Total education spending has climbed to reach $75 billion for the current biennium. As the graph above illustrates, the increase in education spending has occurred steadily since 2000, with an increase of roughly 25% between the 2006-07 and 2008-09 state budgets. This significant increase in spending is attributable to the increase in state public education funding, which accounts for roughly $50 billion of the education budget. Higher education accounts for roughly $19 billion. The Legislative Budget Board projects that between public education and public higher education, Texas will support the education of almost 6 million students.

State funding for public K-12 education increased by roughly $13 billion in the 2008-09 state budget. Most of this increase is the result of school finance reforms enacted by the Texas Legislature in 2006 which were intended to reduce local tax rates and provide property tax relief to taxpayers, while the state replaced the lost local funds with state funding.

Despite many claims that support for the state’s system of higher education has waned, the data shows tremendous increases in higher education financing. For the 1.2 million students enrolled in the states institutions of higher education according to the Texas Higher Education Coordinating Board, the Texas Legislature appropriated $19 billion in All Funds, including $12.3 billion in state General Revenue. For the general academic institutions, the General Revenue appropriation for 2008-09 was 11% higher than the previous biennium.

It is also worth noting that the Texas Legislature increased General Revenue funding for new and existing higher education “special items” by $70.5 million in 2008-09. When lawmakers passed the 2002-03 budget in 2001, special items funding represented only $47 million dollars.

A complete listing of all agencies funded in Article III is available by downloading the state budget or the Legislative Budget Board’s Fiscal Size-Up.