RAISE YOUR HAND TEXAS PROPOSES CREATING A “LEGACY EDUCATION FUND” TO SUPPORT TEXAS PUBLIC SCHOOLS

Lawmakers have the opportunity to create a new endowment fund to deliver enduring and increased funds for public schools

AUSTIN, TEXAS–(Oct 22, 2025)–Raise Your Hand Texas is calling on Texas lawmakers to transform how it funds public education by establishing a new education endowment, which could diversify revenue sources and open up access to new funds for public education. 

The establishment of a new, proposed “Legacy Education Fund” is a practical first step that would give legislators the framework needed to create an endowment, moving Texas beyond the short-term nature of our two-year budget cycles and establishing a lasting investment in students. 

“By establishing a new public education endowment, we can move beyond short-term fixes and deliver a bold, enduring investment in the future of every Texas student,” said Libby Cohen, executive director of Raise Your Hand Texas. “Right now, Texas has record financial reserves in its Economic Stabilization Fund. We can put a portion of that money to work to deliver meaningful improvements for public school students.” 

Texas has one of the nation’s largest and most dynamic economies and has enjoyed sustained economic growth. Yet, our per-pupil school funding ranks in the bottom 10 in the United States. The “Legacy Education Fund” could be a meaningful first step towards creating a new roadmap for making Texas’ public education funding levels more competitive with those of other states. Even with the existing Permanent School Fund (PSF) and recent investments from the 89th Session, today’s school funding is not sufficient. 

Like local school property taxes, the PSF funds the existing school funding formulas set by the state legislature. Also, like school property tax collections, the PSF does not increase the amount of funding going to public schools; it’s just a method of finance. The proposed “Legacy Education Fund” could provide additional funding to schools over and above what current formulas provide. 

A new public education endowment would give our state:

• Durability: An endowment ensures that funding is protected for generations, regardless of the political or economic climate.
• Diversified funding streams: An endowment provides new sources of long-term revenue to help fund our public schools. 
• Stability: Texas schools can have the opportunity to plan with confidence, relieving the constant uncertainty in two-year state budget allocations.
• Competitive Investment: Strong schools fuel economic growth, promote healthier communities, and enhance the quality of life for all Texans. An endowment sets Texas on the path towards keeping up with other states’ investments in their public school students.
• Legacy: Establishing an endowment is a permanent promise to our kids, and the down payment on the quality education they deserve.

“The 89th Legislature’s $8.5 billion infusion of education dollars is much appreciated, but schools did not arrive in this situation overnight,” said Cohen. “The current funding situation–in which districts across Texas continue to grapple with severe budget shortfalls, program cuts, school closures, and staffing shortages–was years in the making. Our state needs a long-term vision to change this status quo. Raise Your Hand Texas is ready to foster a conversation about fully funding our public schools and providing our students with the resources they need to succeed.”

On Friday, Nov. 14, 2025, Raise Your Hand Texas will discuss the “Legacy Education Fund” during a live taping of an Intersect Ed podcast episode at the Texas Tribune Festival. 

###

About Raise Your Hand Texas

In 2006, Charles Butt and a group of Texas business and community leaders founded Raise Your Hand Texas with the belief that all Texas children should have equal access to high-quality education. Raise Your Hand Texas is working to create a vibrant civic culture where Texans vote, engage lawmakers and their neighbors, and act together to champion public education in their communities and at the state Capitol. For more information, visit raiseyourhandtexas.org.

FOR IMMEDIATE RELEASE
Anne Lasseigne Tiedt, APR
atiedt@ryht.org, c: (512) 784-3805