The state's school financial accountability rating system, known as the School Financial Integrity Rating System of Texas (FIRST), ensures that Texas public schools are held accountable for the quality of their financial management practices and that they improve these practices. This year’s School FIRST rating is based upon an analysis of staff and student data reported for the 2022-23 school year, as well as budgetary and actual financial data for the 2023 fiscal year. Out of a possible total score of 100, the Magnolia ISD scored 96, resulting in the highest available rating of “Superior” with a letter grade of an A. 

FIRST ratings are calculated using 21 financial indicators, such as administrative cost expenditures; the accuracy of a district or charter’s financial information submitted to the Texas Education Agency (TEA); and any financial vulnerabilities or material weaknesses in internal controls as determined by an external auditor.

One of the 20 FIRST indicators focuses on how much a district spends (or doesn't spend) on administrative costs. The TEA sets annual rules for the calculation of administrative costs and the acceptable administrative cost ratio for school districts based upon their size, sparsity, and student population characteristics. For Magnolia ISD’s ratio, the district spends $1.1 mil less on administrative costs as allotted for this indicator. 

This is a result of years of lean administrative cost focus and a very intentional approach to shifting operational dollars back into the classroom. Current data from TEA shows that MISD spends 60% of its budget on direct classroom costs while the average district in the state of Texas allocated 57% of its budget on the same. 

“The success of the FIRST score is a direct result of prudent financial management by the administration and board,” said Dr. Erich Morris, Assistant Superintendent of Operations. “The system has become more stringent in how it’s being assessed and this recognition should serve as a reminder to our stakeholders that we are committed to fiscal excellence.” 

The MISD Board of Trustees and Administration is committed to being stewards of taxpayer dollars and to the transparency of the district's financials.