Part 1: “The Rest of the Story”
contributed by COL Terry Wilson, USA RET • TX District 20 Representative
Few topics energize Texans as much as education. From our earliest days of revolution, when Texian settlers fought for a public education system, to today’s debate over education savings accounts, how our government funds and provides education provokes high interest and emotion.
It is no wonder this is the case, as education is the linchpin of a continued free society. But it is precisely when a topic burns so brightly that we must take a step back and allow cooler heads to prevail. Finding real solutions to complex problems requires putting aside divisive rhetoric and retaliatory politics and getting down to brass tacks.
The Leander ISD Shortfall: Breaking Down the Numbers
One local example came from Leander ISD, which recently announced a revenue shortfall for the coming 2025-26 school year budget. The proposed solution is program and personnel cuts that directly affect students, resulting in a flurry of accusations regarding the exact cause of the district’s projected shortfall.
The district placed blame on the Texas Legislature, claiming in their announcement that the State of Texas “has not increased school funding since 2019 —despite rising operational costs. Many school districts, not only LISD, but our families, likewise, are experiencing a 22 percent rise in inflation.”
Likewise, accusations have come from activists claiming school districts across the state, LISD included, have mismanaged funds by prioritizing bureaucracy over students by hiring administrative staff instead of teachers. But let’s set the rhetoric aside and look at the facts.
State Funding: What’s Really Happening?
LISD’s claim is based on the Basic Allotment, a basic starting amount of funding Texas guarantees school districts for every student in attendance. They are correct that the Basic Allotment has not increased since 2019, but the Basic Allotment is only the first piece of the school funding formula and only represents a portion of their total funding.
In the 2019-20 school year, LISD received $8,341 per student for Maintenance and Operations (M&O), $2,181 more (35.6%) than the $6,160 Basic Allotment. For 2024-25, LISD will receive $9,641 per student, $3,481 more (56.8%) than the $6,160 Basic Allotment.
In the 2023 Legislative Session, the Legislature increased public education funding by approximately $1.8 billion each year — partly from the Golden Penny Yield (which is indexed to the 96th percentile of property wealth—and thus has an inflationary aspect to it) and partly due to new school safety funding.
Additionally, the Legislature is funding the traditional Instructional Materials and Technology Allotment at the historical level of about $1 billion per biennium, and an additional $500 million more to fund the creation and implementation of the state’s newly created Bluebonnet Learning materials and the review and approval of other high-quality instructional materials.
Inflation, Federal Funds, and Financial Planning
And while inflation is a real concern for us all, it was an even bigger concern two years ago — when the Legislature had an additional $4.5 billion in extra funding on the table that failed to pass — partially due to opposition from some school districts, teachers’ unions, and taxpayer funded lobbying from the Texas Association of School Boards, over the inclusion of Education Savings Account in the legislation. Leander ISD was estimated to gain $9,793,850 in 2024 and $15,824,326 in 2025 under that legislation, which would have covered most if not all of the projected shortfall.
Finally, Leander ISD stated they are set to lose $3 million in revenue from expiring federal programs. It should not have come as a surprise to LISD that the federal funding was one-time only and would not be continued. Texas Education Agency Commissioner Mike Morath has stated repeatedly, and in fact added a notice in the grant applications, that these funds were one-time and for the districts to not use them for ongoing expenses.
While LISD’s statements about state funding do not line up with the facts, neither do the claims of the critics who accuse LISD of mismanagement of funds.
Since 2016, LISD has increased its ratio from 3.38 teachers for every non-teacher employee to 3.85 in 2023-24, making great strides in their goal to get to 4 teachers for every non-teacher employee. In the 2024-25 school year, the number of non-teachers increased by 46, the largest increase in at least the last ten years, but this increase was likely due to the state’s new requirement on school security, mandating each campus keep an SRO on staff.
Bureaucracy v. Student Investment: The Staffing Debate
With those facts established, what can be done this year to help support the teachers and programs at LISD?
According to the Texas Education Agency, districts are recommended to keep 60 to 90 days of operating expenses (officially 75) in their fund balance, allowing for a safeguard against shortfalls without tying up too much money that could be returned to the taxpayer.
Based on their 2024-25 budget documents, 90 days of operating expenses for LISD would amount to just over $115 million. LISD’s fund balance currently sits at $171 million, even after taking out $13 million to partially cover the shortfall, $56 million more than the State of Texas recommends.
What’s Next? Solutions for LISD and Beyond
This session, the Golden Penny Yield increases the Texas Legislature have included in their General Appropriations Bill will amount to an increase of $810 million of increased funding to schools.
The 89th Texas House has lined up a slate of bills that will deliver the largest increase in public education funding in Texas history — more than $8 billion.
HB 2 will increase the basic allotment by $220 to $6,380, provide $1.1 billion for small and mid-sized schools, $1.8 billion for special education, and $2.7 billion for teacher raises, teacher training, and operational support.
HB 3 will provide $1 billion for education savings accounts to help parents who need alternative education options.
With the proposed budgets from the House and Senate more than covering current shortfalls, LISD’s decision not to tap into the $56 million excess fund balance demonstrates the true cost of the distrust that has been sewn by so many over the last decade.
When we cannot trust one another, we make cuts instead of utilizing our resources. Lives of teachers, students, and families are disrupted, and students lose access to successful academic programs.
I would encourage LISD to reach out to their legislators more often and directly. When the legislators, who set state budgets, hear from a school district about budget problems via press releases and YouTube videos, that does not suggest that the school district is interested in a healthy working relationship.
I look forward to working with LISD, the Texas Legislature, and Governor Abbott over the rest of the 89th Legislative Session to not only ensure Texas fulfills our duty to provide for quality education for our students, but to also work to rebuild the trust and confidence between those who provide for public education and those who provide the education itself.