Texas’ education system is not merely inefficient. It is structurally tilted to benefit insiders at the public’s expense, according to an explosive new report.

The root of the problem is the Education Cartel—a network of consultants, vendors, and taxpayer-funded lobbyists who profit from ever-expanding school bond debt and bureaucratic growth. This system has helped drive Texas school bond debt to more than $236 billion, a staggering burden ultimately borne by homeowners and families.

This is not a free-market system responding to student needs. It is a closed loop of incentives. Vendors and consultants who stand to gain from bond projects make small political contributions or cultivate relationships with local officials. Once bonds are approved, those same insiders reap massive financial rewards.

For example, 7 firms that contributed a total of $27,500 to a 2023 Conroe ISD bond campaign received $26,017,075 from the district in bond projects.

Compounding the problem is taxpayer-funded lobbying. Organizations tied to school districts use public dollars to influence lawmakers in Austin, often working to block reforms that would increase transparency or empower parents. In effect, taxpayers are forced to finance both sides of the debate—paying for the system and for the lobbyists who defend it.

The result is predictable: ever-larger bond packages, minimal accountability, and a steady expansion of administrative and construction costs that do little to improve classroom outcomes. Meanwhile, families face rising property taxes and growing skepticism about whether the system serves students or special interests.

Education should be about students, not systems. Yet as this research makes clear, the current structure too often prioritizes insiders over families. If Texas is serious about fiscal responsibility and educational excellence, it must confront the entrenched interests driving this cycle and restore accountability to the taxpayers who fund it.