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IN THE SUPREME COURT OF TEXAS
════════════
No.
04-1144
Shirley Neeley,
Texas Commissioner of Education, et al.,
Appellants,
v.
West Orange-Cove Consolidated
Independent School District, et al.,
Appellees
consolidated
with
No.
05-0145
Alvarado Independent School
District,
et al., Appellants,
Texas Commissioner of Education, et al.,
Appellees
No.
05-0148
Edgewood Independent School
District,
════════════════════════════════════════════════════
On Direct
Appeal from the
250th
District Court of Travis County, Texas
Argued July 6,
2005
Justice Brister,
dissenting.
In
the name of “efficiency,” several school districts again ask the Texas courts to
close the Texas public schools unless the Texas Legislature increases funding.
Over the last two decades, we have been asked to do this every two or three
years, and have generally complied.
The
Court goes too far by doing so again today. First, the Court finds school
districts are forced to tax at the highest possible rate only because some of
them do. Second, though only five percent of the State’s school districts claim
a single statute is unconstitutional, the Court enjoins the State from
distributing any money under the current Texas school financing system,
an order that applies to every school district in Texas. Thus, because some
districts get too little state money, all districts may get none. It is hard to
see how this will help Texas school children.
Yet
the Court also does not go far enough. By failing to demand an “efficient
system” as the Texas Constitution requires, or to demand standing and proof as
Texas law requires, this case once again focuses on short-term funding rather
than long-term solutions.
Of
course, the true goal of this litigation is to put pressure on the Texas
Legislature. We demanded legislative changes by holding the Texas school-finance
system unconstitutional in Edgewood I,
Edgewood II,
and Edgewood III;
we warned that we might do so again soon in Edgewood IV
and West Orange-Cove I.
The Court fulfills that threat today. But there is no end in sight; if the past
is any indication, the new funding will not last long, and public education will
not change much.
Before
we bequeath Edgewood VIII, IX, and X to our
grandchildren, we should consider whether we might do more by doing less. As the
Court fails to do so today, I respectfully dissent.I. The Constitution & Efficiency
Since
statehood in 1845, every Texas Constitution has required the Legislature to
“make suitable provision for the support and maintenance of public schools.”
But when Texans adopted the current Constitution in 1876, they added a new word
— the Constitution now requires “suitable provision for the support and
maintenance of an efficient system of public free schools.”
Were
we drafting a constitution today, we might choose a different standard — perhaps
an “exemplary” or “comprehensive” or “progressive” or “safe” system of public
schools. But in 1876, the people of Texas adopted “efficient” as the
constitutional standard, and until that Constitution is amended no court can
adopt any other.
When
this Court issued Edgewood I in October 1989, we recognized that an
“efficient” system would “produce results with little waste.”
Nevertheless, we have applied the term in every case since then to require only
one thing — “substantially equal access to similar revenues per pupil at similar
levels of tax effort.”
In other words, “efficient” has meant only “equal ability to raise taxes.”
Perhaps
this made sense in 1989 — before the Berlin Wall fell, before the Soviet Union
collapsed, and before state-run businesses everywhere proved uncompetitive.
Perhaps back then a government system was “efficient” if it could get sufficient
public funding.
But
surely not now. Today, we know that one thing above all else makes service
providers efficient: competition. Even formerly communist countries recognize
how efficiency is produced — not by protectionism, not by higher taxes, and not
by state control, but by freedom for competition.
Yet
the school districts that brought this case never once suggested in six-weeks’
evidence that competition might make the Texas school system more efficient. No
one considered fundamental reforms that efficiency might demand. No school
expert considered whether it might be efficient to consolidate tiny school
districts or redundant school administrations. No one asked whether it might be
efficient to transfer students across district lines, or transfer funds to
private providers that could meet their needs better. Instead, this trial
focused entirely on getting more state funding through more taxes — all else in
the system to remain exactly the same.
This,
of course, is perfectly natural. Few of us welcome competition, not even judges.
Competition is often painful, and requires us to make hard choices we would
rather avoid.
But
long-standing rules of Texas law do not allow us to wink at these omissions
here. First, because Article VII’s education guarantee is a right that belongs
to school children rather than school districts, the latter have no standing to
assert this claim. Every party in this case was a school district, and every
witness in the six-week trial was a school employee or school expert. Not a
single attorney represented solely the interests of school students and their
families — who might actually favor the broader educational options or lower
taxes competition might bring. By overlooking standing, this trial focused too
much on the priorities of school districts, and not enough on the priorities of
school families.
Second,
because Article VIII’s constitutional prohibition of state property taxes is
violated only if a school district must tax at the statutory maximum, each
district had to prove it was forced to do so. The 47 plaintiff districts alone
asserted this, but none proved it. No school district addressed, no expert
studied, and none of the trial judge’s 679 findings mentioned why districts were
“forced” to make expenditures that other public and private schools often
forego, or that other government entities often provide. Nor did anyone consider
whether competition or other fundamental reforms might make the system more
efficient so that less money was necessary. By lowering the burden of proof,
this trial focused on whether school expenditures were reasonable rather than
required.
My
colleagues say our review of “efficiency” must be limited to funding because
“[w]e cannot dictate how the parties present their case.”
This Court is not usually such a pushover. When we interpret contracts,
statutes, and (above all) constitutions, we are constrained by what they say,
not the parties’ briefs. The constitutional guarantee invoked here requires an
efficient system of public schools; it cannot be used to demand more funding for
an inefficient system.
Nor
can we avoid our duty by suggesting that the Legislature demand efficiency when
we will not.
If efficiency is a justiciable question (as the Court holds), then we cannot
simply suggest that someone else look into it.
The
author of the current school-finance system testified at trial that school
districts “were no more wasteful or inefficient than any other State agency or
State institution.” But that is not the constitutional standard. For whatever
reason, the Texas Constitution mandates efficiency primarily in the State’s
courts
and schools;
they must meet a higher standard because that is what the Constitution
requires. If “efficiency” truly means “producing results with little waste,”
then someday we ought to apply it to that purpose.
II. Article VII & StandingA general diffusion of knowledge being
essential to the preservation of the liberties and rights of the people, it
shall be the duty of the Legislature of the State to establish and make suitable
provision for the support and maintenance of an efficient system of public free
schools.
Texas Constitution, Article VII, § 1While
acknowledging evidence that the public school finance system is inadequate,
unsuitable, and inefficient, the Court nevertheless finds no violation of
Article VII because “an impending constitutional violation is not an existing
one.”
We have tried this before, accepting the current system while lamenting it, and
warning that the result might be different next time.
But
this is the first time we have entertained such complaints in a courtroom with
no students. While standing normally requires only an allegation of injury, a
two-part test governs standing to challenge the constitutionality of a statute:
(1) an allegation of actual or threatened injury under the statute, and (2) an
allegation that the statute unconstitutionally restricts the plaintiff’s own
rights.
As all concede, the public-education guarantee in Article VII of the Texas
Constitution is a right that belongs to school students, not school districts.
Yet only the latter were represented at trial, and as the trial made clear, the
interests of the two are not necessarily the same.
Standing
is required by two guarantees in the Texas Constitution — separation of powers
and open courts.
We should not violate these two constitutional provisions in order to decide
whether the State violated two others.
A. A Question We Have Never Addressed
This
is the first Article VII school-finance case brought solely by school districts,
without a single family or school student as plaintiff.
In
Edgewood I, 68 school districts and “numerous individual school children
and parents” filed suit.
Edgewood II involved subsequent proceedings in the same suit with the
same parties.
Edgewood III was brought by “numerous school districts and individual
citizens.”
Edgewood IV was filed by “hundreds of school districts . . . as well as
many parents and local officials.”
None
of these cases approved school-district standing under Article VII. Nor did they
approve such standing implicitly, as standing cannot be waived and may be raised
during any later appeal.
To
the contrary, in Edgewood IV, we held that section 3 of Article VII
granted no constitutional rights to school districts:
Article
VII, section 3 does not create any “rights.” It only authorizes the Legislature
to establish school districts and to empower the districts to levy taxes for
specific purposes. The school districts’ rights, to the extent they exist, are
derived solely from the statutes that the Legislature may enact under the
authority granted in section 3.
Similarly, section 1 of
Article VII does not create any rights for school districts; in fact, it does
not even mention them. To the extent school districts assert injury here, they
cannot do so for any violation of this constitutional right.
While
school districts participated in all our prior Article VII cases, their standing
was immaterial because school families participated too. When several parties
make the same claim for declaratory or injunctive relief, standing for some
renders standing for the remainder immaterial.
Federal law is to the same effect.
As all our prior cases included parties whose sole interest was the education
of their children, the State had nothing to gain by objecting to school-district
standing, and the judgments would have been no different if it had.
There
is certainly no “broad rule that a governmental entity cannot sue to declare a
statute unconstitutional.”
But there is no broad rule that they always have such standing either.
Just because school districts have standing to bring some claims does not mean
they have standing to bring all claims.
Instead,
standing depends on the nature and source of the claim being made.
While school districts have standing to pursue an Article VIII claim,
that does not mean they have standing to pursue an Article VII claim. We have
never suggested otherwise, until today.
B. Standing We Have Never Recognized
Before
today, we have never held that government agencies have standing to sue the
State for a bigger budget.
The
school districts allege they have insufficient money to carry out their duties,
but it is not money for their own account. As we held long ago, school districts
hold money only as trustees for school students:
School
funds are held to be trust funds for educational purposes. Such funds do not
belong to the district or to the officers of the district, but are merely held
by them in trust for the public.
The injury alleged in this
case was suffered only by school students: to the extent school districts must
cut courses, or eliminate extracurriculars, or hire less-qualified teachers, it
is the students who suffer the concrete, personal harm rather than the districts
themselves.
The
school districts alleged only that inadequate state funding limited their
ability to perform their official duties. Both state and federal courts have
rejected standing by government officials to bring such claims.
Thus, we held in Brown v. Todd that a city councilman lacked standing to
challenge a mayor’s personnel policy that did not apply to him, but merely
infringed his ability to set such policies.
Similarly, the United States Supreme Court recently held that grant recipients
but not members of Congress had standing to challenge the Line Item Veto
Act(though the Act granted standing to both), as the former actually lost money
while the latter lost only their discretionary power to dispense it.
This
is not a case like Nootsie, Ltd. v. Williamson County Appraisal District,
in which a public entity was compelled to affirmatively grant a tax exemption it
believed unconstitutional.
The districts do not complain that they are affirmatively compelled to perform
unconstitutional teaching, testing, or any other services; they complain only
that they are underfunded.
The
Court’s suggestion that we have recognized standing before in these
circumstances is indefensible. In Vondy v. Commissioners Court, we
ordered commissioners to pay a constitutionally required salary when they had
refused to pay any.
In Mays v. Fifth Court of Appeals, we ordered commissioners to pay a
statutorily allowed raise which they had ignored.
Both cases involved nondiscretionary ministerial acts;
neither involved a dispute between an agency and the State about whether the
former’s budget was big enough.
The
Court justifies standing here because “the Legislature has required school
districts to achieve the goal of a general diffusion of knowledge.”
But that gives them no rights against the State. As we noted in Edgewood
IV, the State can abolish school districts completely, or enlarge or
diminish their powers.
Further, the Texas Constitution requires the Legislature to provide for many
things — roads and bridges,
the Legislative Redistricting Board,
the Judicial Conduct Commission,
and the salaries of thousands of public employees.
These are all important items, and some may be underfunded; but surely all do
not have standing to sue the State for more.
In
every analysis of standing, “the plaintiff must contend that the statute
unconstitutionally restricts the plaintiff's rights, not somebody else’s.”
This the school districts cannot do.
C. Priorities We Have Never Approved
One
reason courts require standing is amply demonstrated by the evidence in this
trial, which tended toward a wish-list for school district employees.
Eight
superintendents testified for the school districts at trial, each listing what
they needed or what they would do if they had more money. Their priorities were
almost identical: more bilingual teachers, more certified teachers, more
certified librarians, more teacher training, higher salaries, better benefits,
smaller classes, and longer school years.
Each
of these may be important. But if eight families from the same districts had
testified at trial, is this what they would have listed? Assuming all could not
be fully funded, would they have listed them in the same order? We simply do not
know.
We
do know that, for most of us, our priority as employees is higher salaries,
while our priority as customers is lower prices. Both may be possible when
competition increases efficiency, innovation, and productivity. But at some
point the two inevitably conflict, and some compromise is necessary. Because the
trial here included only education providers and no education customers, the
evidence may not accurately reflect where that line should be drawn.
Moreover,
fundamental reforms may be overlooked if school districts may assert Article VII
claims by themselves. Here, for example, not a single expert witness studied the
possible savings that might accrue from consolidating some of the State’s 1,031
school districts. This Court has repeatedly lamented the “crazy-quilt pattern of
small school districts,”
as a result of which “duplicative administrative costs are unavoidable.”
The plaintiffs’ experts confirmed that smaller districts have “the highest
level of expenditures per student, as one would expect,” because of
“diseconomies of scale.” Yet not a single school district or expert witness
suggested any consolidations.
It
is unrealistic to ask school boards and administrators to recommend their own
abolition, or lower salaries for themselves or any employees. Such potential
conflicts between the interests of school districts and school families prevent
the former from claiming standing to represent the latter. We have recognized
representative standing in some circumstances,
and sometimes state agencies may assert standing on behalf of their
constituents.
But we have done so only when the goals of a group and its members are so
closely aligned that there is no reason to require participation by one in a
suit by the other.
That is not the case here.
In
its final analysis, the Court dispenses with standing generally, because (1)
students and families were free to intervene, and (2) the districts could find
students and families to back their claims. Even if we assume that poor families
can hire lawyers, or school districts can recruit sham plaintiffs to bolster
their claims, it is hard to see what that has to do with the standing of the
parties actually before us. More important, such arguments could be made by
every party who lacks standing, including millions of taxpayers,
or the father whose challenge to the Pledge of Allegiance was recently rejected
for lack of standing.
Normally, this Court strictly enforces standing so that we retain our proper
role;
hopefully today’s exception is good for this case only.
Standing
is not a technicality; it is essential to any court’s authority to decide a
case.
We cannot abandon it in noteworthy cases; indeed, that is when adherence to
legal standards is most important. As the United States Supreme Court recently
noted, courts must be “especially rigorous” in requiring proper standing when
asked to declare the actions of the other two branches of government
unconstitutional.
The school districts alone cannot meet such standards here.
III. Article VIII & Discretion
No State
ad valorem taxes shall be levied upon any property within this State.
Texas Constitution, Article VIII, § 1-e
The
47 plaintiffs, mostly property-rich school districts, bring a claim that Article
VIII, section 1-e of the Texas Constitution is violated by a tax-rate ceiling in
a single subpart of a single statute.
Unlike Article VII, Article VIII was intended to benefit school districts, and
thus they have standing to assert this claim.
In
Edgewood III, we declined to adopt a precise test for violations of
Article VIII because state control over property taxes presents “a spectrum of
possibilities.”
Instead, we held that a tax violates Article VIII if the State so completely
controls the levy, assessment, and disbursement of revenue that school districts
are “without meaningful discretion.”
In Edgewood IV, we explained that districts lose such discretion when
they are “forced to tax at the maximum allowable rate just to provide a general
diffusion of knowledge.”
This
appeal turns on whether the plaintiffs proved they were “forced” to tax at the
maximum rate. In reviewing the evidence, the Court contradicts everything we
have said about such evidence before, and adds new “factors” we apparently
overlooked before. This is too imprecise; a legal standard cannot turn on
entirely different evidence from one case to the next.
A. The Wrong Standard: Everybody Else Does
It
The
Court points to several statewide trends as evidence of an Article VIII
violation. But in our previous cases, we held that evidence just like this could
not show an Article VIII violation.
First,
my colleagues suggest that school districts are forced to tax at maximum rates
because about half of them do. While we have never stated in detail what the
Article VIII standard means, we have stated one thing it does not mean —
“the number of districts taxing at maximum rates is not determinative.”
In West Orange-Cove I, we expressly rejected arguments that an
unconstitutional state property tax must control the rates in every
district (the State’s position) or most districts (the trial court’s
conclusion); instead, we held that an ad valorem tax is unconstitutional if it
is imposed by the State, no matter how many districts it covers.
If the State could not use prevailing tax rates to prove the school districts
should lose, why can the school districts now use them to prove they should
win?
Second,
the Court reverses field by concluding that close-to-maximum rates show that
many districts lack meaningful discretion. Only two years ago, we said close
counts neither way: “It may be that a school district taxing at $1.47 instead of
$1.50 has exercised meaningful discretion, but that is not necessarily the
case.”
The number of districts taxing in this range simply cannot tell us whether “a
single district . . . is constrained by the State to tax at [this] particular
rate.”
Third,
the Court finds it important that districts are taxing and spending 97 percent
of the revenue that would be available if every district taxed at maximum rates.
But in Edgewood IV we noted, and school district witnesses conceded at
trial, that financial incentives in the current school-finance system encourage
school districts to tax at maximum rates even if they don’t have to.
The current system does not force districts to tax at maximum rates merely by
providing incentives for them to do so.
Fourth,
the Court announces today that substantial transfers of tax revenues from rich
districts to poor districts are “a significant factor” in rendering the current
system unconstitutional.
Of course, we demanded something along these very lines when we required
equalized funding in Edgewood I. Further, we held such transfers
constitutional in Edgewood IV;
today’s opinion appears to adopt the dissent in the latter case.
Finally,
the Court supports its constitutional conclusion by noting a “marked decline”
since 2001 in the number of districts that “exceed minimum accreditation
standards.”
We have never before tied constitutional analysis to testing or accreditation
scores, and today’s reference shows why we should be reluctant to enter that
hotly debated area. For example, if the base year in this trend were 1994 rather
than 2001, then there has been a marked increase in the number of
districts exceeding minimum standards. Further, as the standards themselves are
rising, declining scores may or may not reflect actual declines. And the
“minimum” standard referenced here is “academically acceptable”; nothing in this
rating system proves the State is “forcing” every school district to rate above
average.
Surely
we were not mistaken in all our previous cases. If revenue transfers and
accreditation scores were relevant to Article VIII’s standard, it is curious
that we have never mentioned them before. And merely looking at average tax
rates cannot tell us whether any district was “forced” to that level or arrived
there via “meaningful discretion.”
Whether
any school district in Texas has lost “meaningful discretion” is not a standard
that can be proved by statewide trends. School districts are not forced to tax
or spend money just because everyone else does it.
The standards this Court has established require more specific evidence of a
violation of Article VIII.
B. The Right Standard: What Must This District
Do?
The
school districts cannot establish a violation of Article VIII by proving that
their current budgets are customary, or even reasonable; the tax cap they
challenge is unconstitutional only if they proved they were forced to tax at
that rate.
By
definition, districts are not “forced” to make discretionary or voluntary
expenditures. Of course, some expenditures may be mandatory de facto,
even though not mandatory de jure.
For example, Texas school boards or administrators who cut football programs or
drill teams (as the State’s attorneys bravely suggest) may soon find themselves
looking for other occupations.
But
the Court adopts a standard far too low by holding that districts are “forced”
to tax at maximum rates whenever their “professional judgment and experience”
suggests they should.
Undoubtedly, school districts want to give their students the best education
possible, and an educator’s professional judgment would deem anything less to be
undesirable. But in Edgewood IV, we rejected a claim that districts were
“forced” to transfer revenues “because the various alternatives are all
undesirable.”
By equating professional preferences with coercion, my colleagues again follow
the dissent rather than the majority in Edgewood IV.
The
districts did offer examples of expenditures that were mandatory, and programs
that were cut. But as proof that districts are forced to tax at maximum rates,
both are non sequiturs. Proving that some programs are mandatory does not prove
that all others are too. Nor does it follow from cuts in one program that no
further cuts can be made. To the contrary, the reluctance the superintendents
expressed at trial about such cuts served to prove, if anything, their
reluctance to cut any programs at all.
Moreover,
the State’s trial evidence of discretionary spending did not focus on
remedial-reading or bilingual-education programs. Instead, the State pointed to
undisputed expenditures for swimming pools, nature trails, athletic stadiums,
tennis courts, and unconventional classes such as broadcast journalism,
ceramics, power lifting, ballet, film critique, lego robotics, advanced
mariachi, and culinary arts.
It
is true that several superintendents testified that all these programs were
needed to keep students in school. But if we take these claims at face value
then nothing schools spend is discretionary. “[A] claim will not stand or
fall on the mere ipse dixit of a credentialed witness.”
These opinions alone cannot support the trial court’s judgment, both because
they are conclusory,
and because the question is a legal one.
This Court is not usually so generous in treating such testimony as “facts, not
opinions.”
Further,
none of the school districts explained why they were “forced” to maintain
athletic facilities or library services that local governments often provide, or
unconventional classes that might be available through local community colleges
or the internet. No one would suggest that communities can run their fire,
police, or utility departments through a school district’s budget, thus shifting
those costs to the State or richer districts. The trial court could not simply
assume there were no alternative providers; the school districts had to prove
it.
Similarly,
several superintendents conceded paying the highest starting salaries in their
region, or special stipends to attract particular types of teachers. Considering
the importance of what they do, no one can begrudge teachers higher salaries;
but these contribute to a violation of Article VIII only if school districts had
no choice. If surrounding public or private schools pay less, it was the
districts’ burden to prove why they could not.
When
pressed to explain such expenses, district witnesses repeatedly pointed to the
demands of their local communities. But again, local demand must be proved, not
merely asserted. As no students or families testified at trial, the only proof
was the conclusory assurances of school administrators.
In
a democracy, community demand is proved by elections, not anecdotal hearsay. In
many instances, schools can buy property using school bonds (which require
electoral approval) or the general operations budget (which does not). We cannot
tell from this record which programs had been approved at an election, or what
percentage of the community actually participated. Surely a district cannot
avoid elections on expensive programs, or schedule them to ensure low voter
turnout,
and then claim they were forced to adopt those programs by their community.
Without such proof here, we simply cannot tell.
Finally,
because fundamental reforms were never considered, we do not know whether they
might allow districts to drop rates below the tax ceiling. School districts
cannot spend money inefficiently (subverting Article VII) to “force” themselves
to the tax ceiling (subverting Article VIII), as these articles must be
construed consistently to give effect to both.
School districts may have good reasons to avoid consolidating, or starting
school later in the year, or increasing class size so that teachers’ salaries
could be increased too. But they are forced to make current expenses only if
saving money through such alternatives was impossible, not just unpopular.
Of
course, had the trial judge required specific evidence that the districts were
forced to incur substantially all their current expenses, it would have been
much more difficult for the districts to prove an Article VIII violation. But
proving a statute unconstitutional is not supposed to be easy. We must presume
the current system is constitutional, and interpret it whenever possible in a
manner that renders it so.
This presumption is “especially strong” when statutes relate to taxation,
and “especially important” when we deal with politically charged subjects like
the schools.
There
was plenty of evidence at trial that public schools are being asked to carry
increasingly heavy burdens, burdens that private schools often do not bear. For
example, as one superintendent noted, “it is not easy to remove employees in the
public sector.” Accountability and testing systems have raised expectations that
somehow all schools and school children can be at or above average. Teachers and
administrators face the risk that the failure of their students will cause their
own professional efforts to be labeled “academically unacceptable.” And as all
the witnesses agreed, a growing stream of immigrants with little formal
schooling or English proficiency requires that public schools not only leave no
child behind, but go back at great expense and pick up more as soon as they
arrive.
Nevertheless,
the Article VIII standard is not whether educational expenditures are
reasonable, or important, or far-sighted, or what a community would prefer, but
whether a district is forced to make them. Before the courts can declare the
State’s school-finance system unconstitutional, each and every district must
prove it had no other choice. Here, none did.
IV. Equity & Overbroad Relief
Permanent
injunctions “must be narrowly drawn,”
and “the record must contain evidence supporting each injunctive provision.”
This one meets neither standard.
It
is neither true nor “worth repeating” that these standards can be ignored
because the State asks for no injunction rather than a narrower one. A
court must craft an equitable injunction even if it is not precisely what either
party wants.
If the rule were otherwise, the Court should not postpone the injunction here
until June 2006 — as neither party asked for that. Hopefully, today’s rule is
once again good for today’s case only.
A. Too Many Districts
First,
there is no evidence to support a constitutional violation in every school
district in Texas.
Out
of 1,031 school districts in Texas, only 329 filed suit, only 47 asserted the
single constitutional claim the Court affirms, only 9 presented proof on that
claim in any detail, and only 3 called a witness to prove it at trial. On this
narrow basis, the Court declares the school-finance system in every district
unconstitutional, and enjoins state funding for them all. This is too broad.
As
we recently noted, it has always been the law of equity that a permanent
injunction “must not grant relief which is . . . more comprehensive or
restrictive than justified by the pleadings, the evidence, and the usages of
equity.”
Thus, for example, a permanent injunction against protests at five physicians’
homes is too broad if the evidence shows protests occurred at only four.
Similarly, evidence of flies and foul odors from a 10-acre feedlot does not
justify a permanent injunction extending to an entire 450-acre ranch.
An injunction may extend as far as the evidence, but no further.
In
their Article VIII claim, the plaintiffs did not challenge the tax-rate cap
facially,
but only as it applied to them. “In an as-applied constitutional challenge, we
must evaluate the statute as it operates in practice against the particular
plaintiff.”
Yet the trial court did not even try to evaluate how the property-tax cap
operates in practice against most of the 47 plaintiffs, much less the other 984
districts covered by the statewide permanent injunction. As the question is one
of constitutionality, we cannot simply presume that all districts are alike.
The
trial judge pointed to evidence from nine “focus districts” and the testimony of
a dozen superintendents as proof that loss of meaningful discretion was
“systemic/statewide.” But there was no evidence these districts were
statistically representative of all others. To the contrary, the handful of
successful focus districts were unrepresentative — 78 percent of the
plaintiffs’ focus districts were poor districts, while 72 percent of the actual
plaintiffs were rich ones.
Nor
did the parties agree that proof about the focus districts proved anything about
the rest. Even if they had, such an agreement would be unenforceable. In
Terrazas v. Ramirez, we reversed a permanent injunction that ordered
election redistricting based on an agreement by all the parties (including the
Governor and Attorney General),
noting that such agreements are generally unenforceable in cases affecting the
public:
Apportionment
affects every person in the State, yet only a very few parties can be involved
in any lawsuit challenging redistricting. The trial court must attempt to
consider the interests, not only of the parties in the case, but of others who
are not present. For this reason, the agreement of the parties in a
reapportionment lawsuit cannot alone be conclusive of either the validity of the
statute or, if it is found to be invalid, the relief to be granted.
Similarly, as schools and
property taxes affect far more Texans than the parties at this trial (none of
whom, again, were simply taxpayers or families of school children), the trial
court could not grant relief covering districts as to which there was no proof.
In
a state as diverse as Texas, some programs and expenses may be mandatory in one
district, but supplemental in another. Even if a dozen districts proved that
they were forced to incur all their expenditures (which none did), that would
not justify an injunction extending beyond them.
This
is not a class action. No class has been certified, and given the individual
ways in which each school district spends money, it is unlikely any could be.
But even if one was, we could not grant relief extending to nonparty school
districts without a “rigorous analysis.”
Yet the Court today grants a statewide injunction affecting hundreds of
nonparty school districts without class certification, evidence, analysis, or
even an explanation. This looks too much like “enjoin now and worry later.”
B. Too Many Statutes
Second,
there is no evidence to support an injunction against every statutory aspect of
the Texas school-finance system.
The
Court finds only one constitutional violation — that the tax-rate ceiling in
subsection 45.003(d) of the Education Code violates Article VIII. As already
noted, there is no evidence showing this is the case in every school district in
Texas. But even if there were, that would justify nothing beyond declaring this
one subsection unconstitutional.
When
we declared a single provision of the Water Code an unconstitutional delegation
to landowners, we did not enjoin all water quality regulations in Texas.
When we found a single provision of the Tax Code unconstitutional, we did not
enjoin all taxes; to the contrary, we reformed the lower court’s injunction to
make it narrower.
When we found an absolute two-year statute of limitations for medical
malpractice claims unconstitutional as applied to minors, we did not enjoin the
entire statute but merely tolled limitations for minors.
In
each of these cases, we narrowly limited our orders to the legislation we found
unconstitutional. By the same standard, if the Legislature imposed a property
tax on the nine Texas counties whose names begin with “J”, surely we would
declare only that statute unconstitutional; we would not stop all state
funding in those counties, much less in the other 245.
But
today the Court does precisely that, finding one subsection unconstitutional as
applied to nine focus districts, and then affirming an injunction against the
entire Texas school-finance system. This injunction includes most of Chapters 41
and 42 of the Texas Education Code — a collection of almost 100 different
statutes. This is far too broad.
The
Court acknowledges that the single violation here could be corrected by limiting
relief to that single statute.
But it imposes far more sweeping relief, on the ground that we must “leave such
matters to the discretion of the Legislature.”
In other words, rather than enjoining a single statute in a handful of
districts, the Court enjoins scores of statutes across the entire State — in
deference to the Legislature. Reasonable people may question whether this is
very much deference.
It
is true that we have enjoined the entire school-finance system before, but never
for grounds as limited as those here.
In Edgewood I and II, there was a “fundamental flaw” in the
system, “not in any particular provisions but in its overall failure to
restructure the system.”
By holding that Article VII required the entire system to “draw revenue from
all property at a substantially similar rate,”
our ruling could not be narrowly limited to a small part.
Similarly,
because the statute we held unconstitutional in Edgewood III mandated a
state property tax in every Texas county, the injunction we issued had to cover
every county too.
Nor could we limit relief to the portion of the system held unconstitutional,
as there would have been little financing left over for schools without it.
By
comparison, nothing about the Article VIII claim here inevitably extends to the
whole school-finance system. Surely a single violation of Article VIII anywhere
cannot justify an injunction shutting down school finances everywhere.
The
Court says the current system cannot survive without the tax-rate cap, because
“for districts that need additional revenue, the funding system would be
inefficient.”
But the Court cannot have it both ways — if school districts “need” more
funding, then current funding cannot be adequate for a general diffusion of
knowledge; conversely, if the current funding is adequate (as the Court
explicitly holds), then the cap only affects supplemental spending. As the Texas
Constitution does not guarantee equal supplemental spending,
the cap is hardly “central” to a
constitutional system.
Of
course, it is no mystery why the plaintiff school districts never asked for
narrower relief. If only section 45.003(d) were declared unconstitutional, they
would once again have meaningful discretion to set tax rates as they wish, and
could raise them to pay for all the programs they say their communities demand.
But they also might find out at the next election that their beliefs about
community demand were somewhat exaggerated.
Instead,
by enjoining school-finance across the state, the school districts here hope to
obtain funding from sources other than those within their own borders. Raising
revenues from outside sources is unlikely to make school districts more
accountable or more efficient. Neither equity nor the Texas Constitution allows
school districts to demand supplemental programs on condition that someone else
pay for them.
* * *
The
Court closes by reminding the Legislature how important education is to the
future of this State and its people. This seems an odd way to conclude an
opinion that rejects every claim except that the Legislature has imposed a
statewide ad valorem tax. If our goal is to improve education, we should not
enjoin the entire school-finance system on collateral grounds to pressure the
Legislature to change it.
But
we should demand efficiency, as that is what the Texas Constitution requires.
Recognizing the common meaning of “efficient” would not require us to abandon
our previous school-finance cases, or the equity for Texas schools they require.
But we cannot keep overlooking the one standard the Texas Constitution
explicitly demands. Nor do we help Texas school children by insisting
“efficient” means nothing beyond equal access to taxes.
Someday,
the Texas school system must become “efficient” by 21st century standards. As
that is what the Texas Constitution requires, we should start that process
today.
________________________________
Scott
Brister
Justice
OPINION DELIVERED: November 22,
2005