.<\/p>\n<p>\u201cThe state does not have the revenue stream to abolish school taxes, all right? They just don&#8217;t,\u201d O\u2019Hanlon said.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Abbott\u2019s office did not respond to emails about what he thinks of Midland\u2019s lawsuit.<\/p>\n<p>Attorney Mark Goulet, one of O\u2019Hanlon\u2019s colleagues who is counsel to Midland\u2019s board, denied any outside influence.\u00a0<\/p>\n<p>\u201cThere\u2019s no donor behind the curtain, or this is all orchestrated,\u201d Goulet said. \u201cThis is the Midland board stating their truth in the lawsuit, and they\u2019re not working with anyone else.\u201d<\/p>\n<p>Sanderson said his organization, which represents about 400 school districts, wasn\u2019t supporting the lawsuit because they disagreed with its premise. The organization favors sharing the tax burden across richer and poorer districts.<\/p>\n<p>He said Midland could raise more money for its schools by asking voters to raise property taxes through a mechanism that keeps the money out of Austin\u2019s reach. District leaders don\u2019t want to do that, he said.<\/p>\n<p>\u201cI get where they\u2019re coming from,\u201d Sanderson said. \u201cThey\u2019re super frustrated, just like everyone\u2019s frustrated.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Fifth grade students work on their assignments in their Art of Thinking class at HISD\u2019s A.A. Milne Elementary&hellip;\n","protected":false},"author":2,"featured_media":398420,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[27,29,28],"class_list":["post-398419","post","type-post","status-publish","format-standard","has-post-thumbnail","category-texas","tag-texas","tag-texas-headlines","tag-texas-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/398419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=398419"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/398419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/398420"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=398419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=398419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=398419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}