Why Did Texas Have a Constitutional Problem?
Article VIII, Section 1-E of the Texas Constitution provides that the state may not impose a statewide ad valorem tax.2 In Carrolton-Farmers Branch Independent School Dist. vs. Edgewood Independent School Dist.3, the Texas Supreme Court held that “an ad valorem tax is a state tax when it is imposed directly by the state or when the state so completely controls the levy, assessment and disbursement of revenues, either directly or indirectly, that the authority employed is without meaningful discretion.” The Texas Constitution further provides that “a 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 . . . to establish and make suitable provision for the support and maintenance of an efficient system of public free schools.”4 “Efficiency” must be both qualitative and quantitative (or financial). And more recently, the Supreme Court in Neely v. West Orange Cove Consolidated School Dist.,5 c
