Texas Arena Deal Puts School Tax Money in Play

Plano ISD says it could steer up to $250 million toward a proposed Dallas Stars arena, while the city has proposed another $700 million in public support. The district says its contribution would come from future tax revenue generated by new development, not existing classroom funds. Still, residents and a finance expert question whether schools will actually benefit.

Who Pays, Who Benefits?

“I really am not too keen on the idea of moving money away from the schools,” said Bryan Beck, a lifelong Plano resident and Plano East Senior High School graduate. Under the agreement, Plano ISD would put money into a city-administered fund for public improvements in the redevelopment zone, which includes the arena. The district expects to contribute up to $250 million over an estimated 18 years.

Plano ISD is working with the city through a tax increment reinvestment zone, or TIRZ. Texas’ school funding system, known as the “recapture program” or “Robin Hood,” requires property-wealthy districts such as Plano ISD to send part of their local property tax revenue to the state to help fund public education. The district says adjustments to what it owes the state under current law should offset its arena agreement.

Plano ISD projects it will receive about $438 million over the same period, or $188 million more than its projected contribution. Those numbers aren't guaranteed. The district says redevelopment could grow its tax base by $7.3 billion, but future property values, economic conditions and state law will determine whether the projections hold.

“So the bigger question is this, ‘Will the Plano ISD really benefit?’” said finance expert Sriram Villapura. He said the district could benefit if enrollment improves, but added: “Otherwise, I’m not very sure what’s the point of that extra money coming back to Plano ISD from the new tax base.” The district says the deal will spur development and bring long-term revenue to schools. Plano City Council approved the agreement on Oct. 12, after the district approved it in August. Voters will decide on the city’s proposed $700 million contribution through a venue tax in the upcoming election. The agreement could also let the district hold graduation ceremonies at the proposed arena rather than the Ford Center at The Star in Frisco.

A Senate Race, Through a Town Hall

At a CNN town hall Wednesday night, Democratic U.S. Senate candidate James Talarico fielded audience questions about abortion, biblical authority, gender-affirming care, national debt, Ukraine and immigration. An independent voter challenged him on abortion rights and whether Catholics could trust Democrats. Talarico said Texas’ abortion ban had led to dangerous outcomes for women facing medical emergencies, and argued that people with different views could work to reduce unwanted pregnancies and abortions.

Talarico, a former public-school teacher and Presbyterian seminarian student, is running against state Attorney General Ken Paxton. He hopes to become the first Democrat elected to the U.S. Senate from Texas since 1988. “I am tired of us being divided into teams: left versus right, blue versus red, urban versus rural,” he said. “The truth is, we’re all on the same team.”

Paxton skipped the event. He announced a statewide bus tour that will start Saturday and wrote on X: “Texans don’t back down, and neither do I.” He also accused Talarico of having “tried to dismantle the oil and gas industry” and waging a “war on Texas energy.” Newsweek said it reached out to Paxton’s campaign for comment.

Talarico said he supports barring gender-transition surgeries for minors, but opposes broader restrictions. He said he tried to narrow a Republican-backed Texas bill to surgical procedures for minors, then opposed the final legislation because it went further. On immigration enforcement, he said ICE has a legitimate purpose but shouldn't target longtime residents with deep community ties. “They’re going after Uber drivers,” he said. “They’re going after small-business owners. They’re going after grandmothers and infants.”

A Marist poll released Wednesday put Talarico ahead of Paxton, 47 percent to 45 percent among likely voters, with a margin of error of plus or minus 4.9 percentage points. Among registered voters, Talarico held a 4-point lead, down from 6 points a month earlier. Yet 53 percent of likely voters expected Paxton to win. Talarico has courted independents and moderates, while Paxton and the national GOP have sought to tie him to the party’s left wing. Vice President JD Vance rallied for Paxton in East Texas on Tuesday, days after President Donald Trump held a rally in San Antonio. At the town hall’s close, Talarico said: “We cannot afford Ken Paxton’s corruption.”