Breakthrough in Texas School Funding Plan
AUSTIN – A deal on a sweeping plan to pump $8.5 billion to Texas schools is close. A compromise between the Texas House and Senate appears to maintain the lower $55 per-student increase to the basic allotment but adds an additional $500 million for fixed costs to the plan, a lawmaker and several aides working on the deal told The Dallas Morning News.
The agreement also could end an impasse on at least one other priority bill, a proposal to ban or regulate the sale of hemp-derived THC. The proposal creates a new $1.3 billion fixed-cost allotment to help schools pay for transportation, insurance, utilities and contributions to the Teacher Retirement System that will result from educator pay raises also included in the bill, according to details of the plan.
Understanding the Plan
Texas public schools receive $6,160 per-student in that base amount now. They get additional state dollars based on various factors, such as special education, career technical programs, safety needs, and others. Lawmakers worked behind closed doors Tuesday late into the night to strike a deal after the Senate’s version unveiled last week faced pushback from public school leaders and advocates for its restrictive structure.
The amount of per-student state funding will not be increased beyond what Sen. Brandon Creighton, R-Conroe, proposed in the Senate’s version of the finance bill. That reverses course from Rep. Brad Buckley’s, R-Salado, plan that House legislators passed on April 16, which would have increased that basic allotment by $395, adding billions of largely untethered dollars to public schools.
Previous Proposals and Compromises
State senators broadly opposed increasing per-student funding, which gives school districts more latitude on how to spend state funding. Instead, that chamber preferred a more prescriptive approach. The compromise version of the House Bill 2 school finance bill chips away at some of the proposed teacher pay raise increases that were in Creighton’s previous version, lowering that dedicated funding from $4.4 billion to $4.2 billion.
It was unclear if years of experience or merit will affect salary increases. State leaders called the school finance bill part of a Texas two-step for education. Among the first bills signed into law this year was one creating a school voucherlike program that allows public dollars to funnel to private schooling.
Impact on Schools and the Community
Texas school leaders, who are finalizing their own districts’ budgets in the coming weeks, have said they need help as the state hasn’t significantly increased funding as inflation and other factors affect finances. Senators must vote on HB 2, attaching any terms of the deal as amendments during that upcoming debate, which has not been set.
If House members also concur, the plan then goes to Gov. Greg Abbott. Reaching a compromise on money for schools may also dislodge a bill that would regulate or outright ban hemp-based THC, multiple aides said. The proposal, Senate Bill 3, is a top priority of Lt. Gov. Dan Patrick, who is seeking a total ban.
Hemp-Based THC Regulation
House members had proposed a softer approach of regulating the $8 billion industry. That THC bill requires approval in the House before it can be sent to the governor’s desk for consideration. It was set for a vote on Tuesday but stalled out as officials from the lieutenant governor’s office, the House speaker’s office, and lawmakers ironed out a deal on school finance.
Conclusion
The breakthrough in the Texas school funding plan is a significant step towards addressing the financial needs of public schools in the state. While there are still details to be worked out, the compromise reached between the House and Senate is a positive development for educators, students, and the community. As the plan moves forward, it will be important to monitor its implementation and ensure that it meets the needs of all stakeholders.
Frequently Asked Questions
Q: How much money will be allocated to Texas schools under the new plan?
A: The plan allocates $8.5 billion to Texas schools, with a $55 per-student increase to the basic allotment and an additional $500 million for fixed costs.
Q: What is the difference between the House and Senate proposals?
A: The House proposed a $395 increase to the basic allotment, while the Senate proposed a $55 increase. The compromise version maintains the lower $55 increase but adds additional funding for fixed costs.
Q: How will the plan affect teacher pay raises?
A: The compromise version of the plan lowers the dedicated funding for teacher pay raises from $4.4 billion to $4.2 billion. It is unclear if years of experience or merit will affect salary increases.
Q: What is the status of the hemp-based THC regulation bill?
A: The bill is currently stalled in the House, but reaching a compromise on school funding may help dislodge it. The proposal is a top priority of Lt. Gov. Dan Patrick, who is seeking a total ban on hemp-based THC.

