This study investigates the regulatory and financial incentives driving up expenditures and examines the fiscal accountability of school districts to taxpayers. Economist Milton Holloway reviews the economic performance of three Texas school districts and finds their accounting systems were not designed to differentiate between required spending and discretionary spending. This calls into question claims that public schools have insufficient funds to provide core instructional programs.
K-12 Education
The Education Cartel
Texas’ education system is not merely inefficient. It is structurally tilted to benefit insiders at the public’s expense, according to an explosive new report. The root of the problem is the Education Cartel—a network of consultants, vendors, and taxpayer-funded lobbyists who profit from ever-expanding school bond debt and bureaucratic growth. This system has helped drive...
April 8, 2026