Texas determines how much funding each public school district receives primarily through the Foundation School Program (FSP), which is designed to ensure equitable funding across all districts. The state considers several factors, including student attendance, district property wealth, and specific student needs. Here's how the funding process works:

1. Basic Funding Formula

The Texas Education Agency (TEA) uses a complex funding formula to determine how much funding each school district gets. This formula is based on:

Tier 1: Basic Allotment
- Each district receives a set amount per student, called the basic allotment ($6,160 per student, last amended in 2019).
- The basic allotment is multiplied by the average daily attendance percentage per student.
- This amount is adjusted for cost differences based on the district’s location and characteristics.
Tier 2: Additional Funding (Enrichment)
- Districts can levy extra property taxes to generate more revenue beyond Tier 1.
- The state provides matching funds for districts with lower property wealth to help equalize enrichment funding.

2. Weighted Student Funding

Some students cost more to educate than others, so Texas applies weights to increase funding for specific populations:

Low-income students (Compensatory Education), Special Education students, English Language Learners (ELLs), Career & Technical Education (CTE) students, Gifted & Talented students

For example, a student in special education might count as 1.2 students in the funding formula, meaning the district gets 20% more funding for that student.

3. Adjustments for District Wealth

Property-Rich Districts ("Recapture"/Robin Hood Law)
- If a district collects more local property tax revenue than the state formula allows, it must return excess funds to the state. This money is redistributed to poorer districts.
Property-Poor Districts (State Aid)
- If a district has low property values, the state provides extra funding to ensure it reaches the minimum required level.

4. Special Programs & Grants

Beyond the FSP, Texas provides additional funding through grants.

5. Federal Funding

The federal government contributes a smaller portion, mainly through grants for special education, low-income students (Title I), and nutrition programs.

Final Funding Calculation

Each district's total funding comes from local property taxes + state aid + federal aid, with adjustments based on the funding formulas.

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