Tag Archives: AISD

Let’s Bring AISD Into the CodeNext Process – To Avoid An “Affordability Perfect Storm”

By Bill Oakey, January 22, 2018

The following is an email that I sent this morning to Mayor Pro Tem Kathie Tovo and City Council Member Alison Alter:

Hello Mayor Pro Tem Tovo & CM Alter:

At a meeting about affordability issues at AISD last week, I offered to try to help bring AISD and City officials closer together on CodeNext. So, let me introduce all of you in this email to Beth Wilson, AISD’s Director of Planning Services. I am also sending this email to Nicole Conley Johnson, Chief Financial Officer for AISD and her Executive Assistant, Amanda Ortiz.

It is my understanding that AISD would like to have much greater access to the CodeNext revision process, and to have their concerns addressed fully before the final draft is completed.

As an affordability and taxpayer advocate, I believe that CodeNext should be structured in a way that would allow families with children to remain in their homes. And new development in many existing neighborhoods should be affordable for families with children. In recent years, too many families have been forced to leave AISD because of high property taxes and gentrification.

We can see the devastating results reflected in AISD’s annual student enrollment drops. To add insult to injury, AISD is projected to send $2.6 billion in local tax revenue back to the State over the next five years, under the “Robin Hood” school finance system. This toxic combination of factors could result in an “affordability perfect storm” for AISD and Central Texas taxpayers.

Therefore, I strongly recommend that the City work closely with AISD to ensure that the CodeNext process not only includes full participation by AISD, but also implements code policies that reflect their concerns.

Thank you for any help you can provide to facilitate the engagement between the City and AISD. Below is an American-Statesman editorial that focuses on the importance of this collaboration:
Viewpoints: City should not overlook Austin ISD in CodeNext talks
 
By Editorial Board
Posted: 10:07 a.m. Friday, November 24, 2017
 

“We need a seat at the table.”

That is the message the Austin Independent School District is sending to the city of Austin with a proposed resolution regarding CodeNext that trustees are expected to approve Monday.

A firm statement outlining the district’s position on CodeNext is needed because city officials thus far have overlooked – if not ignored — Austin ISD’s input and concerns, though the district has a huge stake in the rewrite of city zoning and land-use rules, said Kendall Pace, president of the school board.

Consider that Austin ISD is one of the city’s largest property owners with 145 facilities. Its boundaries encompass 230 square miles, said chief financial officer Nicole Conley Johnson. That’s about three-fourths the size of New York City, about 305 square miles. With 11,500 employees, the district also is one of the region’s largest employers.

Austin ISD’s interests, however, go beyond property and employment issues. They include families. At this point, the district is losing families and students because of massive redevelopment in core neighborhoods — mostly in East Austin — that is displacing lower-income families with kids to make way for higher-income families with fewer or no children.

Even as Austin’s population is growing, the district’s enrollment, now at 82,000, is declining. Austin ISD administrators and trustees worry that without key changes to CodeNext, those trends will accelerate.

“Displacement of families living in those core Austin neighborhoods – and not competition from charter or private schools – is the primary driver for our enrollment declines,” Conley Johnson said.

Pace, Conley and others said they’ve tried to get a coordinated planning effort going with the city, but have been ping-ponged around different offices without progress.

That back-and-forth bureaucracy prompted Austin ISD officials to take a more public, forceful approach with something in writing they aim to back with a vote in hopes of grabbing the city’s attention: a resolution that mostly is centered around stabilizing enrollment declines by holding on to and creating more affordable housing.

Specifically, the resolution emphasizes the need for CodeNext to create more duplexes, townhomes, apartments and additional dwelling units that are affordable for families earning 60 percent or less of Austin’s median family income and housing for teachers and staff.

It also calls for limits on up-zoning that doesn’t help lower-income families, especially in areas affected by gentrification, such as East Austin.

Another request encourages the preservation of older-market, affordable, single-family detached homes, duplexes and multi-unit apartments by not increasing entitlements on existing properties without a clear affordability requirement.

The resolution calls for an expansion of incentives, such as density bonuses that permit developers to build taller or with greater density in exchange for benefits, such as affordable housing. But they should be combined with other incentives or funding to create permanently affordable housing instead of studio or one-bedroom apartments.

It’s worth noting that more than half Austin ISD students are economically disadvantaged. Their families depend on “deeply affordable” or subsidized housing. The resolution points out that most new housing units that are being built are small, expensive apartments and condos that aren’t family friendly. It notes that just 46 children were enrolled in Austin ISD in 6,895 new units that were sampled.

The district’s resolution also objects to CodeNext’s reductions for onsite parking in residential and commercial areas near schools, which they say could create safety problems for students and hinder access to school grounds.

In our view, those are legitimate concerns that should be addressed by the city sooner rather than later. The city’s lack of response so far only gives credence to critics who complain that the CodeNext rewrite is too heavily dominated by a narrow group of city staffers and paid consultants.

With so many unanswered questions regarding CodeNext, which would determine the city’s physical and economic makeup for decades to come, we recently called for a pause so the city could answer residents’ concerns. Following that, the city announced it would slow down the release of a third draft of CodeNext and perhaps push back its April deadline for approval.

That is progress. But the city must do more in ensuring that Austin residents understand how CodeNext – contained in more than 1,300 pages — would impact their communities, then seek their input on revising proposals that don’t address Austin’s affordability crisis, economic segregation and the displacement of families leaving Austin ISD because they no longer can afford the rent, mortgage or property taxes.

They should answer concerns of others, who point out that Austin needs more so-called missing-middle housing for the thousands of people flocking to Austin each year. Questions linger about how CodeNext would address Austin’s growing traffic congestion. Over the next decade, the city will need about 130,000 homes to fill Austin’s housing needs, city officials have said.

We understand that density, which allows more to be built on less land, is a way to address such challenges. But up-zoning for the sake of generating more housing — without an eye on whether that would worsen the housing crisis for working and low-income families, further segregate the city, or accelerate enrollment declines in public schools — could prove disastrous.

“We need a seat at the table,” Pace told us in explaining the need for the resolution. “We want input.”

The city should waste no time in making room for Austin ISD at the CodeNext discussion.

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Huge Enrollment Drop Coming To AISD

By Bill Oakey, January 12, 2018, Updated January 15, 2018

Two years ago, KXAN’s Kylie McGivern reported that AISD was projected to lose 6,140 students over the next decade. Since then, the school district has struggled to try to slow down this trend. Last year they implemented a new policy to allow out-of-district students to transfer free to AISD. That effort yielded some positive results, but not enough to change the fact that significant enrollment declines will continue. In an upcoming blog piece, I will delve into the latest numbers and discuss the demographics and housing aspects. Why is all of this happening? Most of it comes down to one word:

Affordability!

Austin’s precarious real estate boom is bringing lots of young hipsters and couples without children to town, who are living in multi-unit housing complexes. Families with children, living in single-family homes, are being taxed out of their homes in alarming numbers. See the KXAN news story for some perspective on what one of those families is going through. They do not want to leave Austin, and it’s a crying shame that so many are being forced out.

To add insult to injury, the second highest cost impact on family budgets, next to housing, is transportation. Most of the new roads being built for commuters are planned as toll roads. And nearly all of those will have so-called “managed lanes.” Those are the ones where the toll rates rise as the traffic increases. Longtime residents who have paid their taxes and contributed to their community for most of their lives will be forced to pay high monthly toll bills. Or else, they’ll be confined to the slow lanes, as they watch the wealthy zip by them in the express lanes. The deck is stacked against the very people who worked to make Austin the prime destination that it has become.

What Are the Implications for Taxpayers and AISD?

The financial impact of the big enrollment drop on AISD will be devastating. We need only to look to Portland to see what that trend looks like. Portland saw a massive school enrollment drop in the 1980’s, as they transitioned into a wealthy enclave. The big difference is that today Portland has a very efficient public transportation system that includes rail.

It is highly unlikely that Austin will ever be able to afford a citywide rail system. That’s because the City already has a daunting list of over $8 billion worth of plans. Rail is not on that list. Voters have already approved bond packages totaling $1.7 billion in City and AISD bonds in the last two years. And hundreds of millions in additional bond projects are in the pipeline. The City is on a scary path toward raising property taxes to the legal maximum of 8% every year. Where is all that money supposed to come from?  Do they think we all have sacks full of money just lying around? How much debt can the City handle? And most importantly, is this kind of cost spiral even sustainable. I think not!

As for AISD, they are most likely headed for an “affordability perfect storm.” The State’s Robin Hood school finance system, known as “recapture,” diverts hundreds of millions of dollars of our local tax money into other school districts across Texas. Consider this quote from AISD’s website:

“Austin ISD is the single largest payer of recapture in the state. Our payment alone comprises 13 percent of all state collections. During the next five years—between fiscal years 2016 and 2020—Austin ISD is projected to pay almost $2.6 billion in recapture payments to the state. By 2019, more than half of every tax dollar collected in Austin will go to the state.”

AISD’s projected student enrollment drop only exacerbates the problem. Fewer students generate less State revenue. AISD receives $7,390 annually for each student enrolled. It’s easy to see that declines of several hundred students per year translate into millions of dollars lost.

Whenever district officials recommend consolidating or closing under-enrolled schools, parents complain and slow down the inevitable transition. The delays lead to costly expenses to operate and maintain those schools. Meanwhile, as home property appraisals, school operating costs and bond payments escalate, taxpayers get slammed with a cost spiral that forces them to leave Austin. That generates further enrollment declines. The only way out of this vicious cycle would be school finance reform at the State Legislature. We need much more public focus on that issue, along with a coordinated effort by City, County and AISD officials to push for reform. Failure to achieve that goal could imperil Austin’s hopes for continued economic success.

Revised Texas School Finance Reform Proposal

By Bill Oakey – July 13, 2016

For the past few months I have been working with AISD and other interested parties on a proposal to reform the Texas school finance system. The current “Robin Hood” system that recaptures funds from “property rich” school districts and distributes those funds to “property poor” school districts is badly flawed. The Texas Supreme Court acknowledged that fact, even while issuing its ruling that the controversial funding plan is legal under the Texas Constitution.

My original reform proposal served a valid purpose in starting a conversation with AISD  officials. I never expected to hit the ball out of the park on the firs try. But thanks to the gracious help, encouragement and input from Kendall Pace, President of the AISD Board of Trustees, I now have a revised proposal that is ready to present to the Texas Legislature.

Without some type of meaningful reform, the Austin Independent School District stands to lose hundreds of millions of dollars over the coming years. One estimate shows that AISD’s recapture payment to the State would skyrocket from $181 million to $445 million over a three-year period. Our community simply cannot sustain that level of accelerating financial loss. Austin pays more into the “Robin Hood” system than any other school district in the entire state.

Here Is the Revised Proposal

1. Keep the existing geographic boundaries for calculating the “property rich” and “property poor” school districts across the state.

2. One important fact should be fundamental to the reform discussion. The school districts classified as primarily “property rich” may have a large number of students living in poverty. The school districts classified as primarily “property poor” may have some number of students living above the poverty line.

3. The State could set up a clear and fair method for calculating an offset for the students within the “property rich” districts who qualify as living in poverty. This offset could be subtracted from the recapture amount that the school district sends back to the State.

4. The offset could be as simple as a fixed dollar amount per student classified as living in poverty.

5. If there are easily definable variables that should be applied to the per-student-in-poverty calculation, those could be factored into the funding formula.

6. Conversely, if there are students living above the poverty line in the school districts classified as primarily “property poor,” then another offset could be applied to equalize the funding formula for those districts.

The purpose of this proposal is to build more equity into the recapture and redistribution system. There is probably no method available that everyone would characterize as perfect. Historically, the Texas school finance system has been viewed by many as overly complicated. Battles have been fought on the floor of both houses in the Legislature and in the State court system for far too long. Others who understand school finance much better than I may find ways to improve my proposal, or perhaps consider another plan that works better. But here’s hoping that Austin students and teachers, as well as our local taxpayers will emerge from the upcoming Legislative session with a much better system than we have today.

Before I leave this reform discussion, let me put the issue into a human perspective that I hope everyone reading this will appreciate. I do not have any children in the Austin schools. But my sister and my nephew have both worked as teachers, and my uncle Joe Oakey was the Commissioner of Education for the State of Vermont. My heart and my spirits were uplifted on the evening of this past May 23rd. On that date, I went to the AISD board meeting to speak during Public Communications. This happened to be the occasion for a large number of students to receive their annual achievement awards. I have a permanent memory of the smiles from those students and the proud looks on their parents’ faces.

Before the meeting, we all stood and recited the Pledge of Allegiance to the flag. For a few brief moments, I remembered what it was like to be a kid in school once again. We should all keep in mind that school funding is not just about courts, judges, Legislators and piles of papers and statistics. None of us would have any of the skills and talents that we try to use today unless the people who came before us really cared about the value of a good education. Let’s all try to come together and make the same thing happen for future generations of children in Texas.

My First Grade Class Picture

My First Grade Class Picture

Presentation To AISD Board Of Trustees – School Finance Reform Proposal

By Bill Oakey – May 23, 2016

Attending an AISD board meeting was a fascinating experience, and one that I recommend everyone do at least once in their lifetime. During the 30 person public comment period, parents, teachers, school staff members and community activists of all stripes had their say. It was quite different from a City Council meeting or a Travis County Commissioners Court meeting. The center of attention, whether addressed directly or indirectly, was the school kids, the folks who will step into our shoes and who represent Austin’s future.

My topic of discussion was the school finance reform proposal that was introduced on this blog on May 14th:

Presentation to AISD Board Meeting, Public Comment Period – School Finance Reform Proposal

By Bill Oakey – May 23, 2016

Hello And Good Evening,

My name is Bill Oakey, and I am a retired accountant and blog writer for AustinAffordability.com. Since the Texas Supreme Court ruled the current school finance system Constitutional, I have drafted a school finance reform proposal. This proposal would subdivide the school districts across Texas into local school board voting districts, and use those smaller areas to calculate the “Robin Hood” recapture amounts. The intent is to reduce the unfair burden placed upon AISD, and allow more of our local tax dollars to stay here in Austin.

I would like to thank Board President, Kendall Pace, as well as Jacob Reach in Dr. Cruz’s office for offering to formally review my proposal. I hope it can serve as a discussion staring point that will lead to meaningful reform. Some folks have cautioned me that the Legislature will not reform the school funding formulas or increase education spending. But in its 2016 “Quality Counts” report, Education Week ranked Texas 43rd in the nation for student achievement, chance for success and school finance. (See the full Education Week “Quality Counts” report here).

We need to rally the support of City, County and AISD officials, along with leaders in the business community, to stand up for Austin Schools and make Legislative reform happen. Austin simply cannot sustain a Robin Hood increase from $181 million to $445 million over a three-year period. For some challengers, you could walk softly and carry a big memory stick full of data, as you march into battle. The numbers should speak for themselves.

It will be an uphill struggle. When Marty Robbins sang his inspiring song, “You Gave Me a Mountain,” in 1969, he wasn’t sure if he could climb that mountain. But here today, if everyone works together, I do believe there is hope. I believe in Austin, and I believe in Texas.

mountain

School Finance Reform Proposal

By Bill Oakey – May 14, 2016

The City of Austin and the Austin Independent School District (AISD) were both rocked to their foundations on Friday when the Texas Supreme Court handed down its decision on the State’s controversial Robin Hood school finance system. The Court ruled unanimously that the funding plan is constitutional under Texas law. That leaves Austin schools in a perilous financial dilemma. Under the Robin Hood formulas, Austin is forced to send more school property tax revenue back to the State than any other school district in Texas. For details on the devastating financial impact that the court decision will have on AISD, please see this excellent KXAN-TV News piece by reporters Kevin Kline, Calily Blen and Kylie McGivern.

As KXAN reported, the Texas Supreme Court did, however, stop short of endorsing the current school financing system. “Justice Eva Guzman delivered a concurring opinion stating the court calls for “transformational, top-to-bottom reforms” and that more work needs to be done regarding “economically disadvantaged students.” Following the announcement of the court’s decision, Austin State Representative, Celia Israel immediately declared that Governor Abbott should call a special session of the Legislature “so Texas can fully invest in its education system.” A special session is unlikely, however, since Governor Abbott issued a statement praising the Supreme Court ruling.

How Austin Schools Get the Royal Shaft

Former AISD school board president and Texas Senate candidate, Gina Hinojosa, labeled the court decision “a punch in the gut.” The numbers show that AISD taxpayers will soon be headed for a world of hurt in proportions that I can only describe as a nightmare scenario. Unless some adequate reforms are hammered out between now and January when the Legislature meets for the next regular session. Do not continue reading this blog post if you have any stomach issues or anxiety problems. AISD’s current funding requirement from local taxpayers to be sent back to the State under Robin Hood in 2015 was $181 million. Projections indicate that by 2018 that number would skyrocket to $445 million. Who amongst your neighbors and friends could sustain that kind of hit to their wallets in increased property taxes?

1938 "Adventures of Robin Hood" Movie Poster

1938 “Adventures of Robin Hood” Movie Poster

The City Has Proposed a Tax Swap With AISD

Some on the Austin City Council have proposed letting Austin taxpayers pay for certain social programs currently funded by AISD. But as I mentioned on this blog, such a plan would have serious unintended consequences. Seniors aged 65 and over have their school taxes frozen under Texas law. The City’s tax-swap proposal would need to include carefully prescribed adjustments in order to avoid penalizing seniors.

Here Is My School Finance Reform Proposal

Currently the State shifts funds from property-rich school districts to property-poor school districts, based upon the taxable value of each school district’s total property tax base. Because of Austin’s huge annual spikes in tax appraisals, we get the biggest share of Robin Hood payments required to be sent back to the State each year. My reform proposal calls for designating the “wealthy” and “poor” areas at the local school board voting district level, rather than ranking each whole school district against every other whole district.

Under this scenario, AISD’s seven geographic voting districts would be measured against all the other geographic school board voting districts across the state. You can see the boundaries of AISD’s voting districts here. Under my funding plan, the property values would be calculated for each of these seven districts. Using this method, only some of our geographic districts would be designated as “wealthy.” Orhers might fall somewhere in the middle, and some might be considered “poor.”

Approximately 60% of AISD students live in poverty and receive free or reduced price school lunches. Under my proposal, the Robin Hood funds would only be collected from the richest school board voting districts across the state. Then those funds would be redistributed  to the poorest of those school board voting districts. We all know that school funding formulas can be crazy and ridiculously complicated. So, I see my proposal as a discussion starting point. Let’s see if our local and State officials can work with it and other reform strategies to fund Texas schools in a much more equitable manner. Otherwise, the current system will send AISD taxpayers completely over the cliff that they already perched upon.

falling

Musical Accompaniment for This Blog Piece:

  1. “Wonderful World” – Sam Cooke, 1960
  2. “Swingin’ School” – Bobby Rydell, 1960
  3. “High School Confidential” – Jerry Lee Lewis, 1958
  4. “Little School Girl” – Fats Domino, 1954
  5. “Charlie Brown” – The Coasters, 1959
  6. “The Hookey Song” – Don Cornell & Teresa Brewer, 1952
  7. “Teacher’s Pet” – Doris Day, 1958
  8. “School Day (Ring! Ring! Goes The Bell)” – Chuck Berry, 1957
  9. “Hey, Schoolgirl” – Tom & Jerry, 1957 (early recording name for Simon & Garfunkel)
  10. “Waitin’ In School” – Ricky Nelson, 1957
  11. “Teen Angel” – Mark Dinning, 1959
  12. “High School USA” – Tommy Facenda, 1959 (national version; 28 regional versions released)
  13. “Let’s Go Steady for the Summer” – The Three G’s, 1960
  14. “Vacation” – Connie Francis, 1962
  15. “Roses Are Red (My Love)” – Bobby Vinton, 1962
  16. “Surfin’ USA” – The Beach Boys, 1963
  17. “The New Girl In School” – Jan & Dean, 1964 (flip side of “Dead Man’s Curve”)
  18. “Sealed With a Kiss” – Brian Hyland, 1962
  19. “Summertime, Summertine” – The Jamies, 1958 (became a hit again in 1962)
  20. “See You In September” – The Tempos, 1959
  21. “Kodachrome” – Paul Simon, 1973
  22. “To Sir With Love” – Lulu, 1967
  23. “Carrie Anne” – The Hollies, 1967
  24. “Me and Julio Down By the Schoolyard” – Paul Simon, 1972
  25. “Dance, Dance, Dance” – The Beach Boys, 1965
  26. “Summer Nights” – “Grease” Soundtrack, 1978
  27. “You’re The One That I Want” – “Grease” Soundtrack, 1978
  28. “The Janitor Knows” – Those Darn Accordions, 2007
  29. “Teach Me Tonight” – Jo Stafford, 1954
  30. “Moments To Remember” – The Four Lads, 1955

Taxpayer Alert – Seniors Would Lose In City / AISD Tax Swap

I’mBy Bill Oakey – April 5, 2016

There would be no “Christmas in July” for Austin seniors this summer if the City moves forward with a new plan to take over funding of many of AISD’s social services. The tax swap idea sounds good to the school district, since they would be able to lower the amount of “Robin Hood” recapture money that they have to send back to the State. But a 1987 State law (which began as a proposal on my old Sears typewriter) freezes school taxes for seniors age 65 and older and the disabled.

The Race Is On

Right now the State of Texas is embroiled in a complex legal case with numerous school districts, including AISD over the Constitutionality of the Robin Hood system of funding Texas Schools. That case still has many miles over rocky roads to travel before probably finally being settled by the State Supreme Court.

Meanwhile the race is on for the City to study, debate and gather public input on the new social services tax swap plan. AISD’s fiscal year begins on July 1st. But there are so many questions. What would happen to the tax swap if the State Supreme Court threw out the current school finance system. Wouldn’t it make more sense to wait until the court battles are finished, and a new statewide tax plan is adopted?

The City Would Need An Offsetting Tax Adjustment to Protect Seniors!

if the City were to implement the tax swap, they would need to adjust their own over-65 homestead exemption for seniors and index it every year to maintain the intent of the 1987 school tax freeze. Everybody needs to contact their City Council members as soon as possible to ensure that this proper step is taken to protect seniors and disabled homeowners.