Texas Comptroller Don Huffines is launching a review of school district spending across the state as Gov. Greg Abbott turns his attention to administrative costs and pushes to put more education dollars directly into classrooms.

Huffines announced Wednesday that his office will conduct detailed performance reviews of selected independent school districts, examining how taxpayer money is being spent and whether those expenditures comply with state law and support students, teachers and classroom instruction.

“Texans must have confidence that their school tax dollars support educational opportunities for students, not layers of bureaucracy in central administrative offices,” Huffines said. “We will document wasteful and inappropriate spending wherever we discover it and report our findings to the Legislature and the people of Texas.”

The review comes at Abbott’s request and could help shape a broader education and property tax agenda when lawmakers return to Austin for the 90th Texas Legislature.

In a letter to Huffines, Abbott pointed to the $104.9 billion Texas spends on K-12 education and argued that the state’s growing investment in public schools should be accompanied by greater scrutiny of where that money ultimately goes.

“As Texas continues to make crucial investments in public education, it is our collective responsibility to ensure that taxpayer dollars directly reach students, classrooms, and teachers, instead of being absorbed by central-office growth, administrative bloat, consultants, and the web of noninstructional bureaucracy,” Abbott wrote.

The governor asked the comptroller to select up to four school districts for the investigation, with the districts representing different sizes and regions of Texas.

Huffines’ office said districts currently overseen by state-appointed boards, including Houston ISD and Fort Worth ISD, will not be among those selected.

The comptroller has not yet identified which districts will face reviews. Huffines said his office expects to announce them in the coming weeks.

Abbott wants 70% of school spending “in the classroom”

The spending review is only one part of Abbott’s latest education push.

During a press conference Wednesday, the governor said he will seek legislation requiring Texas school districts to spend at least 70 percent of their funds “in the classroom” rather than on administrative expenses, staff or bureaucracy.

Abbott also wants the state’s lowest-performing school districts to face comprehensive audits by the comptroller.

“Simply put, too many tax dollars for schools are funding things that do not improve student outcomes,” Abbott said.

Abbott singled out Austin ISD and El Paso ISD as examples of districts where he says administrative spending has moved sharply upward even as student enrollment has fallen.

According to figures cited by the governor, Austin ISD enrollment declined 14 percent between 2015 and 2025 while administrative spending per student increased 75 percent.

In El Paso ISD, Abbott said enrollment fell by roughly 20 percent during the same period while administrative spending per student doubled.

The governor contrasted those numbers with Red Oak and Dickinson ISDs, which he said experienced administrative spending increases that more closely followed enrollment growth.

The figures are likely to become part of a larger debate over what counts as classroom spending and how much discretion local school districts should have over their budgets.

If Abbott’s proposed 70 percent requirement becomes law, the details of that definition could be significant. School district budgets include expenses beyond classroom teachers and instructional materials, ranging from transportation and maintenance to counselors, technology, security and other support services.

Review tied to broader property tax push

The investigation also comes as Abbott promotes a sweeping proposal to eventually eliminate school property taxes on Texas homesteads.

Under the governor’s plan, homeowners would no longer pay school property taxes on their primary residences. The state would instead take responsibility for replacing that revenue to fund public schools.

Such a change would shift an even greater share of education funding responsibility to the state, increasing the stakes surrounding how those dollars are distributed and spent.

Abbott has made property tax relief a major focus of his agenda, and scrutiny of school district spending could help lay the groundwork for additional changes to the public education finance system.

The comptroller’s reviews will give state officials a closer look at the finances of individual districts and could provide lawmakers with specific examples as they debate statewide spending requirements.

For the districts selected, that means their administrative expenses, contracts and other spending decisions could soon receive considerably more attention from Austin.

Huffines has been asked to deliver his final report by Dec. 31, giving lawmakers time to consider the findings ahead of the 90th Legislature.

Exactly which districts will find themselves under the microscope remains unknown.

For now, Huffines’ office is preparing to choose up to four districts, while Abbott is making clear that the investigation is part of a larger effort: determining not just how much Texas spends on public education, but how much of that money actually makes it to the classroom.