What Texas' 90th legislative session could mean for DFW-area public schools: 3 key issues to watch

As Texas school districts grapple with declining enrollment, rising operating costs and difficult budget decisions, the upcoming 90th Legislative Session in January 2027 will be a major moment for public education. Lawmakers will tackle property tax relief, school funding and recommendations from the newly established Texas Classroom Commission—decisions that could have lasting implications for classrooms statewide.

"Every session presents a critical choice between quick fixes and long-term planning," said Bob Popinski, dean of policy for Raise Your Hand Texas. "How we address these interconnected issues this session will determine whether our schools have the long-term fiscal stability needed to serve Texas students for decades to come."

Why is enrollment declining, and what are the impacts?

Across Texas, school boards are making difficult decisions. According to Raise Your Hand Texas, approximately 170 public school campuses have closed or been slated for closure over the past three school years amid declining enrollment and budget deficits.

Texas Education Agency data shows statewide public school enrollment fell by more than 76,000 students during the 2025-26 school year. Popinski attributed the decline to falling fertility rates, shifting migration patterns and expanding alternative education options.

Because Texas funds public education based on average daily attendance, fewer students means less revenue. However, fixed expenses, including transportation, facility maintenance and essential staffing, remain regardless of enrollment.

Angie Bado, President of Public Schools First McKinney, sees firsthand how rising operational costs and fixed expenses strain local school budgets across North Texas.

"Every school district I've talked to has done everything possible to cut everything they can—which ultimately leads to larger class sizes and fewer options for students," Bado said. "People don't realize that even if enrollment shifts or students are absent, fixed expenses don't go away. You still have to run the bus routes, turn on the lights and heat the buildings. When funding doesn't keep up, districts are forced to revamp or eliminate programs that parents value just to balance the budget."

With local cuts stretched to their limit and a state basic allotment that hasn't kept pace with inflation, advocates say state intervention is critical.

"Districts have been taking proactive steps to right-size their operations, but when double-digit inflation hits on top of dropping enrollment, local cuts alone aren't enough," Popinski said. "What we need from the Legislature this session is a short-term financial off-ramp so our public schools aren't forced to dismantle essential staff and core programs while adapting to these demographic shifts."

How would proposed property tax reforms affect school funding?

Lawmakers are considering property tax relief proposals that could change how Texas funds public schools.

Gov. Greg Abbott has proposed eventually eliminating school property taxes on homesteads, while Lt. Gov. Dan Patrick seeks to expand homestead exemptions and lower the eligibility age for additional tax relief from 65 to 55.

While intended to relieve homeowners, these proposals could shift more school funding responsibility to the state.

Texas public schools receive approximately $10,500 per student on average, although funding varies by district. Local property taxes contribute toward each district's funding entitlement, with the state covering the remainder. Revenue exceeding a district's entitlement may be redistributed through recapture.

Recent tax relief efforts have reduced local tax burdens, with nearly 40% of Texas homesteads paying no school property taxes in 2025. Further reductions would require additional state revenue to maintain current funding levels.

Popinski cautioned that greater reliance on state revenue could create challenges.

“When sales tax or oil and gas revenues decline, the state has fewer resources to fund public schools,” Popinski said. “As schools become more dependent on state funding, they become more vulnerable to economic downturns and state budget pressures.”

What changes could the Texas Classroom Commission bring to local classrooms?

Established by Gov. Greg Abbott in July 2026, the Texas Classroom Commission includes 21 current and former public school educators and a chair. Its recommendations could influence classroom policies, teacher responsibilities and instructional practices during the upcoming legislative session.

The commission's focus areas include:

• Classroom technology and cellphones: Evaluating student cellphone use and potential screen time limits for elementary and middle school students.

• Teacher workload and retention: Identifying administrative and reporting requirements that take time away from instruction.

• Discipline and instruction: Examining classroom management and strategies to improve reading and math outcomes.

"Whether it’s evaluating classroom screen time or addressing administrative overload, the commission gives educators a direct vehicle to shape state policy before the session begins," Popinski said. "If lawmakers listen to the recommendations coming out of this report, it could significantly streamline day-to-day burdens for teachers and improve how our classrooms operate."

While some educators and advocates are wary of another state commission, others see an opportunity for teachers to help shape policy.

"We already have active educator groups, school board members and parent organizations bringing solutions directly to state leaders," Bado said. "Giving teachers a seat at the table is only valuable if lawmakers are actually ready to listen and act on those recommendations. Real progress happens when state leaders stop focusing on political distractions and start collaborating directly with the educators, parents and community members who are in our schools every single day."

What will it take to secure the future of Texas public education?

As school boards navigate deficits and lawmakers debate policy changes, education advocates emphasize that addressing immediate funding gaps is only part of the solution.

“Every session is volatile, and it’s easy to focus solely on the quick fix,” Popinski said. “While districts need short-term relief to manage inflation and enrollment declines, Texas also needs to plan 20 to 30 years ahead.”

Raise Your Hand Texas is advocating for a Public Education and Workforce Endowment Fund to address long-term funding needs.

The proposal would use a portion of the state's Economic Stabilization Fund, or Rainy Day Fund, to establish an endowment generating ongoing revenue for public schools. Designed to supplement existing funding, it could help districts weather economic fluctuations while supporting Texas' future workforce.

Decisions made during the 2027 legislative session could affect how Texas public schools address declining enrollment, property taxes and classroom funding for years to come.

How can I stay up to date with the Legislative Session?

As lawmakers return to Austin, Texans can follow education proposals and share their perspectives on local school issues. Ways to get involved include:

• Subscribing to Across the Lawn: Receive weekly legislative updates, bill tracking and policy analysis from Raise Your Hand Texas during the 90th session.

• Connecting with a regional advocacy director: Find a local representative through Raise Your Hand Texas' interactive map and learn about advocacy events.

• Attending local school board meetings: Learn how state policies, enrollment changes and funding decisions affect local schools.

• Joining a local Advocacy Core Team: Connect with parents, educators and community leaders to discuss education priorities.

• Engaging with state representatives: Share perspectives on current issues and long-term investments, including the Public Education and Workforce Endowment Fund.

Community participation can help ensure local perspectives are represented in statewide education discussions.

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