Texas Public Schools Achieve Top ‘A’ Rating in Financial Management: Nearly 80% Excel

Texas Public Schools Achieve Top 'A' Rating in Financial Management: Nearly 80% Excel

AUSTIN, TEXAS – In a significant achievement, nearly 80% of Texas public school systems have received an “A” rating for their financial management in the latest annual accountability review conducted by the Texas Education Agency (TEA). This assessment evaluated a total of 1,183 school districts, with only 18 traditional districts and charter schools falling short with a failing “F” grade.

State education officials announced that 945 out of the 1,183 evaluated school systems, accounting for 79.87%, achieved “Superior Achievement” status for the 2025–2026 school year. This rating reflects the TEA’s thorough examination of annual financial reports submitted by the school systems for the 2025 fiscal year. The ratings categories include A (Superior Achievement), B (Above Standard Achievement), C (Meets Standard Achievement), and F (Substandard Achievement).

The breakdown of ratings reveals that 144 systems, or 12.18%, received a “B,” while 76 systems, comprising 6.43%, earned a “C.” The 18 systems that were awarded an “F” represent 1.52% of the total evaluated. Among traditional public school districts, 840 received an “A,” 107 received a “B,” 60 received a “C,” and 11 received an “F.” In the realm of public charter schools, out of 165 evaluated, 105 earned an “A,” 37 a “B,” 16 a “C,” and seven received an “F.”

The TEA assesses both traditional districts and charter schools based on 21 financial indicators, which include factors such as administrative cost expenditures, accuracy in reporting, and internal control weaknesses identified by external auditors. It is important to note that failing any of four critical indicators results in an automatic “F” rating, irrespective of the school system’s overall performance.

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Additionally, all five charter schools managed by public institutions of higher education received a “Pass” rating under a distinct seven-indicator evaluation system. This accountability framework was established by the Texas Legislature in 2001 to ensure that public schools are held accountable for their financial management practices.

As part of the transparency initiative, all Texas public school systems are mandated to present their financial ratings to parents and taxpayers during upcoming public meetings.

Districts and Charter Schools with F Ratings

The following independent school districts received an F rating: Bartlett ISD, Bay City ISD, Crystal City ISD, Damon ISD, De Soto ISD, Hawley ISD, Kennedale ISD, Lyford ISD, McGregor ISD, Skidmore-Tynan ISD, and Veribest ISD.

The charter schools that received an F rating include Ambassadors Preparatory Academy, Education Center International Academy, Lake Granbury Academy Charter School, Legacy Preparatory, Positive Solutions Charter School, Raven School, and UP Excellence Academy.