Recapture in Texas: Push to reform school property tax revenue redistribution policy

AUSTIN, Texas - Education is dominating the debate at the Texas Capitol this session, from school choice to teacher pay to increasing public school funding. 

However, there is also a push to reform the way money is redistributed among districts though a policy known as "recapture" or "Robin Hood". 

What is recapture?

What we know:

Recapture is a state policy designed to share the wealth among school districts. 

In general, districts with high property values have to pay money back to the state, to help districts with less of a tax base. 

By the numbers:

Last year, Austin ISD's recapture payment was $699 million—the highest in Texas. 

Other neighboring school districts didn't shell out quite that much, but still sent back millions in school property tax revenue to the state in 2024, including:

• Eanes ISD - $95 million 
• Lake Travis ISD - $43 million
• Leander ISD - $12 million
• Round Rock ISD - $10 million

The debate about recapture

What they're saying:

"I look around the state and I don't feel like Austin is so much more wealthy than some of these other areas," said state Rep. Vikki Goodwin (D-Austin). 

"We want to do our part and we realize that we're a fortunate district," said Eanes ISD Superintendent Jeff Arnett. "But does it need to be two thirds of our local property tax revenues?  There seems to be a significant imbalance there that we would certainly like for the legislature to revisit."

"People are rightfully upset about that," said Goodwin. "When a district is running a deficit, when a district is having to create larger class sizes and not being able to do all the things that they need to do to have the best education possible, and we're sending money away."

Goodwin questions where that money is actually going, and suggests funding districts in need should be up to the state, not other districts. 

"You know, there's a big bucket of money. The state isn't paying its share, in our opinion," said Goodwin. "Honestly, if we weren't paying recapture, the state could make up that difference."

The other side:

Roger Falk of the Travis County Taxpayers Union argues Robin Hood is necessary. 

"The Constitution requires equal funding for all the school systems in Texas," said Falk. "It's like we're the billionaires saying, 'I don't like to pay that tax bill'."

Falk argues money coming from places like Austin is a vital lifeline for other districts. 

"You look at like El Paso," said Falk. "It has a small fraction of the tax base, and consequently they need some help."

Local perspective:

"When you talk about redistributing people's money, there's pros and cons to that," said taxpayer Ryan Waguespack. 

People we spoke to in Austin say it may be time to rethink recapture. 

"If they're not making enough money to cover their expenses and you're sending it out, that doesn't make a whole lot of economic sense," said Waguespack. 

"I do own a home here and I pay high property taxes," said Stephanie Woo, an Austin homeowner. "I think we need to have some more being distributed here."

What's next:

Goodwin says she's optimistic some changes can be made to lessen the burden. 

"I'm absolutely hopeful. I have heard from Rep. Tom Oliver that he's putting forth a bill on the idea," said Goodwin. "I look forward to seeing that and I think it's a great idea. I think we should have a commission meet and talk about how we can improve our school funding formula."