AUSTIN, Texas — On Tuesday, the House Committee on Public Education took up a sweeping school finance proposal at the statehouse. House Bill 2 would increase the amount of money the state gives schools per student by $220.
For years, public school administrators have asked for an increase in the basic allotment as districts grapple with inflation and higher costs. While several school districts have seen budget deficits and had to make painful cuts in the past few years, the basic allotment hasn’t increased since 2019.
House Bill 2 would provide nearly $8 billion in new funding for public schools. It sets aside $3 billion to increase the basic allotment, the minimum funding schools get each year per student.
Under House Bill 2, the base funding the state sends to schools would increase from $6,160 per student to $6,380. At least 40% of that increased funding would go toward teacher and employee raises. The bill also increases funding for the teacher incentive allotment to reward high-performing teachers.
The Senate has passed legislation to provide pay raises to teachers based on years of experience, expand the teacher incentive allotment and allow educators to enroll their children in pre-K free of charge.
“What we tried to do is to balance the fact that the last four years of the inflationary pressures have been intense on schools, families, everybody,” Rep. Brad Buckley (R-Salado) said. “We try to balance that by providing the resources for an across-the-board pay raise and setting a floor because of what’s required. Districts can do more.”
‘Pales compared to what we need’
Education advocates say that to account for inflation fully, schools need an additional $1,300 in basic allotment.
“I worry that this school finance bill is really only incentivizing the best practices or the special projects, rather than that infusion of resources through the base allotment,” Rep. James Talarico (D-Austin) said. “I worry that the $220 increase pales compared to what we need to keep our schools open and catch them up with inflation since 2019.”
Austin Independent School District Superintendent Matias Segura testified about the bill on Tuesday. He said he needs more information before formally saying whether he supports it or not, but he does think there are some good things in HB 2.
“We recognize that multiple things are contributing to school finance. Their weights have to be adjusted. It is easy to talk about the basics, the school, the basics, unit allotment, but there are many things that factor into it to cover the total need,” Segura said. “When folks talk about $1,300 being the gap, that is the real gap. But you can cover that gap in a variety of ways.”
Special education changes
HB 2 would also change how special education is funded. Schools would get state funding based on a student’s individual needs rather than how much time a student spends in a particular setting.
“When there is a funding deficit for special education, special education goes on. Districts draw down what they can do for special education. When those dollars don’t match the needs, they pull from basic operating funds,” Buckley said. “When you invest in special education funding, you close that gap and you free up more dollars to invest in whatever the district needs.”
Segura said increasing special education funding will be huge for Austin ISD.
“We spend about $169 million in funding for the students receiving special education services; roughly 20% of our students receive services,” Segura said. “Any time we can close the gap between our expenses and how we’re getting funding, it’s a big deal. This bill allocates a significant investment, and we’re grateful for that. There is a little bit further to go, but we do believe it’s a good first step for sure.”
Education bills this session
Districts statewide are grappling with multimillion-dollar budget deficits and are considering closing some schools. Eanes ISD leaders voted unanimously to close Valley View Elementary School after the district estimated a budget deficit of about $6.5 million.
Buckley filed the House’s proposal to create Educational Savings Accounts (ESAs). The policy that Republicans call “school choice” would allow parents to use state funds to help send their children to private schools.
Under House Bill 3, students in the program would receive funding for private school tuition equal to 85% of the average state and local funding public schools receive per student. The Texas Education Agency estimated that number to be about $12,800 in fiscal year 2023. Based on that, students in the ESA program would be eligible for a little under $10,900, with the number possibly fluctuating as the average state and local funding per child changes.
Up to $30,000 would be awarded to students in special education, and HB 3 would provide up to $2,000 for homeschooling. The amount of money the state spends on special education can fluctuate depending on the classroom.
Another public hearing on HB 2 is scheduled for Thursday morning.