Nearly 80% of Texas public school systems earn top 'A' rating for financial management

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AUSTIN, TEXAS - AUGUST 14: Texas Education Agency Commissioner of Education Mike Morath discusses the 2024 and 2025 A-F school ratings during a press conference at the William B. Travis Building in Austin, Thursday, Aug. 14, 2025. (Mikala Compton/Aus

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Nearly 80 percent of Texas public school systems earned an "A" rating for financial management during the 2025–2026 school year, state education officials announced Monday.

2025–2026 Financial Integrity Rating System of Texas

By the numbers:

The Texas Education Agency released its final 2025–2026 Financial Integrity Rating System of Texas (FIRST) ratings, with 945 out of 1,183 evaluated school systems—79.87%—achieving "Superior Achievement" status.

The ratings are based on TEA reviews of annual financial reports submitted by school systems for the 2025 fiscal year. School systems receive one of four letter grades: A (Superior Achievement), B (Above Standard Achievement), C (Meets Standard Achievement), or F (Substandard Achievement).

Overall, 144 systems (12.18%) received a "B," 76 systems (6.43%) earned a "C," and 18 systems (1.52%) received an "F."

Among traditional public school districts, 840 earned an "A," 107 received a "B," 60 received a "C," and 11 received an "F." Out of 165 public charter schools evaluated, 105 received an "A," 37 received a "B," 16 received a "C," and seven received an "F."

TEA evaluates traditional districts and charter schools using 21 financial indicators, including administrative cost expenditures, reporting accuracy, and internal control weaknesses identified by external auditors. Failing any of four critical indicators results in an automatic "F" rating, regardless of a school system's overall score.

Additionally, all five charter schools operated by public institutions of higher education received a "Pass" rating under a separate seven-indicator system.

Dig deeper:

Established by the Texas Legislature in 2001, the FIRST system is designed to hold public schools accountable for the quality of their financial management practices. All Texas public school systems are required to present their financial ratings to parents and taxpayers during a public meeting.