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The Truth About School Financing in Texas: Myth vs. Reality
Public schools across the state are struggling. Stagnant state funding, double-digit inflationary price increases and new legislative mandates are forcing districts to adopt deficit budgets and cut programs and staff.
However, some claim otherwise and promote a false narrative about school funding with the aim of undermining public education and ultimately diverting public tax dollars to private voucher schemes.
It’s important to clarify things. Here are some of the biggest myths surrounding school funding and the facts that highlight just how much Texas public school students and teachers are being misled.
Myth: “Texas is fully funding education.”
Reality: At the heart of school funding is the base allocation – the per-pupil funding each district receives. Since 2019, there have been no increase by legislators to the basic quotadespite inflationary price increases of up to 19% on everything including supplies, utilities and other school operating expenses.
Compounding the problem are new state mandates, including House Bill 3, which requires school districts to have a commissioned peace officer on each campus in the absence of extenuating circumstances. Although the Legislature increased the 2023 school safety appropriation by 28 cents per student and sent $15,000 to each campus to help districts comply with House Bill 3, this additional funding falls significantly short of the actual cost of providing enhanced security.
In another failure, the Legislature ignored a $2.3 billion shortfall in special education, adding financial hardship to districts that are already stretching their budgets to provide services to students with disabilities and special needs.
Myth: “Texas public education is being funded at the highest level ever.”
Reality: While this statement is technically true, it is completely misleading because per-student funding has declined significantly over the last decade. In fact, the state Legislative Budget Board shows that In inflation-adjusted dollars, funding has fallen by $590 per student over the past 10 years.
So how can this statement be technically true? Well, it includes more funding in response to student enrollment growth (more students served) and to cover specific, mandatory items. It also counts state funds used to pay local property taxes as funds used for education – even though not a single dollar of these funds is being applied to student learning and instruction. Lastly, this demand includes temporary federal funding that will expire this fall and one-time investments in the Teachers’ Retirement System that do not impact the classroom.
So, while it is true that the Legislature provided “historic levels of funding,” actual public schools did not receive historic increases in funding. Simply put, there has been no new funding to address the teacher shortage, the special education funding gap, or other pressing needs.
Myth: “Texas public schools don’t need more money, they just need to spend it more wisely.”
Reality: Texas schools can no longer do more with less. Many districts approved deficit budgets last year in hopes that more funding would come from the state. These deficit budgets are not the result of financial mismanagement or a lack of adequate budgeting, but rather of pressing needs related to double-digit inflationary price increases, including salary increases for teachers and staff and higher operating expenses.
It’s important to note that up to 85% of a school’s budget is used to cover the salaries of teachers, bus drivers, custodians, child nutrition professionals, and other staff. District administrators, who some point to as examples of overreach, represent just 4% of a district’s budget, on average. In an attempt to fill a deficit, school boards are asked to approve layoffs, cut programs and even close schools. Some are considering asking local taxpayers for additional help through a voter-approved tax rate election to raise more revenue.
More than 99% of school districts have received a passing rating on the state’s own financial responsibility rating system, used to hold schools accountable for the quality of their financial management practices and to ensure maximum allocation for instructional purposes.
To complete
School boards across the state will face tough budget negotiations in the coming months to respond to critical public education funding needs despite a surplus of nearly $33 billion.
During the last legislative session, lawmakers budgeted $3.99 billion for public schools, but the money was never allocated, largely because lawmakers failed to approve a voucher program. This money should be allocated now to help public schools deal with rising costs related to inflation, teacher retention, and important initiatives like school safety. Furthermore, the state needs to fulfill its obligation to finance special education students, filling the $2.3 billion deficit.
Now is the time to stop misleading Texas students. The future of the Lone Star State depends on funding the future of our 5.5 million public school children.