Plano ISD pledges up to $250 million for Dallas Stars arena, raising school funding questions
Plano ISD says it will contribute up to $250 million toward the proposed Dallas Stars arena at the former Shops at Willow Bend site. That would be in addition to the $700 million the city has proposed for the project.
But where is the school district's money coming from, and could the deal affect school funding?
Plano ISD is partnering with the city on a tax increment reinvestment zone, or TIRZ, agreement. The district says its contribution will come from a portion of future tax revenue generated by new development in the zone, rather than existing classroom funds.
Under Texas' school funding system, commonly known as the "recapture program" or "Robin Hood," property-wealthy districts such as Plano ISD must send a portion of their local property tax revenue to the state to help fund public education.
The district expects to contribute up to $250 million over an estimated 18 years. The money would go into a city-administered fund for public improvements in the redevelopment zone, which includes the Stars arena.
Plano ISD says the agreement is expected to be offset through adjustments to the amount it owes the state under current law. The district projects it will receive about $438 million over the same period, or $188 million more than its projected contribution. Those figures are projections, not guarantees.
The city has proposed contributing $700 million toward the arena through a venue tax that voters will decide on in the upcoming election.
The agreement also could allow Plano ISD to hold graduation ceremonies at the proposed arena instead of the Ford Center at The Star in Frisco.
The district approved the agreement in August, and the Plano City Council approved it on Oct. 12.
Some residents remain concerned about using school district resources for an arena project.
"I've been a resident of Plano my whole life. I grew up and went to Plano East Senior High School. You know, go Panthers. And I really am not too keen on the idea of moving money away from the schools," said Bryan Beck.
Finance expert Sriram Villapura said the district's potential financial benefit depends on whether the redevelopment delivers the expected results.
"So the bigger question is this, 'Will the Plano ISD really benefit?'" Villapura said. "If there is better enrollment, yes, they'll benefit from the extra money. Otherwise, I'm not very sure what's the point of that extra money coming back to Plano ISD from the new tax base. My concern is that it could potentially be more money might be going out of Plano ISD."
Plano ISD projects the redevelopment could grow its tax base by $7.3 billion. The district says the agreement will help spur development and generate long-term revenue for schools, but the financial projections depend on future property values, economic conditions, and state law.
