Texas School Funding

How do you feel about our local school districts paying substitute teachers approximately $10-12 hour? They’re also paying the cafeteria staff around the same amount. Does that sound like a fair wage for someone who is doing those jobs ? Most fast food and retail jobs pay more.

How desperate would you have to be to work for $10-12 an hour in this economy, especially with a college degree? Bus drivers fare a little better starting at $19/ hour. (But after seeing three different school buses overturned this week in Texas , I’m not sure I’d want my child on a bus.)

Do we want to hire desperate people to teach and care for our children? Many of these workers are single mothers with children, not just moms working for extra “play” money.

Since our government caused rampant inflation by flooding the economy with trillions of dollars during the pandemic, prices have not gone back to previous levels. Even though certain people became very rich during and after the lockdown , most fell behind.

Wages in general have not risen as fast as the cost of living, housing, food, insurance, utilities, transportation, healthcare, etc. Some industries and some states have increased wages to meet the new post-Covid price level, but many haven’t.

Texas has not increased its per student funding rate since 2019. Instead they have held onto the huge budget surplus and even reduced property taxes.

You might think the local school district could simply raise taxes a little to pay teachers and staff inflation-adjusted wages, but it’s much more complicated than that. Bond elections do not pay for basic school expenses. Instead, the tax rate must increase. Above a certain threshold, the state will reduce school funding if you raise taxes. Districts with a larger tax base fare better in this system.

And let’s face it, many of us have voted against raising school taxes even though it would only be a couple hundred dollars a year for most homeowners.

I’m writing this post because, while this is not news to many teachers , my eyes have recently been opened to the truth of Texas school underfunding. I am a homeowner and I pay property taxes. I had bought into the conservative narrative that schools don’t need more money. But even if that was true in the past, COVID-inflation has definitely changed things. Texas is falling behind and this lack of support for education will come back to haunt us in the future in crime and human misery.

I think Texas needs to do better. Even though my children were homeschooled, I am concerned about the children in our community getting a decent education and the teachers and staff being paid fairly. This makes our state better and safer for everyone. Our state legislature has the money to fund rural schools even without raising property taxes, they just don’t want to.

https://www.texasaft.org/policy/funding/new-national-report-reveals-inadequacy-of-texas-school-funding/

Texas schools have historically ranked lower than other states, with the ranking varying based on different metrics used , but consistently below other states , especially relative to the amount of wealth in this state.

Pre-K–12 Education: 29th (U.S. News)

Public School Quality: 40th https://worldpopulationreview.com/state-rankings/public-school-rankings-by-state

HS Graduation Rate: 84% (below many states)

Adults with Bachelor’s Degree: 33.1%

Educational Attainment Rank: 41st

Why Rural Texas Schools Struggle to Pay a Living Wage

If you live in a small Texas town, you’ve probably heard it before:

“Our school can’t give big raises — we just don’t have the money.”

From the outside, it can sound like an excuse. But once you look at how Texas funds its schools, you realize it’s baked into the system.

In Texas, school operating budgets (for salaries, supplies, utilities, etc.) come from two main sources:

Local property taxes — specifically the Maintenance & Operations (M&O) portion of the tax rate. State funding — based on a formula that starts with the “basic allotment,” currently $6,160 per student.

This setup works very differently for a rural district than it does for a fast-growing suburb.

Imagine two districts with the same tax rate:

District A (large suburb) has $5 billion in taxable property. → Each penny of tax brings in $500,000. District B (small rural town) has $1.9 billion in taxable property. → That same penny only brings in $190,000.

You might be thinking that a small district needs proportionally less dollars, but in reality some expenses cost more in small districts . And small towns often have to meet special needs of a lower income population with less city revenue.

Here are a few examples:

Transportation costs –

Buses often travel long rural routes with fewer students, so fuel and maintenance costs per student are higher than in a city.

Utilities and facility maintenance –

Some fixed costs (heating, cooling, repairs) don’t scale down much with enrollment, so the per-student share is bigger.

Specialized services – Hiring special education staff, counselors, or certain electives can cost more when there’s no way to share them across large numbers of students.

Purchasing supplies – Larger districts can negotiate bulk discounts; small districts may pay retail or near-retail prices.

Technology and compliance – State and federal reporting requirements are the same for all districts, so a small district needs the same software, IT support, and administrative effort as a big one, but with fewer people to spread the cost over.

This is why it’s not always accurate when people say, “Cut waste in administration” — in small towns, the “administration” might be just a superintendent, a business manager, and a couple of clerks who are already wearing multiple hats.

So even before you look at expenses, wealthier districts can raise far more at the same tax rate — and use it to offer higher salaries.

The “Golden Penny” Trap

Texas tries to limit how much districts can raise rates without voter approval. The first 5¢ above the state-compressed rate are called “golden pennies.” These are valuable because the district keeps all of that money, and the state matches some of it.

Once a district uses its golden pennies — which many rural schools already have just to keep up — any additional pennies are “copper pennies.” Copper pennies come with no state match and are often subject to recapture (“Robin Hood”), meaning part of that money gets sent to other districts.

For a rural school, that means the only local tax tool that really works for pay raises gets used up quickly.

The basic allotment — that per-student amount from the state — hasn’t been raised since 2019. In the meantime, health insurance, utilities, and everyday costs have climbed dramatically.

So the state share stays flat while expenses rise every year. For districts that can’t make up the difference locally, it’s a slow squeeze.

Small tax base: Not much commercial or industrial property to tax. Already at the limit: Golden pennies used up, copper pennies give less return. More state dependence: And that state portion hasn’t grown with inflation. Rising costs: Salaries, benefits, fuel, and building maintenance keep going up.

The result? Rural districts can’t keep up with suburban salaries, even if the board and community want to. Teachers may drive to a nearby town for $5,000–$10,000 more a year, leaving rural kids with fewer experienced educators.

Two changes would make a huge difference:

Raise the basic allotment so the state share keeps up with real-world costs. Revisit the penny system so rural districts have a way to generate meaningful local revenue without losing it to recapture.

What has the state done?

You may have heard that the state recently announced $8.5 billion in funding for schools. This is a one time thing.

$8.5 billion could make a noticeable short-term difference in Texas school funding, but probably not a lasting one unless the Legislature also increases the per-student allotment and builds in adjustments for inflation.

Here’s why:

Texas has over 5.5 million public school students. If you spread $8.5 billion evenly, that’s roughly $1,545 per student — but only once. Most of that money would be absorbed quickly by raises, benefits, and catching up on deferred maintenance. Without a permanent increase in the basic allotment, schools would face the same funding squeeze again in a few years, especially in rural districts with little property tax growth.

Until then, many rural schools will remain stuck — doing more with less, and struggling to offer the kind of pay that keeps great teachers in small towns.

What do you think ? Does school funding need an overhaul? Please comment below.

Want to send a message to the state?

If you want to voice your opinion on Texas school funding legislation, the most effective route is to contact the people who actually make or influence the laws and funding formulas:

1. Your State Representative and State Senator

School funding is decided primarily at the Texas Legislature, not your local school board. You can find your state lawmakers here: https://wrm.capitol.texas.gov/home — just enter your address, and it will list your Texas House and Texas Senate members, with phone numbers and email links. Best method: Call their district office (more personal than the Austin office), then follow up with an email or letter.

2. The Governor and Lt. Governor

Governor Greg Abbott can put school funding on a special session agenda and influence legislative priorities. Contact: https://gov.texas.gov/contact Lt. Governor Dan Patrick presides over the Texas Senate and decides which bills get heard. Contact: https://www.ltgov.texas.gov/contact/

3. House Public Education Committee & Senate Education Committee

These committees hold hearings and draft school funding bills. Even if your legislator isn’t on the committee, you can still send written testimony or call members. House Public Education Committee: https://house.texas.gov/committees/committee/?committee=C400 Senate Education Committee: https://senate.texas.gov/cmte.php?c=530

4. Texas Education Agency (TEA)

The TEA doesn’t set funding levels, but it implements them and can provide data that supports your case. Contact: https://tea.texas.gov/about-tea/contact-us

5. Your Local School Board & Superintendent

They can pass resolutions urging the Legislature to change funding formulas and can amplify your concerns to state officials. Find their contact info on your district’s website.

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