How Districts Can Compete with Changing Funding Policies

The Texas Senate passed Senate Bill 2 (SB 2), which allows families greater flexibility in directing public education funds toward private schools, homeschooling, or other educational options; public school districts face increasing financial variability. This type of policy is trending across the country.

Key Strategies for Districts to Compete Amidst School Choice Policies

• Strengthening School Identity – Emphasizing high-quality instructional programs, extracurricular opportunities, and specialized learning tracks to distinguish themselves from competitors.
• Expanding Community Engagement – Collaborating with local businesses and civic organizations to build financial support and reinforce the value of public education.
• Enhancing Transparency – Communicating clear spending reports to families to illustrate the effective use of taxpayer dollars.
• Innovate to Capture Funding – Innovate district operating models to adapt to education policies and compete for funds.
• Developing Public-Private Partnerships – Partnering with corporations and nonprofits to customize educational opportunities for students.
• Investing in Innovative Learning Models – Expanding micro-schooling and flexible options to meet the changing demands of modern families.
• Improving Teacher Retention – Offering flexibility, creativity, and tailored professional development.

Real-World Examples: How Districts are Competing

Arizona’s Response to School Choice Policies

Arizona has one of the most expansive school choice environments in the country. In response, public school districts have:

• Developed specialized magnet schools focused on STEM, performing arts, and bilingual education.
• Created tuition-free online learning academies to compete with private virtual schools.
• Increased outreach to parents, providing comparative data on academic performance and extracurricular advantages over private alternatives.

Florida’s Expansion of Career and Technical Education (CTE) Programs

Florida school districts have responded to changing funding models by increasing the availability of Career and Technical Education (CTE) programs. These programs provide:

• Industry-recognized certifications.
• Direct pathways to employment and higher education.
• Strong partnerships with businesses, ensuring real-world relevance for students.

Tennessee’s Rural School Initiative

Facing enrollment declines due to private school funding incentives, Tennessee districts have strengthened community outreach and built regional school networks to:

• Share resources and reduce operational costs.
• Expand access to specialized programs without duplicating services.
• Develop grant-funded initiatives that enhance student opportunities while maintaining local school autonomy.

Next Steps for Public School Leaders

Public school districts must act swiftly to adapt to new funding models and school choice policies. Leaders should:

1. Actively Compete – With increased competition from public and private options, public school leaders need to prepare to compete to retain students and teachers.
2. Invest in Parent Outreach Programs – Build trust by educating families about the advantages of public schooling through active marketing.
3. Leverage Technology for Personalized Learning – Compete with online schools by not only offering high quality online learning but a superior customer service experience.
4. Diversify Funding Streams – Be entrepreneurial and enterprising in considering how the school district can offer value to local businesses and organizations.
5. Evaluate and Adapt Quickly – Regularly assess policy, industry, and economic trends; and scenario plan for various outcomes.

As states continue to implement policies like Texas SB 2, public schools must redefine their value proposition and proactively adapt to the evolving educational marketplace to remain competitive and sustainable.