$2.722B
Statewide increase in identifiable costs, FY 2020 to FY 2025
$575.7M
FY 2026 Allotment for Basic Costs, statewide
21%
Share of the statewide increase the allotment equals
$478
Increase per student statewide, compared with $106 per student provided
Summary
In 2025, the Texas Legislature created the Allotment for Basic Costs in House Bill 2. The allotment provides $106 per enrolled student, and state law limits its use to six categories: transportation; costs associated with hiring retired teachers; health insurance, employee benefits, and payroll taxes; contributions to the Teacher Retirement System; utilities; and property and casualty insurance.
This report uses actual expenditures reported to the Texas Education Agency to measure how much identifiable spending in those categories changed between FY 2020 and FY 2025. It then compares that change with FY 2026 allotment funding, statewide and for each of NTXEC's 51 member districts.
THE RESEARCH QUESTION
How much did expenditures in the allowable categories grow between the last increase in base-level school funding and the creation of the Allotment for Basic Costs, and how does the funding provided by the allotment compare to that growth?
Key Findings
01
Statewide, identifiable costs in the allowable categories increased by $2.722 billion. The Allotment for Basic Costs provides $576 million, approximately 21 percent of the increase.
02
For NTXEC member districts, identifiable costs increased by $354.6 million. The allotment provides $82.1 million, approximately 23 percent of the increase.
03
District-paid TRS and TRS-Care contributions produced the largest dollar increase, accounting for 27.4 percent of the increase statewide and 29.8 percent for member districts.
04
Property and casualty insurance was the fastest-growing category, rising 154.6 percent statewide and 210.1 percent for member districts.
Testing the Results
The findings hold when measured per enrolled student and when compared against an alternative baseline year. Per student, identifiable costs increased by approximately $478 statewide and $489 in member districts, compared with the $106 per enrolled student the allotment provides.
Understanding the Findings
This report compares the scale of recent cost growth with the scale of new funding. It does not assume the allotment was designed to reimburse every eligible expense or cover all past cost growth, and it does not measure a funding shortfall or the total effect of House Bill 2 on district budgets. All figures are actual, reported expenditures and are not adjusted for inflation.
Comparing Districts
Results for each NTXEC member district appear in the report appendices. Because enrollment change affects total costs, readers comparing districts should use the per-student results in Appendix B.
DOWNLOADS
PDF - 37 pages - 2.7MB
Excel - district tables - 204 KB
RELATED
SUGGESTED CITATION
North Texas Education Coalition. The Scale of the Allotment for Basic Costs: Comparing Growth in Identifiable, Allowable Expenditures to Newly Provided Funding. October 2026.
PRINTED COPIES AND BRIEFINGS
To request printed copies or a briefing on the findings, contact Danny Stockton.