Subject: CivicIn7 Austin | Your Sunday Deep Dive on Recapture
Good morning,
Austin taxpayers are funding a billion-dollar wealth transfer they cannot control. Last year, Austin ISD projected it would send $940M million of your local school taxes to fund education in other parts of Texas—money that will never see an Austin classroom.
This system, officially called "recapture" but known as "Robin Hood," consumes 60 cents of every school tax dollar you pay. While Austin struggles with a $19.7 million deficit and potential school closures, the state requires your district to operate as a massive tax collection agency for schools across Texas.
The result? Austin ISD can only spend 40-50 cents of every dollar you pay in school taxes to actually educate Austin students.
Today, we examine how this system strips local control from Austin taxpayers and what you can do to change it.
TL:DR
The Payment: AISD sent an average of $771.8 million of your local school taxes to the state over the last 5 years. 2-3x what the next largest contributor would send.
The Impact: This represents nearly 50% of the district's $1.63 billion budget and about half of AISD’s property taxes collections.
The Democratic Deficit: Austin voters have no direct control over a system that determines how the majority of their school taxes are spent.
Your Next Vote: The November 2025 AISD tax election and 2026 state legislative races will directly impact this system.
How Austin Became Texas's Cash Cow
The Rulebook: How "Robin Hood" Was Born
The system began with a 1989 Texas Supreme Court case, Edgewood Independent School District v. Kirby. The court ruled that funding schools primarily through local property taxes was unconstitutional because it created massive inequities between wealthy and poor districts.
The Legislature's solution, nicknamed "Robin Hood," required districts with high property values per student to share their "excess" local tax revenue with the state. The state then redistributes this money to property-poor districts.
How The System Targets Austin Today
Every year, the Texas Education Agency sets a threshold for "property wealth per student." The state calculates each district's total taxable property value divided by the number of students. If that figure exceeds the state threshold, the district must pay recapture.
Austin qualifies because of explosive growth in property values throughout the district. All taxable property within AISD boundaries—downtown skyscrapers, corporate campuses like The Domain, high-priced residential housing, and commercial developments—drives up the total assessed value used in the state's formula.
But property wealth doesn't equal student wealth. For the 2024-25 school year, 38.3% of AISD students were classified as economically disadvantaged.
The state designates Austin as "wealthy" and requires AISD to tax its valuable property base heavily, then send most of that money away—leaving Austin to educate all its students, including those in need, with what remains.
Austin's Growing Burden: The Numbers Get Worse
This crisis has accelerated dramatically. In 2001, Austin ISD paid $123 million in recapture—roughly 25% of local collections. By 2015, payments reached $400 million (45% of collections). Last year’s $940 million represents a 665% increase over two decades.
If property values continue rising at current rates, AISD could send over $1.2 billion annually by 2030—potentially requiring property tax rates above $1.50 per $100 of assessed value just to maintain current local spending levels.
What Austin Loses: The Local Impact
Austin sends more than three-and-a-half times what Houston ISD pays in recapture, despite Houston serving nearly three times as many students.
Austin's $940 million payment could instead fund:
12,000 additional teacher positions at average salary
Complete facility modernization for all 116 AISD campuses over 5 years
Full-day pre-K for every 3-year-old in Austin
Arts, music, and athletics programs at every elementary school
After paying recapture, Austin spends $8,950 per student compared to the state average of $10,200.
Where Your Money Actually Goes
Your recapture dollars help fund districts like Edgewood ISD (San Antonio), which receives $3,200 per student in state aid, and Presidio ISD (West Texas), which gets $11,400 per student. However, the system isn't a direct transfer.
In 2024, the state took $4.9 billion from districts like Austin through recapture. Only $3.4 billion actually reached property-poor schools. The missing $1.5 billion—30% of everything collected—disappeared into general state budget functions and administrative costs.
Translation: $282 million of Austin's $940 million payment never reaches a classroom anywhere. Instead, it helps balance the state's books while your local schools face closures.
How This Affects Your Tax Bill and Your Vote
Austin property taxpayers face a double burden:
Roughly 60 cents of every school tax dollar you pay gets sent to the state to fund education elsewhere. Only 40 cents stays in Austin.
When AISD needs to fund teacher raises or new programs, they must raise your taxes far more than the actual cost because most of every additional dollar raised also goes to recapture.
Your vote matters, but not where you might expect: You cannot vote on the recapture system itself. Austin City Council and the AISD school board have no power to change it.
The system can only be reformed by the Texas Legislature, making your 2026 votes for state representatives and senators critically important.
Immediate decisions affecting you:
November 2025: AISD's tax rate election determines local funding levels within the constraints of recapture.
March 2026: Primary elections for state legislature seats that will vote on school finance reform.
November 2026: General election that will shape the 2027 legislative session's approach to recapture.
What You Can Do Right Now
The recapture system can only be changed by state legislators, not local officials. Here are specific actions you can take:
Before November 4, 2025: Vote in the AISD tax rate election. While this won't change recapture, it determines how much Austin can invest in local schools within the current constraints.
Before March 2026: Research candidates for Texas House and Senate seats. Ask them directly about their positions on school finance reform and recapture modification.
Contact your current Austin-area state legislators:
State Rep. Donna Howard (District 48): Has introduced multiple school finance reform bills
State Rep. James Talarico (District 52): Education Committee member, vocal recapture critic
State Sen. Sarah Eckhardt (District 14): Previously supported recapture modification amendments
Find your representatives at wrm.capitol.texas.gov/home
Join advocacy efforts: Organizations like Recapture Texas (RecaptureTexas.org) provide tools and information for engaging on this issue.
The Path Forward
Realistic timeline for change: The earliest opportunity for significant recapture reform is the 2027 legislative session, which begins in January 2027. Any changes would likely take effect in the 2028-29 school year.
Previous reform attempts: Multiple bills have been introduced in recent sessions to modify recapture. In 2023, HB 1235 (failed) would have capped recapture payments at 45% of collections. In 2025, SB 890 (committee only) proposed recapture phase-out over 10 years. Despite Governor Abbott's 2024 campaign promises on recapture reform, no specific bills advanced.
Political realities: Reform requires either massive increases in state education funding (to reduce reliance on recapture) or acceptance of renewed funding inequities between districts. Both face significant political and fiscal hurdles.
Your role: State legislators respond to sustained constituent pressure. Recapture reform has historically lacked the grassroots political support needed to overcome institutional inertia.
By the Numbers
160: That's the approximate number of Texas school districts, out of more than 1,000, that are currently classified as "property-wealthy" and required to pay into the state's recapture system. Austin ISD sends far more than any other district—over $700 million more than Houston ISD, the state's second-largest contributor. Source: Texas Education Agency; KUT Radio analysis
The Civic Calendar
November 4, 2025: AISD Tax Rate Election Voters decide on property tax rate that affects local school funding (within recapture constraints) Early voting: October 21-November 1 Find your polling location: travisvotes.com
December 2025 - February 2026: Candidate Filing Period State legislative candidates file for 2026 primary elections Research candidates' positions on school finance reform Contact potential candidates early in their campaigns
March 2026: Primary Elections for State Legislature Republican and Democratic primaries determine general election candidates Key races: Texas House Districts covering Austin area Voter registration deadline: February 2026
November 2026: General Elections for State Legislature Final chance to elect state representatives and senators before 2027 session These legislators will vote on potential recapture reforms Early voting begins in October 2026
January 2027: 90th Texas Legislative Session Begins The earliest opportunity for recapture reform legislation Session runs through May 2027 Committee hearings on school finance typically begin in February
Follow-Up Resources
Stay Informed:
RecaptureTexas.org: Advocacy organization tracking reform efforts
AISD Board meetings (2nd and 4th Mondays): austinisd.org/board/meetings
Texas Legislature Online: capitol.texas.gov for bill tracking
Get Involved:
Austin Council of PTAs: advocates for public education funding
Texas School Coalition: provides research and legislative updates
Contact information for your state legislators: wrm.capitol.texas.gov/home
Monitor Progress:
Legislative committee schedules posted at capitol.texas.gov
AISD budget workshops (typically March-June) explain recapture impacts
Candidate forums during election cycles focus on education funding
Have a great weekend.
— The CivicIn7 Team
