Midland ISD sues the Texas Education Agency over unconstitutional school property tax recapture program
Midland ISD has filed a lawsuit against the Texas Education Agency, arguing that the state's school recapture program has become an unconstitutional statewide property tax. The district, located in the oil-rich Permian Basin, contends that the current system strips local boards of their authority to set tax rates and manage their own revenue. Under the current "Robin Hood" system, property-wealthy districts must send a portion of their collected taxes back to the state for redistribution. Midland ISD argues that because the state now determines the tax rate and dictates how much revenue the district keeps, the local board acts merely as a middleman tax collector. For the 2025-2026 school year, the district expects to send $83 million to the state. Board president Josh Guinn stated that the lawsuit is necessary because the state currently controls nearly every dollar of the district's revenue. A victory for Midland ISD could force lawmakers to reconsider the funding calculus for more than 200 Texas school districts.