TASB News

For Immediate Release: March 14, 2006
Contact: Amy Beneski, 800-725-8272 (TASA); Catherine Clark, 800-580-8272 (TASB); or Gwen Santiago, 800-338-6531 (TASBO)

The Cost of Public Education in Texas

AUSTIN – A recent study, A Cost Analysis for Texas Public Schools, has been released to help lawmakers, parents, and taxpayers understand what goods and services are purchased with education dollars and how these purchases contribute to the educational process. The study, covering the 2003-04 school year, details what was purchased, how expenditures vary across different types of districts, and how expenditures have changed since 2001-02.

Texas public school districts report annually on how they spend educational resources. These data describe who works in public schools, what programs are supported with tax dollars, and what was purchased with education dollars as well as its purpose.

Most of the money that school districts spend goes to instruction. In 2003-04, 61 percent of expenditures went to instruction, compensating teachers and librarians, purchasing instructional materials, library books, and providing staff development for teachers.

Another 15 percent is spent for instructional related staff and services. This includes school principals, counselors, health services, co-curricular activities, community services, and payments to juvenile justice alternative education programs.

Purchases that are not counted as “instructional” are critical to the educational process. Non-instructional purchases include many items that directly impact students. Some of these purchases involve transporting students to and from school, providing meals in school cafeterias, maintaining school buildings, heating and cooling classrooms, and providing security services. Leadership costs associated with central administration and the central office represent a relatively low percentage of the overall district budget, at less than 4 percent. Also included here are the cost of tax appraisal and collection, audit and accounting services, and legal services.

Per-student spending over the past three years has been slightly below the rate of inflation. Some costs have grown faster than inflation, especially the cost of health insurance and other benefits-related costs and fuel. On average, basic educational spending in Texas fell $53 per student short of keeping pace with inflation.

Districts must allocate resources to meet unique local circumstances. Texas school districts vary substantially in size, location, and student need. Some serve no students who qualify for the federal free and reduced-price lunch program and in some districts, close to 100 percent of students qualify. These districts have substantially different needs and must allocate resources differently to meet those needs. Even among the state’s highest performing districts, substantial variation in spending is evident.

A Cost Analysis for Texas Public Schools is posted at tasb.org/issues/resource_center/school_finance/. This study was prepared by Moak, Casey & Associates, LLP, and sponsored by the Texas Association of School Boards, Texas Association of School Administrators, Texas School Alliance, Texas Association of School Business Officials, and the Equity Center.