How a pair of contentious bills would reshape education funding in Texas

Texas Republican leaders say they’re on the cusp of delivering both parental freedom and a massive investment in public schools this year. Democrats say the majority party is holding public school teachers and students hostage over a voucher program with roots tracing back to segregation.

What would the legislation that’s being considered in the Texas Legislature’s special session actually do, and how might it affect parents and students in Bexar County?

Last week the state Senate signed off on Senate Bill 1, which would create a new $500 million program to fund education expenses for students who leave or have left the public school system. It also approved Senate Bill 2, a $5.2 billion public school funding package that would increase teacher pay, school security budgets and the per-student allotment over the next four years.

The fate of the two proposals now rests in the state House, where Gov. Greg Abbott hopes the new public school spending will help lure lawmakers on board with the program to fund private school tuition — something members of both parties have long rejected.

Here’s the San Antonio Report’s analysis of what’s in the Senate’s two major education bills.

How the Education Savings Accounts would work

Senate Bill 1 would allocate $500 million from the state’s general fund for the creation of an education savings account (ESA) program.

Starting in 2024, students who want to leave the public school system could apply for an ESA worth up to $8,000 per school year to fund private school tuition, school supplies, private tutoring and other education-related expenses laid out in the bill (Section 29.359). Applications would also be open to students currently attending private schools, or who are enrolling in school for the first time.

The bill doesn’t place any new requirements on private schools or other institutions that receive the ESA money, such as regulating their curriculum or which students they accept.

The program’s $500 million budget would fund ESAs for roughly 50,000 students in its first year, equivalent to roughly 1% of the 5.5 million students in the Texas public school system. The bill says students who enter the program would automatically remain in it until graduation, but the $500 million funds the ESAs only for one school year.

Public schools receive funding from the state based on their average enrollment numbers, meaning the school districts will lose money for each student who uses an ESA to pursue an alternative form of education.

Data compiled by Every Texan estimates what that revenue loss could look like for each district if their enrollment decreased 1%. For example, Every Texan’s analysis shows Alamo Heights Independent School District would lose roughly $400,000 if 1% of students utilized ESAs.

Lottery system: If there are more applicants for the ESAs than funds available, students will be selected by lottery, with preference toward students from low-income households and students with disabilities.

The bill directs 40% of the funds toward students living in households at or below 185% of the federal poverty line, and 30% of the money toward students in middle-income families (between 186% and 500% of the federal poverty guidelines). It directs 20% of the money toward students with a disability.

Ten percent of the money would be available to students who don’t meet the low- or middle-income requirements and don’t have a disability. Those students also would be eligible for any unused money if there aren’t enough low- or middle-income applicants, or applicants with disabilities.

Educational assistance organizations: The new program would be administered by the state comptroller’s office, which would disperse the money to outside vendors tasked with ensuring the ESA money is spent on qualified expenses.

Those vendors, known as educational assistance organizations, also would assist with the applications and run the lottery system. Senate Bill 1 directs 5% of the program’s budget to pay these groups and 3% of the budget to the comptroller’s office for administrative costs.

What public schools would get

Senate Bill 2 would provide roughly $5.2 billion for public schools during the 2024-2025 biennium, including $3.8 billion for teacher salary increases, $400 million for school safety and $975 million for the basic allotment increase.

Roughly $6.3 billion in other education expenses, such as funding for education materials and benefits for retired teachers, were approved during the regular session.

Among the most significant changes, Senate Bill 2 would provide $3,000 across-the-board raises for public school teachers, plus an extra $7,000 raise for teachers in districts with fewer than 5,000 students (Section 8). Though the 2023-24 school year has already started, teachers would still receive the full increase this school year.

The bill would expand teacher recognition programs, which allow schools to pay some teachers extra based on their performance. The changes would make more teachers eligible and increase the financial incentives attached to them. The bill would also increase incentives for teachers who work in rural districts.

The bill does not include raises for other school staff, like administrators or counselors. It also doesn’t provide funding for future teacher pay adjustments beyond the one-time salary increases.

Senate Bill 2 would increase the basic allotment districts receive per student by $75, from $6,160 to $6,235. (Education groups requested an increase of $1,000 per student going into this legislative session.)

Finally, the bill would increase the amount school districts receive per student for school safety from $10 to $20 — money is intended to help districts cover new safety mandates lawmakers put in place after the Uvalde school shooting.