The Texas Education Agency (TEA) has released the final 2024-2025 financial accountability ratings for public school systems across the state. The School Financial Integrity Rating System of Texas (FIRST), created by the 77th Texas Legislature in 2001, is designed to assess and ensure sound financial management practices among Texas public schools.
According to TEA, these ratings are determined using annual financial reports submitted by each school system for the 2024 fiscal year. After review, each district or charter school receives a letter grade—A, B, C, or F—along with a corresponding rating: Superior Achievement, Above Standard Achievement, Meets Standard Achievement, or Substandard Achievement.
For the 2024-2025 school year, the results show that:
– 81% of districts and charter schools received an A rating for Superior Achievement.
– 10% earned a B rating for Above Standard Achievement.
– 6% were given a C rating for Meets Standard Achievement.
– 2% received an F rating for Substandard Achievement.
In total, out of 1,190 rated entities—including both traditional districts and charter schools—969 achieved Superior Achievement status.
“FIRST ratings are calculated using 21 financial indicators for both traditional school districts and public charter schools, such as administrative cost expenditures; the accuracy of a district or charter school’s financial information submitted to TEA; and any financial vulnerabilities or material weaknesses in internal controls as determined by an external auditor,” according to TEA.
There are four critical indicators within FIRST that can result in an automatic F or Substandard Achievement if not met. Charter schools operated by public institutions of higher education (IHEs) are rated separately on a Pass/Fail basis using seven specific indicators. For this cycle, all five IHE-operated charter schools received a Pass rating.
Texas law requires all public school systems to present their FIRST ratings at a public meeting so parents and taxpayers can discuss the findings. Additional details about FIRST ratings and access to full results are available on the TEA’s web pages dedicated to independent school districts and charter schools.
