The Texas Education Agency (TEA) has released the final 2024–25 School Financial Integrity Rating System of Texas (FIRST) ratings for independent school districts based on fiscal year 2024, giving districts, families, and educators a detailed look at financial practices across the state. The FIRST system might appear technical, but the educators should take note as its implications are far-reaching. District financial health plays a major role in teacher working conditions, staffing stability, instructional resources, and long-term student supports. For independent school districts (ISDs), especially those paying significant recapture, this year’s ratings offer both transparency and a stark illustration of the ongoing financial pressures created by Texas’ school finance structure. 

FIRST evaluates each district on a series of indicators tied to audited financials, fund balance levels, debt practices, administrative cost ratios, PEIMS reporting accuracy, and compliance with state timelines. TEA requires every district to hold a public meeting (usually done at a normal board meeting) within two months of the release to present a “financial management report” explaining the rating and providing any necessary context for lower-scoring indicators. This requirement underscores that FIRST is not merely an accounting exercise but also a governance tool meant to inform community engagement and decision-making. FIRST ratings factor into overall accreditation, which adds an additional layer of significance for district leadership. 

Financial stewardship matters for educators because it directly affects what happens in classrooms. A district with healthy reserves, clean audit results, and well-managed debt is better positioned to maintain competitive salaries, sustain staffing levels, invest in curriculum and technology, and support campus-based programs. By contrast, districts under financial strain face much harder choices such as hiring freezes, larger class sizes, deferred purchases, and program reductions that remove critical supports for teachers and students. For this reason, educators should review their district’s rating carefully and pay close attention to indicator-level results in the TEA dashboard. 

As districts move forward with their required public meetings, educators should take this opportunity to engage in informed dialogue. Understanding which indicators affected the rating, and whether they stemmed from district decisions, statewide funding pressures, or other state policies such as recapture obligations, is critical. Teachers and associations should ask district leaders to explain how financial constraints may affect staffing, class sizes, program offerings, and long-term planning. When rating dips are tied to state policy rather than local management practices, districts should clearly articulate that distinction to the public and policymakers. These conversations help ensure that financial accountability does not obscure the broader funding inequities shaping teacher working conditions. 

Ultimately, FIRST ratings are one of the clearest windows into a school system’s financial stability, and financial stability remains inseparable from classroom success. Strong finances allow educators to thrive with fewer disruptions. Weak finances create uncertainty that hinders long-term planning, weakens staff support, and puts pressure on programs that students rely on. As communities examine their districts’ ratings, it is important to understand both what those ratings reflect and what they cannot remedy.