(Texas Scorecard) – Texas lawmakers moved closer to cutting the size of severance payments that school districts can give superintendents without incurring a penalty, saving tax dollars meant for educating students.
Such payouts have been skyrocketing in recent years, along with superintendents’ salaries, all at taxpayers’ expense—even as school districts claim to be underfunded.
House Bill 610 by State Rep. Terri Leo-Wilson (R–Galveston) seeks to limit superintendent severance payments to no more than six months’ salary and benefits under the superintendent’s terminated contract.
Excessive payouts would cost districts a corresponding amount from the Foundation School Program, the primary source of state funding for Texas school districts.
Under current state law, the Texas Education Agency reduces a district’s FSP funds by the amount that severance pay exceeds one year’s worth of the superintendent’s salary and benefits.
The Texas House approved HB 610 on May 7 with near-unanimous support.
State senators considered the bipartisan bill during a Thursday night meeting of the Senate Education K-16 Committee.
According to State Sen. Angela Paxton (R–McKinney), who sponsored HB 610 in the Senate, school districts have paid more than $54 million in severance to superintendents since 1995.
Texas school districts routinely commit to multi-year contracts with superintendents, yet the administrators are allowed to leave during their contract periods without penalty.
Even when poor performance or misconduct is alleged, superintendents receive contract buyouts and large severance payments—again, at taxpayers’ expense.
Last year, Fort Worth ISD trustees agreed to pay Superintendent Angelica Ramsey nearly $1 million after allowing her to resign amid complaints about the district’s dismal performance under her leadership.
In February, Grand Prairie ISD trustees approved a secret settlement with Superintendent Jorge Arredondo, who they placed on leave and then fired for an undisclosed cause just a few months after hiring him.
Also in February, Lake Travis ISD trustees let Superintendent Paul Norton resign and receive a payout of his contract plus severance, avoiding further scrutiny of mysterious misconduct allegations for which he’d been placed on leave in December.
Texas Scorecard readers who responded to an informal survey last October said they support reining in superintendents’ salaries and severance pay.
“These golden parachutes essentially reward poor performance and bad behavior, diverting essential funds from educational resources and support, which ultimately harms students and undermines accountability for leadership,” responded Sharla Mills.
A 2018 report by the Legislative Budget Board identified 141 taxpayer-funded superintendent severance payments made by school districts from 2013 to 2017, totaling more than $18 million.
The average severance payment during that period was $125,000. The amount of reduced FSP funding totaled $1.8 million.
TEA did not respond to a request for updated information on superintendent severance payments and FSP reductions. However, since 2017, superintendent salaries and severance payments have skyrocketed.
Salary data for the 2024-25 school year shows 11 superintendents receiving taxpayer-funded salaries that top $400,000—more than the president of the United States. Another 90 superintendents make $300,000 or more.
Superintendents’ base compensation is not correlated to the number of students enrolled in a district or students’ academic performance.
Elected school board trustees approve superintendents’ pay and other contract terms, as well as severance agreements.
Proposed legislation to limit superintendents’ salaries never received hearings.
HB 610 must be approved by the full Senate before it can go to the governor and become law, but time is running short.
The regular legislative session ends June 2.
Meanwhile, two more Texas school superintendents found themselves on the hot seat this week.
Tuesday night, Mercedes ISD trustees placed Superintendent Benjamin Clinton on paid administrative leave following his DWI arrest.
During a special meeting on Wednesday, Edinburg CISD trustees placed Superintendent Mario Salinas on paid administrative leave for five days and reprimanded him over two incidents this month that raised safety concerns “and other issues as well that the board had concerns with over the last couple of weeks.”
According to TexasISD.com, dozens of districts are searching for new superintendents.