A Proposed New Public Education Funding Source: Legacy Education Fund

WHY DOES TEXAS NEED TO CONSIDER A NEW FUNDING SOURCE – THE LEGACY EDUCATION FUND?

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.

This reality underscores why Texas must act now and think beyond the next two-year budget cycle. To truly stabilize public education, the state needs a sustainable and long-term funding strategy instead of temporary fixes. 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. 

WHAT WOULD A NEW PUBLIC EDUCATION ENDOWMENT GIVE OUR STATE?

• Durability: An endowment ensures that funding is protected for generations, regardless of the political or economic climate.
• Diversifies funding streams: An endowment allows for new sources of long-term revenue streams to help fund our public schools. 
• Security: Texas schools can plan with confidence, relieving the constant uncertainty in 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.

WHAT WOULD THE ANTICIPATED RETURN BE FROM THE LEGACY EDUCATION FUND?