Texas Gov. Greg Abbott is calling for a major shift in how public schools spend taxpayer dollars, proposing that districts be required to direct at least 70% of their funding toward classrooms rather than administrative costs and bureaucracy.
Abbott unveiled the proposal Thursday in El Paso, arguing that Texas has poured record amounts of money into public education without always seeing corresponding improvements in student performance.
“With funding at an all-time high in public education, we must ensure that those funds are being used where it matters the most, and that is in the classroom,” Abbott said.
The governor's proposal would require school districts to devote at least 70% of their spending to the classroom while giving local districts discretion over how to use the remaining 30%. Abbott also wants the state's lowest-performing districts to undergo comprehensive financial audits conducted by the Texas Comptroller.
The initiative is the latest education proposal Abbott has rolled out as he focuses on school spending, academic performance and classroom policies.
“Texas has made historic investments in public education to give our teachers and students the resources they need to succeed,” Abbott said in announcing the plan. “Those dollars belong in the classroom, not wasted on bloated bureaucracy. Administrators must be held accountable for their reckless spending and diverting attention away from what really matters: the students.”
Abbott points to Austin and El Paso spending
Abbott singled out Austin ISD and El Paso ISD as examples of districts where administrative spending has increased even as enrollment has fallen.
According to figures cited by the governor, Austin ISD enrollment declined 14% between 2015 and 2025, while administrative spending per student increased 75%.
The trend was even more pronounced in El Paso ISD. Abbott said the district's enrollment fell roughly 20% during the same period while administrative spending per student increased 100%.
He also pointed to recent internal audits that he said found tens of millions of dollars in financial inefficiencies stemming from underestimated expenses, unrealistic budget assumptions and inadequate financial oversight.
Abbott contrasted those districts with Red Oak ISD and Dickinson ISD.
Red Oak saw enrollment grow by about 20% while administrative costs increased just 7%, Abbott said. Dickinson's administrative costs, meanwhile, increased at roughly the same rate as its 20% enrollment growth.
“Simply put, too many tax dollars for schools are funding things that do not improve student outcomes,” Abbott said.
The governor's argument comes as districts across Texas continue to wrestle with tight budgets, rising operating expenses and the costs of complying with new state mandates.
District funding debate continues
Reporters questioned Abbott about complaints from school officials that state funding has failed to keep pace with inflation and that districts have taken on additional costs from requirements such as enhanced school security and seat belts on school buses.
Abbott rejected the argument that the solution is simply putting more state money into the system.
He noted that lawmakers approved more than $8 billion in additional public education funding during the most recent legislative session, including more than $4 billion aimed at teachers.
Abbott also touted the state's Teacher Incentive Allotment, which provides additional compensation to qualifying educators. He said roughly 65,000 teachers in more than 800 school districts participate in the program and that some teachers can earn more than $100,000.
The governor said Texas is already spending more per student than at any point in state history and should focus on getting more out of those dollars.
“We got more in 1996 with fewer dollars,” Abbott said, referring to the last period he said Texas ranked among the nation's top 10 states for educating students. “What we gotta do is focus on that spending, make sure it's going to benefit our students, their education, and their teachers, not on administrative bloat.”
El Paso ISD deficit draws scrutiny
Abbott's announcement in El Paso put particular attention on the financial challenges facing the city's school district.
Asked about El Paso ISD's budget deficit and cuts to central-office positions, Abbott blamed budgeting decisions and argued that districts losing students must adjust their spending accordingly.
At the same time, he rejected the idea that state officials should routinely dictate individual personnel and budgeting decisions to local districts.
Instead, Abbott's broader proposal would establish a statewide spending threshold while subjecting the lowest-performing districts to greater financial scrutiny.
The governor also wants Texas to look beyond local school districts for potential savings.
Abbott said lawmakers should eliminate state laws, reporting requirements and other mandates that cost districts money without improving student outcomes. He said that same scrutiny should apply to the Texas Education Agency and other parts of state government, noting that agencies have been asked to find budget reductions of at least 3%.
The goal, Abbott said, is to redirect money away from bureaucracy and toward teachers and students.
Under the proposal, districts would still control nearly a third of their spending outside the classroom requirement, but the 70% threshold would create a new statewide mandate governing how the bulk of public education dollars are allocated.
Abbott did not back away from that approach despite concerns from school officials about inflation and growing costs. His position is that Texas has already significantly increased education spending, and the next step should be ensuring that money reaches the people and programs most directly connected to students.
The spending proposal is part of a broader education push from the governor this month. Abbott has also called for tougher laws aimed at protecting students from sexual predators, proposed limits on classroom screen time, unveiled Student Success Academies focused on reading and math achievement, and announced efforts to curb foreign influence in Texas public schools.
