In true Texas style, the trust fund set aside for education is by far the largest in the country. According to the Children's Land Alliance Supporting Schools, Texas' trust fund is valued at over $26.2 billion, nearly three times as much as New Mexico, which has the next largest fund valued at $8.8 billion.
Historically, most states at some point had a similar fund. Some southern states experienced a loss of the funds when they converted to Confederate currency. Other states may have used the funds for education in a manner which depleted the fund faster than it could be replenished.
Although the Texas trust fund has consistently experienced growth, it has traditionally not been used to supplement education funding. Texas legislators have entered House Joint Proposition 109, otherwise known as Proposition 6: Texas Permanent School Fund Amendment, in an attempt to change that tradition. Voters will be asked to vote yes or no next week.
Proposition 6 would amend the Texas constitution with the following changes:
- expanding the source from which distributions can be made from the fund. This would include not only cash holdings, but real estate holdings and investments. This expansion would result in an additional $75 million made available to Texas schools per year for the next two years.
- distributions are handled through the state department of education, who makes determinations on how much of the fund should go to schools each year. Currently, the state land office makes its own determination on whether to hand over all of its income to the board or to use it to purchase more land. Proposition 6 would allow the state land office to dedicate up to $300 million in land-related revenue, rather than the entire income, directly into the education budget.
As with any proposition, there are supporters and opposition. Some worry that using the fund in this manner might result in the fund eventually being depleted. Others, such as the American Federation of Teachers, believes the state would be able to use the fund to replace current funding, rather than it being used to augment such funding. Writers of the proposition argue that the $300 million cap will protect the fund from depletion, while providing much-needed relief for educational institutions in the state.
Regardless of whether a person is for or against the proposition, it is clear that Texas' trust fund could be used to provide relief, as long as the plan includes provisions to eliminate the risk of depletion. With a value of more than three times its nearest peer, it is time this money be put to use for the purpose it was intended.
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