the limit could continue at that rate. The tax rate was not capped for additional taxes assessed to pay for bond packages for facility construction or renovation. Second, notwithstanding the rate cap, districts were limited to M&O revenues which did not exceed a statewide rate per student. Any revenues in excess of the statewide rate were "recaptured" by the state and given to poorer districts. The wealthy district could, in lieu of state recapture, enter into an agreement with a poorer district to transfer funds. It is this portion of the legislation which earned it the "Robin Hood" name. Ersatz state property tax, reform But 10 years later, the Robin Hood plan was in jeopardy again. In November, 2005, the Texas Supreme Court ruled that, since the vast majority of school districts were having to tax at the maximum maintenance-and-operations (M&O) tax rate of $1.50 per $100 of property valuation just to raise enough money to meet state mandates, the school-finance system was, in effect, a state property tax, which is prohibited by the Texas Constitution. The Texas Legislature, meeting in a special session in April and May, 2006, passed legislation that met the court's requirements that local districts have "meaningful discretion" in setting tax rates. A series of bills changed the school finance system to cut school M&O property taxes by one-third by 2008, but allowed local school boards to increase tax rates from the new, lower levels, although generally only with voter approval. Some of the local property tax revenue lost by the one-third cut will be replaced by state revenue from a new business tax and higher cigarette taxes. The Comptroller estimated a five-year $23 billion shortfall from the revised tax system. See also Serrano v. Priest (California) Abbott v. Burke (New Jersey) Redistributive change References Resources Robin Hood Plan is Working World Internet News "EDGEWOOD ISD V. KIRBY". The Handbook of Texas Online. Retrieved 27 October 2008. Schools and Taxes: A Summary of Legislation of the 2006 Special Session Education in Texas Education finance in the United States Economic inequality in the United States Taxation and redistribution