In April 2024, the School Finance Indicators Database released new estimates of school district funding gaps, which refer to the difference between how much per-pupil funding each district receives and how much per-pupil funding each district needs. Linking these estimates to Texas Education Agency (TEA) student achievement ratings, this brief examines the extent of funding gaps in Texas school districts and how they impact student performance. The brief also identifies the gaps that are of greatest concern.
Key findings
- Overall, 73% of Texas school districts are underfunded, but the extent to which they are underfunded varies greatly.
- Districts with larger funding gaps tend to have lower TEA student achievement ratings.
- About 17% of Texas school districts are considered “severely” underfunded, with funding gaps exceeding 40% of their needs. Severely underfunded districts are strongly associated with TEA student achievement ratings of C or lower.
