The current finance system is largely the result of Edgewood v. Kirby, a landmark case concerning public school finance, filed against the commissioner of education, citing discrimination against the economically disadvantaged. The plaintiffs in the Edgewood case contested the state's reliance on local property taxes was inherently unequal because property values varied greatly from district to district, thus creating an imbalance in funding. In its opinion (1989), the Texas Supreme Court noted that the Edgewood ISD, among the poorest districts in the state, had $38,854 in property wealth per student, while the Alamo Heights ISD, which is in the same county, had $570,109 per student. These differences produced disparities in the districts' abilities to hire good teachers, build appropriate facilities, offer a sound curriculum, and purchase such important equipment as computers.
Following the court's order, the legislature met in four consecutive and often contentious special sessions to resolve the financing issue. Their solution is now known as the Robin Hood Plan. The Robin Hood plan is a media nickname given to legislation enacted by the Texas in 1993 to provide court-mandated equitable school financing for all school districts in the state. Similar to the legend of Robin Hood, who "robbed from the rich and gave to the poor", the law "recaptures" property tax revenue from property-wealthy school districts and redistributes those funds to property-poor districts.
