The Texas Education Agency (TEA) has released the final financial accountability ratings for the 2024-2025 school year under the School Financial Integrity Rating System of Texas (FIRST). Established in 2001 by the 77th Texas Legislature, FIRST aims to provide oversight on how well Texas public schools manage their finances.
Each school system receives a letter grade—A, B, C, or F—and a corresponding rating: Superior Achievement, Above Standard Achievement, Meets Standard Achievement, or Substandard Achievement. The ratings are determined based on annual financial reports submitted by school districts and charter schools for the 2024 fiscal year. TEA reviews these reports before assigning a rating.
According to TEA data, out of 1,190 total entities rated this cycle—including both districts and charter schools—81% earned an A or “Superior Achievement.” Specifically, 866 districts and 103 charter schools received this top distinction. Ten percent received a B (“Above Standard Achievement”), six percent were assigned a C (“Meets Standard Achievement”), and two percent were given an F (“Substandard Achievement”).
“School systems are assigned one of four possible letter grades (A, B, C, or F) under the financial accountability ratings, along with a coinciding financial management rating: Superior Achievement, Above Standard Achievement, Meets Standard Achievement or Substandard Achievement.”
FIRST uses 21 indicators to evaluate both traditional school districts and public charter schools. These include administrative cost expenditures and accuracy of financial information submitted to TEA. External auditors also assess for any vulnerabilities or weaknesses in internal controls.
“There are four critical indicators that result in an automatic F or Substandard Achievement rating should a school system fail in that specific category – regardless of their overall score.”
Charter schools operated by public institutions of higher education (IHEs) are evaluated separately using seven indicators and receive either a Pass or Fail. For this period, all five IHE-operated charter schools achieved a Pass rating.
All Texas public school systems must present their FIRST ratings at a public meeting so parents and taxpayers can review and discuss them.
For more details on FIRST ratings as well as access to full results for independent school districts and charter schools visit the TEA’s official web pages.
