Texas Legislature nearing final approval of $8.5 billion school funding package

Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news.

---

Texas public schools are one step closer to receiving new state money after the Senate on Thursday gave preliminary approval to an $8.5 billion funding package, a deal born out of lengthy negotiations with the House in recent weeks as the 2025 legislative session approaches the finish line.

The vote on House Bill 2 comes the same day lawmakers formally announced an agreement to provide districts a $55 per-student increase to their base funding while setting aside money for schools to tackle, among other costs, insurance, transportation and utilities. The legislation also includes billions for teacher pay and special education, as well as dollars for educator preparation, early childhood learning and staff salaries.

After the Senate grants final approval to HB 2, which will likely happen Friday, the proposal will go back to the House, where lawmakers are expected to sign off on the changes before sending the bill to Gov. Greg Abbott for final approval.

Revealing the terms of the new legislation on the Senate floor late Thursday night, Sen. Brandon Creighton, who chairs the chamber’s education committee, called it the most “transformative education plan that Texas has ever seen.”

“Two years ago, this chamber passed historic education reforms and funding, and took historic steps forward. But as we all know, the bill did not make it across the finish line,” the Conroe Republican said. “In hindsight, maybe the wait was worth it, because this legislation, House Bill 2, delivers what Texas students and Texas educators truly need and have been asking for.”

Senate Republicans and Democrats alike celebrated the legislation, which marks a dramatic shift from the flexible spending system that district leaders and public education advocates have pushed for toward a structure in which schools must spend state money as directed by the Legislature.

In addition to the $55 per-student base funding increase, HB 2 would allocate $500 million that districts can use to increase the salaries of school counselors, librarians, nurses and other support staff. The bill also grants schools $106 per student to pay costs associated with transportation, hiring retired teachers, insurance and utilities.

HB 2 would raise educator pay, which represents more than $4 billion of the proposal’s overall funding, using this system:

* Teachers with 3-4 years of experience in school districts with 5,000 or fewer students would receive a $4,000 raise, while those with five or more years of teaching on their resume would earn $8,000.

* Teachers with 3-4 years of experience in school districts with more than 5,000 students would earn a $2,500 raise, while those with five or more years of experience would receive $5,000.

The bill also would overhaul Texas’ special education funding system to account for the individual needs of each student; establish a compensation system for educator preparation and mentorship programs; set aside money for schools to better identify learning difficulties among the state’s youngest students; and raise the amount of money districts receive per student and campus for safety upgrades.

“We've all been patient to see this day come and been patient for the last couple of days,” said Sen. Borris L. Miles, D-Houston. “This is something that we can all go home, I think, and tell our colleagues that we have changed the face of educational finance in the state of Texas.”

School administrators and public education advocates have spent much of the legislative session pleading for more money, pointing to budget shortfalls and rising operational costs. That has come as districts all over Texas have had to shutter critical programming, shorten school weeks and close campuses in no small part due to stagnant funding.

Much of school leaders’ advocacy this session has centered on raising their base dollars, known as the basic allotment, which districts rely on to pay the salaries of full-time district employees. The allotment also gives schools the flexibility to pay for a range of other needs on their respective campuses, including insurance, maintenance and instructional materials.

A previous House proposal had sought to boost the basic allotment from $6,160 to $6,555 per student. Senators, however, wanted a more modest allotment increase, instead focusing their attention on teacher raises tied to years of experience, location and performance.

Direct state investment in educators, senators argued, would free up districts to use more of their base funding elsewhere, including salaries for support staff and campus maintenance. But that argument did not go over well with school leaders, who felt that employees critical to school operations and positive student outcomes would be left out.

Districts also worried they would be left dealing with inflationary pressures that have only intensified since the state last raised the basic allotment in 2019 — and since the Legislature decided two years ago not to provide schools with a significant boost in funding due to the political fallout over private school voucher legislation.

In the end, both chambers settled on the Senate’s modest $55 basic allotment increase while sending schools money to address some of the basic costs districts said they struggled with.

---

First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!