HOUSTON – Over 73% of Texas school districts don’t have enough money, according to a new study by the Kinder Institute for Urban Research at Rice University.
The report, released Monday, reveals that schools with larger funding gaps usually have lower Texas Education Agency (TEA) student achievement ratings.
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The report integrates TEA student achievement ratings with data from the School Finance Indicators Database, released in April. This database estimates funding gaps for nearly every school district in the country. About 17% of Texas school districts are considered “severely” underfunded, with funding gaps exceeding 40% of their needs. Many school districts in the Houston area are among this group.
Despite a slight increase in per-student funding in Texas since 2020, inflation and recapture payments have effectively negated these gains. The Kinder Institute states that today’s funding is equivalent to what it was in 2014. As a result, many Texas school districts face significant budget deficits, even after striving to improve efficiency.
Severely underfunded districts are strongly associated with TEA student achievement ratings of C or lower, which are graded on an A-F scale. This pattern holds across various types of districts, including rural, urban, and suburban. The likelihood of these districts receiving an A or B rating drops significantly when their funding gap exceeds 40%, indicating they are in critical need of support.
The report concludes that addressing funding gaps in Texas’ most severely underfunded districts could substantially boost their chances of achieving higher TEA student achievement ratings. Without adequate financial support, even the most effective teaching practices are unlikely to succeed. With proper funding, efforts to enhance student performance can become both effective and sustainable.