How Much Is Your Student Worth to Texas?

Morgan Smith: You're listening to the Raise Your Hand Texas IntersectEd podcast where the stories of public education policy and practice meet. I'm your host, Morgan Smith. And today we're talking about the amount of money Texas pays to educate a student in public schools. 

This topic is notoriously complicated and can be very dense, but I've tracked down some very knowledgeable people to help guide us through it. We have three guests with us today, Laura Yeager, a public school parent and founder of Just Fund It TX, a nonpartisan group of parents, students, and community members, Bob Popinski, Raise Your Hand’s, resident school finance and policy expert, and David Pate, the assistant superintendent of finance for Richardson Independent School District, which operates 55 campuses and serves more than 39,000 students in the suburban Dallas area.

So right now, we are in the middle of the legislative session we've been hearing since last summer about this record-breaking budget surplus, lawmakers have to work with a historic $33 billion surplus. Plus there's tens of billions more in estimated growth in revenue over the next two years. Meanwhile, depending on what measure you use, Texas ranks at least in the bottom 10 states in public school funding. So the money is there. It's clear Texas is behind where we should be. So why can't we just give the schools what they need? Well, as I said, this is complicated. Here we go.

Bob, so today we're going to be focusing on what's known as the basic allotment or the per-student sum the state uses as the foundational building block to determine how much money it will pay to educate a student. Could you start us off here by explaining how the basic allotment works in conjunction with the rest of school funding.

Bob Popinski: Yeah, absolutely. The basic allotment is actually the building block of how we fund our students and our schools, and pay for our teachers and the operations of everything that goes on within a campus and a school district.

So back in 2019, when they went through a lot of school funding changes, they set the basic allotment at $6,160. That's the basic building block per student. Now, if you have special characteristics, say you're a special education needs student or you qualify for free reduced lunch or you're in the bilingual program or you're in the gifted and talented program, you get additional dollars attached to that way. And so as you use that basic building block, you create what's known as an entitlement and that entitlement varies from school district to school district. But on average, it's about $10,000 per student. Now, it could be a couple $1,000 more in a school district or a couple $1,000 less in a school district. But on average it's $10,000. So that's kind of where we start. That $6,106 has kind of been set in stone for school districts for the last three years. 

And so there's really only a few ways to increase revenue for your students. You could either go out for a tax rate election or you could get additional revenue through enrollment increases or attendance. So we're really dependent on the state to do one thing and that's increase the basic allotment. So it flows through the rest of the formulas so that our school districts can actually give teachers pay raises and staff pay raises and operate the schools with our 5.4 million kids and over 375,000 teachers.

Morgan: So David, what does the basic allotment mean to you in practical terms as you're working on a school budget? And why don't you also give our listeners a sense for where budget matters stand in Richardson.

David Pate: On where budget matters stand for Richardson, our demographers are predicting that we're going to lose about 8000 students over the next 10 years. And we adopted a $26 million deficit for fiscal year, 22-23. And, for us, right now we're trying to figure out how we're going to provide raises to teachers, how we're going to provide for our cost increases. So the basic allotment, it is the major driver. 

When we're looking at 16% or 17% cost increases, we're having difficulty staffing. We're competing with quite a few districts here in the North Texas area for staff trying to raise our teachers starting salary.

For instance, in our case, which we are different from all the other districts on this measure here in Dallas County, about 40% of our students are not economically disadvantaged. And then we've got another 20% of our students are not only economically disadvantaged, but they're living in the highest level of poverty according to the state measures. And so trying to meet the needs of those two groups in a situation where costs are increasing in revenue is declining is very challenging.

Morgan: So you use the basic allotment, you pay for teacher salaries, you pay for support staff like classroom aid