Texas School Finances Are Stretched, with Closures and Cuts Looming
Texas school finances are stretched, with many districts facing the possibility of closures and cuts. Fort Worth is among the latest districts to consider closing schools as leaders confront tight budgets and declining enrollment. Nearly two dozen FWISD campuses could be shuttered, with ripple effects throughout the district.
The Carrollton-Farmers Branch school district is also considering school closures. If they adopt such plans, they would follow the lead of several other North Texas districts, including Richardson, Plano, Coppell, Lewisville, and Irving.
A confluence of factors has made this year particularly challenging for many schools. The Legislature has not increased the base per-student amount it provides to districts since 2019. Attempts to do so in the previous legislative session were ensnared in a political fight over education savings accounts, a voucher-like program that would send state dollars toward private school tuition.
Meanwhile, federal pandemic aid that funneled billions to public schools largely expired, while inflation made everything from fuel to insurance more expensive. Additionally, birth rates are steadily declining in some areas, and enrollment is down in several major North Texas districts.
Keller ISD leaders have responded to the budget crisis with a controversial plan to split the district in two, leaving many community members confused about how such a move would alleviate the district’s financial crunch.
Here’s a look at how these issues impact schools.
Enrollment Drops
Texas funds its schools based on how many students come to class. In many places, enrollment is declining for a variety of reasons. Some families are choosing other options, such as public charter schools, private schools, or homeschooling. They’re also being pushed out of areas with high costs of living.
For example, of the nearly 3,000 students Richardson schools have lost since 2018-19, roughly 90% lived in multifamily housing. More losses are projected.
Richardson served about 37,000 children last year. The student population is projected to decrease by about 3,600 students over the next five years, according to the district demographer’s report.
Dallas may be bucking the trend. The district started classes with more students than expected this year, marking the first time in nearly a decade that enrollment was up.
Declining Birth Rates
While families are moving to Texas, many areas are seeing declining birth rates. Texas’ public school enrollment is projected to peak in 2025 as fewer children move through the system as a result of the decline, according to state documents.
For the next several years, enrollment is expected to remain essentially flat, state Education Commissioner Mike Morath recently told lawmakers.
“Coppell’s enrollment appears relatively flat in recent years at around 13,000 students,” he said during a hearing. “So trustees were shocked to see projections showing about 550 fewer elementary school-age children over the next three years. That’s larger than the student populations at several of its elementary schools.”
Meanwhile, in Lewisville, more than 4,000 seniors graduated from Lewisville last year, but fewer than 3,000 new kindergarteners joined the district this year.
Stagnant State Funding
Texas’ schools are funded through a longstanding set of complex formulas. That per-student amount sits at $6,160 – the same as in 2019. With the cost of living rising, that doesn’t carry close to the same level of buying power.
Take Sunnyvale ISD. The tiny Dallas-area district paid just over $300,000 for property and casualty insurance in 2022. Now it’s bracing to pay more than half a million.
Inflation impacts teachers’ and staff members’ lives, too. So districts are under increased pressure to raise salaries, which make up the bulk of school budgets. Plus, lawmakers instituted expensive mandates around security but didn’t provide enough money to cover the actual cost, administrators say.
Expiring Pandemic Aid
Texas schools received more than $19 billion in federal pandemic aid. But that money largely expired, a reality many refer to as the “COVID cliff.” Some districts used the funds to pay for staff positions and are now having to cut back.
In Richardson ISD, for example, the end of COVID relief funding means that interventionists who help small groups of children catch up in reading and math now only work at the 12-highest-need campuses instead of at all the district’s roughly three dozen elementaries.
Spotty Student Attendance
Texas is one of only a handful that funds schools based on attendance rather than enrollment. This distinction causes financial challenges for districts since the pandemic triggered high rates of chronic absenteeism.
In 2019, the average daily attendance rate across the state was 92%. That meant schools were funded on roughly 5 million students who showed up for classes – even though more than 5.4 million were enrolled.
The attendance rate dropped to 89% by 2022. It clawed back to 91% – still about 1 percentage point lower than before the pandemic.
Each percentage-point change in attendance rates equates to a $380 million drop in state funding.
Conclusion
The current state of Texas school finances is a complex and pressing issue, with many districts facing difficult decisions about how to allocate limited resources. As the state continues to grapple with declining enrollment, stagnant state funding, and the expiration of pandemic aid, it’s clear that the stakes are high for Texas schools.
FAQs
Q: Why are some Texas school districts considering closing schools?
A: Many districts are facing financial challenges due to declining enrollment, stagnant state funding, and the expiration of pandemic aid. Some are considering closing schools as a way to reduce costs and reorganize resources.
Q: What is the impact of declining birth rates on Texas schools?
A: Declining birth rates are contributing to a projected decline in public school enrollment, which is expected to remain flat for the next several years. This could have significant implications for funding and resource allocation.
Q: What is the current state of Texas school funding?
A: Texas schools are funded through a complex system of formulas, with a per-student amount that has not increased since 2019. This means that schools are facing significant challenges in maintaining resources and services in the face of rising costs and declining enrollment.
Q: What is the impact of the “COVID cliff” on Texas schools?
A: The expiration of pandemic aid has left many schools facing significant budget shortfalls, as they were previously reliant on these funds to support staff positions and other expenses. This has forced many districts to make difficult decisions about how to allocate limited resources.
