HOUSTON — Voter approval of the Texas Lottery came in 1991, and at the time a big selling point was financially assisting school districts and state-run programs in Texas. Throughout 2024, many school districts in the Houston area say their budgets are tight, and the state has failed to give public schools more money out of the most recent legislative session.
School districts are hoping lawmakers are able to come to an agreement to boost funding and increase how much the state payment per student for the 2025 legislative session.
THE QUESTION
Do funds from the Texas Lotto mostly support Texas education?
THE SOURCES
Texas Education Code
Texas Association of School Boards
Texas Education Agency
Texas Lottery Commission
THE ANSWER
No, school funds from the Texas Lotto do not mostly support Texas education. There are several other sources of funds used that contribute to school funding across Texas. The bulk of revenue from the lottery goes to prize payouts.
WHAT WE FOUND
According to the Texas Lottery Commission data shows the first transfer of funds to the Foundation School Program started in 1997. The Texas Lottery notes that before 1997 funds were sent to the General Revenue Fund, for all state programs. The Foundation School Program (FSP) is the primary source of state funding for Texas school districts, according to the Texas Education Agency (TEA).
The Texas Lottery Commission sent a breakdown of its spending to the KHOU 11 Verify Team showing the majority of its spending since the inaugural year. Prize money remains the agency's top expenditure.
The most recent transfer of dollars designated for Texas education occurred in October 2024. The data shows that $127.9 million was sent to the Foundation Education Program. To date, the Texas Lottery has transferred $33.9 billion to the FSP.
The amount of funding school districts are entitled to in Texas is mostly determined by a formula. The first piece of the formula is the basic allotment, which is the dollar amount per student the state pays for. The education finance formula can be changed during the legislative session.