This paper summarizes the historical foundations for the financing and maintenance of Texas' present day school system. This review traces the history of Texas public education from the seventeenth century through 1949 when three major school reorganization laws were enacted by the state legislature. The earliest schools in Texas were associated with the Spanish missions and were intended to educate (and control) the Indians. Education suffered under the Mexican regime, which failed to provide funds for schools. The Republic of Texas set up a public school system based on land grants to counties. This funding approach was later employed when Texas entered the Union and continued until the Civil War brought havoc to public education. However, after Reconstruction, the 1875 state constitution provided for a perpetual school fund based on property and poll taxes as well as for a state board of education. Independent school districts emerged. Finally in 1949, the state legislature mandated that 12 years of schooling for all children are mandatory and gave the state board of education more power. (DS)