Texas Is Overfunding Public Education

Originally published at Texans for Fiscal Responsibility. ​

The State of Texas is pouring unprecedented amounts of taxpayer money into public education with little to show for it. 

From the 2014-15 school year, to the 2022-23 school year, total education spending surged 53% to $92.4 billion, while per-student spending jumped 45% to $16,792. That’s far above inflation’s 28.6% increase. Yet, 76% of 8th graders are below proficiency in math, and 75% in reading.

Clearly, more funding hasn’t improved results for Texas children.  

The problem isn’t underfunding, but overfunding and inefficiency in Texas’s government-run, monopoly education system. There’s no competition or incentive to improve outcomes. 

Universal Education Savings Accounts (ESAs) provide a real solution. 

ESAs let parents direct state education dollars (their tax dollars) to the school or educational service of their choice – public, private, homeschooling, or other options. This competition would force all schools to improve, driving innovation, lower prices, and better outcomes.

Allocating about $12,000 per student through ESAs would reduce the total cost of education from $92.4 billion for 5.5 million students to $75.6 billion for 6.3 million school-age children, saving taxpayers at least $16.8 billion. 

If we focus solely on operational expenditures, ESAs could drop to $12,389 per student for the same spending, or less for savings. The savings should be used to reduce school district property taxes and school debt, further relieving taxpayers. 

Twelve states, including Arizona and Florida, already have universal or near-universal ESAs with positive results. Texas should follow suit.

Governor Greg Abbott has an historic opportunity to lead this charge. Universal ESAs would empower parents, improve educational outcomes, and save billions of taxpayer dollars. 
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It’s time to stop overfunding a broken system. Universal ESAs are the key to transforming education in Texas. Governor Abbott should keep pushing hard for universal school choice and ESA school finance in the next legislative session and lead Texas toward a brighter future.