Abbott proposes 70% classroom spending rule for Texas school districts

EL PASO, Texas (KFOX14/CBS4) — Texas Gov. Greg Abbott is calling for school districts to spend at least 70% of their funding in the classroom, part of a proposed effort to reduce administrative costs and direct more taxpayer dollars toward teachers and students.

Speaking in El Paso, Abbott said Texas has reached record levels of public school funding but argued that increased spending has not always translated into improved student outcomes. He pointed to administrative spending and financial problems in some districts as evidence that the state needs tighter controls on how education dollars are used.

“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.

Abbott said the most recent legislative session included more than $8 billion in additional public education funding and more than $4 billion aimed at teachers. He also highlighted the Teacher Incentive Allotment, saying about 65,000 teachers in more than 800 districts are participating and that some educators can earn more than $100,000 through the program.

Much of Abbott’s criticism centered on the Austin and El Paso independent school districts.

Julia Spencer reports on Abbott proposes 70% classroom spending rule for Texas school districts (Credit: KFOX14)

Abbott said Austin ISD enrollment declined 14% between 2015 and 2025 while administrative spending per student increased 75%. In El Paso ISD, he said enrollment fell about 20% during the same period while administrative spending per student increased 100%.

He also cited recent internal audits that he said identified tens of millions of dollars in financial inefficiencies related to underestimated expenses, unrealistic budget assumptions and inadequate financial oversight.

Abbott contrasted those districts with Red Oak ISD and Dickinson ISD. He said Red Oak experienced a 20% increase in enrollment while administrative costs rose only 7%, while Dickinson saw administrative costs rise 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.

Under Abbott’s proposal, school districts would be required to direct at least 70% of their funds toward the classroom rather than administrative expenses, staffing or bureaucracy. The proposal would also require the state’s lowest-performing school districts to undergo comprehensive audits conducted by the Texas Comptroller.

Abbott said districts would retain discretion over how to spend the remaining 30%.

The governor also said the state should eliminate laws, reporting requirements and other mandates that create expenses without improving student outcomes. He said the effort should extend to state government and the Texas Education Agency, noting that state agencies are being asked to reduce their budgets by at least 3%.

Reporters pressed Abbott on concerns from district leaders who say state funding has not kept pace with inflation and new mandates, including school safety requirements and requirements involving seat belts on school buses.

Abbott pushed back on calls for additional funding, arguing that Texas already spends more per student than at any point in state history. He said the priority should instead be ensuring that existing dollars reach classrooms and teachers.

“We got more in 1996 with fewer dollars,” Abbott said while comparing current spending with the last period he said Texas ranked among the nation’s top 10 states in 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.”

When asked about El Paso ISD’s budget deficit and central-office job cuts, Abbott attributed the situation to budgeting decisions and said districts experiencing declining enrollment need to adjust spending as their student populations shrink. He rejected the idea that the state should routinely intervene in districts’ personnel and budgeting decisions.

WATCH FULL PRESS CONFERENCE:

Abbott press conference during his visit to El Paso

El Paso ISD Superitendent Dr. Brian Lusk provided the following statement:

“At El Paso ISD, the classroom is the center of our universe, and we prioritize directing all resources possible to support instruction. We acknowledge that El Paso ISD had too many central office positions and over the last several years the district was not rightsized to align with enrollment trends. Since I joined as Superintendent, we have taken a close look at every central office position and made significant reductions to ensure staffing reflects the needs of the district. That work will continue, because as highlighted by El Paso ISD’s 2026 TEA accountability rating of B and a 2-point increase from last year, when our teachers and students have the right resources, they succeed.”

“What he is suggesting is what schools are already doing. We know most of the money already goes to the classroom. The governor also ignores that there are expenses outside of the classroom that are mandated by both state and federal law that aren’t administrative,” said State Rep. Mary Gonzalez.

“All of a sudden he has become very interested in what is happening in education, what is happening with money. He refuses to fund education the way it should be funded,” said Norma De La Rosa, the President at El Paso Teachers Association.

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