The district had been contesting a state takeover, but changed its position as a court hearing was set to begin.
William Strampel is the first former or current MSU official to be convicted following the investigation into MSU's handling of convicted sex offender Larry Nassar.
The legislation signed by Gov. Greg Abbott is projected to boost base per-pupil spending by 20%.
Lawmakers say many education administrators have left the state because of the limits placed on superintendents' salaries in 2011.