More than half of the state’s school districts are facing budget shortfalls this year while also navigating the conclusion of federal stimulus funds, forcing districts to make hard decisions related to staffing and programming. In addition, districts are experiencing an increase in educators considering leaving the profession due to a lack of funds, increased class sizes, and lower salaries.

“Inflation has affected every aspect of our operations, from construction costs to daily expenses. As a school district, we face the same challenges as households: rising utility bills, increased fuel costs for our buses, and higher prices for essential supplies. These real-world economic pressures have a significant impact on our budget," Prosper ISD Superintendent Holly Ferguson said. “School districts have to turn the lights on, we have to pay the water bill, we have to fuel buses. All those real-life things are happening in our schools as well.”

With the 2025 legislative session set to convene on Jan. 14, public education advocacy group Raise Your Hand Texas and DFW-area school districts hope to see multiple changes made, including accounting for inflation, raising teacher salaries and reaching the national average in per-student spending.

Funding challenges

Texas lawmakers last increased the basic allotment—the foundation of how the state funds per-student funding—in 2019 to $6,160. However, Texas is still more than $4,000 below the national average in per-student funding, according to Raise Your Hand Texas.

Additionally, inflation has gone up 22% since 2019, said Bob Popinski, Senior Director of Policy for Raise Your Hand Texas.

“The basic allotment would need to be an additional $1,300 or so just to give the same purchasing power to districts that they had in 2019,” he said.

While many people who live in the Dallas-Fort Worth metroplex have felt the impacts of inflation when it comes to gas prices and the cost of food and supplies, it affects school districts as well. Many districts, including PISD, have had to adopt a shortfall budget to accommodate rising costs and increased school requirements.

“We're facing a $15.4 million deficit because the Prosper ISD Board of Trustees made a bold decision to address inflation, ensuring our teachers and staff received a 3.5% raise. This move was necessary to stay competitive, helping us both retain and attract talented educators our students need and deserve.” Ferguson said.

Another issue DFW-area school districts are navigating is an increased number of special education students, such as those with dyslexia, who are identified or enrolled in school districts. When this occurs, the districts are legally required to meet those services. Frequently, school districts are required to hire additional staff, regardless of whether they have the financial resources to do so.

“Despite a massive budget surplus, desperately needed school funding is held hostage by a voucher scheme — harming our students, educators, and public schools,” said Rep. Rafael Anchía of House District 103. “Current funding levels are insufficient to cover the costs of running our schools, as districts face rising costs and post-COVID teacher turnover. Underfunding public education jeopardizes our Constitutional mission to prepare young Texans for the future.”

Along with special education resources, all school districts are now required to have an armed security guard on each campus, part of House Bill 3 which was passed during the last legislative session. The school safety allotment was increased by only 28 cents per student and $15,000 per campus, which is well below the $90,000-$100,000 that it costs schools to keep a guard on-site at each school.

“All of this was impacting school districts as they adopted their budgets,” Popinski said. “So what you end up with is school districts adopting a deficit budget or having to cut programs, or not giving a serious pay raise to their teachers. The best estimate is that 50% to 60% of Texas school districts adopted deficit budgets this year.”

Teacher retention and education

With teachers not seeing any kind of salary increase to account for recent inflation, along with other challenges, a 2024 Charles Butt Foundation poll found 78% of teachers are considering leaving the profession.

Salary is one of the primary reasons teachers are leaving their jobs. The average teacher salary in Texas is about $60,700, which puts the state at 30th in the nation. The Charles Butt Foundation poll showed a majority of those teachers would like around a $15,000 pay raise to have a livable wage and be comparable with other working college-educated graduates.

Many teachers feel added pressure and are struggling with larger class sizes due to unfilled positions or positions that have been cut at their campuses. Budget cuts have also eliminated positions such as behavioral specialists, whose presence allows teachers to focus greater attention on academic instruction.

“Our greatest concern is ensuring every student has access to high-quality education with a well-qualified teacher,” Ferguson said. “When we're unable to fill positions or forced to cut roles, class sizes inevitably increase. This is not what families want, nor what we as educators desire. Without addressing pay increases and restoring respect for the teaching profession, I worry we'll face a shortage of high-caliber educators to provide our students with the best possible education.

Aside from increasing enrollment, attendance and tax rates, there are only a few ways school districts can increase the money available to them. If approved by the board in November, the Texas State Board of Education would provide money for high-quality instructional materials, around $60 per student. However, this only helps with curriculum and lesson planning, not with providing a higher salary to teachers.

The Teacher Incentive Allotment Program does offer the opportunity to pay teachers a six-figure salary, but out of the about 376,000 teachers in Texas, there are only about 25,000 able to participate in the program.

“We need to pay all of our teachers for their expertise and the contributions they make in their profession,” Popinski said. “They are educating Texas’ future workforce.”

Legislative policy changes

As the 89th Texas Legislature draws closer, some of the changes Raise Your Hand Texas and school districts would like to see considered include:

Increase state funding for public schools, and update the basic allotment funding amount to account for inflation of $1,300 per student.

Increase teacher salaries by approximately $15,000 on average to attract and retain teachers.

• Add funding for teacher specialists and instructional coaches.

• Incorporate an annual automatic inflation adjustment mechanism into school funding formulas.

“Funding is always a problem,” Popinski said. “If you kind of go down the list, we need a lot of support out there. It is a big heavy lift going into the next legislative session on the funding front.”

Texans residents who want to learn more about funding public schools and the overall mission of Raise Your Hand Texas should sign up to advocate for public schools during the upcoming session with Raise Your Hand Texas. To stay up to date on the Texas Legislature, visit the legislature’s website here.

The above story was produced by Community Impact's Senior Multi Platform Journalist Sierra Rozen with information solely provided by the local business as part of its "sponsored content" purchase through our advertising team.