LBB outlines $89.3 billion TEA recommendation, flags property-tax, enrollment drivers for school funding

The Legislative Budget Board on Wednesday recommended $89.3 billion in all funds for the Texas Education Agency for the 2026–27 biennium, including about $71.8 billion for the Foundation School Program, and outlined major cost drivers that will shape conference committee negotiations.

The LBB’s Maggie Yepsen, presenting the agency rollout to the House Appropriations subcommittee on Article III, told members that the recommended GR cost for TEA rises largely because of projected increases in weighted students and changes in district property values, and includes contingency appropriations for property tax relief and program expansion.

Why it matters: TEA’s budget makes up the bulk of state K–12 funding and contains multiple levers—basic allotment, teacher incentive allotment, facilities aid and tax‑compression payments—that affect local school budgets, teachers’ pay and district tax rates. How the Legislature balances direct state aid versus property‑tax relief will determine whether districts net more flexible operating dollars or see pressure to raise local rates.

T…