Texas has one of the highest dropout rates in the nation, according to a study from WalletHub. The Lone Star State ranks as one of the least educated states, coming in at 41st. Worse, the state ranks 49th in percentage of diploma holders in the U.S.
In 2011 the Texas Legislature cut $5.3 billion from the public education budget. The move created an inescapable budgetary ditch and portended a trend of underfunding in the education sector that still exists. In the 10 years after the state cut the budget, teacher salaries have stagnated, even in the face of inflation, staff retention rates decreased and learning-loss gaps emerged in the wake of the COVID-19 pandemic. The American Federation of Teachers calls 2011-2021 in Texas education “the lost decade”.
It is widely accepted that there is a statistical correlation between education funding and graduation rates.
“The most educated states provide high-quality educational experiences from elementary school all the way to graduate programs, which helps parents raise children in an environment that gives them as many opportunities as possible,” said Chip Lubo, a WalletHub analyst.
Though "the lost decade" was the result of a number of seismic shifts, it’s just one entry in a greater story of Texas’ educational pitfalls, featuring lowering test scores, worsening student attrition and widespread school closures.
Ahead of this Legislative session, Gov. Greg Abbott declared education and teacher salaries as some of his top legislative priorities.
"We're going to continue to fully fund our schools as well as provide teachers with a pay raise," said Abbott in his State of the State address.
Rather than revise the existing education system that serves 5.8 million students, Abbott continues to push for a school voucher-like program, which will pull state funding from public education and redirect it to allow parents to pay for private school tuition. In Dallas, school vouchers would only cover a third of private school tuition at some of the most prestigious academies, leaving parents to cover the remaining thousands of dollars out-of-pocket.
"Government-mandated schools simply cannot meet the needs of every student. But Texas can provide families with the choices to better meet those needs," the governor said recently.
North Texas school districts are hoping for considerable funds from this session, hoping to mitigate some of the budget deficits plaguing many Texas districts. Some schools are operating with millions less than required to properly provide for their students, and the recent educational lapses and poor testing scores could be soon as proof of a widespread problem. Educational progress in Texas has flatlined recently, with the 2025 installment of the Nation’s Report Card revealing the worst reading scores in state history.
Despite less-than-ideal high school graduation rates, Texas fares OK regarding advanced degrees, according to WalletHub. The state ranks in the middle for the rate of bachelor’s degree holders and graduate degree holders, yet on a local scale, the Dallas-Forth Worth area ranked 72nd on the list of the 150 most educated cities in the country.
A number of North Texas school districts are facing school closures because of budgetary shortcomings, including Carrollton-Farmers Branch ISD, who recently introduced plans to potentially close as many as four campuses. Dallas Independent School District is operating under a $186 million budget deficit and has a dropout rate higher than the state and national average.
“The much clearer impact of insufficient K-12 quality is in college preparation,” Mark Fincher an associate professor at Mississippi State University, told WalletHub. “More students are graduating from high school without being college ready than before. This is on top of many school districts already having less than half of their graduates be fully ready for college.”
