Robin Hood plan

[1] The original bill was passed in response to numerous court rulings (both Federal and state, notably the Texas Supreme Court's ruling in Edgewood Independent School District v. Kirby) that previous financing schemes were in violation of the Texas Constitution's requirements regarding what constitutes "an efficient system of public free schools" as that provision interacts with another provision prohibiting a statewide ad valorem property tax.

The exclusion of the wealthiest school districts from the requirement led Edgewood ISD to again file suit against Commissioner Kirby, this time in September 1990.

One month later, the Court would later issue a (rare) "advisory opinion", stating that once the Legislature created an "efficient system", it may authorize local enrichment upon voter approval.

Senate Bill 7 also, for the first time, introduced a state-mandated limit on M&O tax rates, capping them at $1.50/$100 valuation, which would later become the subject of its own court battle.

The Robin Hood plan would face yet another court challenge in June 1993, this time by two different sets of parties arguing two opposite positions: In January 1995 the Texas Supreme Court would, for a time, end the ongoing battle over school finance, ruling that the Robin Hood plan met constitutional requirements.

In response, the Legislature met in a special session during April and May 2006, and made several changes to the tax structure: Upon passage of the legislation, the district and the state agreed to dissolve a second case (West Orange-Cove II) which was ongoing at the time.

A Travis County district judge agreed in a February 2013 bench ruling that the system was unconstitutional based on equity, adequacy, and the creation of a de facto state property tax.