Raise Your Hand Texas Briefs Legislative Offices on Proposed New Endowment for Texas Public Schools

“Legacy Education Fund” could be the first new, renewable school funding source in 20 years

AUSTIN, Texas, Nov. 20, 2025 (GLOBE NEWSWIRE) -- The proposed “Legacy Education Fund,” an idea to create a new dedicated and permanent source of school funding for Texas, is gaining interest and support across the state. The proposed endowment has the ability to supplement Texas’ current school funding system rather than supplant or replace one type of funding with another. Raise Your Hand Texas wishes to collaborate with the 90th Legislature to establish a new endowment that is a continuous, increasing source of funding for public schools, even if the state’s property tax system changes in the coming years. 

Earlier this month, one-third of legislative offices at the State Capitol attended a standing-room-only briefing on the “Legacy Education Fund,” kicking off a week of positive conversations about the proposed new funding source. 

“The use of an endowment to fund public education is not revolutionary,” said Dr. Libby Cohen, executive director of Raise Your Hand Texas, during a live taping of the Intersect Ed podcast. “The really important twist here is that we'd like to structure this endowment so that the money it brings to public schools would actually grow over time, which is different from any of the existing revenue sources currently on the books for Texas public schools.”

According to the National Education Association, Texas ranks among the bottom 10 states in the country in per-pupil funding. Other states, including Alabama, Colorado, Mississippi, and Connecticut, have already established public education endowments. These funds effectively support various school needs—from core expenses to programs, technology, and facility improvements—showing the potential impact a similar approach could have in Texas. 

“If you look across the state’s school districts, you’re still seeing budget deficits,” said Dr. David DeMatthews, professor in the Department of Educational Leadership and Policy at The University of Texas at Austin, and panelist on the podcast. “In reality, smaller states with less robust economies are putting far more money into their schools [than Texas]. Mississippi is investing more in public education than Texas. We wouldn’t stand for that in football, and we shouldn’t when it comes to our schools.”

During the 89th Legislative Session, lawmakers approved House Bill 2 and provided $8.5 billion in public education funding for the 2025-26 biennium. Despite the recent investment, school districts continue to face numerous challenges, including school closures and staff layoffs. In Texas classrooms, the effects of underfunding are visible daily. Students face larger class sizes and fewer resources; teachers take on heavier workloads; support staff cover extra duties; and district leaders stretch budgets to cover the essentials. Rising costs, inflation, and new state mandates exacerbate the challenge.

At the same time, Texas has the eighth-largest economy in the world, and Texas’ Economic Stabilization Fund, also known as the Rainy Day Fund, will soon grow to an estimated $28.5 billion, hitting its cap. “In a moment of economic plenty here in Texas, it would be wise for the state to think about how to do some really meaningful planning and investing for the future,” said Cohen. 

The state’s two-year budget cycle adds uncertainty, forcing schools to make long-term commitments without dependable support. During the podcast, Mark Estrada, superintendent of Lockhart Independent School District, shared his belief that Texas school districts need greater predictability when it comes to school funding. He went on to say, “We have to be thoughtful and intentional about how we fund our schools. Students have different needs across different parts of Texas. Certainly, any new funding needs to be supplemental to our current funding structure.”

The fund’s implementation—initial investment, ongoing contributions, and governance—will shape its long-term impact on Texas schools. In the coming months, Raise Your Hand Texas will conduct a series of statewide conversations with key civic, business, and community leaders about the proposed endowment. 

Decisions made during the 90th Legislative Session, which is set to begin in January 2027, could establish a new direction for funding Texas public education.

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.

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

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