Truth in Education Spending

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The Problem

The Texas Education Agency has a financial accountability system for school districts. This system assesses district financial management systems, but it does not measure student educational results in relation to district financial decisions.

The Goal

To ensure that schools are efficiently spending tax dollars on a quality education for our children. Texas should build on its system of review of school districts’ fiscal management practices and develop a stronger public school financial accountability system.

The Solution

TEA will implement an improved financial accountability system to rate school districts based on cost-effective management practices. Some factors that should be considered are:

• properly defined and appropriate administrative costs
• percentages of funding going directly to the classroom
• tax burden compared to other similarly situated districts
• appropriate levels of protection against fraudulent activity
• strong correlation between school district expenditures and student performance
• effective personnel management practices
• transparency in financial reporting, ensuring the taxpayer is fully informed regarding school district financial practices