June 2025 Committee on School Finance/Permanent School Fund Item 1
Per Capita Apportionment Rate for the 2024-2025 School Year
June 26, 2025
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: A per capita apportionment rate for each school year is set by the commissioner of education based on an estimate of the amount available for expenditure from the Available School Fund (ASF). A preliminary 2024–2025 per capita apportionment rate of $622.196 was set in September 2024. A final per capita apportionment rate is set by the commissioner of education based on actual funds available for expenditure. Agency staff will present the final rate for the 2024–2025 school year at the June 2025 meeting of the Committee on School Finance/Permanent School Fund.
STATUTORY AUTHORITY: Texas Education Code (TEC), §§48.004, 48.251(c), and 43.001(b).
TEC, §48.004, requires the commissioner of education to implement and administer the Foundation School Program (FSP).
TEC, §48.251(c), requires the FSP to be financed with state available school funds distributed in accordance with the law.
TEC, §43.001(b), describes the appropriations that make up the ASF.
PREVIOUS BOARD ACTION: A preliminary 2024–2025 per capita apportionment rate of $622.196 was established in September 2024.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: House Bill 1, the General Appropriations Bill enacted by the 88th Texas Legislature, 2023, contains an estimate of the amount that will be available for expenditures from the ASF for the 2024-2025 school year. The per capita apportionment will include distributions from the Permanent School Fund and funds from state occupation taxes and from the Motor Fuels Tax. The preliminary per capita apportionment rate set by the commissioner of education is based on an estimate of the funds available for expenditure. A final rate is established later in the school year by the commissioner of education based on actual funds available for expenditure.
FISCAL IMPACT: The per capita apportionment rate finances part of the cost of the FSP. State aid comes from the ASF and the Foundation School Fund (FSF). The per capita apportionment rate determines how much of each district's total state aid is paid from the ASF. The part that is not financed by the ASF must be paid from the FSF.
PUBLIC BENEFIT AND COST TO PERSONS: State aid for the Foundation School Program is partially funded by the Available School Fund per capita apportionment. If this source of funds were not available, the shortfall would have to be made up from the General Revenue Fund.
Staff Members Responsible:
Carla Steffen, Deputy Commissioner for Finance
Amy Copeland, Associate Commissioner for School Finance
Sara Kohn, Director of State Funding, Forecasting and Fiscal Analysis
Attachment:
Per Capita Rate for 2024-2025 (as of 6-10-2025)