In a recent episode of The Building Texas Show, host Justin McKenzie sat down with Missy Bender, Executive Director of the Texas School Coalition, to debunk a persistent myth about Texas school finance: that recapture, often called 'Robin Hood,' takes money from property-wealthy districts and gives it to property-poor ones. According to Bender, the nearly $3 billion sent back to the state by Texas schools in 2025 actually ends up reducing the state's contribution to the Foundation School Program (FSP), freeing up funds that can be redirected to other priorities such as water, transportation, or even vouchers.
The episode, recorded in Plano and published July 13, 2026, arrives as legislators head into election season, with about 20% of all Texas districts now paying recapture. Bender explains the mechanics: recapture is triggered when a district's property valuation divided by average daily attendance exceeds a certain threshold. Declining enrollment combined with rising valuations creates a 'double whammy' for districts like Plano ISD, which is among the growing list of urban and rural payers.
In 2025, the top payers included Austin ISD at $770 million and West Texas oil district Pecos-Barstow-Toyah at $198 million. Bender emphasizes that recapture does not directly help other school districts. 'So what does recapture do? It generates state savings,' she tells McKenzie. 'That's why I don't call it Robin Hood anymore. It's not the property wealthy helping the property poor, like many think, but it's only helping the state.' She warns that some school boards have considered withholding payment as a form of protest, but notes that doing so could lead to jail time.
The conversation also delves into the funding adequacy study led by Dr. Lori Taylor at Texas A&M, and notes that the Legislature went six years without increasing the basic allotment despite inflation. Bender argues that 96% attendance, once religious and medical absences are counted, should be treated as the practical ceiling. She also flags legislation she is working on to stop penalizing districts for excused partial-day absences, as a student leaving for a doctor's appointment can cost a district a full day of state funding even when the absence is excused.
The implications for Texas taxpayers and school districts are significant. As recapture payments grow, districts face increasing financial pressure, potentially leading to cuts in programs or higher local taxes. Meanwhile, the state benefits from reduced education spending, but critics argue that this undermines the goal of equitable school funding. The episode reframes a debate most Texans have only encountered as a tax-bill line item, urging a closer look at how recapture actually functions and where the money goes.
The Building Texas Show, hosted by Justin McKenzie, spotlights operators, advocates, and civic leaders shaping the state's future through candid, long-form conversation. This episode is available now wherever podcasts are heard.
