Texas Taxpayers Fund $50,000 Per Student and Still Get Poor Results

Universal ESAs will empower families, save taxpayers billions of dollars, and restore accountability to Texas education.

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Texas taxpayers fund more than $50,000 per student in government schools, and it’s essential to understand this amount.

Taxpayers fund nearly $17,000 per student annually for maintenance, operations, and debt service. They also pay an additional $33,542 per student in outstanding debt over time. Local voters approved this debt, backed by the state’s Permanent School Fund, funded by taxpayers statewide.

So, while some anti-school choice advocates attempt to twist the numbers, the reality is apparent: taxpayers are pouring over $50,000 per student into the monopoly government school system, yet educational outcomes are declining. This system is failing students, parents, and teachers while taxpayers bear the escalating burden.

Over the past five years, school district debt has soared. Total ISD debt has increased from $133 billion in 2018 to $185 billion in 2023, an alarming rise of nearly 40%. This debt explosion reflects decades of unchecked spending on lavish facilities and nonessential projects while the core mission of educating students has been neglected.

Texas students are falling behind. While per-student spending increased by 42% over the past two decades, 8th-grade math proficiency dropped by 40%. Less than half of classroom expenditures reach teachers, who are overworked and underpaid. In a classroom of 20 students, approximately $340,000 is allocated annually, but teachers see only a fraction of that in their paychecks. Administrative costs and bureaucracy are eating up the bulk of these funds.

Parents are stuck in a system prioritizing the status quo over accountability, leaving them with no options when their children fail government schools. Teachers receive inadequate support, and students—especially those in underserved areas—are denied the opportunities they deserve. Meanwhile, taxpayers continue to fund a broken system that delivers less value for more money.

The solution is universal Education Savings Accounts (ESAs). Under this system, families could receive $12,000 per student for approved educational expenses. This amount would easily cover Texas's average private school tuition, which is $11,340 per year, and still leave room for transportation, tutoring, or extracurricular activities. ESAs would allow parents to tailor their child’s education to meet their unique needs, breaking free from the rigid government school model.

A universal ESA program would benefit families and save taxpayers billions. Current government school spending of $16,792 per student far exceeds the cost of private alternatives. By shifting to a universal ESA model, Texas could save nearly $20 billion annually, as fewer families would rely on the bloated government system. These savings could be used to reduce school district maintenance and operations property taxes, providing a quicker path to eliminating these burdensome taxes.

Critics of school choice claim ESAs will harm government schools, but evidence from over 30 states with school choice programs proves otherwise. Competition drives improvement. Government schools will be forced to cut administrative bloat, prioritize classrooms, and focus on student outcomes to retain students and funding.

Milton Friedman, one of the most influential economists of the 20th century, explained decades ago why school choice is necessary. He argued that introducing market forces into education would improve quality and reduce costs, as in every other sector. When schools must compete for students, they have no choice but to innovate and deliver results.

The recent elections demonstrated that Texans overwhelmingly support school choice. Lawmakers, especially those vying for leadership roles, should take note. Candidates who opposed meaningful reform suffered significant political consequences, reflecting voters' demand for change and failing to implement universal ESAs. This risks alienating those taxpayers and families demanding better outcomes for their children and a better return on their investment.

The $50,000 per student figure is not just a statistic—it’s a testament to how deeply flawed the current system is. Taxpayers are funding more while receiving less. Families are stuck with few choices, teachers are undervalued, and students are falling behind.

It’s time to fund students, not systems. Universal ESAs will empower families, save taxpayers billions of dollars, and restore accountability to Texas education. Texas has the opportunity to lead the nation with a school choice program that sets a global standard for empowering families, improving outcomes, and promoting fiscal responsibility.

Sources

• Texas Bond Review Board: https://debtsearch.brb.texas.gov/local_debt_search.aspx

• Texas Education Agency: https://rptsvr1.tea.texas.gov/adhocrpt/adste.html

• TPPF ISD Electioneering Report: https://www.texaspolicy.com/wp-content/uploads/2024/12/2024-12-TPP-ISD-Electioneering-QuinteroSolin_FINAL.pdf

• TPPF Video Series on Public Education Spending: https://www.texaspolicy.com/press/tppf-launches-video-series-on-public-education-spending

• Private School Review: https://www.privateschoolreview.com/tuition-stats/texas

• Dallas Morning News: https://www.dallasnews.com/opinion/commentary/2024/11/14/universal-school-choice-the-texas-mandate-is-clear-after-the-election

• Milton Friedman, “The Role of Government in Education”: https://www.edchoice.org/who-we-are/our-founders/the-friedmans-on-school-choice/