While some Texas school districts are advocating for a new system of funding based on student enrollment, public policy experts say the process would force taxpayers to pay for “ghost students.”
A ghost student is a student who appears on a school’s roster but has moved to another district or dropped out.
Districts like Arlington ISD want to raise their per-student funding by basing it on enrollment rather than attendance.
“These ‘ghost students’ only exist on a sheet of paper, yet the school receives full per-pupil funding despite not actually teaching the student,” wrote Jorge Borrego, policy analyst at the Texas Public Policy Foundation.
“Switching to enrollment-based funding will force taxpayers to pay billions more per year to fund students that have moved to other school districts and states – effectively paying twice to educate the same child,” Borrego continued.
According to the Texas Education Agency (TEA), the gap between statewide district enrollment and average daily attendance is about 474,640 students.
The basic allotment for a student is $6,160, which could mean excess spending of nearly $3 billion on students who are not present in schools.
Borrego told Texas Scorecard that the state should focus on improving attendance and engagement rather than funding absenteeism.
“School districts are advocating for enrollment-based funding because it guarantees them a predictable stream of revenue, regardless of whether students actually show up,” he said. “This change shifts the focus away from addressing the root causes of poor attendance. Instead of tackling issues like absenteeism, bullying, or transportation challenges, enrollment-based funding provides a financial cushion for districts without holding them accountable for improving educational engagement. This system prioritizes institutional convenience over student success.”
