SB 2507

relating to requiring that public schools spend a certain
percentage of funding for direct instructional activities,
including an indicator for that requirement under the public school
financial accountability system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 39.082(c), Education Code, is amended to
(c)  The system must [may not] include an indicator under
Subsection (b) [or any other performance measure] that[:
[(1)]  requires a school district to spend at least 60
[65] percent [or any other specified percentage] of district
operating funds for direct instructional activities as described by
[(2)  lowers the financial management performance
rating of a school district for failure to spend at least 65 percent
or any other specified percentage of district operating funds for
SECTION 2.  The heading to Section 44.0071, Education Code,
Sec. 44.0071.  COMPUTATION OF INSTRUCTIONAL EXPENDITURES
RATIO AND INSTRUCTIONAL EMPLOYEES RATIO; MINIMUM RATIO REQUIRED.
SECTION 3.  Sections 44.0071(a) and (c), Education Code, are
(a)  Each fiscal year, a school district shall compute and
(1)  the percentage of the district's total
expenditures for the preceding fiscal year that were used to fund
direct instructional activities, which must be at least 60 percent;
(2)  the percentage of the district's full-time
equivalent employees during the preceding fiscal year whose job
function was to directly provide classroom instruction to students,
determined by dividing the number of hours spent by employees in
providing direct classroom instruction by the total number of hours
worked by all district employees.
(c)  For purposes of this section, the computation of a
district's expenditures used to fund direct instructional
(1)  the salary, including any associated employment
taxes, and value of any benefits provided to any district employee
who directly provided classroom instruction to students, but only
in proportion to the percentage of time spent by the employee in
directly providing classroom instruction to students;
(2)  the cost for the purchase of instructional
(3)  the cost of professional and technical services
and the renting of educational equipment; and
(4)  expenses relating to extracurricular and
SECTION 4.  This Act applies beginning with the 2025-2026
SECTION 5.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.