A look under the hood: TEA gets an audit

This week, the Texas State Auditor’s Office released a report of its findings on the Texas Education Agency (TEA). The audit was conducted in accordance with Rider 88, General Appropriations Act (89th Legislature). Hat tip to Rep. Ana-Maria Rodriguez Ramos (HD-102) for her work in getting this added to the budget. 

The report is not terribly flattering, and, in some instances, confirms what advocates have known anecdotally for years, namely that TEA has bloated in size in recent years and operates as a top-heavy organization. As of last August, TEA had 1 manager for every 3.5 full-time equivalent (FTE) employees, but it had not obtained approval to exceed the statutory limit of 1 manager per 11 FTEs (Texas Government Code, Section 651.004). In FY 2025, the statewide average management-to-staff ratio (MSR) for large state entities was 1 manager for every 9.7 FTEs.

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This obviously resulted in higher salary-related administrative costs. In FY 2025, the TEA spent $44.7 million on salary and wage costs for management, an increase of nearly 64% compared to FY 2021. Non-management salary and wage costs increased by only 31% over that same period, from $60.2 million to $78.9 million. 

The agency also did not have a process to verify that public and open-enrollment charter schools ensured that their private pre-kindergarten providers fulfilled all applicable requirements, such as maintaining compliance with the Texas’s childcare licensing standards or required class size limits. Charter schools were more likely to be in violation of improper verification and monitoring. This could have substantial impacts on our youngest learners and we appreciate the report bringing this to light. 

Finally, for the period under review, September 1, 2023, and August 31, 2025, the auditor’s office found that 

• 8 new open-enrollment charter school applications,  

• 45 renewal applications, and  

• 30 expansion applications  

were submitted and processed according to established procedures. As a reminder to our readers, the State Board of Education (SBOE) only has authority to approve new campuses. The renewals and expansions are entirely the work of the commissioner. During the same period, TEA closed 14 open-enrollment charter schools due to mandatory terminations, non-renewals, mergers, or surrenders. 

The full report has additional findings and recommendations along with the agency responses. Many will find vindication in its pages for its perennial complaints about TEA. We sincerely hope that Commissioner Mike Morath will take heed of many of its criticisms and maybe reconsider his ask for additional positions in his next Legislative Budget Board hearing, currently scheduled for Sept. 29.