1. When the state reduces its share of spending for various programs, but does not make any cuts to the program itself, it places local governments in a bind to fund the program. This has happened with education. There is a cap on M&O taxes, which many school are approaching, if they have not reached it already, and the state's share of education funding has decreased steadily over the years. Of course, there is also the issue of unfunded mandates, which some counties are trying make unconsitutional. By requiring local governments to perform certain duties and then reducing their ability to perform those duties by limiting their ability to tax, the state government hurts citizens who expected benefits from these programs.
2. It creates a new bureaucracy.
This is the type of thing which has me favoring Dewhurst's state property tax plan.
I would favor a State sales tax to fund our schools. That even the Illegals would be paying at least something for their children.