Relating to requiring that public schools spend a certain percentage of funding for direct instructional activities, including an indicator for that requirement under the public school financial accountability system.

SB 2507 requires Texas public school districts to spend at least 60% of their operating funds on direct instructional activities, such as teacher salaries, classroom materials, and instruction-related expenses. Districts must annually report two key metrics: the percentage of total expenditures for direct instruction (minimum 60%) and the percentage of staff time dedicated to classroom teaching. The state's public school financial accountability system will include an indicator measuring compliance with this spending requirement, which could affect a district's rating. The bill applies beginning with the 2025-2026 school year.