Is there a School Funding Inbalance in Texas?
- Raymond David
- Oct 9, 2024
- 1 min read
According to a study by Rice University’s Kinder Institute, approximately 17% of Texas school districts are "severely underfunded," meaning they face funding gaps exceeding 40% of their projected needs.
These severe funding shortages are closely tied to student performance, with these districts overwhelmingly receiving Texas Education Agency (TEA) achievement ratings of C or lower.
In contrast, better-funded districts tend to achieve higher ratings, reflecting a significant correlation between adequate funding and academic outcomes across the state.
Despite the 2019 passage of HB 3, which aimed to improve per-student funding, inflation and other factors have eroded those gains, bringing per-student funding back down to 2014 levels.
This lack of adequate funding forces many districts to adopt deficit budgets, which often lead to cuts in essential programs and resources.


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