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During the 90th Texas Legislative Session, lawmakers have the opportunity to enact legislation to build a workforce ready for the jobs of tomorrow, while leaving a lasting legacy for all Texas public school students.
Texas public schools are still in a funding crisis, even after the 89th Legislature’s much-publicized $8.5 billion infusion of education dollars. School officials and education advocates warned from the start that the new dollars were a long way from catching districts up with current inflation, and would not solve the multimillion-dollar budget deficits and school closures looming over many Texas communities. Their warning has proved correct. Districts across Texas continue to grapple with severe budget shortfalls, program cuts, and staffing crises despite the recent funding boost.
Now is the time to explore ideas such as a new type of public education endowment in addition to the existing Permanent School Fund (PSF). 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 Legacy Education Fund could provide additional funding to schools over and above what current formulas provide.
The Legacy Education Fund would be a new type of endowment that would add additional funding to our public schools. It would provide a permanent, stable funding source that secures the future of our public schools. The endowment fund’s investment returns could become supplemental dollars that could be added to our existing student funding formulas.
Texas has a unique opportunity to use a portion of the Economic Stabilization Fund (ESF), commonly known as the Rainy Day Fund, as seed capital for a long-term investment in public education and workforce development. By dedicating a portion of the ESF, Texas can convert one-time funding into a lasting source of support for future generations. This approach preserves the state’s strong fiscal position while creating an enduring fund that prepares students for high-demand careers, strengthens the workforce, and supports Texas’s long-term economic competitiveness.
Texas has also proven it knows how to manage multi-billion-dollar long-term investments responsibly. Building a similar public education and workforce endowment ensures every dollar is carefully tracked, rigorously audited, and protected. This tried-and-true, strictly governed model would secure our state’s economic and education sovereignty.
Permanent School Fund (PSF)
The Permanent School Fund (PSF) finances a portion of the Foundation School Program entitlement, but it supplants rather than supplements school funding. It does not provide additional dollars to raise the basic allotment or fund new education priorities.
Texas Water Fund
Texas voters overwhelmingly approved a dedicated, long-term solution to secure water. The Texas Water Fund was created in 2023 with a $1 billion appropriation and voter approval of Proposition 6. In 2025, Proposition 4 expanded the effort, authorizing up to $20 billion for water projects over the next two decades.
