Key Coverage

Funding Rules Test Schools

KARNES CITY, Texas—The school district in this ranching community has long been among the poorest in the state—and it remains so, local officials say, even though an oil boom has sent property values surging eightfold in the past two years. But that jump in value has changed the town’s designation to “property wealthy” from “property poor,” under Texas’ school-funding formula. That means the town can’t keep most of this year’s projected property tax of $20 million—up from $6.5 million last year—and must instead share the bounty with other districts.